Posts in Category: glossary

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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Merchant agreement

A merchant agreement is the written agreement between a merchant and a bank that contains their respective rights, duties and warranties, with respect to acceptance of the bank card and matters related to the bank card activity.

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MasterCard Zero Liability Policy

If your prepaid debit card is a MasterCard prepaid debit card, you may enjoy some protections against unauthorized purchases made using your debit card (which is a good thing!).

Visa offers a similar Zero Liability Policy for Visa prepaid debit cards.

Not all transactions are protected, however.

Under MasterCard’s  Zero Liability policy, you

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Authorization Code

An “authorization code” is a numeric or alphanumeric code sent by a prepaid card issuer to a merchant terminal verifying that a sale has been authorized or approved. The authorization code can be used to look up a transaction and is also used to clear and settle transactions (to

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Secured Credit Card

A “secured credit card” is a credit card used to build a good credit record for people with a damaged or poor credit score or for people with little or no credit history. A secured credit card requires a security deposit in order to be able to establish a

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Debit Card

Debit cards are a type of payment card that offers a safe, convenient alternative to cash and checks. Debit cards allow you to access your bank accounts anywhere by using an ATM. Debit cards can be used in two ways: as an ATM Card, and as a payment

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