a type of retirement plan offered to employees by employers. 401(k) is an IRS designation for this type of account which enables the employee to delay paying taxes on the money deposited into it, and the gains generated by the investment, until it is withdrawn after retirement. For more information on 401(k) plans, see http://www.irs.gov/retirement/participant/article/0,,id=151753,00.htmlBack to top
Accepted Credit Card
truth in Lending Act & Regulation defines an "accepted credit card" as one that has been applied for, received, and used (by the applicant, or by a designated authorized user).Back to top
Account Executive
the person at a company who is in charge of overseeing a particular account--also called an account manager. This person should be a single point of contact for a customer to ensure a good customer experience with the company.Back to top
Account Manager
the person at a company who is in charge of overseeing a particular account--also called an account executive. This person should be a single point of contact for a customer to ensure a good customer experience with the company.Back to top
Account Payable
a purchase made on credit, for which your company has received the product or service, but will pay for it on a future date. The 'account payable' is the amount owed. The accounts payable department is the division of your company responsible for administering the payments to vendors.Back to top
Account Receivable
a sale made on credit, for which the product or service has been delivered and payment will be made at a future date. The 'account receivable' is the amount owed. The accounts receivable department is the division of the company responsible for the collection of funds due.Back to top
ACH-Automated Clearing House
the bank routing number of the bank where the merchant has their Direct Deposit Account (DDA) or where payments are automatically withdrawn (such as ABA/RT/IBAN).Back to top
ACH Return
an ACH transaction that has been submitted to the ACH network for processing, but has been rejected for some reason. Common reasons for rejection are a bad account number, non sufficient funds in the account to cover the check, or a block on the account for ACH processing.Back to top
AVS-Address Verification Service
The process of validating a cardholder's given address against the issuer's records, to determine accuracy and deter fraud. This service is provided as part of a credit card authorization for mail order/telephone order transactions. A code is returned when the authorization verification service returns a result that indicates the level of accuracy of the address match and helps secure the most favorable interchange rates.Back to top
Adjustment
an adjustment is initiated by the acquirer to correct a processing error. The error could be a duplication of a transaction or the result of a cardholder dispute. The acquirer debits or credits the merchant DDA account for the dollar amount of the adjustment.Back to top
Acid Test
current assets minus inventory divided by current liabilities. The 'acid test' is a measure of whether a company has the cash and cash equivalents on hand to meet its near term liabilities. If the number is less than 1, the company has a potential cash flow problem.Back to top
Acquirer
in relation to ACH processing, an acquirer is the company or agent that transfers ACH transactions into the ACH network. As a merchant, this is the company that issues your ACH processing account and funds your bank account for the transactions you process. In relation to credit card processing, an acquirer is a bank, or an alliance between a processor and a bank, that is in the business of issuing merchants accounts for credit card processing. As a merchant, the company that issues your merchant account is your acquirer, and that company is responsible for funding your bank account for the transactions you process.Back to top
Activity Ratios
activity ratios, also called Asset Management Ratios, measure how effectively a company is managing its assets. The key is to maintain a good mix of assets to achieve optimal cash flow and increase the value of the company. Too much investment in long-term assets can hurt liquidity; to little investment can hurt profitability and sales.Back to top
Affidavit
a signed document, witnessed by a notary or other person legally authorized to administer oaths, in which a person makes a statement or assertion and swears to the truth of its contents. For example, you might be asked by your bank to submit an affidavit if you claim you never authorized an ACH transaction that appears on your bank statement. The affidavit would be your sworn statement that you did not authorize the transaction. (Note that new NACHA rules no longer require an affidavit to dispute a transaction.)Back to top
Amortization
the process of paying off a loan in a series of equal payments, of which a portion is principal and a portion is interest. An amortization schedule will show you how much of each equal payment is allocated to interest and how much to principal over time-- typically you will pay more interest when the principal amount is large, and more principal when it is small (a majority of the loan has been paid off). Try an amortization calculator to help figure out how much a loan payment will be, and what the amortization schedule looks like, when principal, interest rate, and loan term are provided.Back to top
Angel Investor
originally referring to a wealthy individual who financed a Broadway play, it now refers to any individual who provides substantial backing to a start up company, but who is not involved in the day-to-day management of the business.Back to top
Anti-Money Laundering
the legal requirements for financial institutions to report any suspicious transactions to the federal government.Back to top
ARC-Accounts Receivable Entry
the ACH processing code for an Accounts Receivable Entry. This is a paper check received in the mail, or left at a designated drop-off facility, that is scanned and converted into an electronic ACH transaction.
