A
Access Provider
A
company that provides a service to access the Internet for its
customers, usually via a modem using a dial-up connection or via a
dedicated line.
Account Number
A unique sequence of numbers assigned to a cardholder account that identifies the issuer and type of financial transaction card.
Applet
A
small program (usually written in Java or ActiveX) that is downloaded
to perform a small task on a computer, such as a particular interactive
web page function.
Authentication
The process of identification of individuals and businesses using digital certificates.
Authorization
The
act of ensuring the cardholder has adequate funds available against his
line of credit. A positive authorization results in an authorization
code being generated, and those funds being set aside. The cardholder's
available credit limit is reduced by the authorized amount.
B
B2B (Business to Business)
Electronic
trade, exchange of goods and services or partnering between
organizations (often over an extranet or e-marketplace). Current
volumes of e-business activity are around 90 per cent B2B, with the
remainder being accounted for by B2C e-commerce.
B2C (Business to Consumer)
Electronic
trade (e-commerce), exchange of goods and services between businesses
and end consumers (as opposed to B2B e-business between organizations
alone) with the end consumer being the target market.
Bandwidth
The
amount of electronic data that can be transferred through an electronic
connection in a given time. For modems connected by telephone to the
Internet, the modem's "speed" represents the maximum possible bandwidth
of the connection, such 56.6 Kps (kilobits per second). Competent Web
site operators strive to keep the size of Web page files low to
conserve bandwidth and speed downloading.
Browser
Short
for 'Web Browser,' the tool (program) that allows users to surf the
Web. The most popular Web browsers are Netscape Navigator and Microsoft
Internet Explorer.
Business Day
Those
days when most corporate and government offices are open for business,
usually any day except Saturday, Sunday and legal holidays. The
business day begins at 9:00 AM for a 24-hour period.
C
Cache
An
area of computer memory (either held on a chip or else on a hard disk)
that is used to temporally store data files in order to increase the
speed of access to them.
Cardholder
The person to whom a financial transaction card is issued or an additional person authorized to use the card.
Certificate Authority
A
third party company that issues digital certificates that confirms a
company or individuals' identification. A digital certificate is a
crucial part of secure ecommerce.
Chargeback
Where
a transaction is debited against a merchant account in cases of refunds
and fraud. Chargebacks usually attract a fee that is debited against
the merchant.
Client
A computer that
requests and receives data over a network, including the Internet. The
most common types of client on the Internet are computers running
browsers or e-mail programs.
Cobranding
Where
two companies identify a partnership between them through one company
displaying their logos, color schemes etc on another companies
application.
Commerce Server
A Web
server that contains the software necessary for processing customer
orders via the Web, including shopping cart programs, dynamic inventory
databases, and online payment systems. Commerce servers are usually
also secure servers.
Cookies
Small text
files stored on your computer when visiting a site that record
preference for that particular site's usage. They make it possible to
remind that site about you the next time you visit it. Cookies are also
common in shopping cart applications in order to remember visitors as
they move throughout product pages.
CRM (Customer Relationship Management)
The
entire process of a pre-sales, sales and service relationship with a
customer. Many software applications are now available that permit you
to record this relationship from the time the clients asks their first
question. Good CRM software is much more efficient than fragmented
records as it can save time in tracking communications and transactions
with a particular person.
Cryptography
The practice of digitally "scrambling" a message using a secret key or keys.
Cyberspace
A
term coined by the science-fiction novelist, William Gibson, in his
fantasy novel, Neuromancer. Used to describe the 'world' of computers.
Used as a reference to the 'Internet.'
Humanity's 'consensual
hallucination' of the realm of pure information used for computer
processing, communications and data representation. Cyberspace is a
metaphor that helps people to cope with the inherent complexity of
worldwide, hyperlinked, multimedia computer networking. Not to be
confused with the technological infrastructures of computing and
telecommunications networks, cyberspace is hence best understood as a
mental land of shared ideas with the defining purpose of enabling human
beings to conceptually and usefully get a grip on the pet ghosts in
their machines.
D
Database
A
file or file system containing organized information and, most
commonly, a filing and retrieval system for storing information. Most
database software also includes tools for data analysis. Examples of
database software include Oracle, Sybase, and MySQL.
DES (Data Encryption Standard)
A popular standard encryption scheme.
Digital Cash
Two
main mechanisms in that "digital coins" can be downloaded to the user's
PC from a participating bank, or the set up of a digital money account
with a bank. Both (encrypted) forms of cash can be sent to merchants
for payment.
Digital Certificate
Online
identification that authenticates a consumer, merchant and a financial
institution. Digital certificates are used to encrypt information
exchanged in SET transactions. A certificate is a public key that has
been digitally signed by a trusted authority (the financial
institution) to identify the user of the public key.
