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Real-Time Processing. The verification and processing of credit card transaction during purchase. Real-time verification on the internet takes less than five minutes and customers may expect services or products right after transaction approvement. Real-Time Processing always implies that a secure payment gateway is being utilized, whether proprietary or third party.

Reason Code. A two-digit code identifying the reason a chargeback was initiated.

Re-Authorization. A process requesting an additional amount to be authorized on an existing transaction.

Recurring Transaction. A transaction type in which cardholder's account (with prior permission) is charged periodically for recurring goods and services.

Referral. It is a type of message received from an issuing bank when an attempt for authorization requires a voice authorization.

Refund. A process when the merchant returns all or a portion of an original transaction amount to the cardholder. Refunds are made to the same card that was used for the original transaction.

Reserve Account. An account maintained by merchant at the processor's sponsoring bank. This account allows the processor to issue a hold on funds in this account when fraud has been detected or an excessively large number of returns is received. Typically reserve account is set at about 20% of the anticipated processing volume. Merchants having a good credit and history are not always required to keep a reserve account.

Reversal. A process when an acquirer successfully disclose a chargeback to the issuer. The funds are returned to the merchant after the chargeback is reversed.