application service provider. The provider of a hosted software application that is accessed over the web--instead of one installed and maintained by a end-user company on its own equipment. Also see SaaS and cloud computing.Back to top
Asset
any item of value owned by an individual or business. On a balance sheet, assets are broken into two sections--current assets which include cash and other assets that can be quickly converted into cash--such as accounts receivable and inventory; and fixed assets which include buildings, equipment, and other items of value that are not immediately liquid.Back to top
Asset Management Ratios
asset management ratios, measure how effectively a company is managing its assets. The key is to maintain a good mix of assets to achieve optimal cash flow and increase the value of the company. Too much investment in long-term assets can hurt liquidity; to little investment can hurt profitability and sales.Back to top
ATM-Automated Teller Machine
automated teller machine. This is a stand alone kiosk device that enables you to access your bank account to make remote deposits and withdrawals. As part of the transaction, the computer in the ATM access the ATM Network to check your account balance and authorize the transaction--provided sufficient funds exist in the account.Back to top
ATM Network
the network of banks that enable them to share information about account holders so that any account holder can access funds via an ATM. The ATM Network can verify an account holders PIN, check the balance of his account, enable a deposit or a withdrawal, and perform other account maintenance functions.Back to top
Authorization
the process of verifying the credit card has sufficient funds (credit) available to cover the amount of the transaction. An authorization is obtained for every sale. An approval response in the form of a code sent to a merchant's POS equipment (usually a terminal) from a card issuing financial institution that verifies availability of credit or funds in the cardholder account to make the purchase. Also see Point-Of-Sale.Back to top
Authorization Fee
whenever a transaction is processed, a request is made to the cardholder's issuing bank for authorization. Whether the purchase is approved or denied, the merchant must still pay a small authorization fee.Back to top
Authorization Code
a code that a credit card issuing bank returns in an electronic message to the merchant's POS equipment that indicates approval of the transaction. The code serves as proof of authorization.Back to top
Auto Close
a terminal feature that allows an end-of-day batch closing to occur automatically at a specified time, without having to be initiated by the merchant.Back to top
Average Ticket (Average Sale)
the average dollar amount of a merchant's typical sale. The average ticket amount is calculated by dividing the total sales volume by the total number of sales for the specified time period.Back to top
Bankcard
a credit card issued by a Visa or MasterCard-sponsored financial institution. (American Express, Discover, Diners Club, JCB, and so on, are issued directly from their respective operations, rather than through banks.)Back to top
Batch
the accumulation of captured credit card transactions in the merchant's terminal or POS awaiting settlement.Back to top
Batch Fee
at the end of each day, a business owner should "batch up" and send that days' transactions to his merchant bank. Some merchant banks will charge the business owner a small batch fee for the daily settlement of the merchant account.Back to top
Balance Sheet
a point in time snapshot of a company's financial position. One side of the balance sheet lists assets, and the other side lists liabilities and equity. The two sides must be equal, which can lead to some creative accounting. If you see a large disparity between the assets and liability portion of the balance sheet-- look to the "goodwill" line in the equity section, and you will likely see where the discrepancy is equalized.Back to top
Basic Earning Power Ratio
profit (EBT) / Total Assets. This ratio shows the basic earning power of a company's assets before taxes are taken into account--meaning how much of a profit it makes by utilizing its assets. The higher the ratio value, the better.Back to top
Bill Presentment
an online system that enables customers to view and pay invoices online. Also known as EBPP (electronic bill payment and presentment).Back to top
BOC-Back Office Conversion
back office conversion. A type of ACH transaction in which a paper check is accepted form a customer at the time of sale, and is later scanned and converted into an ACH payment for processing electronically.Back to top
Breakeven Point
the point at which the return equals the investment. The breakeven point for a manufactured product is the volume of sales at which per item sale price = per item cost, before taxes. For a marketing campaign, it means when the cost of acquiring a new customer = the total profit from purchases by that customer over a given time period.Back to top
Business Check
a check written on a business bank account (as opposed to one written on a personal bank account).Back to top
Capital
in business-- assets used to produce other assets. For example, cash used to create inventory is capital. For financial statements, capital is equal to total assets minus total liabilities-- which leaves those assets which are available for use in growing the business as opposed to those that must be used to discharge debt. See also capital asset, and working capital.Back to top
Capital Asset
an asset used to produce other assets-- such as a piece of equipment. Cash used to create inventory is capital. For financial statements, capital is equal to total assets minus total liabilities-- which leaves those assets which are available for use in growing the business as opposed to those that must be used to discharge debt.Back to top
Capital Gain
the total profit on the sale of a capital asset that is sold for more than its purchase price. For example, if I buy a building for $100,000 and sell it for $200,000 after making $25,000 of capital improvements and paying a $25,000 real estate commission, the capital gain would be $50,000.Back to top
Capital Improvement
changes made to a capital asset that increases its value. For example, adding an additional wing to an office building is a capital improvement.Back to top
Capital Loss
the total loss on the sale of a capital asset that is sold for less than the sum of its purchase price plus the cost of any capital improvements, plus the selling expense. For example, if you buy a building for $100,000 and sell it for $50,000 after making $25,000 of capital improvements and paying a $5,000 real estate commission, the capital loss would be $80,000.Back to top
Card Issuing Bank
an EFT Network Member-Bank that runs a credit card or debit card purchasing service for their account holders. An example is Citibank and the Citibank Visa Card that they issue.Back to top
Cash
typically refers to paper money and coins, but in financial accounting refers to all funds readily accessible such as those in a checking account.Back to top
Cash Conversion Cycle
the time differential between the outlay of expense for providing a product or service, and the time payment for that product or service is collected. For example, if you pay employee Joe the Plumber to fix Joe Six-pack's toilet on May 1, but Joe Six-pack does not pay you until June 1, your cash conversion cycle is 30 days.Back to top
Cash Discount
