Vocabulary

Question 1

1099 reporting

Answer 1

A U.S. federal tax law that obligates organizations (i.e., payors) to report certain payments. It is a means for the Internal Revenue Service (IRS) to ensure applicable suppliers are reporting income. A 1099 could be viewed as the equivalent to a supplier’s W-2. In addition to federal requirements, states may impose 1099 reporting requirements as well.

Question 2

accounts payable (A/P)

Answer 2

1. owes to others; current liabilities incurred in the normal course of business as an organization purchases goods or services with the understanding that payment is due later.
2. The department within an organization responsible for paying invoices on behalf of the organization.

Question 3

acquiring department

Answer 3

The department (business unit) within an organization that needs particular goods and/or services and, therefore, initiates purchases; may work with the procurement department or contact suppliers directly.

Question 4

acquisition

Answer 4

A purchase (of goods and/or services).

Question 5

ATM blocking

Answer 5

A common card control that prohibits cardholders from withdrawing cash from an automated teller machine (ATM).

Question 6

audit

Answer 6

1. An examination of one or more aspects of a card program, such as its procedures (and the related level of compliance), financial records, reporting and transaction documentation.
   
   2. The department within an organization responsible for conducting formal audits of the card program.

Question 7

automated clearing house (ACH)

Answer 7

An electronic payments system (outside the card networks) for clearing and settling transactions. Funds are electronically exchanged directly to/from participants’ accounts. Frequently used by end-user organizations as the payment method by which to pay their issuer.

Question 8

automated teller machine (ATM)

Answer 8

An electronic banking machine that dispenses cash, accepts deposits and performs other services when a customer inserts a plastic card and follows the appropriate prompts.

Question 9

bank identification number (BIN)

Answer 9

The first six digits of a card number;

represents the card provider (bank) that issued the card, card type (e.g., P-Card) and card brand.

Question 10

benchmark

Answer 10

1. Noun: A measurable metric or industry standard against which comparisons can be made.
   
   2. Verb: To compare metrics or standards between what other organizations or industries are doing versus your organization’s goals or processes.
   3. Adjective: Resulting in a benchmark, such as a “benchmark study.”

Question 11

biometrics

Answer 11

A method of data security used to confirm an individual’s identity to thwart items such as data breaches, credit card hacks, etc. Biometrics uses data that is physically unique to an individual, such as a fingerprint, providing an additional barrier against fraud.

Question 12

bleisure

Answer 12

The concept of mixing a business trip with leisure.

Question 13

blockchain

Answer 13

A secured way of online transaction and is a decentralized digital ledger that records transactions on thousands of computers globally in such a way that the registered transactions cannot be altered retrospectively.

Question 14

“break-even” point

Answer 14

When card acceptance costs/fees are basically equal to the benefits, providing no monetary advantage or disadvantage. It’s the maximum transaction amount before card acceptance may no longer benefit the supplier, exceeding estimated cost savings, depending on the terms of the merchant agreement.

Question 15

Business Card

Answer 15

Credit and/or debit cards targeted for smaller businesses, as defined by each issuer, but generally organizations with less than 50 accounts; commonly used for a variety of expense types (e.g., goods, services and travel).

Question 16

business case

Answer 16

A structured proposal for business improvement that offers a thorough cost/benefit analysis and the background for management to decide on the proposed project or solution.

Question 17

business email compromise (BEC)

Answer 17

The use of someone’s identity on a corporate network to trick the target or targets into sending money to the attacker’s account. Asophisticated scam targeting businesses working with foreign suppliers or businesses that regularly perform wire transfer payments.

Question 18

business-to-business (B2B)

Answer 18

Commerce between businesses, as opposed to commerce between a consumer and a business.

Question 19

buyer-initiated payment (BIP)

Answer 19

AKA Electronic Payables - A form of electronic payment, utilizing the card infrastructure, managed centrally within an organization, typically by A/P. Also known as electronic accounts payable (EAP), automated payables, e-payables, Virtual Payment Cards, push payments, straight- through payments (STP), buyer-initiated payments (BIP), supplier/vendor card, single-use accounts and electronic invoice presentment and payment (EIPP). Each provider has a proprietary name for its solution; functionality and processes vary for each.