Digital Signatures
An
electronic signature, which cannot be forged. Instead it is generated
from a computed digest of the text that is encrypted and sent with the
text message. The recipient decrypts the signature and retrieves the
digest from the received text. If the digests match, the message is
authenticated and proved to be from the sender.
Digital Wallet
A
consumer account set up to allow e-commerce transactions through a
particular credit card processing system. Before the consumer can make
a purchase, he or she must first establish an account with the credit
card processor, who provides an ID and password. These can then be used
to make purchases at any Web site that supports that transaction
system.
DNS (Domain Name System)
A
general-purpose data query service whose principal use is the lookup of
host addresses based on host names. Important domains are .com
(commercial), .edu (educational), .net (network), .gov (U.S.
government), .mil (U.S. military) and .org (organization).
Domain
A
designation for particular location on the Internet. A domain, for
example "x-cart.com," contains files that make up the content of Web
pages under that address. x-cart.com/intro.htm and
x-cart.com/tutorial.htm are different Web pages located within the same
domain. Domain names are associated with IP addresses.
Down Time
A period when all or part of a system or network is not available to end users due to failure or maintenance.
Download
Copying a file from a Web resource to your computer.
E
E-Business
Encompasses
all forms of online electronic trading, taking in the more narrowly
defined concept of consumer-based (B2C) "e-commerce", plus B2B
electronic trading and process integration, as well as the technologies
for process integration inside organizations.
E-Check
The
electronic equivalent of a paper check, an E-Check is a form of payment
that deducts funds directly from your own standard checking account.
eCheck services are usually managed by third party companies that
interface with a number of different banks. An echeck provides a more
fraud resistant option in terms of ecommerce transactions.
E-Commerce (Electronic Commerce)
The
processing of economic transactions, such as buying and selling,
through electronic communication. E-commerce often refers to
transactions occurring on the Internet, such as credit card purchases
at Web sites.
Electronic Point of Sale
A
point-of-sale merchant with electronic equipment for pricing and
recording transactions, but not necessarily incorporating functions for
electronic funds transfer.
E-mail (Electronic Mail)
A
system where a computer user can exchange messages with other computer
users (or groups of users) via a communications network.
Encryption
Process
of transforming data into a type that prevents casual observers from
deciphering. Data scrambling process automatically takes place in the
terminal or computer before data is transmitted for security/anti fraud
purposes.
Expiration Date
The date embossed on a bankcard, beyond which the card becomes invalid.
F
FAQ (Frequently Asked Questions)
A term that refers to a list of questions/answers provided by companies relating to software products, Web site, etc.
File Transfer
The copying of a file from one computer to another over a computer network.
Firewall
Software/hardware
used to prevent unauthorized access from a computer system or a
computer network. It also connects a local network to the Internet and
for security reasons only allows certain types of messages through.
Flash
A
vector-based moving graphics format created by Macromedia for the
publication of animations on the world-wide web. Flash (.swf) graphics
files can be created in Macromedia's own Flash program, or else in
software applications such as Adobe's LiveMotion or Corel's RAVE (real
animated vector effects) package. Most web browsers still require a
plug-in to be installed before they can play Flash animations.
FTP (File Transfer Protocol)
A
set of standard codes for transferring files over the Internet. FTP is
usually used for retrieving large files or files that cannot be
displayed through a browser. Windows FTP and Fetch are examples of FTP
software.
G
Gateway
Computer
that allows communications between networks one network with another.
Used in ecommerce to act as an interface between a merchant and a bank;
i.e, a Payment Gateway.
H
Holdback
A
portion of the revenue from a merchant's credit card transactions, held
in reserve by the merchant account provider to cover possible disputed
charges, chargeback fees, and other expenses. After a predetermined
time, holdbacks are turned over to the merchant. Note: Merchant account
providers almost never pay interest on holdbacks.
Home Page
The page where a user normally enters a Web site. Also contains the major hotlinks to various features/contents of the site.
Hosting Provider
A
company that provides services for setting up, storage and functioning
of Internet resources. Hosting plans from different providers vary in
the disk space, included traffic and a range of technologies available
for the site functionality.
HTML (Hypertext Mark-Up Language)
The
language used to write pages for the World Wide Web. This language lets
the text include codes that define fonts, layout, embedded graphics,
and hypertext links.
HTTP (Hypertext Transfer Porotocol)
The way in which World Wide Web pages are transferred over the Internet.
HTTPS (Hypertext Transfer Protocol Secured)
A variant of HTTP that encrypts messages for security.
