Glossary of Commercial Card and Payment Terms and Definitions

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Term	Acronym/Abbreviation	Definition
1099 reporting		A U.S. federal tax law requirement that obligates payors to report specific types of payments made to vendors, typically using IRS Forms 1099-MISC or 1099-NEC. A 1099 could be viewed as the equivalent to a supplier’s W-2. In addition to federal requirements, states may also impose 1099 reporting requirements. Payments made using cards are excluded from this requirement under IRS Section 6050W, as the reporting responsibility shifts to the payment settlement entity.
accounts payable	A/P	1. Money a business owes to others; current liabilities incurred in the normal course of business as an organization purchases goods or services with the understanding that payment is due later. 2. The department within an organization responsible for paying invoices on behalf of the organization.
acquirer		See merchant acquirer.
acquiring department		The department (business unit) within an organization that needs particular goods and/or services and, therefore, initiates purchases; may work with the procurement department or contact suppliers directly.
acquisition		A purchase (of goods and/or services).
Address Verification System		A security system requiring merchants to supply address information for a cardholder to the institution that issues the credit card in card-not-present transactions, including online purchases.
adjustments		Adjustments are used by the Acquirer, or the entity processing payment transactions on behalf of a merchant, to address process disputes, duplicate charges, and other discrepancies.
Artificial Intelligence	AI	Artificial intelligence (AI) is the simulation of human intelligence in machines. Essentially, it's about creating computer systems that can perform tasks that typically require human intelligence, like learning, problem-solving, and decision-making. AI systems can analyze data, understand language, and even create new content.
association		See network.
ATM blocking		A common card control that prohibits cardholders from withdrawing cash from an automated teller machine (ATM).
audit		1. An examination of one or more aspects of a card program, such as its procedures (and the related level of compliance), financial records, reporting and transaction documentation. 2. The department within an organization responsible for conducting formal audits of the card program.
authentication		This is the process to verify the identity of a credit card user, such as when a cardholder is required to provide secret information, such as a Personal Identification Number (PIN), to complete a transaction or request information.
automated clearing house	ACH	An electronic payments system (outside the card networks) for clearing and settling transactions. Funds are electronically exchanged directly to/from participants' accounts. Frequently used by end-user organizations as the payment method by which to pay their issuer.
automated teller machine	ATM	An electronic banking machine that dispenses cash, accepts deposits and performs other services when a customer inserts a plastic card and follows the appropriate prompts.
bank identification number	BIN	The first six digits of a card number represent the card provider (bank) that issued the card, card type (e.g., P-Card) and card brand.
Basis Point	BPS	A basis point—measured in one hundredth of 1%—that is used in expressing differentiation in interest rates or interchange rates where differences of less than one percent are common.
batch		The accumulation of captured (sale) transactions waiting to be settled. Multiple batches may be settled throughout the day.
batch fee		A processing charge assessed for submitting a group of transactions to a payment processor for settlement. These fees depend on the volume of transactions included in the batch and are integral to merchant cost structure.
batch processing		A type of data processing and data communications transmission in which related transactions are grouped together and transmitted en masse for processing, usually by the same computer and under the same application.
benchmark		1. Noun: A measurable metric or industry standard against which comparisons can be made. 2. Verb: To compare metrics or standards between what other organizations or industries are doing versus your organization's goals or processes. 3. Adjective: Resulting in a benchmark, such as a "benchmark study.”
biometrics		A method of data security used to confirm an individual's identity to thwart items such as data breaches, credit card hacks, etc. Biometrics uses data that is physically unique to an individual, such as a fingerprint, providing an additional barrier against fraud.