Question 20

card controls

Answer 20

AKA Systemic Controls - An automated means for controlling the purchases made with a card (e.g., spend and velocity limits, MCC restrictions, etc.).

Question 21

cardholder

Answer 21

An employee to whom a Commercial Card is issued for making designated business purchases/payments on behalf of his or her organization.

Question 22

cardless accounts

Answer 22

Accounts that have no plastic card issued, only an account number to which the acquisitions of goods and services are charged.

Question 23

cash flow

Answer 23

The pattern of company income and expenditures and resulting availability of cash.

Question 24

central bill

Answer 24

The consolidated billing statement issued to an end-user organization by the issuer, reflecting the organization’s card accounts (e.g., P‑Cards) and the posted totals during the billing period.

Question 25

Certified Purchasing Card Professional (CPCP)

Answer 25

Credential awarded to Purchasing Card professionals who have successfully passed the certification exam based on the body of knowledge necessary to administer a Purchasing Card program. To retain the credential, individuals must meet established ongoing requirements.

Question 26

closed-loop payment

Answer 26

A private label payment system that provides the processing networks to facilitate B2B payments between buyers and suppliers outside of the payment brand rails. By using closed-loop payment systems, participants can set their own priorities, rules and rates based on individual programs or data points.

Question 27

Commercial Card

Answer 27

Generic term for any card product used by organizations for making payments for various goods, services and business expenses.

Question 28

Consortium

Answer 28

An association, typically of several business companies.

Question 29

contingent liability

Answer 29

Cases of individual liability in which the end-user organization has not reimbursed the cardholder for bona fide business expenses and the cardholder, in turn, does not pay the issuer; allows the issuer to pursue the organization to obtain payment.

Question 30

Controlled Value Card (CVC)

Answer 30

AKA Declining Balance Card - Specialized P‑Card with a pre-set spend limit and expiration date that is typically non-replenishing. Also referred to as a Controlled Value Card.

Question 31

controls

Answer 31

The internal, external and/or environmental policies, procedures and technological processes put in place to reduce the risk of card fraud and misuse.

Question 32

convenience checks

Answer 32

A payment method for which the draft is against the available credit of a Purchasing Card account or program. Can be used in the event a payee does not accept card payments.

Question 33

Corporate Card

Answer 33

A card used by organizations and their employees for travel and entertainment (T&E) expenses. Also referred to as a Travel Card.

Question 34

corporate liability

Answer 34

The end-user organization is liable for the Commercial Card charges; this is the case for Purchasing Card programs and, sometimes, Corporate Card programs.

Question 35

cost of funds

Answer 35

The interest rate associated with the use of money (i.e., borrowed funds).

Question 36

data capture

Answer 36

Electronic transmission and retrieval of data associated with card transactions; typically, data passed from the supplier through the issuer to the end-user organization.See alsolevels of data (1, 2 and 3).

Question 37

Debit Card

Answer 37

A card product that functions as an alternative to cash or checks, allowing the user to “pay now” versus the “pay later” scenario associated with credit cards; card transaction amounts are deducted from a funded account, such as the user’s bank account.See alsoPrepaid Card.

Question 38

Declining Balance Card

Answer 38

Specialized P‑Card with a pre-set spend limit and expiration date that is typically non-replenishing. Also referred to as a Controlled Value Card.

Question 39

deliverable

Answer 39

Products and/or services provided to one party by another according to predetermined terms and conditions agreed upon by the parties.

Question 40

department

Answer 40

Purchases of goods and services that are directly incorporated into a product being manufactured. Examples include raw materials, subcontracted manufacturing services, components, hardware, etc.

Question 41

documentation

Answer 41

Communicable material (e.g., receipts), whether paper-based or electronic, serving to record and support business expenses paid via a card.

Question 42

down-select

Answer 42

A process of evaluation that leads to a reduction of the field of candidates, such as during a request for proposal (RFP) process.

Question 43

Duty of Care

Answer 43

An organization’s obligation to identify risks and take proper careto ensure an individual does not suffer any unreasonable harm or loss while working or traveling overseas.

