GLOSSARY TERMS

Secure Electronic Transactions (SET)
MasterCard and Visa developed this secure payment protocol to offer greater security for online bank card transactions. Using this protocol, credit card details are secured between the shopper and the bank; the merchant does not have access to the credit card information. 

Secure Socket Layer (SSL)
SSL is a security standard web protocol used by many merchants to protect customer payment data as it travels over the Internet. SSL uses 128 bit encryption or higher, creating an encrypted channel between the browser and Web server, to secure personal information so that only the intended parties can read certain information.

Settlement
Settlement is the point at which the acquiring bank credits the merchant account for the amount of a credit card purchase, and the bankcard association credits the acquiring bank and debits the shoppers card issuer for the transaction.

Setup fees
Many merchant services providers charge set up fees for the initial opening and establishment of a merchant account.

Shopping basket
A "virtual" shopping basket allows you to select multiple items for purchase from a merchant's website. In actuality, the shopping basket is simply a list of the items you have selected and the details for the purchase. A shopping basket allows you to review and modify your selected items as you shop.

Shopping cart
Software used to help simplify the shopping process for an online customer when purchasing multiple products or services from a merchant's website.

Small Business Administration (SBA)
A government agency created to aid, counsel, assist and protect the interests of small businesses, offering a variety of programs and services to help those businesses succeed.

Smart card
A credit card equipped with a small microprocessor which stores information about the card owner.

Sole Proprietorship
A business under the complete control of a single individual.

Statement Fee
A fee, usually between $10-15/month, charged by Merchant Providers to generate and mail a monthly statement outlining a businesses transactions.

Swipe Discount Rate
The discount rate for retail stores using a POS terminal is usually around 1.65% - much lower than mail, telephone, or internet rates. A card-present transaction is considered much less risky and more secure than a card-not-present transaction.