Bitcoin		Bitcoin is the most recognizable of an increasing number of decentralized digital currencies, also known as cryptocurrencies, which are not backed by any country’s central bank or government. A cryptocurrency can be traded for goods or services, though only with vendors accepting that cryptocurrency as payment.
bleisure		The concept of mixing a business trip with leisure.
blockchain		A secured way of online transaction and is a decentralized digital ledger that records transactions on thousands of computers globally in such a way that the registered transactions cannot be altered retrospectively.
breach		A breach is a common term to refer to an incident of exploitation of security safeguards to access and compromise a merchant’s sensitive cardholder data.
"break-even" point		When card acceptance costs/fees are basically equal to the benefits, providing no monetary advantage or disadvantage. It's the maximum transaction amount before card acceptance may no longer benefit the supplier, exceeding estimated cost savings, depending on the terms of the merchant agreement.
Business Card		Credit and/or debit cards targeted for smaller businesses, as defined by each issuer, but generally organizations with less than 50 accounts; commonly used for a variety of expense types (e.g., goods, services and travel).
business case		A structured proposal for business improvement that offers a thorough cost/benefit analysis and the background for management to decide on the proposed project or solution.
business email compromise	BEC	A type of cyber-enabled fraud where criminals use fake or compromised email accounts to trick employees into sending unauthorized payments or sensitive banking information. Some examples in banking include redirecting wire transfers or ACH payments to fraudulent accounts by posing as authorized vendors, executives, etc.
business-to-business	B2B	Commerce between businesses, as opposed to commerce between a consumer and a business.
buyer-initiated payment	BIP	See electronic payables.
capture date		This refers to the date on which a payment transaction is processed by an acquirer, the entity that processes transactions on behalf of the merchant.
card controls		See systemic controls.
card network		Card networks like Visa and Mastercard serve as the central infrastructure enabling transaction routing between issuers and acquirers, and they establish the interchange fee schedules.
Card Not Present transactions		This refers to credit or debit card transactions where the physical card is not present at the point of transaction, such as for online purchases.
card verification code		Embedded within a payment card’s magnetic stripe, this security code is read during card-present (CP) transactions. It validates that the physical card is genuine, enhancing transaction integrity for swipe-based payments.
cardholder		An employee to whom a Commercial Card is issued for making designated business purchases/payments on behalf of his or her organization.
cardless accounts		Accounts that have no plastic card issued, only an account number to which the acquisitions of goods and services are charged.
cash flow		The pattern of company income and expenditures and resulting availability of cash.
central bill		The consolidated billing statement issued to an end-user organization by the issuer, reflecting the organization's card accounts (e.g., P‑Cards) and the posted totals during the billing period.
Central Travel Account	CTA	Lodge cards, also known as central travel account (CTA) cards, are designed to centralize travel-related expenses into a single account. Often used for expenditures like airfare, accommodations, car rentals, and rail bookings.
Certified Purchasing Card Professional	CPCP	Credential awarded to Purchasing Card professionals who have successfully passed the certification exam based on the body of knowledge necessary to administer a Purchasing Card program. To retain the credential, individuals must meet established ongoing requirements.
chargeback		This refers to a demand on behalf of the credit card issuer, on behalf of its cardholder, made to a retailer to reverse a payment based on a disputed transaction or instance of fraud.
chargeback period		The number of calendar days (counted from the transaction processing date) during which the card-issuing institution has the right to charge the transaction back to the acquirer. The number of days varies from 45 to 180 days, according to the type of transaction.
Chip Cards		A type of credit/debit card with an embedded smart chip designed to make transactions more secure. Now the global standard for credit and debit cards, also known as EMV® for the founding developers of the technology.
closed-loop payment		A private label payment system that provides the processing networks to facilitate B2B payments between buyers and suppliers outside of the payment brand rails. By using closed-loop payment systems, participants can set their own priorities, rules and rates based on individual programs or data points.
