A.

Acceptable Merchant Types: These are online merchants who are from acceptable industries for the banks that we work with (around the world) for the purposes of securing a direct merchant account solution.

There is a complete list of acceptable merchant types on our web site. Merchants with chargebacks under 1% will be considered for payment processing. We do not provision solutions for start-ups, or for businesses operating in the fields of adult, pyramid sales or organizations selling goods/services prohibited by law.

We are able to review leads from most merchant types for our online fraud and data management and pre-authentication services.

Account Number: Account number is the number assigned by the Acquiring bank to the merchant. Each merchant has their own direct bank account in their choice of currencies, and funds from their online credit card transactions are deposited to these accounts.

Acquiring Bank: Also known as a Merchant bank, these are financial institutions that provide online credit card settlement accounts for merchants. The Acquiring banks receive funds from a cardholder, when they use their credit card at a merchant's web site, and then deposits the amount (less any fees) into the merchant's direct account.

ActiveX: A web-enabled interface that can connect to our cGate®Secure software, which in turn connects the merchant's server directly to our payment processing platform. A COM component written in Visual Basic that snaps into most web servers that are supported on the Windows platform.

This component can be used by most ActiveX scripting and programming languages.

Address Verification Service: Known as AVS it verifies a customer address against a given credit card.

Adjustment: Is initiated by the Acquiring bank to correct a processing error. The error could be a duplication of a transaction, or the result of a cardholder dispute. The Acquirer debits or credits the merchant's direct account for the amount of the adjustment.

Amex: American Express.

API: Application Programming Interface.

Application Process: Is the process which Internet merchants must follow as part of securing a direct merchant account with one of the banks that we work with around the world.

Much of the process is set by the banks, which carry out a thorough review of prospective merchants ahead of final approval to open an account with them.

Application Server: This is software that runs on a middle-tier server, located between a web browser-based thin client, and the back-end databases and business applications. These servers handle application logic and connectivity.

Approval: Transaction was approved.

Asia Pacific Solution: Is a direct merchant account solution via an Acquiring bank based in Mauritius. The solution is ideal for companies wanting to expand in the region. Benefits include the ability for merchants to present and settle in a range of world currencies including US Dollars, Euros, Canadian Dollars, British Pounds, Hong Kong Dollars, Japanese Yen, Mauritius Rupees and more.

ATV: Is the average transaction value relating to goods or services offered on a merchant's web site.

AUD: Australian Dollars.

Authorization: The process of checking that a cardholder has sufficient funds available against their line of credit on their credit card. A positive response results in an authorization code being generated. Those funds are in turn set aside, and the level of available credit left on the card is reduced by the authorized amount.

The authorization approval also confirms that the card number is valid, and the credit card is not reported lost or stolen. Authorizations may be generated automatically via a merchant's web site, via a Virtual Terminal, and processed electronically, or may include authorization directly between a merchant and their Acquiring bank.

Authorization Code: A code that the Issuing bank returns in an electronic format to our processing system when a transaction is approved. The code serves as proof of the authorization.

Authorization Response: An Issuing bank's electronic response to an authorization request.

Average Ticket: The average amount of a merchant's order. This is calculated by dividing the total sales volume by the total number of sales for a specified time period.

AV-yeS: The name we have given our AVS only solution, which is designed to mitigate US cardholder chargebacks and online fraud for global merchants. This solution is available to all Internet merchants as a stand-alone service outside of our direct merchant account multi-currency payment processing solutions. It verifies a customer address against a given credit card.

B.

B2B: Business-to-business.

B2C: Business-to-consumer.

Batch Processing: Batch processing allows transactions to be captured in a merchant's system for submission to us as a batch file using our secure interface at your convenience, once a week, or several times a day. This solution can also be used in addition to one of our other solutions for recurring billings or any other offline needs.

Batch Close: The process by which a merchant gathers all of the credit card transactions that have occurred over a specified period of time, and submits them to us for processing.

Bermuda: Is where we are headquartered. The island is a leading offshore financial centre, and a key jurisdiction for insurance, reinsurance and captive management companies. Bermuda is located south-east of New York.

