Terms to Know

SAQ

Acronym for “Self-Assessment Questionnaire.” Tool used by any entity to validate its own compliance with the PCI DSS.

Schumer Box

Named for the then-chairman of the Senate Banking Committee that passed landmark consumer protection legislation (Senator Charles Schumer, D – NY) this standardized disclosure “box” features relatively consistent terms and conditions for credit card offers. Specific terms and conditions such as purchase and cash advance interest rates, annual fees and rate calculation methods are required to be spelled out for consumers in conjunction with all new account solicitations.

Secured Credit Card

Credit card that requires collateral (property, such as a house, car or deposit of money) for approval. Generally, secured credit cards are for people with no credit or poor credit who are trying to build or rebuild their credit history.

Service Code

Three-digit or four-digit value in the magnetic-stripe that follows the expiration date of the payment card on the track data. It is used for various things such as defining service attributes, differentiating between international and national interchange, or identifying usage restrictions.

Service Provider

Business entity that is not a payment brand, directly involved in the processing, storage, or transmission of cardholder data. This also includes companies that provide services that control or could impact the security of cardholder data. Examples include managed service providers that provide managed firewalls, IDS and other services as well as hosting providers and other entities. Entities such as telecommunications companies that only provide communication links without access to the application layer of the communication link are excluded.

Settlement

The reporting of settlement amounts owed by one member to another, or to a card issuing concern, as a result of clearing. Settlement is the actual buying and selling of transactions between the merchants, processors and acquirers; along with the card-issuing entities.

Settlement Bank

A bank, including a correspondent or intermediary bank, that is both located in the country where a member’s settlement currency is the local currency, and is authorized to execute settlement of interchange on behalf of the member or the member’s bank.

Smart Card

Also referred to as “chip card” or “IC card (integrated circuit card).” A type of payment card that has integrated circuits embedded within. The circuits, also referred to as the “chip,” contain payment card data including but not limited to data equivalent to the magnetic-stripe data.

Standard Floor Limit

A floor limit that varies by merchant type. This refers to a currency limit on transactions, above which authorization requests are required.

Stored Value Card

A stored-value card is a credit-card-sized device that is implanted with a computer chip with stored money value. A reloadable stored-value card can be reused by transferring a dollar value to it from an automated teller machine or other device. A disposable card cannot be reloaded.