Wednesday, December 4, 2013

TRUNCATION and other Merchant Account Info you should know

Here's some terms related to merchant accounts and credit card processing that I should know about:

TRUNCATION - When only some digits of a customer's card number appear on a sales draft or receipt to  provide better security while still enabling  identification (for the cardholder) of the card used;  it’s required by federal law (since 2006) that no more than the last five digits of a card may be shown on a receipt.

TOKENIZATION - Replacement of sensitive data with a unique identifier that cannot be reversed mathematically;  commonly used in payments to replace card data.

ADDRESS VERIFICATION SERVICE (AVS)  - The process of validating a cardholder’s given  address against the issuer’s records to determine accuracy and deter fraud; a code is returned with the authorization result that indicates the accuracy of the address match 

These are samples from Litle & Co's Payment Dictionary which is available as a free download. Very cool. Thanks Litle!