Exploring the ABCs of Credit Card Processing

Becoming well-versed in the subtle nuances of the credit card payment processing business requires a web developer to learn a veritable new lexicon of terms, phrases and—get ready for it—concepts, some of which would warp most brains. Here are just a few lessons in the ABCs of credit card processing.

Card Not Present
This is just what it sounds like—a credit card transaction that’s processed in the absence of the actual plastic. Although brick-and-mortar merchants can process these types of transactions, the term is more frequently associated with e-commerce merchant accounts where credit is processed online.

Check 21
This nickname is commonly used to refer to the Check Clearing for the 21st Century Act, a law enacted by Congress in 2003 that allows merchants to submit a customer’s physical check electronically.

Virtual POS
No, this isn’t a nickname with which you grace your badly-in-need-of-replacement computer (or any other malfunctioning electronic). A virtual POS—also referred to as a VPOS, short for Virtual Point of Sale Terminal—is offered by Authorize.net as a way to allow brick-and-mortar merchants to manually submit transactions with their computer through Internet Explorer with the assistance of USB-enabled card reader.


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