Question 44

dynamic discounting

Answer 44

The fluctuation of fees (such as interchange) or other payment or trade terms that can be negotiated between a buyer and supplier.

Question 45

Dynamic Ghost Account

Answer 45

An account number provided to a supplier for which the limits are tailored to specific orders or invoices and can be turned on and off.See alsoGhost Account.

Question 46

eCommerce

Answer 46

The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.

Question 47

electronic data interchange (EDI)

Answer 47

Systems and processes that enable the paperless exchange of documents, typically transmitted via special-purpose connections and providers.

Question 48

electronic funds transfer

Answer 48

The movement of money between bank accounts via ACH or wire.

Question 49

electronic invoicing

Answer 49

The exchange of the invoice document between a supplier and a buyer in an integrated electronic format. Also known as e-invoicing.

Question 50

electronic payables

Answer 50

A form of electronic payment, utilizing the card infrastructure, managed centrally within an organization, typically by A/P. Also known as electronic accounts payable (EAP), automated payables, e-payables, Virtual Payment Cards, push payments, straight- through payments (STP), buyer-initiated payments (BIP), supplier/vendor card, single-use accounts and electronic invoice presentment and payment (EIPP). Each provider has a proprietary name for its solution; functionality and processes vary for each.

Question 51

electronic signature

Answer 51

An electronic equivalent of a written signature that could be a code or a symbol.

Question 52

end-user

Answer 52

An organization that uses Commercial Cards for the payments of business expenses. Less commonly, is considered the employee (i.e., cardholder) to whom the card is issued.

Question 53

enterprise resource planning system (ERP)

Answer 53

Technology solution aiding multiple facets of an organization’s business activities, such as inventory management, purchasing and receiving, sales, accounts payable, etc.

Question 54

eProcurement

Answer 54

A fully capable electronic web application for purchasing goods and services. eProcurement allows shoppers to browse online catalogs, add items to a shopping cart and submit a requisition electronically.

Question 55

file transfer protocol (FTP)

Answer 55

The protocol for electronically transferring or exchanging data (e.g., files) from one computer to another.

Question 56

file turn

Answer 56

Speed of payment by an end-user organization to the card issuer; also considered the average collection period. Sometimes referred to as days receivables outstanding or client-held days.

Question 57

Fintech

Answer 57

Companies that rely heavily on specialized software, algorithms and technology to offer banking and other financial services, often via online or mobile applications, at lower cost than traditional financial institutions.

Question 58

Fleet Card

Answer 58

Specialized Commercial Card used to capture fleet-related expenses (e.g., fuel, vehicle maintenance, repair and service).

Question 59

four-party payment system

Answer 59

Card payment system in which the network links the end-user/cardholder, issuer, supplier and merchant acquirer; includes the Visa and MasterCard models.See alsothree-party payment system.

Question 60

fraud

Answer 60

Unauthorized use of a card, resulting in an acquisition whereby the end-user organization does not benefit. Can be committed by the cardholder, other employees of the end-user organization, individuals employed by the supplier or persons unknown to any of the parties involved in the transaction.

Question 61

general ledger (G/L)

Answer 61

An accounting record or ledger that lists all increases or decreases of liability, reserve, capital, income and expense accounts.

Question 62

Ghost Account

Answer 62

A type of card account whereby an account number is issued or provided to a specific supplier or supplier type for the payment of purchases made by an organization’s employees. Also referred to as Ghost Card or Supplier/Vendor Card. May function like a Purchasing Card, having a monthly/cycle limit, or as a Dynamic Ghost Account, having specific limits that can be turned on and off (see alsoDynamic Ghost AccountorElectronic Payables).

Question 63

implementation

Answer 63

The process of putting all card program functions and activities into place.

Question 64

Incentive Card

Answer 64

A type ofPrepaid Cardused to reward employees or customers; also referred to as a Gift Card.

Question 65

indirect spend

Answer 65

Purchases of goods and services that are not directly incorporated into a product being manufactured. Examples include computers, safety goggles, printed forms, office supplies, janitorial services, equipment, furniture, etc.