Bermuda Solution: Is a direct merchant account solution with our partner bank based in Bermuda. The Bermuda solution is ideal for companies wanting to expand globally. Benefits include the ability for merchants to present in up to 58 different currencies with settlement to USD. Funds are paid directly in the merchant's bank account daily. Verified By Visa and MasterCard® SecureCode™(3-D Secure™) is available as part of this solution.

BIN: Is the Bank Identification Number for Card Association recognition.

Body Of Message (html): A field which contains the body of email messages in HtmL format.

Browser: The client portion of Internet software that typically communicates with a web server through the Hypertext Transfer Protocol (HTTP).

C.

Capture: Converting an authorized amount into a billable transaction. Transactions cannot be captured unless previously authorized, and the goods or services shipped, or transmitted, to the merchant's customers. Authorized credit card sales must be captured, and settled, in order for a merchant to receive their funds.

Card Associations: Payment networks such as Visa and MasterCard (and others), that connect Acquiring banks with Issuing banks for the authorization and funding of credit card transactions.

Cardholder: The owner of the credit card being used to make an online purchase.

Cardholder Transaction: The use of a credit card by a merchant's customer to purchase goods or services via their web site.

Card Issuer: Banks that issue cards to cardholders.

CDN: Canadian Dollars.

CEMEA: Central Europe, Middle East and Africa Region.

cGate®: Is the name given to our secure, high-speed platform independent payment processing gateway. It includes cGate® Secure Real-Time, cGate® Secure Batch, cGate® Secure Verify, cGate® Locate, cGate® Travel & Hospitality, cGate®Digital, cGate® Ticketing & Events, cGate® eGovernments, cGate®Retail, cGate®Technology, cGate®Pre-Paid and cGate®VoIP.

cGate® Secure Verify: Our cGate® Secure Verify solution allows merchants to process 3-D Secure™ transactions though Verified by Visa and MasterCard® SecureCode™. This technology was designed by the Card Associations to provide merchants and Acquirers protection from fraudulent transactions, chargebacks and unauthorized payments made on an eCommerce site. 

cGate® Secure Batch: The cGate® Secure Batch solution allows transactions to be captured in your system, and then submitted as a batch file using our secure interface at your convenience, once a week, or several times a day. This solution can also be used in addition to one of our other solutions for recurring billings or any other offline needs.

cGate Secure - Real-Time: Real-time transaction processing is the preferred method for most of our merchants as it provides instantaneous approved/declined responses to all transactions.  It also allows up-to-the-minute reporting on all transactions processed through our payment gateway.

cGate® Locate: Is our IP Geolocation service which provides merchants with the ability to evaluate the risk of an eCommerce transaction based on the geography of the customer, enabling merchants to view the customer's location, identified by country, state (or province, region etc.) and city.

cGate Travel & Hospitality: Real-time transaction processing, batch, Virtual Terminal, MO/TO are all available as part of our unique travel and hospitality solution. Multi-currency presentment and settlement, fraud and data management, and pre-authentication services, can all be tailored to provide a secure and robust product specific to merchants in this sector.

cGate® Digital: Real-time transaction processing, batch, Virtual Terminal, MO/TO, subscription and repeat billing are all available as part of our solution for the digital content global marketplace. Multi-currency presentment and settlement, fraud and data management, and pre-authentication services, can all be tailored to provide a secure and robust product specific to merchants in this diverse sector.

cGate®Ticketing & Events: Real-time transaction processing, batch, Virtual Terminal, MO/TO, and subscription billing are all available as part of our solution for online merchants active in the primary and secondary ticketing and events industry. Multi-currency presentment and settlement, fraud and data management, and pre-authentication services, can all be tailored to provide a secure and robust product specific to merchants in this sector.

cGate® Retail: Real-time transaction processing, batch, Virtual Terminal, MO/TO are all available as part of our solution for online retail merchants who need to pro-actively manage the variables associated with this market, like refunds and returns. Multi-currency presentment and settlement, fraud and data management, and pre-authentication services, can all be tailored to provide a secure and robust product specific to companies in this sector.