Commercial Card		Generic term for any card product used by organizations for making payments for various goods, services and business expenses.
consortium		An association, typically of several business companies.
contactless payments		Contactless payments refer to a secure method of transaction that leverages mobile devices and payment terminals equipped with radio frequency identification (RFID) or near-field communication (NFC) technologies.
contingent liability		Cases of individual liability in which the end-user organization has not reimbursed the cardholder for bona fide business expenses and the cardholder, in turn, does not pay the issuer; allows the issuer to pursue the organization to obtain payment.
Controlled Value Card	CVC	See Declining Balance Card.
controls		The internal, external and/or environmental policies, procedures and technological processes put in place to reduce the risk of card fraud and misuse.
convenience checks		A payment method for which the draft is against the available credit of a Purchasing Card account or program. Can be used in the event a payee does not accept card payments.
Corporate Card		A card used by organizations and their employees for travel and entertainment (T&E) expenses. Also referred to as a Travel Card.
corporate liability		The end-user organization is liable for the Commercial Card charges; this is the case for Purchasing Card programs and, sometimes, Corporate Card programs.
cost of funds		The interest rate associated with the use of money (i.e., borrowed funds).
cross-border payments		A transaction where the payer and recipient are in different countries, often involving currency exchange and additional fees or regulatory requirements.
cryptocurrency		A digital or virtual currency where encryption technology—operating independently of a central bank—is used to facilitate generation of units of currency and verify the transfer of funds. Bitcoin is the most recognizable of an increasing number of decentralized digital currencies. A cryptocurrency can be traded for goods or services, though only with vendors accepting that cryptocurrency as payment.
data breach		This refers to an incident when sensitive, confidential data, such as credit card or personal health information, is viewed, stolen, or used by an unauthorized, untrusted individual.
data capture		Electronic transmission and retrieval of data associated with card transactions; typically, data passed from the supplier through the issuer to the end-user organization. See also levels of data (1, 2 and 3).
data encryption		Data encryption is the process of securing sensitive data, such as credit card information, by transforming that data using an algorithm to make it unusable to anyone except those possessing special knowledge, referred to as a key.
Data Security Standard	DSS	Data encryption is the process of securing sensitive data, such as credit card information, by transforming that data using an algorithm to make it unusable to anyone except those possessing special knowledge, referred to as a key.
Debit Card		A card product that functions as an alternative to cash or checks, allowing the user to "pay now” versus the "pay later” scenario associated with credit cards; card transaction amounts are deducted from a funded account, such as the user's bank account. See also Prepaid Card.
Declining Balance Card		A type of prefunded payment card where the balance decreases as purchases are made until the funds are completely utilized.
deliverable		Products and/or services provided to one party by another according to predetermined terms and conditions agreed upon by the parties.
department		Functional business unit of an organization such as purchasing, accounting, human resources, etc.
Department Card		A type of commercial or purchasing card issued to a specific department, business unit or non-individual to make purchases on behalf of that department.
digital currency		See cryptocurrency.
direct spend		Purchases of goods and services that are directly incorporated into a product being manufactured. Examples include raw materials, subcontracted manufacturing services, components, hardware, etc.
discount fee		See merchant discount fee.
dispute		A cardholder challenge to a transaction on their credit card. The process allows cardholders to contest charges they believe are incorrect or fraudulent.
documentation		Communicable material (e.g., receipts), whether paper-based or electronic, serving to record and support business expenses paid via a card.
down-select		A process of evaluation that leads to a reduction of the field of candidates, such as during a request for proposal (RFP) process.
duty of care		An organization's obligation to identify risks and take proper care to ensure an individual does not suffer any unreasonable harm or loss while working or traveling overseas.
dynamic discounting		The fluctuation of fees (such as interchange) or other payment or trade terms that can be negotiated between a buyer and supplier.
