Glossary of Terms

The purpose of this glossary is to help users understand any unfamiliar terms or phrases in our knowledge base.

1099-K

A 1099-K is a tax form used to report income received from various types of payment card transactions, such as credit card sales and third-party network transactions. It is typically issued by payment processors or financial institutions to businesses and individuals who meet certain criteria. The form provides a summary of the total dollar amount of these transactions, which is then reported to the Internal Revenue Service (IRS) for tax purposes.

Account Number

An account number is a unique identification number assigned to a bank account by a financial institution. It is a crucial identifier that allows financial institutions to manage accounts accurately.

Ad Hoc Report

An ad hoc report is a report that is created on an as-needed basis to address specific information requirements or to analyze unique data sets. Unlike standard reports that are pre-defined and generated automatically, ad hoc reports are generated manually. 

Automated Clearing House (ACH)

Automated Clearing House (ACH) is a system that enables the electronic transfer of funds between financial institutions. It is a secure and efficient method for various financial transactions, such as direct deposits, bill payments, and electronic fund transfers. ACH allows individuals and businesses to send and receive money electronically, eliminating the need for paper checks or physical cash. ACH provides a convenient and cost-effective way to manage payments and transactions.

Automatic Report

An automatic report is a pre-defined report generated automatically at regular intervals, such as daily, weekly, or monthly. In the case of the portal, automatic reports run daily. These reports are designed to provide consistent and standardized information to users without manual intervention. They help monitor key performance indicators, track trends, reconciliation, and analyze data over time. 

Authorization

An authorization, or authorized payment, refers to the process of approving a financial transaction to take place. When a customer initiates a transaction, such as a purchase or a payment, the transaction authorization verifies the validity and availability of funds in the customer's account. This is done through a series of security checks and validations to ensure that the transaction is legitimate and authorized by the account holder. Once the authorization is obtained, the funds are reserved or deducted from the account, allowing the transaction to proceed. Transaction authorization plays a vital role in preventing fraudulent activities and ensuring the integrity of financial transactions.  

Authorized Status

Authorized status in the payments dashboard indicates that the payment has been approved and is ready to be processed. In the AndDone portal, authorized payment statuses are displayed with a blue banner message to signify a successful action.

Banner Message

A website banner is a prominent visual element displayed at the top of a webpage, typically used to convey important messages or information to visitors. It serves as a valuable tool for grabbing attention and directing users to specific areas or actions on the website. Banner messages in the AndDone portal are typically green for a successful action or red for an error. 

Banking Information

Banking information typically includes details such as the account holder's name, account number, and routing number. These details are essential for initiating and completing various types of transactions, such as making payments, receiving funds, or transferring money between accounts.

Beneficial Ownership

Beneficial ownership refers to the concept of identifying and understanding the individuals or entities that ultimately own or control a particular asset, such as a bank account or property. It focuses on determining who benefits from and exercises control over an asset. Financial institutions and companies are required to collect and verify beneficial ownership information to comply with regulatory requirements to mitigate the risk of illicit activities. 

Chargeback

A chargeback is a dispute resolution process in the financial industry that allows customers to request a refund for a transaction they believe is unauthorized, fraudulent, or unsatisfactory. When a customer initiates a chargeback, their financial institution investigates the claim and, if deemed valid, reverses the transaction and credits the customer's account. Chargebacks are typically used as a last resort when attempts to resolve the issue with the merchant have been unsuccessful.

Chargeback Reversal

A chargeback reversal occurs when a chargeback is reversed from the shopper to the merchant. The reversal effectively cancels the chargeback and restores the funds to the merchant's account. Chargebacks can occur for various reasons, such as unauthorized transactions, fraud, or disputes. When a chargeback is initiated by the shopper, the funds are temporarily taken out of the merchant's account and held by the payment processor while the dispute is being resolved.

Clawback

A clawback is an industry term for recovering previously disbursed funds. Clawbacks are enforced by a contractual agreement between the merchant and the payment facilitator (PayFac). 

