GLOSSARY
Authorization
The first requirement when processing a credit card transaction. The amount
charged on the card is compared to the individuals' bank account balance,
and that amount is then put on hold for approximately 72 hours. The process
then goes to Settlement. 
AVS
(Address Verification System)
This is an automatic check done on credit card transactions that verifies
that the billing address supplied by the customer is the same address
for the credit card presented at the time of payment. This is feature
is built into most credit card transaction processing equipment in order
to prevent fraud.
Backorder
This is an order for a product that is currently out-of stock that will
arrive after the shipping date it was originally expected on.
Batch
This is a collection of credit card transactions that a merchant collects
over a certain amount of time. Typically batches of credit card transactions
are collected in one day and then submitted to the acquiring bank at one
time; often at the end of the day. A batch fee is charged by acquiring
bank so as to encourage merchants to submit their credit card transactions
in groups as apposed to doing a number of transactions each day.
Bill
of Lading (BOL)
This is a written receipt from the carrier which specifies and confirms
information such as what is being shipped and how many items are being
shipped to the shipper.
Card
Issuer
This refers to a financial institution, typically a bank, which institutes
a line of credit with a particular cardholder, and is responsible for
issuing the credit card which will be used to purchase goods and services.
Cash
on Delivery or Collect on Delivery (COD)
This is a type of shipment in which the cost of the item and the cost
of shipping the item is paid at the time of delivery.
Chargeback
This is a credit card transaction where money is given back to an unsatisfied
customer from a merchant after the return of a product has been settled.
This happens when a customer has been unhappy with the product they have
purchased.
Merchants can reduce chargebacks by ensuring their customer service department
is proactive and is skilled in effectively resolving disputes with customers
before a chargeback is requested. Many merchants choose to outsource their
customer service department to ensure the highest quality and reduce chargeback
occurrences.
Decline
This is when a charge can't be authorized for whatever reason, whether
that be because there are not enough funds available in an account or
because a credit card has gone past its expiring date, or has been reported
stolen.
Discount
Rate
This is a fee based on a percentage, typically between two and ten percent,
which is charged by an ISO or acquiring bank for time and expense used
to handle electronic transactions.
Drop
Shipping
This refers to products being on hand at a main warehouse just before
the airtime of an infomercial intending to sell that product.
E-Checks
Customers can use E-Checks either by Internet or telephone, without customer
service intervention. No signature is required for the check to clear.
E-Checks can be used by customers to pay bills or order products.
E-Commerce
This refers to electronic commerce which is an automated or a semi-automated
form of online commerce allowing a consumer to purchase a product or order
a service electronically using a website or email.
E-commerce can also mean a transaction through Electronic Data Interchange
(EDI) with the use of peer-to-peer systems, intranets and additional electronic
means.
An e-commerce fulfillment house specializes in importing these types of
orders into its database, and then taking care of the handling, packing,
and shipping of the products, as well as providing continuous customer
service.
EDI
(Electronic Data Interface)
Electronic processing of payroll, child support, taxes and bank transfers.
Also allows you to make deposits right from your office!
E-Invoices
This service allows customers to receive an email telling them that their
monthly bill is now ready for viewing. The invoice can be viewed, downloaded,
or printed. They can also pay the bill over the Internet with speed and
convenience using an E-Check.
Electronic
Advance Check
Customer process their advance lease checks or deposits electronically.
Electronic
Check Recovery
Revolutionizes the collection of NSF (bounced) checks by converting a
paper check into an electronic check for electronic collection of the
face value and service fee. An electronic check is cleared quickly without
bank fees and can be timed for higher collecting efficiency. 2 attempts
are allowed to re-clear with E-checks instead of only 1 with a paper check.
With E-checks only the NSF collection fee of $25.00 (by state) is allowed!
We share part of this with you!
Electronic
Lockbox
You can now convert paper checks into electronic items. This system is
designed to allow companies that receive checks in the mail to process
thes checks directly through CEC. Actual checks are no longer required
to be taken to the bank as they are deposited electronically.
E-Logistics
In regards to third party logistics, e-logistics refers to the act of
managing all back-end operations that involve handling the data as well
as intramodal and intermodel communications over networks.
Fulfillment
This refers to the functions involved in an infomercial campaign, from
the warehousing, labeling, packaging, shipping and tracking of a product
Often fulfillment functions are subcontracted to 'fulfillment houses'
who specialize in this business. Some offer their clients inbound phone
customer service.
Gateway
Processor
A gateway processor charges your customers' credit cards via the web and
sends the funds to your merchant account.
General
Ledger Posting
Posting direct to your general ledger electronically. This feature saves
you the task of inputting or updating your general ledger for any E-Check
activity which has occurred or the checks that have bounced.
