M

Magnetic Ink Character Recognition (MICR Number). The bank routing and transit, checking account and check number encoded at the bottom of a check. This number can be used to authorize the check.

Magnetic Stripe A strip of magnetic tape at the back of credit card. It contains identifying data, such as account number and cardholder name.

Mail Order/Telephone Order (MOTO). Credit card transactions initiated via mail, email or telephone. Also known as card-not-present transactions where the card is not present at the time of the transaction. Credit card data is manually entered into the terminal instead of swiping card through the terminal.

Manual Close. A manual batch close. Must be initiated by the merchant on a daily basis, as opposed to an auto close at a pre-set time.

Member Alert To Control High-Risk Merchants (MATCH List). A database file maintained by MasterCard International. This file is used by MasterCard and Visa processing banks, known as "acquiring banks," to identify specific merchants and principals who have already been terminated. MATCH list, is essentially a BLACKLIST from which it is almost impossible to be removed.

Merchant. A seller of products or services.

Merchant Account. A bank account established by a merchant for credit card purchases. By establishing a merchant account, the merchant/acquiring bank agrees to pay the merchant for valid credit card purchases in exchange for the right to collect on the debt owed by the consumer.

Merchant Agreement. The written contract between the merchant and acquirer. This document determines responsibilities, respective rights and warranties.

Merchant Bank (Acquiring Bank, Aquirer). A Visa / Master Card Affiliated Bank or Bank/Processor alliance that processes credit card transactions for business. Merchant Bank is responsible for depositing the funds into your checking account.

Merchant Category Code (MCC). A four-digit merchant category code. It identifies the merchant by type of authorization, processing and settlement.

Merchant Discount. Acquiring member charges the merchant merchant discount fee to cover the costs of providing deposit credit and handling credit card sales transactions.

Merchant Identification Number ID (MID). Is a number assigned to a merchant. This number is used to identify merchant to the ISO, third-party processor or acquirer.

Merchant Processing. The settlement of electronic payment transactions for merchant.

Merchant Services Provider (MSP). A I.S.O., bank or other firm providing services for processing financial transactions. Merchant services providers provide merchant accounts. Some of them require their clients to establish merchant accounts on their own.

Merchant Software. A POS terminal application or PC or internet application that runs transactions and associated administration.

Method Of Payment (MOP). The way a merchant chooses to accept payment for products or services: Visa, MasterCard, American Express, Discover, Diners Club, JCB, Carte Blanche, E-Check and private label cards.

Monthly Minimum Fee. A fee determined by the merchant bank. This fee is charged instead of the monthly credit card volume multiplied by the discount rate if the merchant's monthly credit card volume multiplied by the discount rate is less than the monthly minimum.

Monthly Volume (MV). The maximum monthly money volume a merchant is approved to process in Visa and Master-Card transactions. The monthly volume helps to determine what type of documentation will be required and is important for underwriter consideration of the file. Discover, American Express or any other card processing volume is never included in the calculated monthly volume.