Bank Identification Number (BIN): A number that identifies a member institution in a transaction. Bank Identification Numbers are unique and are assigned by MasterCard or Visa. In most cases, a BIN is the first several digits of a cardholder account number.
Bank Routing Number: Essential for ACH transactions, a bank’s routing number is the first nine digits listed on the bottom of a personal check.
Bankcard: Any type of financial card issued by a bank, credit union or other institution. Credit and debit cards are both considered bankcards.
Bankcard Association: An association consists of several institutions who offer a bankcard program. Bankcard associations sponsor the cardholder program and handle processing through the same administration center.
Banking Business Day: All hours in which a member handles normal business functions. Legal holidays are not banking business days, nor are any of the hours of a day in which business functions cannot take place considered a banking business day. In addition, approved transactions don’t necessarily need to take place on a banking business day – approval of transactions is not limited to a banking business day, which can be a matter of confusion for some STAR members.
Banknet: MasterCard uses Banknet to link all of its processing centers and customers. Banknet is an online financial network and a data communications facility. It allows for enhanced flexibility and transaction handling by bringing all processing centers together in a single network.
Bankwire Transfer: A type of funds transfer to a bank. Bankwire transfers use the Federal Reserve System.
Base I: One of two VisaNet processing systems put in place by Visa to authorize transactions and complete other authorization-related services for members.
Base II: The second of two VisaNet processing systems put in place by Visa to authorize transactions and complete other authorization-related services for members.
Batch: Any unsettled sale transactions. Transactions are typically settled in batches for easier processing.
Batch Authorization Transaction System (BATS): Merchants can occasionally use BATS to process their own transaction authorization. This is typically reserved for mail order merchants and others who may need to authorize batches in a certain irregular time schedule.
Batch Header Ticket: A batch header ticket is used in every electronic submission to identify sales and credit slips. Most batch header tickets are generated once per day, although this can vary from business to business.
Batch Processing: A transmission system which groups related transactions into batches for easier authorization. Batch processing allows for simpler processing. It’s typically handled by a single computer, which improves credit/sales processing efficiency.
Bill Payment Authentication Program: STAR utility bills can be paid through the Internet or a VRU, and the bill payment authentication program authenticates the STAR account holder’s authentication token when this system is used.
Bill Payment Provider (BPP): An entity that operates on behalf of a biller to accept payments. Most BPPs are credit unions, banks or other financial institutions.
Bill Payment Service Provider (BPSP): BPSPs act between a biller and consumer to receive electronic bill payment information. BPSPs can be either financial institutions or non-financial institutions.
Bill Service Provider (BSP): Billers use a Bill Service Provider or BSP to offer payment options and to present an electronic bill to consumers.
Billback: The process of limiting or recovering interchange fees after a transaction clears in an unexpected way. Merchants receive charges for billbacks through a processing company.
Biller: Any company, group or organization that requests payment from a customer through a typical bill or statement.
Biller Direct: Under a Biller Direct model, billers can electronically bill their customers through their own websites or Web portals. Customers can pay bills electronically directly to the biller through a simple Web-based form. Biller Direct is one of four types of EBPP, or electronic bill presentment and payment.
Browser: A Web browser that customers can use to view websites and consequently to pay bills or make transactions. Common examples of Web browsers include Mozilla Firefox, Microsoft Internet Explorer and Google Chrome.
Business Day: Any day in which a member can present transactions and items to a Federal Reserve Bank and in which the bank is open for business. Common exceptions to business days include weekends (depending on the financial institution) and holidays.
Business Card: In the context of credit card processing, a business card is a credit or debit card issued to company employees and executives. Companies use business cards to track expenses and for an easy means of allowing employees to make business-related purchases.