Posts in Category: glossary

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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Authorization

The term “authorization” refers to the process of verifying with a prepaid card issuer that an account has sufficient funds available and is in good standing. When a prepaid debit card transaction is “authorized”, the available balance of the account is reduced by the authorized amount.

In some types of prepaid

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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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Authorized User

An “Authorized User” of a prepaid debit card is a secondary cardholder. Some prepaid debit card issuers and programs allow you (as the primary cardholder) to obtain a secondary card for one or more”Authorized Users“.

The terms and conditions of each prepaid debit card specify whether you are permitted

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Bank Holding Company

A “bank holding company” is a company that owns, or has a controlling interest in, one or more banks. In the United States, the U.S. Federal Reserve Board of Governors is responsible for regulating and supervising bank holding companies, even if the bank owned by the holding company is under

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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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Decoupled Debit

Decoupled debit is a concept originated in approximately 2007, and refers to a debit payment card accepted by businesses as a network-issued debit card but where the funding for the purchase amount is acquired from the checking account of the consumer via ACH. In June 2007, Capital One was the

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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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Authorization Holds

If you use a prepaid debit card to buy gas, rent a car or get a hotel room, you need to know what an “authorization hold” is.

Authorization holds are used by many merchants (and not just when you use a prepaid debit card – authorization holds are

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Automated Clearing House (ACH)

The term “automated clearing house” (or ACH) refers to an electronic clearing and settlement system for exchanging electronic credit and debit transactions among participating depository institutions; such electronic transactions are substitutes for paper checks and are typically used to make recurring payments such as payroll or loan payments. The Federal

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