Question 66

individual liability

Answer 66

The cardholder (versus the end-user organization) is liable for the charges; this is a common arrangement for Corporate Card programs.

Question 67

information technology

Answer 67

1. The development, installation and implementation of computer systems and applications.
2. The department within an organization that is responsible for the development, installation and implementation of computer system and applications.

Question 68

Intent to Negotiate (ITN)

Answer 68

An Intent to Negotiate (ITN) works wells with technology and complex procurements with the goal of obtaining best value. The scope describes more high-level goals and outcomes of the project, with the intent of allowing the respondents to tell you how to get there and what they can offer as a viable solution. The ITN allows for direct negotiations and two public posts of the Notice of Intended Action—once for the short-listed respondents for negotiations and the second for the award. The process can take up to six months.

Question 69

interchange fee

Answer 69

In a four-party payment system, a fee paid by a merchant acquirer to the issuing bank (“card issuer”). The fee compensates the issuer for the time after settlement with the acquiring bank/merchant bank and before it recoups the settlement value from the end-user.

Question 70

interface

Answer 70

A process or electronic file designed to communicate information from one application or system to another.

Question 71

invoice

Answer 71

An itemized bill for goods sold or services provided, containing details such as individual prices, the total charge and payment terms.

Question 72

issuer

Answer 72

The financial institution issuing a Commercial Card or account. Also referred to as a card issuer, card provider or bank.

Question 73

joint and several liability

Answer 73

Both the end-user organization and the cardholder are liable for the Commercial Card charges, which allows the card issuer to pursue payment from one or both, as necessary.

Question 74

large-ticket interchange

Answer 74

Typically, a lower interchange fee for transactions exceeding a “high dollar” amount (e.g., $10,000) and, as applicable, meeting other requirements (e.g., Level 3 data); specifics are defined by the respective networks and may change over time.

Question 75

Level 1 data

Answer 75

Standard transaction data including date, supplier and total purchase amount. Also written as “Level 1” data.

Question 76

Level 2 data

Answer 76

Enhanced transaction data including Level 1 data plus a customer-defined reference number, such as a purchase order number, and separate sales tax amount. Also written as “Level 2” data.

Question 77

Level 3 data

Answer 77

Detailed transaction data including Level 2 data plus line-item detail, such as the item purchased. Sometimes referred to as simply “line-item detail.” Also written as “Level 3” data.

Question 78

liability

Answer 78

Money owed; debts or financial obligations.See also:contingent liability,corporate liability,individual liability,joint and several liability, andsplit liability.

Question 79

line-item detail

Answer 79

Transaction data reflecting what was purchased.See alsoLevel 3 data.

Question 80

line of credit

Answer 80

The maximum amount of credit to be extended to a customer.

Question 81

low-value transactions

Answer 81

Transactions for which the total is less than a small dollar amount (e.g., $2,500), as defined differently by each organization.

Question 82

maintenance, repair and operating goods (MRO)

Answer 82

Items supporting the production and/or delivery process of other goods or services; for example, oil.

Question 83

mapper

Answer 83

The electronic file of transaction data originating from the issuer and interfaced with an organization’s financial management system. Also referred to as the statement billing file (SBF) or interface file.

Question 84

mapping

Answer 84

Process of downloading transaction data (i.e., mapper file) from the issuer and importing it into an organization’s financial management system for allocating card transactions to the assigned accounting codes.

Question 85

merchant

Answer 85

Seesupplier.

Question 86

merchant acquirer

Answer 86

A financial institution or other entity that enrolls merchants (i.e., suppliers) to accept card payments; provides related technology and services to the merchant; and facilitates payment flow, such as payment to the merchant. Also referred to as an acquirer or a supplier’s bank.

Question 87

merchant category codes

Answer 87

MCC (singular);

MCCs (plural)

A system of four-digit codes, maintained by the networks, used to identify a supplier’s/merchant’s principal trade, profession or line of business; an MCC is assigned to a supplier/merchant by the merchant acquirer in the process of becoming credit card capable.