Control Prong

Beneficial ownership is determined under both a control prong and an ownership prong. Under the control prong, a beneficial owner is defined as a single individual with significant responsibility to control, manage, or direct a legal entity customer. This means that the beneficial owner has the authority, and power, to make decisions and take actions on behalf of the customer. 

CVV/CVC

CVV stands for Card Verification Value, while CVC stands for Card Verification Code. However, these terms are often used interchangeably. These are three- or four-digit security codes typically found on the back of credit and debit cards. The purpose of the CVV/CVC is to add an extra layer of security to both online and card-not-present transactions.

Daily Authorization Report

The daily authorization report is a document generated by AndDone that provides a detailed summary of all authorized transactions processed within a specific day. It includes information such as the transaction ID, date and time of authorization, account number, amount, and authorization status (approved or declined). This report is useful for reconciliation purposes and can be found in the reporting module in the portal.

Daily Chargeback Report

The daily chargeback report is a document generated by AndDone providing a comprehensive summary of all chargeback requests received within a specific day. This report allows sub-merchants to track and manage chargeback disputes effectively. The report is conveniently accessible through the reporting module in the AndDone merchant portal.

Daily Refund Report

The daily refund report is a document generated by AndDone that provides a comprehensive summary of all refund transactions processed within a specific day. The report is conveniently accessible through the reporting module in the AndDone merchant portal.

Daily Settlement Report

The daily settlement report is a document generated by AndDone that provides a detailed breakdown of the financial transactions and settlements completed within a specific day. This report is essential for merchants to reconcile their financial records and track their daily settlements. The daily settlement report is accessible through the reporting module in the AndDone merchant portal.

Direct Deposit Authorization (DDA) Change

Direct deposit authorization change is a request made by a merchant or sub-merchant to update the bank account information associated with their payment transactions. This change allows funds to be routed to a different bank account for future payments.

Doing Business As (DBA)

DBA, which stands for "doing business as," is a term used to refer to a business operating under a name that is different from its legal entity name. For example, Smith Enterprises, Inc. might do business as "Smith's Superstore." In which case, "Smith's Superstore" would be the DBA name.

Drop-Down Menu

A drop-down menu is a user interface element that allows users to select an option from a list that appears when they click or hover over a designated area. When a user interacts with the drop-down menu, a list of choices will be displayed, and the user can select an option by clicking on it. 

Electronic Funds Transfer (EFT) 

Electronic Funds Transfer (EFT) is a secure and convenient method of electronically transferring money from one bank account to another. With EFT, individuals and businesses can send and receive funds quickly and efficiently. EFT transactions can be initiated online, through mobile banking apps, or electronic payment platforms such as AndDone. 

Funded Chargeback

Chargeback that occurs after the payment has been distributed to a sub-merchant's bank account.

Installment

An installment refers to a payment arrangement where a customer can divide the total cost of a purchase into smaller, more manageable payments over a specified period. This allows customers to make purchases without having to pay the entire amount upfront. 

Invoice Number

An invoice number is a unique identifier, typically included on the invoice itself and used for organizing records, facilitating payments, or resolving any disputes or inquiries related to the transaction. It is important to keep track of invoice numbers.

Know Your Customer (KYC)

Know your customer, or KYC in the context of AndDone, is a crucial step for ensuring compliance in the onboarding process for sub-merchants. AndDone requires sub-merchants to provide necessary documentation and information, such as identification documents, business licenses, and proof of address, to establish their legitimacy and credibility. This enables AndDone to assess the risk associated with each sub-merchant and ensure federal KYC compliance and PCI DSS (Payment Card Industry Data Security Standard) requirements.

Merchant

In the context of AndDone, AndDone is the payment facilitator and the merchant. The merchant obtains a payment facilitator account from an acquirer and aggregates payment transactions for its merchant portfolio through that account. In payment facilitation, a payment facilitators' merchant customers are known as sub-merchants.

Merchant Portal

The merchant portal is a web-based platform that provides users with access to a variety of tools, resources, and information related to the status of their insurance payments. It serves as a gateway to different functionalities and features such as account management, transaction tracking, reporting, and notification events that alert users about important updates or events that require their attention. Overall, the portal provides a user-friendly interface to manage payments and access information.