cGate® Internet And Technology: Real-time transaction processing, batch, Virtual Termina, MO/TO, repeat and subscription billing are all available as part of our solution for companies providing services to Internet and Technology customers. Multi-currency presentment and settlement, fraud and data management, and pre-authentication services, can all be tailored to provide a secure and robust product specific to companies in this sector.

cGate® Prepaid: Pre-paid card merchants expanding in both established and emerging markets can choose from real-time transaction processing, batch, Virtual Terminal, MO/TO billing are all available as part of this unique industry solution. Multi-currency presentment and settlement, fraud and data management, and pre-authentication services, can all be tailored to provide a secure and robust product specific to companies in this sector.

cGate® VoIP: Real-time transaction processing, batch, Virtual Terminal, MO/TO, repeat and subscription billing are all available as part of our solution for operating in the competitive VoIP markets around the world. Multi-currency presentment and settlement, fraud and data management, and pre-authentication services, can all be tailored to provide a secure and robust product specific to companies in this sector.

CGI: Common Gateway Interface: A web-enabled interface that can connect to our cGate®Secure software, which in turn connects the merchant's server directly to our payment processing platform. CGI is a scripting language that allows an HTTP server to run programmes that can extend a web server's ability to interact with a client.

Chargeback: Is a transaction that is billed back to a merchant after the sale has been completed. The Issuing bank, on behalf of the cardholder, disputes the transaction. Chargebacks must be 'worked' and resolved within a specific time period by the merchant. The Issuer can charge part or all of the transaction back to the merchant via the Acquiring bank.

Chargeback Files: Files received by us containing merchant chargebacks.

Chargeback Reports: Merchant chargebacks reports are received from our partner banks and posted by us each day to our web reports. They are accessed by secure login to enable merchants to work directly with their Acquiring bank(s) to resolve.

CHF: Swiss Francs.

Clearing: The process of exchanging transaction details between an Acquiring bank and an Issuing bank, which in turn posts the transactions to cardholders' accounts, and reconciles for onward settlement.

CNP: Card Not Present transactions via a web site or the telephone where the card is NOT seen by the merchant.

ColdFusion: A web-enabled interface that can connect to our cGate®Secure software which in turn connects the merchant's server directly to our payment processing platform.

Copyright: The exclusive right granted in law to the originator of a piece of work to make copies of that work and to sell or distribute them.

Credit: Also known as a reversal. It is the voiding of an authorized transaction (sale) that has not been settled. If a Card Issuer supports a credit or reversal, it immediately undoes the authorization, and releases the amount on the cardholder's card.

Credit Card: A payment card (Visa, MasterCard and American Express) linked to a bank account. Card owners are able to pay off the full amount of their credit card in full each month, or via a monthly repayment schedule. Outstanding balances normally incur interest.

Customer: Our customers are all parties to which we provide services. The term customer is also used to describe a merchant's customers/purchasers/end users.

Customer Support Representative: A member of our technical team who can provide support to merchants once they begin live processing.

CID: American Express Card Verification Code.

CVC2: MasterCard's term - Card Verification Code 2 - used for card security.

CVV2: Card Verification Value 2. CVV2 is a 3-digit code printed on the back of a Visa card. CVV2 helps to ensure that the credit card number is legitimate and that the card is in the possession of the purchaser.

D.

3-D Secure™ Based Payer Authentication Services: Our cGate®SecureVerify is a fully compliant Payer Authentication solution for Verified by Visa and MasterCard®SecureCode™. Based on the Card Associations' 3-D Secure™  technology, our solution provides merchants with protection from fraudulent transactions, chargebacks and unauthorized payments made through an eCommerce web site. 

Daily Transaction File: Is our file that contains all of a merchant's transactions submitted for clearing to Interchange.

Database Management System: We operate a number of internal and external databases to manage the daily operations of our business and to provide merchants with real-time reporting. Generically, DBMS is a collection of programmes that enables you to store, modify, and extract information from a database.

Data Sharing: We offer Ethoca Limited's (Ethoca) data sharing fraud management service to help our merchants combat fraud and increase profits.  Ethoca is the pioneer for fraud management through shared data for businesses in Internet commerce and other Card-Not-Present (CNP) environments. 