In the context of invoice billing of accounts receivable, a cash discount is the amount you are willing to deduct from the total due in exchange for payment before the contractual due date. For example, if your standard terms are net 30 days, you might provide a 2% discount for payment in less than 10 days. If the invoice was for $100, your customer could save $2 by paying you early. A cash discount may also be used to encourage payment via a method more efficient for your company to process-- for example you might offer a cash discount of 3% if your customers pay online instead of mailing you a check.Back to top
Cash Equivalent
immediately liquid funds that are not classified as cash--such as securities that can be quickly exchanged, money market funds, or any other liquid debt that can be converted into cash in less than 90 days, such as a short term bond.Back to top
Cash Flow
the flow of cash into and out of the business-- inflows result from sales and investment income, and outflows are comprised of costs incurred to run the business. Positive cash flow means the company takes in more than it spends, in a given period, and negative cash flow means it is spending more than it takes in. Negative cash flow does not always mean that a company has cost and pricing problems, it may indicate a problem with how long it takes to collect on accounts receivable.Back to top
CCD-Corporate Cash Disbursement
an ACH processing code, for electronic transactions between two businesses. The Corporate Cash Disbursement (CCD) code is used for business transactions regardless of the method or origination--by phone, in writing, etc.Back to top
Chapter 7
a form of Bankruptcy in which a company, under court supervision, liquidates assets to pay off outstanding debt (typically only a small portion of the debt actually gets discharged, and court proceedings determine which creditors get paid first and most), with no prospect of ever resuming business.Back to top
Chapter 11
a form of Bankruptcy in which a company undertakes re-organization, under court supervision, in order to get its financial house in order, with the intention of resuming normal business at a future date.Back to top
Chargeback
for credit card transactions, a chargeback occurs when a customer tells the issuer of his/her credit card that a charge made against his/her card is not valid-- either because it is for the wrong amount, was never authorized, occurred on the wrong date, or even if they product received is perceived to be not as advertised. If a chargeback is initiated, the merchant has the right to dispute the customer's assesrtion, but the final resoloution is up to the card issuer. If the card issuer sides with the customer, the amount of the transaction is credited to the customer and retrieved from the merchant. Note that a merchant pays a fee for each chargeback a customer initiates against it. For ACH transactions, a chargeback can only occur if the customer tells its bank that a transaction was not authorized, not authorized for the amount withdrawn, or authorized for a date later than the transaction took place. As with credit card chargebacks, the merchant has a chance to defend the transaction. If the bank sides with the customer, the amount of the transaction is credited to the customer and retrieved from the merchant. The merchant pays a fee for each ACH chargeback a customer initiates against it.Back to top
Chargeback (credit card)
a credit card transaction that is billed back to the merchant after the sale has been settled. Chargebacks are initiated by the card issuer on behalf of the cardholder. When a credit card transaction is disputed, the dispute is handled through a chargeback. A chargeback causes the disputed amount and sometimes a chargeback fee to be deducted from the merchant’s account. The chargeback process allows the cardholder to send a disputed transaction back to the acquirer. Chargebacks occur after the transaction under scrutiny has been completed, cleared, and settled. Typical cardholder disputes involve product delivery failure or product/service dissatisfaction. Cardholders are urged to try to obtain satisfaction from the merchant before disputing the bill with the credit card issuer.Back to top
Closely Held Corporation
an company that has investors and issues common stock, but that stock is not actively traded on any exchange-- it is held by a small group of investors that typically include the company's top management.Back to top
Cloud Computing
also know as Software as a Service. The practice of using a hosted software solution--one you access over the web--instead of one installed and maintained by your own company on your own equipment. PaySimple is an example of cloud computing, as is the giant CRM provider SalesForce.com, and the free suite of office applications offered by Google Office. The advantage to cloud computing is that for a relatively low cost subscription your company can take advantage of cutting edge software solutions without the burden of purchasing capital equipment or hiring specialized IT staff to maintain and develop systems.Back to top
Commercial Cards
credit or charge cards issued to businesses to cover expenses such as travel and entertainment and procurement. Includes the multiple payment card brands of purchasing cards, business cards, corporate cards and multi-utility fleet cards. Visa and MasterCard now have special procedures for passing billing information back to the card issuing bank so that it can be displayed on card holder statements; this is a program for promoting the use of credit cards for business purchases by providing purchase tracking to business users. New regulations require that this billing information be passed back with the transactions, otherwise a higher pass through fee will be incurred.Back to top
Compliance Audit
an examination of a company's policies, procedures, and current practices to determine if it is operating in line with a set of rules or regulations. For example a PCI DSS (Payment Card Industry Data Security Standard) compliance audit determines whether a company's security policy, operations, and computer systems meet the requirements set forth in the PCI DSS specification for protection customer personal information and credit card numbers. (N.B--PaySimple is certified PCI compliant!!)Back to top
Compliance Program
a plan put in place by a company to ensure that it is operating in accordance with a set of rules and regulations.Back to top
Cost of Sales
in service businesses, typically used in place of CGS (cost of goods sold)-- it comprises all costs involved in selling a service such as labor and materials. For example if you contract with a plumbing business to fix your sink, and pay them $500 for the job that is the sale price. The business incurs the cost of paying Joe the plumber $100 for doing the work, $5 in transportation related expenses, and $50 in parts, and a $10 referral fee to the person who suggested the use of their service-- the cost of sales would be $165.Back to top
CPA-Cost Per Action
cost per action. The amount you pay for each person who performs a desired action. For example, if your desired action as a result of a mass mailing is for people to order the product advertised in the mailing, and you pay $5000 for the campaign, and you get 5 orders, your CPA is $1000. Depending on the cost of your item, and the lifetime value of the customer, this may or may not be a successful campaign.Back to top
Credit Policy
the set of standards used by a company when making decisions about how much credit, and the terms of credit repayment to offer customers. There are four components of a credit policy: credit period (how long the customer has to pay an invoice), credit standards (parameters for extending credit based on the credit worthiness of a customer-- sometimes determined by their commercial credit rating), collection policy (your internal procedures for collecting on accounts receivables), and discounts (any cash discounts you offer for early payment or alternate payment methods.)Back to top
