Merchant Account Glossary - A

ABA Routing Number
This 9-digit number is assigned by the American Banker’s Association and is used to identify individual banks.  When performing an ACH transfer from one bank account to another, this number is used to assist the electronic routing of funds.

Access Number
An access number is a telephone number used by the modem in a computer to communicate with an Internet Service Provider allowing for online access.

Acquiring Bank
An acquiring bank provides credit card merchant accounts.  This bank establishes and maintains the merchant relationship.  The acquiring bank is also responsible for submitting credit card purchase information to Visa and MasterCard.

Address Verification Service (AVS)
AVS is a service that helps reduce chargebacks and fraud by verifying a cardholder’s billing address with the credit card company before the transaction is approved.  AVS is used to reduce the risk involved in Mail Order and Telephone Order transactions.

Articles of Incorporation
This is a legal document that identifies the principals of a corporation and the terms under which a corporation was created.

Authorization
This is a process where an issuing bank or authorized agent approves a transaction for the specified amount.  This process takes place by the merchant via telephone or terminal before the transaction is completed.

Authorization Code
This code is given by the credit card issuer and authorizes a specific transaction.  This number should be saved for future reference.

Authorization Fee
A communication charge for each transaction (Sale, Credit, Void), and each time a merchant closes a batch of transactions.

Automated Clearing House (ACH)
The Automated Clearing House is a paperless entry system controlled by the Federal Reserve.  This system is networked with other banks in order to clear and settle debit and credit transactions without the use of physical checks.

Authorize.Net
Authorize.Net is an internet payment gateway commonly used in e-commerce to verify credit card and electronic check payment transactions.  When coupled with shopping cart software, Authorize.Net works somewhat like a virtual terminal.

Average Ticket Size (AVT)
This is the average Visa / MasterCard dollar amount that a merchant anticipates per sale.