Dynamic Ghost Account		An account number provided to a supplier for which the limits are tailored to specific orders or invoices and can be turned on and off. See also Ghost Account.
eCommerce		The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.
electronic data interchange	EDI	Systems and processes that enable the paperless exchange of documents, typically transmitted via special-purpose connections and providers.
electronic funds transfer	EFT	The movement of money between bank accounts via ACH or wire.
electronic invoicing		The exchange of the invoice document between a supplier and a buyer in an integrated electronic format. Also known as e-invoicing.
electronic payables		A form of electronic payment, utilizing the card infrastructure, managed centrally within an organization, typically by A/P. Also known as electronic accounts payable (EAP), automated payables, e-payables, Virtual Payment Cards, push payments, straight- through payments (STP), buyer-initiated payments (BIP), supplier/vendor card, single-use accounts and electronic invoice presentment and payment (EIPP). Each provider has a proprietary name for its solution; functionality and processes vary for each.
electronic signature		An electronic equivalent of a written signature that could be a code or a symbol.
end-user		An organization that uses Commercial Cards for the payments of business expenses. Less commonly, is considered the employee (i.e., cardholder) to whom the card is issued.
enterprise resource planning system	ERP system	Technology solution aiding multiple facets of an organization's business activities, such as inventory management, purchasing and receiving, sales, accounts payable, etc.
eProcurement		A fully capable electronic web application for purchasing goods and services. eProcurement allows shoppers to browse online catalogs, add items to a shopping cart and submit a requisition electronically.
file transfer protocol	FTP	The protocol for electronically transferring or exchanging data (e.g., files) from one computer to another.
file turn		Speed of payment by an end-user organization to the card issuer; also considered the average collection period. Sometimes referred to as days receivables outstanding or client-held days.
financial institution		A financial institution is any organization in the business of moving, investing or lending money; dealing in financial instruments; or providing financial services. This includes commercial banks, thrifts, federal and state savings banks, savings and loan associations and credit unions.
Fintech		Companies that rely heavily on specialized software, algorithms and technology to offer banking and other financial services, often via online or mobile applications, at lower cost than traditional financial institutions.
Fleet Card		Specialized Commercial Card used to capture fleet-related expenses (e.g., fuel, vehicle maintenance, repair and service).
four-party payment system		Card payment system in which the network links the end-user/cardholder, issuer, supplier and merchant acquirer; includes the Visa and MasterCard models. See also three-party payment system.
fraud		Unauthorized use of a card, resulting in an acquisition whereby the end-user organization does not benefit. Can be committed by the cardholder, other employees of the end-user organization, individuals employed by the supplier or persons unknown to any of the parties involved in the transaction.
full-time equivalent	FTE	An employee who regularly works 35 to 40 hours per week.
general ledger	GL	An accounting record or ledger that lists all increases or decreases of liability, reserve, capital, income and expense accounts.
Ghost Account		A type of card account whereby an account number is issued or provided to a specific supplier or supplier type for the payment of purchases made by an organization's employees. Also referred to as Ghost Card or Supplier/Vendor Card. May function like a Purchasing Card, having a monthly/cycle limit, or as a Dynamic Ghost Account, having specific limits that can be turned on and off. See also Dynamic Ghost Account and Electronic Payables).
implementation		The process of putting all card program functions and activities into place.
Incentive Card		A type of Prepaid Card used to reward employees or customers; also referred to as a Gift Card.
indirect spend		Purchases of goods and services that are not directly incorporated into a product being manufactured. Examples include computers, safety goggles, printed forms, office supplies, janitorial services, equipment, furniture, etc.
individual liability		The cardholder (versus the end-user organization) is liable for the charges; this is a common arrangement for Corporate Card programs.
information technology	IT	1. The development, installation and implementation of computer systems and applications. 2. The department within an organization that is responsible for the development, installation and implementation of computer system and applications.
Institute of Commercial Payments	IOCP	Institute of Commercial Payments is a membership-based professional organization committed to advancing Commercial Card and Payment professionals and industry practices worldwide. Serving a community of more than 19,000 members and subscribers since 1999, Institute of Commercial Payments is a respected voice in the industry and an impartial resource for members at all experience levels in the public and private sectors. We provide unmatched opportunities for continuing education and peer networking through conferences, virtual events, our website and regular communication. The institute sponsors research, and publishes timely and relevant white papers, survey results and other documents. Institute of Commercial Payments also offers a Certified Purchasing Card Professional (CPCP) credential.