Merchant Reference Number

A unique alphanumeric identifier assigned to a specific merchant by the AndDone platform. The Merchant Reference Number allows merchants to  identify and track their transactions within the AndDone portal. It serves as a reference point for AndDone to access specific information related to a particular merchant account.

Module

In the context of the AndDone merchant portal, a module refers to a specific area or section within the portal that provides users with access to a particular set of tools, resources, and information. For example, the reporting module allows users to generate and view various reports related to their transactions.

Navigation Bar

A navigation bar provides a visual menu of options or links to different sections or pages of a website or application. It is located at the left side of the portal and remains visible as the user navigates through the site. The navigation bar serves as a roadmap for users, allowing them to easily access different features, functions, or content without having to search or browse extensively. 

Not Enough Balance

Not enough balance refers to an error encountered when an account has insufficient funds.

Notification Event

A notification event is an alert or message that is triggered by a specific action or condition in the portal. It serves as a means of informing users or administrators about important updates, changes, or events that require their attention. Notification events are sent via email. 

Payment Facilitator

A payment facilitator, also known as a "PayFac," is a type of financial service provider that enables businesses to accept electronic payments from their customers. Rather than each individual business having to establish its own merchant account, a payment facilitator aggregates multiple businesses under its umbrella and provides them with a streamlined payment processing solution.

Payment Link

With a payment link, merchants can generate a unique URL that can be shared with customers via email or text message. When customers click on the payment link, they are directed to a secure payment page where they can enter their payment information and complete the transaction. Merchants can customize payment links to include specific details about the transaction, such as the amount due, invoice number, or agent message. Payment links help provide security, ease of use, and transparency to customers.

Payment Card Industry (PCI)

The Payment Card Industry (PCI) is jointly owned by the major credit card brands (Visa, Mastercard, American Express, etc.) and it is the governing body that sets rules for card transactions. 

Payment Card Industry Data Security Standard (PCI DSS) Compliance

PCI DSS (Payment Card Industry Data Security Standard) Compliance is a set of security standards established by the major credit card companies to protect cardholder data and ensure the secure processing of payment transactions. It applies to any organization that handles, processes, or stores credit card information. Compliance involves maintaining security measures and undergoing regular assessments and audits conducted by qualified security assessors.

Payment Card Industry Security Standards Council (PCI SSC)

The Payment Card Industry Security Standards Council, or PCI SSC, provides comprehensive standards and supporting materials, including specification frameworks, tools, measurements, and support resources, to help organizations always ensure cardholder information security. The PCI DSS is the cornerstone of the council, as it provides the necessary framework for developing a complete payment card data security process that encompasses the prevention, detection, and appropriate reaction to security incidents.

Payments

Payments, in the context of the AndDone portal platform, refer to the financial transactions that occur between customers, or shoppers, and merchants. The payment process involves securely transmitting this information to the payment facilitator, AndDone, who then initiates and processes the transaction. AndDone acts as the intermediary between the customer's bank and the merchant's bank, ensuring that the funds are transferred smoothly and securely.

Payout

The final distribution to the merchant's bank account, delivered via an electronic fund transfer. 

Policy Number

A policy number is a unique identifier assigned to an insurance policy by an insurance company. It serves as a reference number that allows policyholders and insurance providers to identify and access specific policies.

Portal

The AndDone payments portal, or merchant portal, is a web-based platform that provides users with access to a variety of tools, resources, and information related to the status of their insurance payments. It serves as a gateway to different functionalities and features including account management, transaction tracking, reporting, and notification events that alert users about important updates or events that require their attention. Overall, the portal provides a user-friendly interface to manage payments and access information.

Refund

A refund is a process in which a customer receives a reimbursement of funds for a transaction that has been canceled. The refund process involves the reversal of the initial transaction, with the money being credited back to the customer's account.

Refund Status

Refunded status refers to the state of a transaction where a customer has been issued a refund for a canceled or disputed payment. When a payment is refunded, the funds are reversed and credited back to the customer's account, indicating that the transaction has been successfully resolved. The refund status is indicated by the color red in the payments dashboard within the payments portal. 