DCC: Dynamic Currency Conversion is a foreign exchange mechanism provided by banks and third parties that gives the cardholder an option to pay either in the merchant's local currency or their home currency at web site checkout.

We DO NOT facilitate DCC solutions.

Debit Card: Examples of debit cards include Visa Delta or Maestro. They are designed to enable cardholders to transfer money from a current account, (including savings or deposit accounts), or an account on which cheques can be drawn for depositing to another person's account.

Decline: Transaction was declined by the Issuing bank.

Deposit: Is the amount of credit card purchases that are credited to a merchant's direct bank account on a daily basis. The deposit is what the Acquiring bank receives from the Issuer during settlement.

DES: Stands for Data Encryption Standard. It is a 56-bit key encryption method developed in the mid 1970s and standardized by ANSI in 1981 as ANSI X.3.92.

Descriptor: Is the description of services/company name that appears on the credit card statements of merchant customers to identify transactions.

Digital Content: We provide a range of online payment processing solutions for companies of all sizes servicing the digital content sector. Our services are ideal for merchants needing to charge customers online for advertising and access.

Direct Merchant Account: Through us, online merchants are afforded the opportunity of direct relationships with the banks that we work with around the world.

The benefits of our solutions are many and varied, but a primary reason for merchants preferring a direct merchant account, is the ability to have full control of their settled funds.

Our direct merchant account solutions are favoured by many international organizations who want to expand geographically, because it enables them to streamline this process, (one bank can provision many currencies to support many country web sites), and the banks also offer a range of other corporate services from which our merchants can benefit.

Discount Rate: Is the fee merchants pay to their Acquiring bank for the privilege of being able to deposit funds from their credit card transactions, to the bank. The fee assists banks with operational and risk management costs associated with providing this service.

We provide merchants with the various discount rates for the banks, and this discount rate appears in the contracts merchants sign directly with their chosen banking partner.

DNS: Domain Name System is an Internet service that translates an IP address into a domain name. It is also sometimes known as Domain Name Service. 

E.

ECI: Electronic Commerce Indicator is a mandatory field in payment processing from Visa and MasterCard to distinguish transactions generated through the Internet.

EDC/Maestro: An international payment (debit card) scheme launched in the early 1990s offering issuers the choice of European usage (EDC) or global usage (Maestro).

EDC: Stands for Electronic Data Capture which is the process of electronically authorizing, capturing and settling credit card transactions.

Electronic Funds Transfer (EFT): A technology used for initiating payments via functions that are embodied in a computer system.

Ethoca: Is our third-party provider of data sharing fraud management services. Merchants share data through Ethoca to evaluate risk based on collective experience, and eliminate unwanted transaction activity.

The information contributed by companies is collected in a shared data transaction pool, where it is stored securely. Any individual company can then request a risk assessment for a specific transaction from the shared data pool. The shared data pool checks all of its records in real time and returns a risk assessment. 

EUROS: European Union currency.

EVERTEC: EVERTEC, a subsidiary of Popular, Inc. (NASDAQ: BPOP), is a leading provider of transaction processing and outsourcing services including application processing, business process outsourcing, programming and IT consulting to customers in 15 countries in a variety of industries. 

We are certified to EVERTEC. Through its transaction processing services EVERTEC executes over 920 million transactions yearly, and operates a network of over 4,300 automated teller machines and over 85,000 point-of-sale payment terminals. With over 1,700 professionals operating in 7 countries within the Caribbean Basin, the United States, Central and South America, EVERTEC supports a variety of production platforms ranging from portable payment devices to high-end mainframe systems.

F.

Fees: Relates to a range of possible charges Internet merchants can expect to be charged for our services. Every deal is different, depending on specific merchant needs, but fees can include a combination of bank processing fees and our integration and payment gateway charges. Our business development team will work closely with you to define your requirements, and secure the best possible package for you.

Fiduciary: We are partnered with a number of fiduciaries around the world who can assist Internet merchants with establishing the correct corporate vehicles required by the Card Associations for processing credit card transactions in certain jurisdictions for settlement to one, (or all), of the banks that we work with.