Creditors
any person or entity to which a business owes money.Back to top
Credit (Reversal)
nullification of an authorized transaction (sale) that has not been settled. If supported by the card issuer, a reversal will immediately undo an authorization and return it to the open-to-buy balance on a cardholder's account. Some card issuers do not support reversals.Back to top
Current Assets
those assets that are in cash form, or can be converted to cash form in less than one year, or sold or consumed in less than one year-- also called liquid assets. Liquid assets include accounts receivable, inventory, pre-paid expenses (such as a block of pre-paid airfares), and short term certificates of deposit..Back to top
Current Liabilities
money owed by a company that must be paid in less than one year.Back to top
Current Ratio
current assets divided by current liabilities. It is a measure of whether a company is in good financial shape when it comes to paying off short-term debts. It lets you know if you are taking in cash fast enough so that you don't have to borrow or dip into cash reserves to pay your debts. A current ratio of 1 means that your short-term cash intakes exactly equal your cash outflow. If its more than 1, your company has good cash flow. If its less than 1, understand why and if necessary take measures to fix it-- for example you might think about creating a system for recurring billing which typically results in faster collections than mailed invoices and checks.Back to top
Debit Card
a card issued by a bank that is linked to the bank account, and upon use immediately removes funds from the account. Debit cards come in two types-- PIN debit cards in which the user must swipe the card and enter a PIN (personal identification number) to authorize a transaction, and signature debit cards, in which the user signs a receipt, similar to a credit card transaction, to authorize the transaction. Authorizations for signature debit card transactions use the same process as credit card transactions, while PIN debit cards are typically authorized using the same ACH network used by ATM machines to authorize transactions.Back to top
Debt Collector
defined by the Fair Debt Collection Practices Act, a Debt Collector is any person or company, other than the original creditor or its attorney, that attempts to collect a debt owed.Back to top
Debt Retirement
the complete payment of a debt-- the point at which the debt has been paid in full. For example, when I make the final payment on my car loan, I have retired that debt.Back to top
Debt Service
the total amount of principal and interest owed on a loan each period, over a period of time. For example, a one year loan of $100,000 with a 10% per year interest rate and monthly payments, would total a debt service of $9166.67 per month. Verb-- The act of making the periodic debt payments.Back to top
Debt to Equity Ratio
this ratio (Total Debt / Net Worth) compares the amount of equity provided by creditors to the amount provided by investors. The ratio shows what percentage of total capital is provided by debt. Companies with a lower ratio are attractive to lenders, but too low a ratio may mean that the tax advantages of debt are not being fully utilized.Back to top
Deferred Billing
the practice of letting a customer take possession of goods and services, and billing for them at some later date with no interest charges.Back to top
Deferred Taxes
taxes that have been accrued (are owed) but not yet paid. Typically deferred taxes will be included on an income statement, so that it accurately reflects the total amount of taxes the company will pay, not just the amount that is actually paid in the period covered by the income statement. For example, if you owe tax of $10,000 on $100,000 of sales made in October, but you won't actually pay the tax until December, you would include a line item for deferred taxes on your October Income Statement for $10,000.Back to top
Depreciation
a charge taken against an asset that reflects the loss of value resulting from use of that asset. For example, lets say you purchase a piece of equipment for $100,000 in January, and you use it to produce product all year--in December that piece of equipment is no longer "new" it is used, and its total useful life (the amount of time before it breaks down entirely or becomes obsolete) will have shortened. Thus, instead of listing the equipment on the balance sheet at its purchase price, it gets listed for 10% less or $90,000. The $10,000 difference is depreciation. Note that depreciation is very important when it comes time to filing your taxes, and that the government has special rules for how you can depreciate different types of assets, based on your business type. See http://www.irs.gov/businesses/small/article/0,,id=137026,00.html for IRS information on depreciation for small businesses.Back to top
Disbursement
the payment of cash from one person or company account to another person or company account. For example when I transfer $100 from my bank account to yours, that's a disbursement.Back to top
Discount Rate
the percentage of sales amounts that the bankcard acquirer or T&E card issuer charges the merchant for the settlement of the transactions. This value appears in reports and varies, depending upon the report type. For details on specific report discount rate, refer to the corresponding Help topic for the report.Back to top
Dispute
when a cardholder challenges a purchase on their credit or debit card because it is a duplicate charge, is unauthorized, involves a merchant problem, or is otherwise disputed. In general, the term dispute refers to both retrieval requests and chargebacks.Back to top
EBIT-Earnings Before Interest and Taxes
earnings before interest and taxes. This is company's profit, before interest payments on short and long terms notes is taken into account, and before taxes are taken into account.Back to top
EBITA-Earnings Before Interest, Taxes and Amortization
earnings Before Interest, Taxes, and Amortization. This is the company's gross profit, before deducting interest payments, taxes, and Amortization of intangible assets such as good will. It is helpful in evaluating a company's operating efficiency as it eliminates non operational costs that effect the bottom line.Back to top
EBITDA-Earnings Before Interest, Taxes, Depreciation and Amortization
earnings Before Interest, Taxes, Depreciation and Amortization. This "pure" look at operating profits is useful when evaluating firms that are undergoing substantial investment programs, as it highlights the efficiency and profitability of operations by eliminating other costs that effect the bottom line. See also EBITA.Back to top
EBPP-Electronic Bill Payment Presentment
electronic Bill Payment and Presentment. The practice of viewing invoices from a company via the web, making payments via the web, and being able to access your billing and payment history via the web-- typically through a website owned by the company, or owned by an EBPP company with which the billing company contracts.Back to top
EBT-Earnings Before Taxes
earnings Before Taxes. This is the company's profit, before taxes are taken into account.Back to top
EDC-Electronic Date Capture
process of electronically authorizing, capturing and settling a credit card transaction.Back to top
E-commerce
any transaction performed over the Internet.Back to top
Electronic Signature