Intent to Negotiate	ITN	An Intent to Negotiate (ITN) works wells with technology and complex procurements with the goal of obtaining best value. The scope describes more high-level goals and outcomes of the project, with the intent of allowing the respondents to tell you how to get there and what they can offer as a viable solution. The ITN allows for direct negotiations and two public posts of the Notice of Intended Action—once for the short-listed respondents for negotiations and the second for the award. The process can take up to six months.
interchange fee		In a four-party payment system, a fee paid by a merchant acquirer to the issuing bank ("card issuer”). The fee compensates the issuer for the time after settlement with the acquiring bank/merchant bank and before it recoups the settlement value from the end-user.
interface		A process or electronic file designed to communicate information from one application or system to another in a consistent and structured manner.
international transaction fee		A bank fee for using the credit card internationally, usually 1% of the total transaction.
invoice		An itemized bill for goods sold or services provided, containing details such as individual prices, the total charge and payment terms.
issuer		The financial institution issuing a Commercial Card or account. Also referred to as a card issuer, card provider or bank.
itemized receipt		See invoice.
joint and several liability		Both the end-user organization and the cardholder are liable for the Commercial Card charges, which allows the card issuer to pursue payment from one or both, as necessary.
large-ticket interchange		Typically, a lower interchange fee for transactions exceeding a "high dollar” amount (e.g., $10,000) and, as applicable, meeting other requirements (e.g., Level 3 data); specifics are defined by the respective networks and may change over time.
Level 1 Data		Standard transaction data including date, supplier and total purchase amount. Also written as "Level 1" data.
Level 2 Data		Enhanced transaction data including Level 1 data plus a customer-defined reference number, such as a purchase order number, and separate sales tax amount. Also written as "Level 2" data.
Level 3 Data		Detailed transaction data including Level 2 data plus line-item detail, such as the item purchased. Sometimes referred to as simply "line-item detail." Also written as "Level 3" data.
liability		Money owed; debts or financial obligations. See also: contingent liability, corporate liability, individual liability, joint and several liability, and split liability.
line-item detail		Transaction data reflecting what was purchased. See also Level 3 Data.
line of credit		The maximum amount of credit to be extended to a customer.
low-value transactions		Transactions for which the total is less than a small dollar amount (e.g., $2,500), as defined differently by each organization.
magnetic stripe		A stripe (on the bank card) of magnetically encoded cardholder account information affixed to a plastic card.
maintenance, repair and operating goods	MRO	Items supporting the production and/or delivery process of other goods or services; for example, oil.
mapper		A tool or configuration that translates data from one system's format to another to be seamlessly imported into financial technology.
mapping		Process of downloading transaction data (i.e., mapper file) from the issuer and importing it into an organization's financial management system for allocating card transactions to the assigned accounting codes.
merchant		See supplier.
merchant acquirer		A financial institution or other entity that enrolls merchants (i.e., suppliers) to accept card payments; provides related technology and services to the merchant; and facilitates payment flow, such as payment to the merchant. Also referred to as an acquirer or a supplier’s bank. Key steps of the transaction process are (1) authorization request (2) settlement; and (3) chargeback responses.