Question 88

merchant discount fee

Answer 88

The fee paid by a merchant to its merchant acquirer/bank or other contracted party for services related to the processing of the merchant’s card transactions; in a four-party payment system, includes interchange. Also referred to simply as discount fee.

Question 89

metrics

Answer 89

Quantified, relative statistics used to rate card program performance.

Question 90

misuse

Answer 90

Unauthorized purchasing activity by the employee to whom a card is issued. Includes a wide range of violations, varying in the degree of severity, from buying a higher quality good than what is deemed appropriate to using non-preferred suppliers.

Question 91

National Association of Purchasing Card Professionals (NAPCP)

Answer 91

A membership-based professional association committed to advancing Commercial Card and payment professionals and industry practices worldwide. Provides continuing education and peer networking through its Annual Conference, Regional Forums, webinars, website, newsletter and regular communication.

Question 92

network

Answer 92

Entity that facilitates the movement of transactional data between the issuer and acquirer and sets merchant rules for card acceptance. Organizations in this role include Visa, MasterCard and American Express.

Question 93

nexus

Answer 93

Legal term describing a supplier’s presence within a state that allows the state to require the supplier to collect the state’s sales tax.

Question 94

North American Industry Classification System (NAICS)

Answer 94

A set of numbers denoting various industries; a organization selects the number representing the industry to which it belongs. Replaced Standard Industry Classification (SIC) codes in 1997.

Question 95

One Card

Answer 95

A type of hybrid card in which a single card is issued to an employee for more than one category of expenses (e.g., goods/services and travel expenses), eliminating the need to carry two separate cards.

Question 96

One Card plus Fleet

Answer 96

A single card used for purchasing, travel and fleet-related expenses (fuel, vehicle maintenance, etc.). Combines the functionality of a P‑Card, Corporate Card and Fleet Card.

Question 97

Open Banking

Answer 97

Open banking is a financial services term as part of financial technology that refers to the use of open application programming interfaces (APIs) that enable third-party developers to build applications and services around the financial institution allowing greater financial transparency options for account holders ranging from open data to private data.

Question 98

organization

Answer 98

A company, government agency or other entity either implementing or managing a card program. Also referred to as the end-user.

Question 99

organization limit

Answer 99

The credit limit assigned by the issuer to the end-user organization’s card program.

Question 100

Payment Card

Answer 100

Term used by the Internal Revenue Service (IRS), as well as other organizations, when referring to Commercial Cards.

Question 101

Payment Card Industry Data Security Standard (PCI DSS)

Answer 101

Comprehensive set of security requirements applicable to all card-accepting merchants, designed to protect cardholder and account data (https://www.pcisecuritystandards.org/).

Question 102

payment terms

Answer 102

Stipulations, typically negotiated between the supplier and end-user organization, regarding settlement of an invoice. In a card program, usually refers to the requirements associated with the organization’s payment of the central bill to the issuer.

Question 103

Payroll Card

Answer 103

A type ofPrepaid Cardfunded with an employee’s earned wages, allowing cash withdrawal from an automated teller machine and payments for purchases in a retail environment. Replaces a payroll check or direct deposit payroll process.

Question 104

petty cash

Answer 104

A small amount of cash kept on hand by an organization for incidental expenses, such as reimbursement to employees for small, out-of-pocket business expenses.

Question 105

phishing

Answer 105

The fraudulent practice of sending emails purporting to be from reputable companies to induce individuals to reveal personal information, such as passwords and credit card numbers.

Question 106

pilot program

Answer 106

Test or trial activities in advance of a full card program rollout.

Question 107

plastic card

Answer 107

A physical card issued to a cardholder and used for the payment of goods, services and other business expenses (e.g., travel).

Question 108

point of sale (POS)

Answer 108

The location or technology system for which card payments for goods and services are initiated.

Question 109

Prepaid Card

Answer 109

A debit-based card in which card transaction amounts are deducted from a funded account; can be reloadable or non-reloadable. Also referred to as a Stored Value Card.

Question 110

processor

Answer 110

Provider of back-office services on behalf of the merchant acquirer or issuer, including authorization of card transactions and data delivery.