File Transfer Protocol (FTP): This is a system used to transfer files over the Internet.

Firewall: A security hardware and software combination that limits access to the internal local area network (LAN). A firewall might also restrict access to the Internet from within the LAN.

FATF: Financial Action Task Force on Money Laundering.

FDMS: First Data Merchant Services.

Fraud And Data Management: Relates to a range of services provided by us that are available as part of an overall direct merchant account solution, or as standalone features. They include:

• Pre-authentication services: Our Address Verification Services (AVS) and Card ID Verification can be employed as part of our payment gateway services or as a stand-alone solution in conjunction with a merchant's existing gateway services.
• Verified by Visa and MasterCard®SecureCode™ solutions: To help protect your business from fraudulent transactions, chargebacks and unauthorized payments with our cGate®SecureVerify Payer Authentication solution, which is based on the Card Associations' 3-D Secure™technology.
• IP Geolocation: Evaluates an eCommerce transaction based on the geography of your customer's browser. Our IP Geolocation service brings you valuable customer knowledge and can provide you with an additional layer in credit card fraud control.
• Data Sharing: Data sharing is the practice by which companies contribute and connect to a pool of shared data for mutual benefit. We offer Ethoca Limited's (Ethoca) data sharing fraud management service to help our merchants' combat fraud, and increase profits, by finding the optimal balance between allowed transactions, fraud-risk levels, and fraud management costs.
• Fraud Screening: Forms part of the online transaction authorization process before authorization to assist with reducing fraud and minimizing chargebacks.
  

G.

GBP: British Pounds.

Geolocation Solutions: We offer a host of Geolocation services:

cGate®Locate: Is our Geolocation service which identifies the geographic origin of an order based on the IP Internet address of the customer's browser.

Geo Marketing: cGate® Locate is a precision geo-marketing tool for merchants that want to measure their marketing and advertising success.  Since IP Geolocation effectively connects the merchant's customers' Internet experience to their physical locations, it provides merchants with the ability to create marketing campaigns tailored to those locations or regions. Used strategically and tactically, Geo marketing can help you tailor marketing and promotional activities in such a way that it translates to higher conversion rates and increased sales.

Geo-marketing is ideal for merchants who want to plan and implement marketing activities based on the demographics or specific target consumer cultures of the location.

Geo Compliance: cGate® Locate is an effective geolocation compliance tool for merchants or banks that need to verify compliance with particular legislation or the laws of certain jurisdictions. This tool provides the data required to track statistics on visits by country and region.

Governments: We are committed to supporting eGovernment initiatives around the world, and currently provide online credit card payment processing solutions, to a number of Governments who are encouraging their citizens to pay for services online.

H.

Helpdesk:  We offer 24 x 7 x 365 emergency technical and helpdesk support. Merchants should eMail support@fac.bm

HKD:  Hong Kong Dollars.

Host Translation Module:  The name given to our unique technology that enables us to rapidly develop interfaces for certification to ANY card payment platform in the world.

HTTPS POST:  In this instance, is one of our interface options for merchants to integrate to our payment platforms. This option requires no software from us. To process a transaction, the merchant sends a HTTPS POST request with the required fields, to our payment gateway.

I.

Integration: Our highly skilled, professional and friendly technical team works with all our new merchants and banks to guide them through the integration process to our powerful processing platform.

Interchange:  The standardised electronic exchange of transactional data between merchant Acquiring banks and card Issuing banks on Visa and MasterCard.

Interchange Fee:  Is the fee paid by the Acquiring bank to the Issuing bank for transactions entered into Interchange. Visa and MasterCard set the percentage rate to be charged.

International Merchant Accounts:  Is the term we use to describe our portfolio of direct merchant account solutions.

Internet:  Is the term used to describe the global network that connects millions of computers.

Internet Client:  An Internet client is called a browser.

Internet Protocol (IP):  Guarantees that each computer connected to the network has its own unique address.

Internet Service Provider (ISP): Provides end-users with access to the Internet.

