A downgrade credit card transaction happens when a transaction settles at a higher rate than it could have. This can occur for several reasons, including, but not limited to:

• The batch isn’t settled within 48 hours of authorization. 

• A transaction isn’t authorized within the allotted time frame. 

• A transaction is categorized as stale. 

• There is an address verification system (AVS) error. 

• The correct customer code isn’t supplied. 

• The terminal software is outdated. 

• The authorization and settlement amounts differ. 

• The settled amounts don’t match the original amounts. 

• A business, corporate, or purchasing card gets processed in a B2C processing gateway.

Dues and Assessments are fees charged by the processing networks, i.e., Visa, Mastercard, and Discover, on credit and debit card transactions. Dues are a general term for all of the various fees charged by card networks, including per-item transaction fees. Assessments are flat-rate percentages charged against the total gross monthly sales. See below for the impact these fees have.

A device used for cash sales which can also be integrated to accept credit cards.

Process of electronically authorizing, capturing, and settling a credit card transaction.

A strip of magnetic tape affixed to the back of credit cards containing identifying data such as account number and cardholder name.

A batch close that the merchant initiated. 

A business that accepts credit cards.

The rejection of a sales draft by Visa or MasterCard before a transaction runs through Interchange, but after it has been paid by the acquirer.

This number is generated by a processor/acquirer and is specific to each individual merchant location. This number is used to identify the merchant during the processing of daily transactions, rejects, adjustments, chargebacks, end-of-month processing fees, etc.

A technology and payment method designed to limit fraud by using embedded computer chips on credit and debit cards. Businesses not using point-of-sale systems accepting EMV cards may become liable for certain fraudulent card transactions.

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