Merchant Category Codes	MCC (singular); MCCs (plural)	A system of four-digit codes, maintained by the networks, used to identify a merchant’s principal trade, profession or line of business; an MCC is assigned to a merchant by the merchant or merchant acquirer.
merchant discount fee		The fee paid by a merchant to its merchant acquirer/bank or other contracted party for services related to the processing of the merchant's card transactions; in a four-party payment system, includes interchange. Also referred to simply as discount fee.
metrics		Quantified, relative statistics used to rate card program performance.
micro-payments		Small financial transactions ranging from under $5 up to $50. Top two means Micropayments are made through in-app billing or digital wallets, such as Apple Pay, Google Pay or PayPal.
misuse		Unauthorized purchasing activity by the employee to whom a card is issued. Includes a wide range of violations, varying in the degree of severity, from buying a higher quality good than what is deemed appropriate to using non-preferred suppliers.
mobile wallet		A mobile wallet is a type of digital wallet that’s specifically used on a smartphone or tablet instead of carrying a physical card. It works through apps like Apple Pay, Google Pay or Venmo.
multi-factor authorization	MFA	A security process that requires two or more forms of verification—like a password plus a code sent to your phone—to confirm a user’s identity. It adds an extra layer of protection beyond just a username and password.
network		Entity that facilitates the movement of transactional data between the issuer and acquirer and sets merchant rules for card acceptance. Organizations in this role include Visa, MasterCard and American Express.
network assessment/switch fee		Fee for routing payment information through the credit card network.
nexus		Refers to the connection or presence of business activity in a state or jurisdiction that triggers the requirement to comply with local tax laws.
North American Industry Classification System	NAICS	Replaced SIC codes in 1997, typically a six-digit numerical code designated by the U.S. government to classify businesses by their primary industry. It provides a more current and accurate classification system that aligns more closely with today's economy, especially in growing sectors like services and technology.
Office of Foreign Assets Control	OFAC	OFAC is the unit of the U.S. Department of the Treasury that administers and enforces economic and trade sanctions, including asset seizures, based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States. OFAC acts under presidential national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under U.S. jurisdiction.
One Card		A type of hybrid card in which a single card is issued to an employee for more than one category of expenses (e.g., goods/services and travel expenses), eliminating the need to carry two separate cards.
One Card Plus Fleet		A single card used for purchasing, travel and fleet-related expenses (fuel, vehicle maintenance, etc.). Combines the functionality of a P‑Card, Corporate Card and Fleet Card.
open banking		Describes the set of policies and technologies that provide the ability for customers to access, transfer, and share their financial transaction data from financial institutions with authorized third-party providers, enabling greater access to broader, more tailored financial services.
organization		A company, government agency or other entity either implementing or managing a card program. Also referred to as the end-user.
organization limit		The credit limit assigned by the issuer to the end-user organization's card program.
Participant payments/study subject Gift Card		Compensation to pay for research participants in a fiscally responsible and safe way.
Payment Card		Term used by the Internal Revenue Service (IRS), as well as other organizations, when referring to Commercial Cards.
Payment Card Industry Data Security Standard	PCI DSS	Comprehensive set of security requirements applicable to all card-accepting merchants, designed to protect cardholder and account data (https://www.pcisecuritystandards.org/).
payment terms		Stipulations, typically negotiated between the supplier and end-user organization, regarding settlement of an invoice. In a card program, usually refers to the requirements associated with the organization's payment of the central bill to the issuer.
Payroll Card		A type of Prepaid Card funded with an employee's earned wages, allowing cash withdrawal from an automated teller machine and payments for purchases in a retail environment. Replaces a payroll check or direct deposit payroll process.
Personal Identification Number	PIN	A Personal Identification Number, or PIN, is the confidential individual number or code used by a cardholder to authenticate card ownership for ATM or POS-terminal transactions.
petty cash		A small amount of cash kept on hand by an organization for incidental expenses, such as reimbursement to employees for small, out-of-pocket business expenses.
phishing		The fraudulent practice of sending emails purporting to be from reputable companies to induce individuals to reveal personal information, such as passwords and credit card numbers.
pilot program		Test or trial activities in advance of a full card program rollout.
plastic card		A physical card issued to a cardholder and used for the payment of goods, services and other business expenses (e.g., travel).
point of sale	POS	The location or technology system for which card payments for goods and services are initiated.