IP Address:  Is four sets of numbers, separated by periods. An Internet user can specify an IP address to route information to a particular destination.

IP Geolocation: Identifies the geographic origin of an order based on the IP Internet address of the customer’s browser.

ISO: Independent Sales Organization.

Issuer: Is the name given to a bank that extends credit to customers through credit cards. The bank issues the credit card and receives the cardholder's payment at the end of the billing period. 

J.

Java: Similar to the Windows component, the Java solution connects the merchant's server directly to our payment gateway server. The interface has been tested successfully on Java 1.3.1 & 1.4 & 1.5 (an API is available for both HTTPS POST and SOAP protocols).

JCB:  Japan Credit Bureau is an issuer of the JCB card, a leading Japanese travel and entertainment card accepted in more than 100 countries around the world.

JPY:  Japanese Yen.

K.

KYC:  Know Your Customer. All the banks have KYC policies in place and merchants are required to comply with these requirements as part of the process of securing a direct merchant account.

L.

LACR:  Latin American Caribbean Region.

LAN:  Local area network. A company's internal computer network.

Latin America Caribbean Region Accounts:  The name given to our direct merchant account solutions for the region that facilitate pricing in up to 58 different currencies with settlement to USD.

LOC: Letter of Credit.

LOI: Letter of Intent.

Loyalty And Brand Management:  The name given to our consulting services that provide new and existing card issuing and merchant acquiring banks with ideas and strategies relating to card security and risk management, brand improvement, competitor analysis, and the introduction of rewards programs.

M.

Mag Stripe:  Is the strip on the back of a card that contains magnetically encoded information relevant to the cardholder.

Mail Server:  The server that routes and stores email messages between us and our clients, banks and all other service providers.

Manual Transaction Entry:  Merchants can use the MO/TO function within our administration system to manually submit orders received via telephone or e-mail. Each user is provided with a unique login and password to conduct administrative tasks such as refunds, reversals, producing reports and viewing transaction and batch history.

MasterCard:  The international payments system organisation controlled by its members.

MasterCard® SecureCode™:  Provides merchants with protection from fraudulent transactions, chargebacks and unauthorized payments made through an eCommerce web site. MasterCard offers chargeback liability shift for fraud related chargebacks when the transaction is authenticated through MasterCard®SecureCode™.

Merchant: Is the term used to describe companies/clients operating on-line with a store front and payment processing at checkout.

Merchant Accounts:  The term used to describe some of the services offered by us (Direct Merchant Accounts). It relates to the establishment of merchant accounts with our partner banks for the purposes of receiving funds from online credit card transactions.

Merchant Bank: Also known as an Acquiring bank, it is a financial institution that provides credit card settlement accounts for merchants. The bank receives funds from a cardholder when they use their credit card at a merchant's web site, and then deposits the amount (less any fees) into the merchant's direct account.

Merchant Name: Is the name of the company responsible for payment processing.

Merchant Password: The unique passwords assigned to merchants registered with us to use our Merchant Administration system.

Merchant Support Centre: Is an online resource and support centre for all our customers.

MID: Merchant Identification Number. These are provided by the banks once merchants are approved for settlement services. MIDS are unique to each merchant. MIDS are available in a variety of currencies. The MIDS are loaded onto our processing system, and identify transactions specific to each merchant customer.

MO/TO:  Mail Order/Telephone Order. Where a merchant takes an order over the telephone or by post.

Monthly Minimum: Relates to the minimum monthly processing volume, by currency, that the banks will allow.

MPI: Message Passing Interface.

MSP: Merchant Service Provider.

Multi-Currency:  Is the term used to describe a variety of different currencies: Example, US Dollars, Euros, British Pounds.

Multi-Jurisdictional Settlement:  Merchants can integrate to our payment processing platform, and establish direct merchant account relationships, with a number of banks around the world. This term relates to merchants who settle to a number of different jurisdictions.

N.

Net Settled Position:  The amount settled to a merchant's direct bank account after charges have been deducted by the Acquiring bank.

NDA:  Non Disclosure Agreement.

O.

OECD: Organization for Economic and Cooperative Development.

