Posts in Category: glossary

Interchange fee

An interchange fee, also called the discount rate, is the sum paid by a merchant to a payment card processor (either debit card or credit card) as a fee for accepting a credit card or debit card. The amount of the rate will vary, typically between 1 percent and 3

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ISO (Independent Sales Organization)

An “ISO” (or, Independent Sales Organization) is an organization that represents a Bank or other financial institution and that is permitted to sell the services of the Bank. ISO’s typically are the “face” of prepaid debit cards, and run the customer service operations, marketing, and other aspects of a prepaid

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Gift Card Breakage

Gift Card Breakage is a term that refers to value on prepaid debit gift cards that have been sold but that was never redeemed or used by the cardholder. Revenue from breakage is almost entirely profit, since companies need not provide any goods or services for unredeemed gift cards.

US States

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Issuer

Wonder what the term “issuer” means? The “issuer” of a prepaid debit card (or teen card or gift card) is the financial institution that provides an account (and typically a piece of plastic, or debit card, to access the account) to a consumer. Issuers can include banks, credit

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ATM Card

An “ATM card” is a type of payment card that offers a safe, convenient alternative to cash and checks. ATM cards allow you to access a linked bank account anywhere by using an ATM. The basic ATM card allows you to withdraw money directly from your checking or savings account.

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Rebate Card

A rebate card is a prepaid debit card that is issued by a manufacturer or retailer and loaded with funds associated with a product or service rebate.

Retailers issued $4.24 billion in rebates on rebate cards in 2008, according to Mercator, a market research consulting firm for the prepaid card

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Reload

the term “reload” refers to the process of adding monetary value or cash to a prepaid debit card account.  Different prepaid cards have different ways of reloading value.Many prepaid cards can be reloaded with value using direct deposit of paychecks (or government benefits checks), using cash at authorized “reload

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Settlement bank

A settlement bank is an institution authorized to execute settlement on the credit card payment processing system on behalf of the member or the member’s bank.

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Signature Debit Transactions

When you read the cardholder terms and conditions for different prepaid debit card products (you do read them, don’t you?), you’ll see that there are two kinds of point of sale transactions you can use a prepaid debit card for: “signature debit” transactions, and “PIN debit

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Card Verification Value (CVV)

A “Card Verification Value” (or “CVV”) is an authentication number established by prepaid debit card companies to further efforts towards reducing fraud for internet transactions. Many online transactions ask for the “security code” or “CVV” code in a check out form.  You can

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