a method of legally signing a document electronically-- by checking a box, making a mark, typing a phrase, etc. In the United States, the Uniform Electronic Transactions Act (UETA) defines an electronic signature as "an electronic sound, symbol, or process, attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record," and declares it legally binding.Back to top
E-sign Act
the electronic signatures in Global and National Commerce Act, which makes electronic signatures legally binding on contracts entered into electronically. See also electronic signature.Back to top
Expense
for businesses, an amount paid for goods and services that is completely deductible in the current tax period-- as opposed to a capital expenditure that must be depreciated over time.Back to top
Funding
funding (settlement) represents all of the transactions paid to a merchantBack to top
Federal Tax ID #
also called an EIN (Employer Identification Number), a number assigned to your business by the IRS for tax purposes. It is used to identify your business for a number of federal agency with which it interacts--such as the IRS, Social Security Administration, and state government. Typically, any business that has employees (other than self proprietorships), and/or collects taxes on the goods and services it sells, should obtain a Federal Tax ID. You can download the application form here: http://www.irs.gov/pub/irs-pdf/fss4.pdf You can also use an easy online application process: http://www.irs.gov/businesses/small/article/0,,id=102767,00.htmlBack to top
FIFO-First In First Out
first in first out. An accounting model by which net profit is determined by removing the oldest item in inventory, and its associated cost, from the books each time a new sale is recorded. For example, lets say 10 items are produced on May 1 with a CGS (cost of goods sold) of $5 each, another 10 are produced on June 1 with a CGS of $6. If I sell my first item for $10 on July 1, I would calculate net profit based on a cost of $5 and thus record net profit of $5. Were I to use the alternate LIFO (last in first out) method, i would calculate net profit based on the most recently produced item and thus record a cost of $6 and a net profit of $4.Back to top
Financial Ratio
a comparison of two financial metrics, expressed as either a decimal or a percentage, that help understand the overall health and performance of a company in relation to other companies of similar size or in a similar industry. Back to top
Fixed Assets
assets used in the running of a business that can not be easily liquidated and are not consumed during regular business processes. Tangible fixed assets include items such as buildings and equipment. Intangible fixed assets include things such as goodwill and patents. All fixed assets are depreciated for tax purposes. See also Long Term Assets.Back to top
Fixed Cost
business expenses that do not change based on production or sales. For example, an equipment lease, rent, or salary.Back to top
Funding Time
the number of business days it takes after a financial transaction is processed for the money to be deposited or withdrawn from the bank accounts involved. For example, if your ACH transaction is on 3 day funding, and you initiate a transaction during the December 1 banking day, then you should see the money in your account on the third business day after the transaction date, or December 4.Back to top
Grace Period
the period of time after a payment on a loan or on an invoice is due that you can make payment without incurring a late-payment penalty. For example, if an invoice is due on January 1, and you have a 15 day grace period, you can pay until January 15 without having to pay an additional late payment fee.Back to top
in accounting, the purchase price of a fixed asset--such as equipment or buildings.Back to top
Income Statement
a summary of incoming revenue and outgoing expenses for a given period-- typically a month, quarter, or year. The result is a net income calculation, after expenses such as salary, overhead, and taxes are subtracted from net sale. This income is either re-invested in the business, or paid to share holders as dividends-- often a mix of the two occurs.Back to top
Intangible Assets
assets that do not have a physical existence, such as goodwill, brand, business processes, or patented ideas.Back to top
Inventory Turnover Ratio
sales/Inventory, This ratio measures the turnover rate for receivables--or how quickly a company gets paid, and thus its liquidity. The best result for this ratio is 0, which indicates that no receivables are found--such as in an all cash business like a snack bar. For non-zero results, higher is better indicating that accounts receivables are paid more quickly.Back to top
Investors
with regard to a company, the investors are people who have provided capital to the company in exchange for a share of the profits generated by the company.Back to top
IRA-Individual Retirement Account
individual Retirement Account. The standard IRA is one in which the deposits are tax deductible (up to a certain amount, based on income), and grow tax-deferred until they are withdrawn after retirement. There are many types of IRAs with different rules and financial implications. Its best to speak with an accountant or financial advisor before opening or making decisions about IRAs.Back to top
ISO-Independent Service Organization
independent service organization. In relation to credit card merchant accounts, an ISO is an independent business that is licensed by a bank to sell the bank's merchant processing services.Back to top
Interchange
the money paid from the acquirer to the debit or credit card issuer for every transaction. in certain cir, Interchange may be paid from the issuer to the acquirer. The level of interchange is determined by many different factors according to the way the transaction occurred and the type of cards used.Back to top
Interchange Fee
a term used in commerce to describe fees charged to retailers and other merchants by an acquiring bank each time credit or debit cards, such as those issued by Visa or MasterCard affiliated banks are used to pay for a purchase. The interchange fee is a percentage applied, according to Visa/MasterCard regulations, to the currency value of each transaction. There are multiple categories of interchange, and Visa and MasterCard each have their own criteria for their own categories. A transaction must meet the specified criteria for a category in order for that category's rate to be applied. Each transaction is evaluated individually, so various interchange rates may apply within one batch of merchant transactions.Back to top
Leverage Ratios
leverage ratios, also called Debt Management Ratios, look at the amount of debt used by a company, the type of debt used, and the risk assumed by creditors. Debit is not good or bad in and of itself, but must be looked at in terms of risk vs. return. If a company can generate more in profit than it pays in interest, debt is typically beneficial. If a company relies too much on debt, the risks to creditors rise, as does the risk to owners, as both will suffer in the event of bankruptcy.Back to top
Liabilities
in accounting, any debt owed by a company that must be repaid at a future date. Short-term liabilities must be repaid within one year, Long-term liabilities must be repaid in more than one year.Back to top
Lifetime Value
a measure of the total business that can be expected from a given customer over a given period of time. Lifetime value is often used to determine how much a company can reasonably spend to acquire a customer, based on the purchases that customer is expected to make over a given period. Back to top
LIFO-Last In First Out