Question 111

procurement

Answer 111

1. The process of obtaining or acquiring goods and services.
2. The department within an organization that is usually responsible for the development of requests for proposals (RFPs), proposal analysis, supplier market research, negotiations, buying activities, contract administration, inventory control, etc. Also referred to as purchasing, sourcing or similar term.

Question 112

procure-to-pay (P2P) process

Answer 112

The entire cycle of requisitioning, acquiring and paying suppliers for goods or services.

Question 113

program administrator (PA)

Answer 113

A common role responsible for various administrative tasks (i.e., ongoing operations) in a typical P‑Card program, including card issuance, account maintenance, card cancellation and reporting.

Question 114

program manager (PM)

Answer 114

A common role responsible for various strategic tasks in a P‑Card program, including championing the program, ensuring the program’s long-term acceptance and success and identifying improvement opportunities.

Question 115

provider

Answer 115

A supplier of card-related goods and/or services; could include issuers, technology vendors, consultants, etc.

Question 116

purchase order (PO)

Answer 116

Written authorization for a supplier to deliver products and/or services at a specified price according to specified terms and conditions, becoming a legally binding agreement upon supplier acceptance.

Question 117

Purchasing Card (P-Card)

Answer 117

A charge card (payment method) used for business purchases of goods and services.

Question 118

Qualified Payment Card Agent (QPCA)

Answer 118

An Internal Revenue Service (IRS) designation, which never became operational, authorizing Payment Card organizations (i.e., networks) to obtain and validate merchant Tax Identification Numbers (TINs) on behalf of payors/end-users.

Question 119

reconcile or reconciliation

Answer 119

Process of reviewing and comparing card transactions to internal records of orders/payments and receipts, including resolving discrepancies and validating or allocating transactions to appropriate accounting codes.

Question 120

reduced interchange

Answer 120

Reduced interchange rate is based on rates established by the networks tomotivatemerchants to accept cards and provide data important to businesses and government programs. In return for acceptinglarge ticketpurchases, passing level 3 data, and offering straight-through processing (STP), merchants are offered a lower interchangefor transactions that meet a specific requirement.

Question 121

Request for Proposal (RFP)

Answer 121

A formal and systematic process used by organizations to provide requirements to and request information from potential suppliers, leading to the selection of one or more suppliers for goods and/or services.

Question 122

requestor

Answer 122

The person or organization initiating the order for goods or services.

Question 123

requisition

Answer 123

A formal, documented request for goods or services the organization needs.

Question 124

revenue sharing

Answer 124

The splitting of operating profits between the issuer and the end-user organization.

Question 125

rollout

Answer 125

A staged series of activities conducted during card program implementation.

Question 126

sales tax

Answer 126

A tax imposed on the sale of taxable goods or services, calculated as a set percentage of the sales price collected by the merchant.

Question 127

Sarbanes-Oxley Act (SOX)

Answer 127

U.S. legislation, signed into law in 2002 and primarily affecting publicly traded American companies, serving to close loopholes to prevent corporate accounting scandals, boost investor confidence and hold management accountable for activities occurring within their organizations.

Question 128

single use account (SUA)

Answer 128

A form of electronic payment, utilizing the card infrastructure, managed centrally within an organization, typically by A/P. Also known as electronic accounts payable (EAP), automated payables, e-payables, Virtual Payment Cards, push payments, straight- through payments (STP), buyer-initiated payments (BIP), supplier/vendor card, single-use accounts and electronic invoice presentment and payment (EIPP). Each provider has a proprietary name for its solution; functionality and processes vary for each.

Question 129

site coordinator (SC)

Answer 129

A role typically residing in a field office of a large, geographically dispersed P‑Card program, responsible for many administrative duties and having an indirect alignment to the program manager.

Question 130

spend

Answer 130

The total of all purchases through the card program during a specified reporting period.

Question 131

split liability

Answer 131

Liability for Commercial Card chargesis split between the cardholder and end-user organization, based on merchant category codes; for example, the cardholder might be liable for travel and entertainment (T&E) expenses, while the organization is liable for the other transactions.