Prepaid Card		A debit-based card in which card transaction amounts are deducted from a funded account; can be reloadable or non-reloadable. Also referred to as a Stored Value Card.
processor		Provider of back-office services on behalf of the merchant acquirer or issuer, including authorization of card transactions and data delivery.
procurement		1. The process of obtaining or acquiring goods and services. 2. The department within an organization that is usually responsible for the development of requests for proposals (RFPs), proposal analysis, supplier market research, negotiations, buying activities, contract administration, inventory control, etc. Also referred to as purchasing, sourcing or similar term.
procure-to-pay process	P2P	The entire cycle of requisitioning, acquiring and paying suppliers for goods or services.
program administrator	PA	A key role within the card program hierarchy responsible for administrative support, including card management, reporting and coordinating communication to ensure smooth program operations.
program manager	PM	A key role within the card program hierarchy responsible for guiding the overall direction of the program, making strategic decisions and managing resources to align with organizational objectives.
provider		A financial institution or company that issues payment cards and manages the associated accounts and services for consumers or businesses.
purchase order	PO	Written authorization for a supplier to deliver products and/or services at a specified price according to specified terms and conditions, becoming a legally binding agreement upon supplier acceptance.
purchase-to-pay	P2P	See procure-to-pay process.
Purchasing Card	P‑Card	A plastic card used for business purchases of goods and services, typically for high-frequency, low-value transaction activity.
Qualified Payment Card Agent	QPCA	An Internal Revenue Service (IRS) designation, which never became operational, authorizing Payment Card organizations (i.e., networks) to obtain and validate merchant Tax Identification Numbers (TINs) on behalf of payors/end-users.
real-time-payments		A real-time payment is an irrevocable account-to-account digital transaction that is processed and settled instantly, with funds available to the recipient within seconds, any time of day. In the United States, The Clearing House’s RTP Network and FedNow are the most prominent real-time payments networks.
reconcile or reconciliation		Process of reviewing and comparing card transactions to internal records of orders/payments and receipts, including resolving discrepancies and validating or allocating transactions to appropriate accounting codes.
reduced interchange		Reduced interchange rate is based on rates established by the networks to motivate merchants to accept cards and provide data important to businesses and government programs. In return for accepting large-ticket purchases, passing level 3 data, and offering straight-through processing (STP), merchants are offered a lower interchange for transactions that meet a specific requirement.
Request for Information	RFI	A formal inquiry used to gather information from potential vendors about their products, services, or capabilities. It helps organizations explore options and assess the market before issuing a Request for Proposal (RFP) or making procurement decisions.
Request for Proposal	RFP	A formal and systematic process used by organizations to provide requirements to and request information from potential suppliers, leading to the selection of one or more suppliers for goods and/or services.
requestor		The person or organization initiating the order for goods or services.
requisition		A formal, documented request for goods or services the organization needs.
revenue sharing		The arrangement between card issuers and participating parties where a portion of the revenue earned from interchange fees, service charges or other fee income is shared among all parties involved.
rollout		A staged series of activities conducted during card program implementation.
sales tax		A tax imposed on the sale of taxable goods or services, calculated as a set percentage of the sales price collected by the merchant.
Sarbanes-Oxley Act	SOX	U.S. legislation, signed into law in 2002 and primarily affecting publicly traded American companies, serving to close loopholes to prevent corporate accounting scandals, boost investor confidence and hold management accountable for activities occurring within their organizations.
single use account	SUA	A virtual one-time use credit card number issued for a specific transaction or vendor payment. Each account number is unique, tied to a pre-approved amount and expiration. The account number is limited to a single use for the exact amount and becomes inactive once the transaction is completed.