last in first out. An accounting model by which net profit is determined by removing the newest item in inventory, and its associated cost, from the books each time a new sale is recorded. For example, lets say 10 items are produced on May 1 with a CGS (cost of goods sold) of $5 each, another 10 are produced on June 1 with a CGS of $6. If I sell my first item for $10 on July 1, I would calculate net profit based on a cost of $6 and thus record net profit of $4. Were I to use the alternate FIFO (first in first out) method, I would calculate net profit based on the oldest item in inventory, and thus record a cost of $5 and a net profit of $5.Back to top
Liquid Asset
any asset, such as inventory, accounts receivables, CDs, securities, or notes due that can be converted to cash in less than 30 days.Back to top
Liquidated Damages
as part of a contract, a specified sum of money that must be paid to the injured party if the terms of the contract are breached. For example, if Company A contracts with Company B to provide 100 orange widgets in January for $5 each, a liquidated damages clause would require Company B to pay Company A $500 if it fails to deliver the widgets on schedule.Back to top
Liquidity
the ability to turn an asset, such as inventory or accounts receivable, into cash. A company's liquidity is typically measured by its ability to access cash. See also liquid asset.Back to top
Liquidity Ratios
put simply, liquidity ratios are a measure of a company's ability to pay its bills. In financial language, liquidity ratios compare current assets to current liabilities and measure a company's abilities to meet current obligations (accounts payable, loan payments, salaries, etc.).Back to top
LLC-Limited Liability Company
limited liability company. This type of company is great for a small business. It is a type of company in which the investors limit their liability to no more than the investment they made in the company, but get the tax advantages of being able to take profits as income on a schedule K instead of as dividends.Back to top
Long Term Debt
debt that will be paid off in longer than one year's time.Back to top
Long Term Debt Ratio
long Term Debt / Total Assets. The Long Term Debt Ratio reflects the percentage of a company's assets that are provided by long-term debt--debt that will be repaid more than a year in the future.Back to top
Magnetic Stripe
a strip of magnetic tape affixed to the back of credit cards containing identifying data, such as account number and cardholder name.Back to top
MOTO-Mail Order/Telephone Order
credit card transactions initiated via mail, email or telephone. Also known as card-not-present transactions.Back to top
Margin
in business accounting-- the margin is the difference between net sales and cost of goods/services sold.Back to top
Marginal Cost
in business accounting-- the cost of producing one additional unit of output, also called incremental cost. For example, if it costs $100 to produce 25 units, and $103 to produce 26 units, then marginal cost is $3. Marginal cost is an important factor to consider when deciding upon how much volume is profitable to a business, and at what point additional volume can actually decrease profitability. Marginal cost typically increases with production volume as a result of operational efficiencies, but at some point it will begin to decline as resources become taxed.Back to top
Marginal Pricing
pricing of a product at a rate that covers the marginal cost of producing it, but not the total cost of production. Marginal pricing does not take any fixed costs into account. It is typically employed only after sufficient inventory has been sold at standard pricing to cover all fixed costs involved in production. For example, company A typically sells Green Widgets for $10 each. Its fixed costs are $900 per month. The variable cost is $1 per unit. Company A must sell 900 green widgets (for a marginal profit of $9 each) to break even and cover its $900 fixed cost. After that, it can employ marginal pricing to charge $5 per widget, and still make a profit of $4 per widget. This risk to this approach is that customers will begin to expect the lower price, and you will not have sufficient demand at higher prices to cover fixed costs.Back to top
Marginal Tax Rate
the tax rate at which your next dollar will be taxed. Taxes are typically levied on a sliding scale, where you pay a low percentage on the first portion of income, and a higher percentage on the next portion, until the highest rate is reached. For example, you might pay 10% in taxes on your first $25,000 in income, 15% on the next $50,000 in income, 20% on the next $50,000 in income, 28% on the next $100,000 in income, and 33% on the rest. If your total income is $224,000 your marginal tax rate would be 28%, if your total income is $225,001 your marginal tax rate is 33%, even though all but $1 of your income is taxed at lower rates.Back to top
Market Share
the percent of total sales in a particular market or market segment going to a particular company or brand.Back to top
Merchant Account
an account opened by a business that enables it to process credit card transactions. To obtain a merchant account, a business must apply, be underwritten by an authorized merchant processor, and agree to the fees, terms and conditions required to accept credit cards.Back to top
MID-Merchant ID
each merchant account in the system has its own unique, numeric identifier generated by the system. This ID is tied both to a business name and a specific venue.Back to top
Midqualified Rate
a rate charged merchants on credit card transactions. The MidQualified rate is applied only to retail or card-present transactions (transactions where the merchant has the customer's credit card in hand), and is charged on rewards card transactions, keyed in transactions (as opposed to swiped transactions), and transactions that are part of a batch held for 24-48 hours before being submitted for processing. The actual rate is dependant on your merchant processing contract, but it is the second tier charge for retail accounts-- higher than the qualified rate, but lower than the non-qualified rate. See also Qualified Rate and Non Qualified rate.Back to top
NACHA-National Automated Clearing House Association
national automated clearing house association-- is a not-for-profit association that oversees the electronic transactions processed via the ACH (Automated Clearing House) network. For more information on NACHA, see its official website www.nacha.orgBack to top
Net Price
the price of a product or service after all discounts have been deducted.Back to top
Net Profit
the total profit after all expenses are deducted. Also called the "bottom line' or 'net income."Back to top
Net Sales
total sales less returns (and not including taxes collected), less all discounts and allowances-- the discounts and allowances include commissions paid to sales reps, sale discounts, coupons, and any other incentive provided either to a sales agent or directly to a customer.Back to top
Net Worth
the total value of a business. Typically defined as total assets - total liabilities.Back to top
Non-Qualified Rate
in relation to credit card processing, the non-qualified rate is the highest rate charged for either a retail (swipe) or MOTO (mail order-telephone order) transaction. Retail transactions typically fall into the non-qualified bucket if the card is a corporate or government cards, or if the transaction is batched more than 48 hours after it was authorized. For MOTO transactions, the non-qualified rate is charged for corporate and government cards, some rewards cards, all transactions batched more than 24 hours after being authorized, and for transactions in which and AVS (address match) check was not performed. If you see transactions receiving a non-qualified rate, you should contact your customer service representative to learn why your transactions are being charged the higher rate, and learn how you can fix any problems to ensure that you are charged the qualified rate whenever possible.Back to top
