Frequently Asked Questions
Chargeback Terminology
What are credit card brands?
A credit card brand is a network of issuers and acquirers that process a specific brand of payment cards. Card brands are companies—such as Visa, Mastercard, or American Express—that facilitate credit card and debit card payments by lending funds to merchants and seeking reimbursement from cardholders. Some card brands work with issuing banks while others serve as their own issuers.
Chargeback Terminology
What is a Merchant ID Number (MID)?
A merchant identification number (MID) is a unique alphanumeric identifier that is assigned to a merchant account. It is used to identify the account at the various stages of processing a transaction.
Chargeback Terminology
What is the MATCH List?
The MATCH List stands for Member Alert To Control High-risk merchants. It is a form of merchant processing blacklist. It lists merchants who have had merchant accounts terminated by their acquiring banks.
Chargeback Terminology
What is a BIN number?
The bank identification number (BIN) is the first four to six digits on a payment card. They identify the bank or financial institution that issued the card, the issuer's location, and the type of card.
Chargeback Terminology
What is a return item chargeback?
A return item chargeback is something that a consumer receives from their bank if they have insufficient funds in their checking or other banking account to cover the cost of a check or withdrawal. It has nothing to do with merchants.
Chargeback Terminology
What is a pre-arbitration chargeback?
Pre-arbitration chargeback is a colloquial term used to refer to a second chargeback on a single transaction. This occurs when a chargeback is filed, reversed based on some successful representment efforts by the merchant, then reinstated by the issuer due to new information resurfacing. None of the card brands use the term “pre-arbitration chargeback” to describe this occurrence but it is nonetheless used informally within the payments industry.
Chargeback Terminology
What is an acquiring bank?
An acquiring bank or acquirer is a bank or financial institution that processes payments, such as debit card or credit card transactions, on behalf of a merchant.
Chargeback Terminology
What is an issuing bank?
An issuing bank, or issuer, is the cardholder's bank. It is a member of a card association and issues payment on behalf of that association for the cardholder. Technically speaking, not all issuers are banks. Some card associations such as American Express serve as issuers themselves, bypassing the step of having a separate issuing bank.