Question 132

split transaction

Answer 132

A practice whereby cardholders or suppliers split a purchase’s total into two or more transactions to circumvent single transaction limits; is generally prohibited within policies.

Question 133

Standard Industry Classification code (SIC code)

Answer 133

A set of numbers denoting various industries; a organization selects the number representing the industry to which it belongs. Replaced Standard Industry Classification (SIC) codes in 1997.

Question 134

statement

Answer 134

A document reflecting account details for the billing period including debits, credits, transaction detail and balance due.

Question 135

statement billing file (SBF)

Answer 135

The electronic file of transaction data originating from the issuer and interfaced with an organization’s financial management system. Also referred to as the statement billing file (SBF) or interface file.

Question 136

Stored Value Card

Answer 136

A debit-based card in which card transaction amounts are deducted from a funded account; can be reloadable or non-reloadable. Also referred to as a Stored Value Card.

Question 137

straight-through payment (STP)

Answer 137

An electronic payment to a supplier, utilizing the card infrastructure, that typically occurs as a direct deposit into the supplier’s merchant account; is one form ofelectronic payables.

Question 138

subject matter expert (SME)

Answer 138

One who has demonstrated competency and mastery in a particular subject or topic.

Question 139

small and medium-sized enterprises (SME)

Answer 139

As defined in EU law: EU recommendation 2003/361. The main factors determining whether a company is an SME are: number of employees and either turnover or balance sheet total.

Question 140

supplier

Answer 140

Merchant/vendor with whom the organization does business.

Question 141

surcharge

Answer 141

A fee that a supplier adds to a card transaction, but does not add to a non-card payment; in the U.S., merchant rules generally prohibit this practice.

Question 142

systemic controls

Answer 142

An automated means for controlling the purchases made with a card (e.g., spend and velocity limits, MCC restrictions, etc.). Also referred to as card controls.

Question 143

taxpayer identification number (TIN)

Answer 143

An identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. For individuals, the Social Security number (SSN); for businesses, the Employer Identification number (EIN).

Question 144

three-party payment system

Answer 144

Card payment system in which the network also functions as the issuer and merchant acquirer, working directly with end-users and suppliers; includes the traditional American Express model.See alsofour-party payment system.

Question 145

tokenization

Answer 145

A method for protecting card data by substituting a card’s Primary Account Number (PAN) with a unique, randomly generated sequence of numbers. This “token” can be reversed to its true associated PAN value by the service provider who initially created the token. Tokens can be either single- or multi-use.

Question 146

trading partner agreement (TPA)

Answer 146

An agreement related to the exchange of information in electronic transactions; specifies acceptable protocols between operating systems and defines responsibilities regarding system failures or data corruption.

Question 147

transaction splitting

Answer 147

A practice whereby cardholders or suppliers split a purchase’s total into two or more transactions to circumvent single transaction limits; is generally prohibited within policies.

Question 148

Travel Card

Answer 148

A card used by organizations and their employees for travel and entertainment (T&E) expenses. Also referred to as a Travel Card.

Question 149

travel management company (TMC)

Answer 149

Businesstravelagent that manages an organisation’s businesstravelrequirements. In addition to making reservations, atravel management companywill help an organisation gain control and visibility of their businesstravelspend.

Question 150

United Nations Standard Products and Services Code® (UNSPSC®)

Answer 150

An open, global multi-sector standard for efficient, accurate classification of products and services (http://www.unspsc.org/).

Question 151

use tax

Answer 151

A tax paid by the purchaser when taxable goods or services are purchased without sales tax added by the merchant.

Question 152

validate

Answer 152

To substantiate, authenticate or verify transactions.See alsoreconcile.

Question 153

value proposition

Answer 153

The unique added worth a card program affords an organization; can be measured in cost savings, efficiency or intangible benefits such as improved service.

Question 154

vendor

Answer 154

Merchant/vendor with whom the organization does business.

Question 155

W-2

Answer 155

Internal Revenue Service (IRS) form that reports income paid and taxes withheld by an employer for a particular employee during a calendar year.

Question 156

working capital

Answer 156

Current assets minus current liabilities (also known as cash flow).