Issuing
Bank
This is the bank that keeps the consumer's credit card account and is
responsible for taking the money out of a merchant's account in order
to pay for a purchase made from a credit card. Then the issuing bank sends
a bill to the consumer for the amount paid.
Merchant
Account
This is an account that a merchant acquires from a credit card issuer.
This type of account allows a merchant the ability to process his customer's
credit card purchases. In order to run a successful B2C e-commerce as
well as B2B e-commerce a merchant must have merchant accounts with the
major credit cards such as MasterCard, Visa, Discover and American Express.
It is also important that
a merchant keep a good working relationship with these account providers
and can do this by running a quality customer service department, as well
as insuring that customer orders are shipped promptly and accurately.
In order to maintain this quality service a merchant may choose to use
the services of a third party fulfillment service.
Merchant
Account Processor
-this refers to the company that authorizes and processes credit card
transactions for a fee.
Merchant
Bank
This is a financial institution that provides merchants with credit card
processing accounts. It's also an acquiring bank that receives funds from
a cardholder once the credit card transaction is finalized, and deposits
that payment amount, minus any fees, into the merchant's account.
Monthly
Processing Minimum
The monthly processing minimum is the MINIMUM monthly fee you must pay
to the credit card company. A competitive monthly minimum is approx $30.
Example: If you sell $1000 in goods over one month, your total Discount
Rate (see explaination above) would be $23.90. This amount does not meet
the $30 minimum so the credit card company will round your charge up to
$30. If the discount rate and transaction fees exceed $30, then you have
met the Monthly Processing Minimum and the fee does not apply.
Multiple
Payments
This is a sales offer technique which breaks down the retail price of
a product into smaller amounts which can be paid in installments with
the use of a credit card or with advertiser sponsored financing.
Offline
Processing
This method of credit card charging allows you to capture your customers'
credit card information for charging at a later time. If you have an existing
offline merchant account, this may be a good option for you.
Past
Due
This is the status of an order or a product which has gone past its required
shipping date without having completed fulfillment tasks associated with
the order completed. Past due orders differ from back orders, because
the product is actually on hand, but has not been shipped out yet.
Payment
Processing
This is a secure processing system done in real time for online debit
card and credit card transactions. This process also includes the verification
and the authentication of a credit card that is used to buy products or
pay for services.
PCI Compliant
The Payment Card Industry
Data Security Standard (PCI DSS) is an information security standard for
organizations that handle cardholder information for the major debit,
credit, prepaid, e-purse, ATM, and POS cards.
Point-of-Sale
Conversion
Allows you to process checks like credit cards by converting a paper check
to an electronic transaction at the point-of-sale. You can also verify
a check before accepting it.
Post-Sale
Conversion
This service allows a merchant to process their paper checks after their
customers have completed a sale using a check reader and a PC or a high
speed check reader and collect the funds within 24-48 hours without going
to the bank; it also eliminates bank deposit fees.
Real-Time
Processing
This method of credit card charging authorizes and charges the customer's
credit card at the time of purchase.
Returns
This is the number of items, the dollar amount or the calculated percentage
of total sales returned to the direct marketer in order to get a refund.
Reverse
Logistics
This is when products are returned from B2C or B2B operations and processed.
Reverse logistics typically involves product refurbishing, customer service,
repackaging of products, processing refunds and credits, liquidation of
a product, and the restoration of the product to inventory.
Secure
Socket Layer (SSL)
SSL is a secure web protocol that uses 128 bit or higher encryption to
keep your customer's card number and personal information secure.
Selling
Cycle
This is a cycle of information that gives details of the product information.
It's typically put into one of three pods and replayed throughout the
infomercial, but rearranged in a different manner. Each selling cycle
lists the features of a product, the benefits, the credibility, the guarantee,
the offer, the substantiation and the call to action.
Settlement
This is when all necessary funds are transferred so a merchant who is
involved in a credit card transaction gets paid for goods or services.
Shipping
and Handling (S & H.)
This is an added cost charged to the consumer which is tacked on to the
stated product price, which is stated on the billboard.
Statement
Fee
This charge is exactly as it sounds. The fee you pay for the bank to generate
and mail you a statement outlining your transactions. Statement fees usually
cost between $10.00-$15.00/month.
Transaction
Fee
Most companies charge around $0.30 per transaction. If you make 50 sales
per month, the total transaction fee would equal $15.00 (0.30 x 50 = $15.00).
Upsell
This refers to any product that is also offered to a DRTV customer at
the time of their initial phone order. Inbound telemarketers may offer
a caller a one or more additional related items for a discounted price,
after the key product is ordered.
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