Annual Fee: Charge to maintain a merchant's account-sometimes charged quarterly rather than yearly. Can range anywhere from $79 to $399.
Authorization Fee: Charged each time a transaction has to be approved; applied whether the transaction is approved or not.
Batch Fee: Charge to settle and sort the day's sales, sent to the processor as a batch; this fee usually increases if a batch is sent later than 24 hours.
Chargeback Fee: The bank is responsible for all merchant transactions and, as some protection against loss, assesses this fee when merchant transactions are disputed and settled in favor of the customer. A typical chargeback is $15 to $30, plus the cost of the transaction and the amount processed. Visa and MasterCard limit to 1% of dollar volume that chargebacks can be assessed; above 1%, fines are assessed to the processing bank that are ultimately passed on to the merchant.
Customer Service Fee: A charge for maintaining the merchant account.
CVV2 (Card Verification Value): The three- or four-digit number on the back of the card that is not embossed on the magnetic strip. It ensures that the purchaser actually has possession of the card.
Durbin Amendment: Legislation passed in 2011 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act that lowered the debit card Interexchange Fees charged by Visa and MasterCard.
Payment Card Industry Data Security Standard (PCI DSS): Data security controls criteria to reduce credit card fraud for any organization or business that handles credit, debit, pre-paid, bank ATM, and POS cards.
Point-of-Sale (POS): The physical location where a purchase transaction takes place.
SSL (Secure Socket Layer): An encryption protocol used to protect financial information transmitted over a computer network.
Statement Fee: Charge to generate a monthly statement for the merchant, whether that statement is paper or electronic.
Transaction Fee: Assessed when the merchant accepts an authorization.
Pin Pad: The keypad on which a customer enters a PIN number for debit card transactions, or signs for credit card transactions. Usually includes a card reader (swipe).