Non-Qualified Transaction Fees (NON-Qual)
bankcard sales transactions that do not meet set Visa/MasterCard criteria for that particular merchant and are processed at a higher interchange rate. An example of this is a merchant that is retail (card present) that processes a card-not-present transaction (or manually enters card data rather than swiping the magnetic stripe through the terminal). The merchant will pay the difference between what they should have paid on retail and what they actually qualified for (card not present). This difference is called non-qualified interchange fees.Back to top
Notes Payable
debts owed by a company to another party. Short-term notes payable must be discharged within one year. Long-term notes payable must be discharged in more than one year. On a balance sheet, short term liabilities include short term notes payable, and that portion of a long-term note that must be paid in the current year. All other Long-term notes, and portions of long-term notes are included in long-term liabilities.Back to top
Online Banking
the performance of standard banking functions, such as deposits, withdrawals, funds transfers, and bill payment, performed via the Internet.Back to top
Online Bill Payment
the practice of using an electronic funds transfer to pay a bill online. Customer-initiated online bill payment typically involves the customer instructing its bank to electronically transfer funds to the biller. Biller-initiated online bill payment typically involves the customer giving the biller permission to electronically withdraw funds from the customer's bank account.Back to top
Operating Capital
cash or cash equivalent funds available to finance the day to day operations of a business. Typically current assets less current liabilities.Back to top
Operating Current Assets
the sum of cash, accounts receivable, and inventory (current assets--excluding short-term investments) used to support ongoing operations.Back to top
Operating Current Liabilities
the sum of money a company owes as a result of its operations-- exclusive of interest charges on debt.Back to top
Operating Expenses
the costs related to the running of a business, not including debt payments on long-term liabilities, or property taxes.Back to top
Operating Profit
earnings before income and taxes. See also EBT.Back to top
Operating Ratio
a measure of the efficiency of a firms management and business operations., Typically calculated by dividing total expenses by total revenue.Back to top
Operating System
in relation to software, the master program on a computer that enables interaction between the user and the computer's resources. Examples of operating system include Microsoft Windows, Apple MAC OS, Linux, and Unix.Back to top
Opportunity Cost
the value of what a company must give up in order to pursue a certain course of action. For example, if you have a lagging product line that could be improved in the hopes of improved sales, but you have a buyer who will purchase all rights to the line for $100,000; if you decide to keep the product line and improve it, the opportunity cost of doing that is $100,000.Back to top
Payback Period
the amount of time it will take to recoup an investment. For example, if I spend $5000 on a new piece of equipment that will reduce the cost of manufacturing a product by $100 per piece, and I sell 10 pieces per month, that means I would make an additional $1000 per month due to the new equipment, and thus my payback period would be 5 months.Back to top
Payment Gateway
an online software system that enables a merchant to electronically initiate a charge to a customer's bank account or credit card. Retail stores have credit card terminals through which customers swipe their cards or the card's numbers are input manually. A payment gateway is used for the same purpose for online purchases. The gateway encrypts the card data and communicates the details of the transaction to the merchant's bank.Back to top
PCI DSS- Payment Card Industry Data Security Standard
payment card industry data security standard. The standards, created by a council including Visa, MasterCard, AMEX, and Discover, that govern payment account data security to which all corporations that deal with payment cards must adhere. For more information about PCI, see http://www.paysimple.com/small-business-resource/pci-compliance.htmlBack to top
Personal Check
a check written on a consumer bank account-- as opposed to a check written on a business bank account.Back to top
Pin Debit Card
a debit card for which you must enter a PIN (personal identification number) in order to complete a transaction.Back to top
POS-Point of Sale
point of sale. In relation to sales, it refers to the location where something is purchased. In relation to ACH transactions, a POS transaction is a specific NACHA ACH code that is used when a check provided as payment is immediately converted to ACH, while the customer is present, and then returned to the customer. In relation to computer hardware, POS equipment is any computer device, such as a credit card swiper, a check scanner, a price scanner or a cash register that is located at the place something is purchased as part of a system that enables that purchase to be completed.Back to top
PPD-Pre-arranged Payments and Deposits
pre-arranged Payments and Deposits. PPD is the NACHA ACH code used to designate an electronic payment or disbursement made from a business to a consumer (B2C), for which written permission has been granted prior to the transaction occurring. A single written permission form can be used to authorize one or multiple future transactions-- thus all B2C recurring payment or disbursement scheduled ACH transactions are designated with the PPD code.Back to top
Precautionary Balance
an emergency fund. These funds are designed to be a safeguard for your business so that it can meet any unusual expenses, or make up for unforeseen sales slumps, surprise cost increases, and any other random event that causes current assets to be insufficient to meet current liabilities.Back to top
Predatory Pricing
the practice of pricing your goods or services at a very low rate (typically below your own cost) to capture a very large percentage of market share and drive your competition out of business. When predatory pricing results in eliminating the competition, the predatory company can then increase prices at will, as no alternatives remain.Back to top
Price
in relation to commerce, the price is the amount of money a business charges (and a consumer pays) for a given product or service.Back to top
Principal
in relation to capital investment, the principal is the initial deposit dollar amount on which future interest will be earned. In relation to debt, the principal is the total dollar amount borrowed, upon which future interest payments will be made.Back to top
a processor is the company that actually routes an Authorization Request from a Point of Sale device (such as a credit card terminal) to Visa or MasterCard, and then arranges for Fund Settlement to the merchant. Such processors are traditionally accessed via direct dial out modems connecting to their system.Back to top
Processing Network (Vendor)
the medium of data transport between the merchant application and the processor. This company authorizes and captures credit card transactions. Some examples of processing networks are Tsys and Chase PaymentechBack to top
