Merchant Account Glossary - B
Basis Points
1/00th of a percentage point is a basis point. In merchant processing terms there are three distinct categories: Qualified, Mid-Qualified, and Non-Qualified. Concerning the discount rate, there is an increase of basis points from Qualified to Mid-Qualified and an increase from Mid-Qualified to Non-Qualified.
Batch Processing
The credit card transactions remaining on a merchant’s terminal are stored in an “open” batch. They will remain there unless the merchant “batches out”. Once the merchant batches out, the daily sales are submitted for processing, and the batch is now “closed” or “settled”.
Business Financials
Business Financials are a set of reports including a: Profit and Loss Statement, Balance Statement, and Statement of Cash Flow.
Business Type
A merchant’s business type is determined by the transactions are processed.
- Retail - Merchants in a face-to-face environment that sell tangible goods. These merchants use conventional terminals and most transactions are usually swiped.
- Service - Merchants in a face-to-face environment that sell services like automobile repair or plumbing. These merchants use conventional terminals and may either swipe transactions or key them in and take a manual imprint.
- Restaurant - Merchants in a face-to-face environment who sell prepared foods. These merchants use conventional terminals and most transactions are usually swiped.
- Hotel – Merchants in a face-to-face environment that sell lodging and hospitality services. These merchants use conventional terminals and either swipe or key in their transactions.
- Mail Order / Telephone Order (MOTO) - Merchants in a non-face-to-face environment that sell tangible goods through mail order or over the telephone. These merchants use software or conventional terminals and all transactions are keyed in.
- Internet - Merchants who process transactions over the internet. The cardholder types in their credit card information online and the transaction is processed in seconds.
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