Refusal/Refused

When a card transaction is refused, it is typically because the credit limit has been reached on the card, the card is expired, the card either hasn't been activated or the account is inactive. 

Reversal

A reversal refers to the action of canceling or undoing a transaction that has already been authorized and processed. In the financial industry, a reversal is typically initiated when there is a need to correct an error, resolve a dispute, or reverse a fraudulent or unauthorized transaction. 

Request for Information (RFI)

A type of dispute where the issuing bank or card network will ask for further information prior to a chargeback

Routing Number

A routing number is a nine-digit numerical code used by financial institutions in the United States to identify the specific bank or credit union associated with a customer's account. It serves as an address for electronic transfers, direct deposit, or bill payments through the AndDone portal. Routing numbers are essential for ensuring accurate and secure transactions, as they help direct funds to the correct financial institution and account. Customers can typically find their routing number on their checks, their online portal, or by contacting their bank directly. 

Settled Status

Settled status refers to the final stage in the payment process. Once a payment has been settled, it means that the funds have been transferred from the customer's account to the merchant's account, indicating that the transaction has been processed, accepted, and completed. Settled status is indicated by the color green in the payments dashboard within the portal. 

Settlement

A settlement, or settled payment, refers to the process of finalizing and completing a transaction between a merchant and a customer. It involves the transfer of funds from the customer's account to the merchant's account, indicating that the payment has been successfully processed and accepted.

Shopper

The shopper is the customer who initiates a transaction. In this case, making a payment. The shopper can also be referred to as the "insured."

Shopper Statement

This is the statement that the shopper sees on their bank or CC statement that identifies the reason for the transaction.

Sub-Merchant

Sub-merchants, in the context of AndDone, are the insurance brokers and agents that are utilizing the AndDone portal. When a company decides to operate as a payment facilitator, it obtains a payment facilitator account from an acquirer and aggregates payment transactions for its merchant portfolio through that account. For this reason, payment facilitators' merchant customers are known as sub-merchants. 

Technology Fee 

A technology fee is a cost that is applied to cover the expenses associated with the use of technology to process a transaction. This fee is implemented to ensure that the necessary technological infrastructure, software, and hardware are maintained and upgraded regularly to facilitate smooth and secure transactions.

Token

In the context of payment facilitation, a token is a unique identifier that is generated to represent sensitive payment information, such as credit card numbers or bank account details. By utilizing tokens, merchants can ensure the security of their payment processing systems and reduce the risk of data breaches.

Token ID

A token ID is a unique identifier that is generated when a credit card is used for payment. This token ID is a secure and encrypted code that represents the credit card details, such as the card number and expiration date.  

Token Link

A token link is a unique URL or hyperlink that is generated by AndDone and used to securely authenticate and authorize a specific transaction.

Tokenization

Tokenization is a secure method of protecting sensitive data during online transactions. It involves the process of replacing sensitive information, such as credit card numbers or personal identification numbers (PINs), with a unique identifier known as a token. Instead of storing the actual payment details, AndDone generates a token that represents the sensitive data. Tokenization significantly reduces the risk of sensitive information being compromised in the event of a security breach.

Trace Number

A trace number is a unique identifier that is assigned to a transaction for tracking and record-keeping purposes. It serves as a reference number that allows location and retrieval of specific transaction details. 

Transaction ID

A transaction ID is a unique identifier assigned to each individual transaction that occurs within the portal. It serves as a reference number that allows users and administrators to locate and track specific transaction details.

Virtual Account

A virtual account is a unique account number assigned to a sub-merchant. This is also known as a sub-merchant account. It can be used to receive money on behalf of the sub-merchant account, where the funds are ultimately held. AndDone creates a virtual account, also referred as the sub-merchant account, for each entity. 

Void

Void implies making a transaction go away as if it never happened, which at the current state is not possible. It means pulling a payment out of a batch before submitting that batch to the payments networks (either Card or NACHA). Once a transaction has already been submitted, it can still be refunded, but not voided as if it never happened.