Glossary

Processing Credit Cards

Commonly when a merchant first goes into business and wants to accept and process visa and mastercard credit cards at their place of business, their first option of being set up to accept credit cards is through their bank. The first question that is asked by the merchant is "what is the percentage rate of the fees for accepting Visa/MasterCard?" As the bank, answers the merchants question with a rate, usually no other questions are asked other than how much is the equipment and how it is paid for. The merchant then signs on the dotted line and his education begins on why he is paying much higher fees than the quoted rates given as time goes on.

• Account: A record of debit and credit entries to cover transactions involving a particular item, person, or concern.
• Alternative Financing: A non tradition source of funding versus a bank loan, small business loan, business loan, or secured business loan.
• Average Ticket: A predetermined dollar amount that the merchant can process on a per sale basis.
• Bad Credit Business Loan: a loan provided to a business, organization or other entity that has a low credit score and cannot be approved for a traditional bank loan.
• Bank Loan: Financial assets provided to the borrower from the lendor and repaid over a period of time.
• Batch: A collection of transactions that are collected as a group from the merchants account.
• Business Small Business Loan: A Business Small Business Loan against future sales. Purchasing future credit card processing receivables at a discounted rate.
• Business Loan: Financial assets provided to a business from the lendor and repaid over a period of time.
• Small Business Loan: See Business Small Business Loan
• Cash Flow: The circulation of cash in an entity, including inflows through the collection of invoices and outflows through the payment of debts
• Collateral: An asset that is given as security to the payment of debt.
• Credit Card Processing: An entity or organization that accepts credit cards as a form of payment.
• Credit Card Processor – A business entity that manages cash flows between parties to a credit card transaction for a fee.
• Credit Card Sales: Revenue received by accepting credit cards at your organization, business, or other entity.
• Customer: A potential or current user of the products or services of an individual or organization.
• DBA (doing business as)- The common name of the business not the actual legal name of the business.
• Fast business loan: A loan that provides approval and funding very quickly.
• Franchisee: The party in a franchise agreement is purchasing the rights to use a business’s trademarks and other associated brands in order to open up a branch.
• Franchisor: A company that sells the right to use its name or operating systems to independent business owners.
• ISO: Independent Sales Office
• Merchant Small Business Loan: A Merchant Small Business Loan against future sales. Purchasing future credit card receivables at a discounted rate.
• Merchant small business loan company: A company that provides small business owners with merchant small business loans.
• Merchant Loan: Financial assets provided to a small business from the lender and repaid over a period of time.
• MID (merchant identification number): A number assigned to a merchant once they receive funding to identify their account.
• Preapproval: A guarantee of a product or service.
• Referral Partner: A partner that refers business clientele to the business they are partners with.
• Restaurant Financing: Financing provided to a restaurant from the lender and repaid over a period of time.
• Restaurant Loan: A loan or financial assets provided to a restaurant from the lendor and repaid over a period of time through an established structure of principal plus interest.
• Small business financing: Financial assets provided to a small business from the lender and repaid over a period of time.
• Small business financing loan: Traditional or secured financing provided to a small business from the lender and repaid over a period of time with a fixed interest rate.
• Small business loan: Secured financing and financial assets provided to a small business from the lender or bank and repaid over a period of time.
• Small business loan for women: Financial assets provided to a women who own a small business from the lender and repaid over a period of time with interest rates and/or fixed payments.
• Unsecured business financing: Debt which may be considered “High Risk” and financing that is not secured by an obligation on specific assets or collateral of the borrower, the business, in case of bankruptcy or failure to repay under terms of agreement.
• Unsecured business loan: High risk debt that is not secured by an obligation on specific assets or collateral of the business in case of bankruptcy or failure to repay under terms of agreement.
• Working Capital: Operating liquidity available to a business, organization or other entity.