Offshore: The term is used figuratively to refer to a location which is outside the country of residence. Offshore as a term originates from the Channel Islands as being 'offshore' to Britain. A number of jurisdictions that are deemed offshore are actually landlocked, Luxembourg, Switzerland and Andorra for example.

Open Source: Open source is a set of principles and practices on how to write software, the most important of which is that the source code is openly available.

Online:  A term used to define an Internet-based service/web site.

Online Fraud: A widely used term to describe Internet fraud.

Order Number:  A merchant generated number for the product or service supplied. Order numbers can be tied to transaction numbers within our payments system to assist with reconciliation and customer support initiatives.

P.

Pan-European Solution: Is the name given to our range of direct bank account solutions with banks that enable merchants to settle in multiple currencies including US Dollars, British Pounds, Euros, Swedish Kronor and Swiss Francs.

Panama Solution: Is the name given to our solutions based in Panama, and ideal for merchants looking to expand in South America. On offer is a choice of 58 presentment currencies with settlement to USD + USD to USD to direct bank accounts with the banks.

Payer Authentication: Payer authentication systems provide Issuing banks with the ability to authenticate cardholders during an online purchase, which reduces the likelihood of fraudulent use of payment cards and improves transaction performance. This ultimately benefits merchants, consumers and bank acquirers - not just financially, but in terms of service levels, building loyalty and encouraging repeat orders.

The Card Associations' 3-D Secure payer authentication services (Verified by Visa and MasterCard® Securecode™) enable Issuing banks to verify that the actual cardholder is the person executing an Internet purchase.

Payment Gateway:  Term used to describe our secure and robust international payment platform. In essenc,e it is an eCommerce application service that authorises a range of online payments and transactions.

PCI DSS: Payment Card Industry Data Security Standard. It is a standard from the PCI Security Standards Council, developed to ensure financial data security standards.

Phishing: Is an attempt to criminally and fraudulently acquire sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication.

PHP: PHP is a widely-used general-purpose scripting language that is especially suited for web development and can be embedded into HtmL. It generally runs on a web server, taking PHP code as its input and creating web pages as output. It can be deployed on most web servers and on almost every operating system and platform.

PIN: Personal Identification Number.

PKI: Public Key Infrastructure is an arrangement that binds public keys with respective user identities by means of a certificate authority (CA). The user identity must be unique for each CA.

POS: Point of Sale.

Pre-Authorisation: A transaction intended to be followed by a separate financial transaction within a specific time interval. Pre-authorisations are used when the merchant wishes to obtain advance approval or verification sufficient funds are available to make a full purchase using a credit card.

Processing Platform: A generic term we use to refer to our international payment processing platform.

Processing Day: Transactions performed by a merchant during a 24-hour period.

Proxy Server: Is the term used to describe the server that sits between a client application, such as a browser that sends HTTP requests, and a web server. A proxy server intercepts each request to the web server to see if it can fulfil the requests itself. If not, it forwards the request to the web server. A proxy server can also filter requests that are sent to the web server, to restrict access or improve performance.

PSP:  Payment Service Provider.

R.

Real-Time Processing: This transaction processing is the preferred method for most of our merchants as it provides instantaneous approved/declined responses to all transactions.  It also allows up-to-the-minute reporting on all transactions processed through our payment gateway. Real-time means that when a merchant's customer orders online, the credit card information in conveyed to us at that exact time so that an authorization can be requested and received.

Reason Codes: Are the codes given as the reason for a chargeback or retrieval request.

Reconciliation: The method used by merchants to compare their online sales with the transactions that are recorded by the Acquirer and credited to their settlement accounts.

Referral Program: The term used to describe our programme that encourages organizations around the world to refer merchants to us for payment processing, and other fraud and data management, and payer authentication solutions.

Refund: Is a transaction in our system whereby merchants refund payments to their customers. Our system is able to facilitate partial and full refunds.

Repeat/Recurring (subscription) billing: Our solution for merchants who need continuous recurring, subscription, instalment or membership-based billing.

Representment: A transaction that is originated by a merchant to recover funds that were previously charged back to the merchant by the cardholder and/or the Issuer as being unauthorized or fraudulent.