Hyperlink
A
hypertext connection that can take you to another document or another
part of the same document. On the World Wide Web, hyperlinks appear as
text or pictures that are highlighted. To follow a hyperlink, click the
highlighted material.
Hypertext
A
system of writing and displaying text that enables the text to be
linked in multiple ways, be available at several levels of detail, and
contain links to related documents.
I
Internet
A system by which all the computers in the world talk to each other.
Intranet
A
private version of the Internet that lets people within an organization
exchange data using popular Internet tools, such as browsers.
IP Address (Internet Protocol Address)
A designation for a particular location on the Internet, such as "140.23.719.6." IP addresses are associated with domain names.
ISP (Internet Service Provider)
A
firm that provides access to the Internet, including Web browsing and
e-mail. ISPs often offer connections that can be accessed by dialing a
telephone number through your computer's modem.
J
Java
A
programming language frequently used on Web sites. Some Java programs,
or "applets" are downloaded from the Web server to the visitor's own
computer, which then runs them. This distinguishes Java programs from
other Web programming languages, such as PERL, that reside and run on
the Web server (only the results are downloaded to the visitor's
computer).
JavaScript
A world-wide web
programming language that is similar to (if less powerful than) Java,
save for the fact that JavaScript coding can be inserted directly into
pages of HTML. JavaScript is typically used for interactive effects
such as "roll-overs" on web pages (where buttons or other graphics
change colour or otherwise when the mouse pointer is moved over them).
M
Magnetic Stripe
A stripe (on the bankcard) of magnetically encoded cardholder account information affixed to a plastic card.
Merchant
A
retailer, or any other person, firm, or corporation that, according to
a Merchant Agreement, agrees to accept credit cards, debit cards, or
both, when properly presented.
Merchant Account
A
special account where money from credit card sales is first routed to
and held before transfer to your own business account. This process is
usually fully automated in ecommerce transactions. Money may be
transferred into your standard business account in real-time or during
various points in 24 hour period. A merchant account is a crucial part
of ecommerce.
Merchant Fraud
The act of
submitting sales drafts which are not the result of legitimate sales
for the purpose of defrauding the services, the client bank, or
individual cardholders. Fraud includes knowingly accepting lost,
stolen, or counterfeit credit cards.
Micropayment
Very
small charges, perhaps even less than a penny, processed through
e-commerce systems. Until this time, e-commerce has been largely
limited to purchases of $10 (U.S.) or more. With micropayments,
however, e-commerce merchants can sell products for far lower prices,
such as charging small fees for downloading documents or charging per
click for online advertising. Micropayment systems are still largely
experimental and not widely available.
MIDS (Merchant Identification Number)
Unique merchant identification number that is used in conjunction with all transactions.
N
Network
Computers that are connected together.
O
Online Storefront
A
Web site containing eCommerce software, available on a public network,
such as the Internet, which offers goods and services for sale. An
online storefront is the equivalent of a store or place of business
that a customer would visit to purchase goods and services.
Out-of-the-box
Refers to an applications suitability to be rapidly integrated into an existing system
Operating Rules
Rules
and business practices meant to increase consistency and
interoperability among the various financial service providers that
will interact with each other and end-users. Examples of operating
rules include: authorization procedures, settlement timing
requirements, audit and accounting rules, and credit limits.
P
Payment System
A
set of instructions and procedures used for the transfer of ownership
and settlement of obligations arising from the exchange of goods and
services.
Payment Threshold
The minimum accumulated commission an affiliate must earn to trigger payment from an affiliate program.
PDF File
A
method for distributing formatted documents over the Internet. You need
a special reader program called Acrobat, and you can get it at http://www.adobe.com
PIN (Personal Identification Number)
An
alphanumeric or numeric code used to verify the identity of an
individual attempting to use a credit card, debit card, or other
account
Plug-in
A "software add-on"
that can be linked into an existing software application in order to
give it additional capabilities and enable them to perform additional
custom operations.
Privacy Policy
A Web
site's official statement on the type of information collected on a
site, how the information will be used, how the person can access this
data and the steps for having the data removed. A privacy statement
also usually includes information regarding systems that are in place
to protect the information of web site visitors.
Privacy Seal Programs
Independent organizations that verify if an online companies' Privacy Statement is verifiable and accurate.
Processor
An
organization that is connected to VISANet and or Banknet and provides
authorization and/or clearing and settlement services on behalf of a
member.
Protocol
The agreed-on rules
that computers rely on to talk among themselves. A set of signals that
mean 'go ahead,' 'got it,' 'didn't get it, please resend,' 'all done,'
and so on.
Public Key
A method of
encrypting electronic data. Developed to account for weaknesses in
symmetric encryption, public key encryption does not require the
transmission of decoding keys themselves.
