Glossary of Terms
A
A bank having a business relationship with merchants, retailers and other service providers to process their plastic card transactions. Acquirers obtain financial settlement from the card issuers, typically via the card schemes which maintain the clearing systems, and pay the proceeds to the merchant, charging a fee.
A payment card issued on the basis that the card issuer makes a donation to a particular organisation (often a charity).
A facility extended by a Settlement Member to a non-settlement institution, allowing the latter to obtain clearance of items on behalf of themselves and their customers.
ATM (automated teller machine)
Also known as a cash machine or cash dispenser. A computerised self-service device permitting the holders of an appropriate card and personal identification number (PIN) to withdraw cash from their account and access other banking services.
Any plastic card with ATM functionality.
Plastic cards that can be used for use in ATMs for cash withdrawals and other banking services accessible at ATMs, but which cannot be used to make payments, for example, to retailers at point-of-sale. Typically, these include cards linked to basic bank accounts and savings products issued by banks and building societies.
B
BACS Payment Schemes Ltd (BPSL)
The Company sets the business rules that govern the operation of the direct debit and direct credit payment schemes and standing orders.
A paper instrument addressed to a bank branch instructing it to credit a specified sum of money to a named account at that branch. A bank giro credit is not a payment instrument, i.e. it cannot be used on its own to make a payment but must be accompanied by cash or cheque.
An account designed for those who may not meet a bank's criteria for opening a standard current account and/or who need to ensure that they cannot be overdrawn. Features typically include the ability for payments, e.g. pensions and benefits, to be credited direct to the account, withdrawals by plastic card through cash machines and the facility to pay bills by direct debit. It does not provide overdraft or cheque book facilities.
Banks and/or building societies
Refers to the location of ATMs at the premises of banks or building societies; includes all ATMs whether inside the premises or installed in the exterior wall.
A payment card issued typically to smaller businesses for staff to undertake general business-related spending (See also corporate card).
C
A bank or building society issuing payment cards, ATM cards or cheque guarantee cards to its customers. For payment and ATM cards, the card issuer undertakes responsibility to settle transactions made with the card (except in some cases where fraud is present).
A transaction where the merchant, retailer or other service provider does not have physical access to the payment card, examples are transactions by telephone, mail order or Internet.
A transaction where the merchant, retailer or other service provider does not have physical access to the payment card, but where the card is inserted in a device by the customer and the card details are verified by an electronic process. Examples are transactions at unattended payment terminals, by telephones equipped with card readers, or via the Internet when a card reader is in use.
Card schemes set the business rules that govern the issue of the payment cards that carry their logo. Typically, these rules apply throughout the world to ensure interoperability of cards. In many countries, domestic schemes also operate. The schemes operate the clearing and settlement of payment card transactions. In the UK, banks and building societies must be members of the appropriate scheme to issue cards and acquire card transactions. Examples of international card schemes in the UK are Visa, MasterCard, American Express and Diners Club.
See ATM.
The Company has responsibility for the operation of an electronic transfer system for sending real-time gross settlement same-day payments for CHAPS Sterling and CHAPS Euro.
A guaranteed real-time gross settlement same-day service for the transmission of euro-denominated payments within the UK.
A guaranteed real-time gross settlement same-day service for the transmission of sterling-denominated payments within the UK.
A payment card, enabling holders to make purchases and to draw cash up to a pre-arranged ceiling, the terms of which include the obligation to settle the account in full at the end of a specified period. Cardholders are normally charged an annual fee.
Cheque and Credit Clearing Company
The Company has responsibility for the bulk clearing of cheques and paper credits throughout Great Britain. Cheque and credit payments in Northern Ireland are processed locally.
An operational clearing for presenting and exchanging cheques between Settlement Members and their branches in order to transfer funds to named accounts.
Also known as a cheque card. A card issued by a bank or building society for the purpose of guaranteeing payment by, or supporting the encashment of, a cheque up to a specified value (£50, £100 or £250). All cheque guarantee cards in the UK Domestic Cheque Guarantee Card Scheme depict the bust of William Shakespeare in either the cheque guarantee hologram or logo on the card.
Also known as integrated circuit card (ICC) or smart card. A chip card holds details on a secure computer chip that can store and process information; chip cards usually also have a magnetic stripe.
A payment card containing a chip that requires the use of a PIN as the preferred method of cardholder verification at the point-of-sale (not only at ATMs).
A payment card containing a chip that requires a signature as the method of cardholder verification at the point-of-sale.
Cirrus
A MasterCard brand signifying global ATM acceptance
A payment card issued by a bank or building society in partnership with another, often non-financial, institution (usually one which has a well-known brand name), bearing the brand/logo of both. The non-financial institution offers certain benefits to cardholders, often using a points system.
A generic term covering business, corporate and purchasing cards.
Refers to the location of ATMs in so-called convenience stores, comprising newsagents, corner shops, off licences and open-all-hours general stores.
A payment card typically issued to larger companies for staff to make business-related transactions, for example travel and entertainment (see also business card).
A payment card enabling the holder to make purchases and to draw cash up to a pre-arranged ceiling. The credit granted can be settled in full by the end of a specified period or can be settled in part, in which case interest is normally charged. In the case of cash withdrawals, interest is normally charged from the transaction date. Cardholders may be charged an annual fee.
An operational clearing to distribute Bank Giro Credits and other paper credits between Settlement Members and their branches in order to transfer funds to named accounts.
A bank or building society account normally offering facilities such as a debit/multi-function card, ATM-only card, cheque book, overdraft facility, standing orders and direct debits. Such accounts may pay interest.
