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Common Terminology in Credit Card Processing

Adjustments

The amounts credited to, or deducted from, your account to resolve processing and billing discrepancies.

Chargebacks / Reversals

Those transactions that are challenged or disputed by a cardholder or card-issuing bank. A Chargeback equals the transaction amount that is disputed by the cardholder or card-issuing bank. A Reversal is the amount that initially resolved against the merchant, but has subsequently been resolved in favor of the merchant.

Fees

The range of transaction-based and/or fixed amounts charged for specific card processing services.

Interchange Charges

These are the variable fees charged by Card Associations for processing transactions. Factors that affect interchange charges include card type, information contained in the transaction, and how/when the transaction was processed.

Merchant Identification Number aka MID #

The unique account number assigned to every merchant and merchant location. You will find it at the top of Page 1 of your monthly statement.

Service Charges

Also known as your Discount Rate; the amounts charged to authorize, process and settle card transactions.

Third-Party Transactions

These are transactions that are passed directly to third party service providers for processing and/or funding. Common third-parties include American Express and Discover.

Total Amount You Submitted

The total dollar amount of card transactions submitted and processed during the statement period.

Total Amount Funded to Your Bank

The total dollar amount of credited / paid to your account transactions during the statement period.

Do you still have questions about certain terms you see listed on your monthly processing statement?

Please feel free to Contact Us and we will answer any questions that you may have. We are always here to be of help!

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