R
Real-time
The
verification and processing of credit card transactions immediately
following a purchase. Real-time verification on the Web usually takes
less than five minutes. Real-time verification is especially important
for Web sites that sell products and services that consumers expect
immediately, such as memberships to the site or software downloads.
Recurring Fees
Regular,
usually monthly, charges for maintaining a merchant account. Recurring
fees include the discount rate, transaction fees, statement fee, and
monthly minimum.
Recurring Transaction
A
transaction charged to the cardholder (with prior permission) on a
periodic basis for recurring goods and services, i.e., health club
memberships, book-of-the-month clubs, etc.
Refund
The
reimbursement of the purchase price of a service back to the credit
card, for reasons such as faults in product qualities or
dissatisfaction with the service provided.
Refund Policy
A written definition of rules concerning the return of payments to the company customer.
S
Scalability
The ability and flexibility of an application to meet growing requirements of an organization
Secure Servers
Special
servers that utilize encryption to prevent unauthorized users from
intercepting and reading a message that passes through its system. Such
Web servers are capable of establishing encrypted communication with
clients, generally using SSL or SET.
Server
A computer that provides a service to other computers (known as clients) on a network.
Session Cookie
Temporary
cookie stored in a computer memory for remembering preferences during a
web site visit that is flushed on leaving the site.
Setup Fees
Fees charged for establishing a merchant account, including application fees, software licensing fees, and equipment purchases.
Shareware
Software
that is distributed at no cost that can be used for free for a specific
period of time or under certain circumstances to allow evaluation.
A
form of "try before you buy" software, it is usually distributed
(either across the Internet or via magazine cover disks) for free with
time-constrained (eg 30 day) functionality so that a user can install
and appraise it before sending off a registration fee to the program
author in exchange for unlimited use and documentation.
Shopping Cart
Shopping
cart software allows the cardholder to select items from an online
store and place them in a 'virtual shopping basket or shopping cart.'
The shopping cart keeps track of items a visitor picks to buy from your
site while the client views other items within the 'virtual
storefront,' keeps a running total, and may calculate taxes and
shipping. The items in the shopping cart are eventually ordered if the
cardholder chooses.
SLA (Service Level Agreement)
Used
in many merchant/institution and merchant/consumer transactions to
define the boundaries of what the service is committed to deliver and
under what circumstances.
Spam
Refers
to junk e-mail, most usually received in the form of unsolicited
advertisements. Alternatively, spam can also refer to excessive,
unwanted and/or otherwise irrelevant newsgroup postings.
SSL (Secure Socket Layer)
A
system for encrypting data sent over the Internet, including e-commerce
transactions and passwords. With SSL, client and server computers
exchange public keys, allowing them to encode and decode their
communication. A secure protocol ensures the integrity of information
that is transmitted via this means.
T
TCP/IP
The
system networks use to communicate with each other on the Internet. It
stands for Transmission Control Protocol/Internet Protocol.
Third-Party Processing
Processing of transactions by service providers acting under contract to card issuers or acquirers.
Transaction
Any
event that causes a change in an organization's financial position or
net worth, resulting from normal activity. Advance of funds, purchase
of goods at a retailer or when a borrower activates a revolving line of
credit. Activities affecting a deposit account carried out at the
request of the account owner. One example of a transaction is the
process that takes place when a cardholder makes a purchase with a
credit card.
Transaction Date
The actual date on which a transaction occurs. Used in recording and tracking transactions.
Transaction Fee
A charge for each credit card transaction, collected by the merchant account provider or ISO.
Turn-key Application
Software
that requires little or no modification when inserted into a Web site
and with very few adjustments is ready for use. In e-commerce, many
merchant account providers and ISOs offer turn-key applications for
processing credit card orders online.
U
Upload
To transfer data/files from your computer to another computer.
Uptime
The amount of time a web site is available. The industry benchmark at this point is 99.99%.
URL (Uniform Resource Locator)
An address for a file (or page) located on the Internet, usually the Web (e.g. www.x-cart.com).
User Session
Each
visit to a web site by one person. The session is usually "ended" when
all pages have been closed or after a specific time of inactivity.
V
Valid Date
The
date embossed by the card issuer on the credit card. An establishment
cannot accept a card for payment of goods or services prior to this
date.
W
Web Server
A
computer dedicated to storing the various files that make up Web pages
and the protocols needed for communicating with other computers via the
Internet.
WWW (World Wide Web)
A hypermedia system that lets you browse through an unlimited amount of interesting information.
WYSIWYG
What
You See Is What You Get. An application that displays how the resulting
page will look as it is being developed by the user in which the screen
displays what the end result will look like, while the document is
being created or modified.