Single Use Virtual Card		A Virtual Card that expires or becomes invalid after one transaction or a short time. Often used to enhance security for online transactions.
site coordinator	SC	A role typically residing in a field office of a large, geographically dispersed P‑Card program, responsible for many administrative duties and having an indirect alignment to the program manager.
small and medium-sized enterprises		As defined in EU law; EU recommendation 2003/361. The main factors determining whether a company is an SME are number of employees and either turnover or balance sheet total.
spend		The total of all purchases through the card program during a specified reporting period.
split liability		Liability for Commercial Card charges is split between the cardholder and end-user organization, based on merchant category codes; for example, the cardholder might be liable for travel and entertainment (T&E) expenses, while the organization is liable for the other transactions.
split transaction		See transaction splitting.
Standard Industry Classification code	SIC code	See North American Industry Classification System.
statement		A document reflecting account details for the billing period including debits, credits, transaction detail and balance due.
statement billing file	SBF	See mapper.
Stored Value Card		Similar to a Prepaid Card, but the value is held on the card itself and are often closed-loop, meaning they can only be used at specific merchants or locations.
straight-through payment	STP	An electronic payment to a supplier, utilizing the card infrastructure, that typically occurs as a direct deposit into the supplier's merchant account; is one form of electronic payables.
subject matter expert	SME	One who has demonstrated competency and mastery in a particular subject or topic.
supplier		Merchant/vendor with whom the organization does business.
surcharge		A fee that a supplier adds to a card transaction, but does not add to a non-card payment; in the U.S., merchant rules generally prohibit this practice.
systemic controls		An automated means for controlling the purchases made with a card (e.g., spend and velocity limits, MCC restrictions, etc.). Also referred to as card controls.
taxpayer identification number	TIN	An identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. For individuals, the Social Security number (SSN); for businesses, the Employer Identification number (EIN).
three-party payment system		Card payment system in which the network also functions as the issuer and merchant acquirer, working directly with end-users and suppliers; includes the traditional American Express model. See also four-party payment system.
tokenization		A method for protecting card data by substituting a card’s Primary Account Number (PAN) with a unique, randomly generated sequence of numbers. This “token” can be reversed to its true associated PAN value by the service provider who initially created the token. Tokens can be either single- or multi-use.
trading partner agreement	TPA	An agreement related to the exchange of information in electronic transactions; specifies acceptable protocols between operating systems and defines responsibilities regarding system failures or data corruption.
transaction splitting		A practice whereby cardholders or suppliers split a purchase's total into two or more transactions to circumvent single transaction limits; is generally prohibited within policies.
Travel Card		A type of payment card issued to employees or authorized individuals for business-related travel expenses such as airfare, lodging, meals and transportation. This type of card enables organizations to better manage, track, and control travel spending while reducing the need for personal reimbursements.
travel management company	TMC	Business travel agent that manages an organization's business travel requirements. In addition to making reservations, a travel management company will help an organization gain control and visibility of their business travel spend.
United Nations Standard Products and Services Code^®	UNSPSC^®	An open, global multi-sector standard for efficient, accurate classification of products and services. ungm.org
use tax		A tax paid by the purchaser when taxable property or services are used in the state and a state tax has not been paid.
validate		To substantiate, authenticate or verify transactions. See also reconcile.
value proposition		The unique added worth a card program affords an organization; can be measured in cost savings, efficiency or intangible benefits such as improved service.
vendor		See supplier.
Virtual Card		A no-plastic-issued card usually used for travel for people that are not eligible for a corporate travel card (not a permanent employee).
W-2		Internal Revenue Service (IRS) form that reports income paid and taxes withheld by an employer for a particular employee during a calendar year.
W-9		IRS Form W-9 (Request for Taxpayer Identification Number and Certification)
white labeling		White labeling is a business practice where a company provides payment solutions that can be rebranded and marketed under another company’s name. White-labeled payment platforms enable businesses to offer customized payment experiences while leveraging the infrastructure of established providers.
working capital		Current assets minus current liabilities (also known as cash flow).