Merchant
Account Glossary Series:
(Terms and Definitions)
ACH (automated clearinghouse)
This is a form of
electronic payment. ACH is designed to be an "electronic
check." It is generally used to process a high volume
of relatively low-dollar payments.
Settlement occurs
within one or two business days.
networks that use
this ACH network settle and clear electronic debit transactions
through an automated clearinghouse.
Acquiring Bank (Acquirer)
Every merchant account must be sponsored by a
bank that is a member of the card associations (Visa & MasterCard).
They are responsible for depositing the funds into your checking
account.
Approval Code or Authorization Code
This code is generated for the merchant upon approving a transaction.
It is the unique identifier of the transaction in case it needs
to be referred to again in the future.
Authorization
An authorization is a request to charge a credit card holder.
An authorization does not actually capture any funds.
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