Request: The content of an order sent to our payments platform for processing.

Response: Information that is returned as a result of sending a request to our payments platform.

Response Time: The time it takes for our payments platform to return information to merchants' servers.

Reversal: Also known as a credit. It is the voiding of an authorized transaction (sale) that has not been settled. If a Card Issuer supports a credit or reversal, it immediately undoes the authorization and releases the amount on the cardholder's card.

RFP: Request for Proposal.

RFI: Request for Information.

S.

SEPA: Single European Payments Area.

SET: Secure Electronic Transaction, which is a global, standardized security protocol that combines 1,024-bit encryption with digital certificates. It has been developed by the Card Associations and major banks for online credit card purchases.

Settlement: Settlement is what occurs when the Acquiring bank and the Issuing bank exchange transactional data and the funds from a merchant's credit card orders are settled to their direct bank account.

Set-up Fees: The initial costs that are incurred in the process of establishing a merchant account with the bank(s) and integrating to our payments platform.

Shopping Carts: Are programmes that Internet merchants use to display their products and services and to take orders.

Skimming: Skimming is the theft of credit card information used in an otherwise legitimate transaction.

SOAP: An easy-to-use web service to process all transaction types available through our payment gateway.

Spoofing (Web Sites): Is the act of creating a website, as a hoax, with the intention of misleading visitors that the website has been created by a different person or organization. Normally, the website will adopt the design of the target website and sometimes has a similar URL.

Spoofing (Internet Protocol): Is the creation of IP packets with a forged (spoofed) source IP address with the purpose of concealing the identity of the sender or impersonating another computing system.

Spoofing Attack (Computer Security): Is a situation in which one person or program successfully masquerades as another by falsifying data and thereby gaining an illegitimate advantage.

SQL: Structured Query Language. This is the standard retrieval language for relational database management systems.

SSL: Secure Socket Layer. Used to help secure information on the Internet.

T.

TCP: Transmission Control Protocol. A set of rules that are designed to break streams of data from a computer into small packets. The packets are sent across the Internet and reassembled on the receiving end.

Thin Client: A computer/system/client that performs little-processing other than displaying data from a server.

TPP: Third Party Processor is an independent processor that has contracted with a bank to provide transaction processing services for the banks' merchants.

TPPA: Third Party Payments Aggregation refers to merchants that are selling a service or product that they do not own.

Transaction: Relates to data that is sent from a merchant's checkout page to our processing platform. In generic terms, transactions range from a pre-authorization, authorization, capture/sale, refund and reversal.

Transaction Fee: The charge that is incurred for each individual credit card transaction.

Transit Routing Number: Also known as the "bank ID number"

TSYS: Total System Services Inc (NYSE: TSS) is the largest processor of merchant acquirers and bank credit card issuers.

U.

USD: United States Dollars.

V.

VbV: Verified by Visa. VbV is a methodology introduced by the Card Schemes and Banks to provide an additional secure cardholder verification process prior to an Internet transaction proceeding.

Virtual Corp: Is the name given to our unique solution which is an alternative to full-incorporation for merchants wanting to obtain an Internet merchant account from a Bermuda-based bank.

The Card Associations require merchants to have a corporate presence in the jurisdiction in which their funds will be settled.

By way of a Segregated Cell Company (VirtualCorp), Internet merchants are compliant with the Card Association rules government cross-border processing.
This option saves qualifying merchants the time and money required to establish and maintain a separate corporate entity in Bermuda.

Virtual Terminal: Our solution which enables merchants around the world to process transactions manually via a secure web browser from anywhere they can obtain an Internet connection.

Visa: Is the international payment systems organisation controlled by its members.

Voice Auth: Is the authorization by telephone of a credit card transaction.

VoIP: Voice over Internet Protocol is a protocol optimized for the transmission of voice through the Internet or other packet switched networks.

W.

Web Server: The server node on the Internet or an Intranet. The web server responds to browser requests while the browser and web server use HTTP to communicate.

Web Sites: Refers to merchant shop-fronts.

Web Reports: We offer a series of web-based reports accessible via secure login.