Interchange Fee
A fee set by and collected by the bankcard association from the merchant financial institution and paid to the issuing financial institution to cover processing and float expenses incurred in billing the cardholder.

IP Address
An internet address usually represented in dotted decimal, e.g. "127.0.0.1".

ISO
Independent Sales Organization - ISOs act as a third-party between the merchant and the acquiring bank. Many businesses are unable to obtain merchant status through an acquiring bank because they are viewed as too large a risk, and need to go through an ISO to obtain merchant status.

MOTO
Mail Order/Telephone Order - Credit card transactions initiated via mail, email or telephone. Sometimes ecommerce transactions are referred to as MOTO instead of ecommerce.

Non-Qualified Transaction Fees
Bankcard sales transactions that do not meet set Mastercard & Visa criteria for that particular merchant and are processed at a higher interchange rate.

Purchasing Cards
Charge cards used by businesses to cover purchasing expenses, such as raw materials or office supplies.

Third-Party Processor
A company that provides a variety of bank/merchant services including billing, reporting, customer service, authorization, and settlement services on behalf of the acquiring financial institution.

VAR
Value Added Reseller - Third-party vendor that enhances or modifies existing hardware or software, adding value to the services provided by the processor or acquirer.

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