Glossary

Account Holding Member

What is an account holding member?

An account holding member is someone who has full rights to his or her merchant account. All access is owned by the member who holds the account, verified by the signed contract between the financial institution and the account holding member when the account is set up. This enables the member to conduct transactions, manage all credit card processing, debits, credits and electronic transactions. In fact, the majority of financial transactions today are electronic, which is why security measures must be in place to protect the account holder’s private information and data from fraud or identity theft. One way the STAR Network ensures this protection is by giving the account holding member sole access to authentication tokens.

What is an authentication token?

An authentication token, also known as a security token, is a code of data, sometimes in the form of a number or phrase, that only the merchant account holder knows. Similar to debit cards, authentication tokens might have a personal identification number or PIN, depending upon how the account was established. All authentication tokens must be STAR Network approved before use. Once the security code or phrase is set up, the account holding member can use the token to electronically protect all debits, credits, credit card processing and other information. The account will prompt the owner to enter his or her authentication token before conducting a transaction or managing the account. In a digital world where information is vital to the success of one’s business, security measures like this are highly encouraged for every account holding member.

Holding ownership of an account also means that one has the right to modify, add members to, or close the account. Each account is designed to specifically meet the needs of its holders, so the perimeters on one account will vary greatly from the next. Also, each financial institution is different with specific services and benefits offered. To find out more information about becoming an account holding member, what services are offered and how to obtain an authentication token, contact your local financial institution.