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Glossary



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Term   Definition of term
A
Acceptor   The organisation (usually a merchant: e.g. a shop, restaurant or mail order company) that accepts a card in payment.
Acquirer   The bank which recruits shops and other service providers to accept payment cards. Acquirers process a merchant's transactions and pass them into the clearing system to allow financial settlement.
Application   The program within a smart card that governs its external functions.
ATM Card   Also known as a cash card. A payment card used in an ATM for cash withdrawals and other bank services.
Authentication   The process of verifying the identity and legitimacy of a person, object or system.
Authorisation   The process whereby a merchant (or a cardholder through an ATM) requests permission from the Card Issuer for the card to be used for a particular transaction.
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B
Biometrics   Biometric methods of identification work by measuring unique human characteristics as a way to confirm identity, for example, finger or iris scanning or dynamic signature verification.
Business Card   A card that is issued to businesses for staff to undertake general business-related spending e.g. travel and entertainment (see also Commercial Card).
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C
Card Acceptance Device (CAD)   A device used to interface with the ICC during a session.
Card Authentication Method (CAM)   A cryptographic method of ensuring that a payment card is genuine and not counterfeit.
Cardholder Verification Method (CVM)   A means of identifying that the person presenting the card is genuine. This may, for example, be performed by use of a PIN or signature in a retail outlet or by PIN at an ATM.
Cardholder   A person to whom a payment card has been issued.
Card Issuer   The bank or building society or company which issues a payment card to the customer, and which has financial responsibility for a card originated transaction.
Card-Not-Present (CNP)   A transaction where the merchant does not have physical access to the card (e.g. through telephone, mail order or Internet transactions).
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Card Schemes   Organisations which manage and control the operation and clearing of transactions. Banks and building societies must be members of the appropriate scheme to issue cards and acquire card transactions. Examples of schemes are:Visa, MasterCard, Switch, American Express and Diners Club International.
Card Security Code   The last three or four digits of a number printed on or just below the signature panel or on the front of payment cards.
Cardholder Activated Terminal (CAT)   A terminal activated by the cardholder and not supervised by a member of staff on behalf of the merchant. May also be referred to as an Unattended Payment Terminal (UPT).
Charge Card   A payment card, the terms of which include the obligation to settle the account in full at the end of a specified period.
Cheque Card   Also known as a cheque guarantee card. A card issued by a bank or building society for the purpose of guaranteeing the payment, or supporting the encashment, of a cheque up to a specified value (£50, £100 or £250).
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Chip   An integrated circuit (e.g. for use in a payment card).
Chip Card   Also known as a smart card. A chip card holds details on a computer chip, which can store and process information. It usually also has a traditional magnetic stripe.
Chip and PIN Card   A chip card that uses PIN as the preferred method of Cardholder verification at the point-of-sale (not only at ATMs).
Chip and PIN PMO   The Chip and Pin Programme Management Organisation (PMO) is a new organisation established to manage the implementation of the Chip and PIN Programme across the UK bringing together the interests of consumers, special needs, banking and retail communities. The PMO is led by the Chip and PIN Programme Steering Committee ("PSC") which is made up of equal representation from the major banks and retailers in the UK. The PMO is not a commercial organisation, nor does it operate for profit.
Chip and PIN Programme   The UK Programme to convert all credit and debit cards to chip cards with PIN Cardholder verification between 2003 and 2005.
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Co-Branded Card   A payment card issued by a bank or building society in partnership with a non-financial institution (usually one which has a well-known brand name), bearing the brand logo of both. The non-financial institution offers certain benefits to cardholders, often using a points system.
Commercial Card   A generic term covering business, corporate and purchasing cards.
Convenience ATM   An ATM owned by a company independent of a bank or building society that is deployed in a retail location, such as a shop, petrol station, or licensed premises.
Corporate Card   A card which larger companies issue to staff to make business related transactions (e.g. travel and entertainment). Corporate cards often have functions other than payment.
Counterfeit Card   A card, which has been printed, embossed or encoded so as to appear to be a legitimate card.
Credit Card   A payment card that enables the holder to make purchases and to draw cash up to a pre-arranged limit.
Cross-Border Fraud   Fraud perpetrated on a payment card, or using a card number, in a country other than the country of issue.
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