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PC Merchant Software. A software program (such as accounting system, ticketing, reservations etc.) that is designed to perform a merchant specific functions on a computer. The application must be with a build in credit card authorization system in order to provide on-line transactions processing.

Personal Identification Number (PIN). Is a number used by cardholder to authenticate card ownership and complete a transaction via a payment card. The cardholder enter this number into a PIN pad during purchase where it is encrypted to travel along with the authorization.

Pick Up Card. An issuer sends this electronic response after authorization request, asking that the card be kept by the merchant and returned to the issuer.

PIN Pad. A small device connected to a processing terminal with a 10-key pad on it. The cardholder enter Personal Identification Number into a PIN pad during purchase.

Point Of Sale (POS). The physical location where a sale is completed and credit card transactions are performed with the cardholder present. Usually transaction is performed with a device such as a credit card terminal or cash register and the cardholder's signature is obtained as insurance against the transaction.

POS Terminal. A terminal at the Point Of Sale (POS), an electronic device connected via telecommunication lines to a central computer and used for verifying and processing credit card authorization, recording and transmission transactions.

Prior Authorized Sale. A transaction for which authorization was obtained at an earlier time.

Private Label Cards. Debit, credit or stored value cards that can only be used in the issuing merchant's business.

Processing Gateway (Payment Gateway). Processing gateways are an intermediary managing the electronic connection between consumers and their financial institutions and transmits data.

Processing Fees. The fees associated with the processing of credit card transactions.

Processor. The company that actually processes an authorization request from a point of sale terminal to Visa or Master Card and then arranges for fund settlement to the merchant. Processor is responsible for processing interchange transactions - operated by an acquirer or acting on the acquirer's behalf.

Purchasing Card. A payment card used by companies instead of paper invoices.