Glossary

This page provides a list of glossary terms used in this guide.

• Acquirer
  The merchant acquirer or bank that offers the merchant a trading account, to enable the merchant to take payments in store or online from cardholders.
• ATM
  Automated Teller (Cash) Machine.
• Authorisation
  Stage where a merchant requests approval for a card payment by sending a request to the card issuer (BIN sponsor) to check that the card is valid, and that the requested authorisation amount is available on the card. At this stage the funds are not deducted from the card.
• Contact chip
  Card transaction where the POS terminal reads and validates the card’s chip.
• Contactless
  Secure payment method using a debit or credit card or another payment device by using RFID technology and near-field communication. To use the system, a cardholder taps the payment card near a POS terminal equipped with the technology.
• CVV2
  The Card Verification Value (CVV) on a credit card or debit card is a 3 digit number on VISA, MasterCard and Discover branded credit and debit cards. Cardholder's are typically required to enter the CVV during any online or cardholder not present transactions. CVV numbers are also known as CSC numbers (Card Security Code), as well as CVV2 numbers, which are the same as CVV numbers, except that they have been generated by a 2nd generation process that makes them harder to guess.
• Discover Global Network (DGN)
  The Discover Global Network consists of a group of card networks acquired by Discover. This includes: Discover, Diners Club International and Pulse.
• EHI
  The External Host Interface (EHI) is a Thredd system that enables Thredd customers to receive and respond to real-time transaction data as well as financial messages.
• EMV
  EMV is a payment standard for smart payment cards, payment terminals and automated teller machines (ATMs). EMV is an acronym for "Europay, Mastercard, and Visa", the three companies which created the standard.
• External Host
  The external system to which Thredd sends real-time transaction-related data. The URL to this system is configured within Thredd per programme or product. The Program Manager uses their external host system to hold details of the balance on the cards in their programme and perform transaction-related services, such as payment authorisation, transaction matching and reconciliation.
• Issuer (BIN Sponsor)
  Financial organisation and scheme member, licensed by the scheme to issue cards and process transactions using the scheme’s network.
• Magstripe
  The magnetic stripe on the back of the card. Can be used for a card point of sale (POS) transaction using a merchant POS terminal.
• Mastercard Networks Exchange
  Enables smaller networks to use Mastercard as a routing platform for payments. Can also be referred to as MNEX or MNGS.
• Merchant
  The shop or store providing a product or service that the cardholder is purchasing. A merchant must have a merchant account, provided by their acquirer, in order to trade. Physical stores use a terminal or card reader to request authorisation for transactions. Online sites provide an online shopping basket and use a payment service provider to process their payments.
• Merchant Category Code (MCC)
  A unique identifier of the merchant, to identity the type of account provided to them by their acquirer.
• MOTO
  Mail and Telephone Order (MOTO) transaction, which is a payment made over the telephone (e.g., via a Call centre) or via a mail order catalogue.
• POS
  Point of Sale transaction.
• Single Message System
  A transaction processing message standard which combines authorisation and presentment into a single message.
• Smart Client
  Smart Client is Thredd's legacy desktop application for managing your account on the Thredd Platform.
• Stand In Processing (STIP)
  The card network (Visa and Mastercard) may perform approve or decline a transaction authorisation request on behalf of the card issuer (BIN sponsor). Depending on your Thredd mode, Thredd may also provide STIP on your behalf, where your systems are unavailable.
• Thredd Portal
  Thredd Portal is Thredd's new web application for managing your cards and transactions on the Thredd Platform.
• Thredd Web Services
  Thredd’s SOAP based Application Program Interface (API) which enables integration of your systems with Thredd.
• UAT
  User Acceptance Testing
• Validation
  Checks to confirm the card is valid, such as CHIP cryptograms, mag-stripe data (if available) and expiry date