Pro Forma Financial Statement
a financial statement--balance sheet, income statement, cash flow statement, etc,--created based on a set of assumptions that may or may not ever actually occur. It is often used to show prospective investors a best case scenario for their investment, and what they can expect to gain from investing in your company if all your goals are met. It can also be used to forecast the financial performance of your company based on different goal sets, and help you choose the one that best balances risk, reward, and probability of success.Back to top
Profit
in relation to balance sheet, Profit equals Total Sales minus Total Cost. In more general terms, profit is the benefit derived from any activity-- be it financial, business or personal.Back to top
Profitability Ratios
profitability Ratios help show how effective a company is at using its resources to generate earnings (or profit). They reflect the combined effects of a company's liquidity, asset management, and debt and operating strategies. Because taxes are not taken into account in these ratios (EBT= Earnings Before Taxes), they are useful in making comparisons between companies with different tax situations.Back to top
Proprietary Technology
any technology-- such as a manufacturing process, software code, or patent--that is legally owned by a company that has set restrictions on its use.Back to top
Quick Ratio
current assets minus inventory divided by current liabilities. Also know as the "acid test" it is a measure of whether a company has the cash and cash equivalents on hand to meet its near term liabilities. If the number is less than 1, the company has a potential cash flow problem.Back to top
Ratio Analysis
in relation to financial analysis, used to compare the actual or projected business data from one company with that of its industry peers.Back to top
Receivables
Receivables in relation to financial accounting, receivables are money you expect to collect from customers for goods or services that have been delivered.Back to top
Retained Earnings
in relation to financial accounting, profit made by a company that is not distributed to shareholders as dividends, but rather re-invested into the company's operations.Back to top
Return on Equity Ratio
profit (EBT) / Net Worth (Equity). This "bottom line" ratio reflects how much a company's owners are making on their investment--whether or not profits are actually distributed. The higher the ratio percentage, the greater the return.Back to top
Reverse Stock Split
when a company converts its current stock shares to reduce the number of outstanding shares, and thus raise the per share price-- for example a 5 to 1 reverse split would mean that for each 5 shares of stock currently owned, the owner would get 1 share of the new stock (A person with 500 shares, would own 100 shares of the converted stock.).Back to top
SaaS-Software as a Service
software as a service. A software delivery model where the vendor provides the application and the hardware on which it is run, and the customer access that software via the Internet, on a pay-as-you go model. See Cloud Computing.Back to top
Sales to Net Worth Ratio
sales / net worth (Equity). This ratio measures how effectively the owners' investment in the company is being used to generate revenue. Higher numbers are better here, as they represent "turnover" of investment dollars and show how many times per period the same investment dollar is used to generate new sales.Back to top
Sales to Receivables Ratio
sales/receivables. This ratio measures the turnover rate for receivables--or how quickly a company gets paid, and thus its liquidity. The best result for this ratio is 0, which indicates that no receivables are found--such as in an all cash business like a snack bar. For non-zero results, higher is better indicating that accounts receivables are paid more quickly.Back to top
Security Certificate
an encryption file used as part of the SSL protocol to secure a website for transfer of sensitive information. Any website that accepts online payments via a shopping cart of payment page they host, must obtain a security certificate to protect its customers. (PaySimple provides a security certificate for all web payment forms hosted for you by our system).Back to top
Secure Payment Gateway
secure Payment Gateway companies help other Processors conduct secure business on the internet using Secure Sockets Layer (SSL) technology.Back to top
Secure Payment Software
in order to conduct secure business on the Web, the Secure Gateway Provider runs a Secure Host System, and sells/licenses software modules that allow Shopping Carts and other applications to request and receive Credit Card Authorizations via their system using encrypted communications. (This is called Real Time Authorization.)Back to top
Settlement Account
in relation to credit card and ACH transactions, the settlement account is the bank account owned by the merchant account provider into which collected funds are held for a period of time before they are transferred to the merchant who initiated the transaction. For example, Merchant A charges Customer B $50 on January 1. If Merchant A is on 5 day funding, its merchant provider will collect $50 from Customer B's bank account on January 2, and will hold that money in its settlement account until January 6, when it sends it to Merchant A's bank account.Back to top
Shareholder
any individual or company that owns stock in a public or private company,Back to top
Shopping Cart
in relation to e-commerce, software created to provide an online shopping experience where users can browse a site and add items to a "cart" review the "cart" at any time, and then "check out" to pay for the items. If you're looking for a shopping cart to integrate with the PaySimple Solution, try the free Magneto Cart (http://www.magentocommerce.com/extension/277/paysimple).Back to top
Shopping Cart Software
these applications typically provide a means of capturing a client’s credit card information, but they rely on the software module of the secure gateway provider, in conjunction with the secure payment gateway, in order to conduct secure credit card transactions onlineBack to top
Short Term Debt Ratio
short term debt / total assets. The Short Term Debt Ratio reflects the percentage of a company's assets that are provided by current debt--debt that must be repaid in less than a year. When looking at this ratio, take into account how much short term debt is actual notes due, and how much is simply accounts payable carried on favorable terms. The former may drive up the ratio, and suggest a problem; the latter means that a high ratio is simply good cash flow management.Back to top
Simple IRA
a type of employer sponsored IRA that typically has lower fees than the traditional 401(k). Because of the low match requirements, and low expenses it is well suited to small businesses with low-head count and/or tight budgets. For more information, see the IRS Website (http://www.irs.gov/retirement/sponsor/article/0,,id=139831,00.html)Back to top
SLA-Service Level Agreement
service level agreement. An SLA is a contractual agreement between two parties that details how one party will perform under the contract, and penalties for not meeting those performance level. For example, and SLA for a call center and its customer might be that calls are answered by the 3rd ring 99% of the time. If that rate is not reached in any 30 day period (i.e. over the last 30 days, only 80% of calls were answered by the 3rd ring) the call center pays a penalty of 10% of its monthly fee. One typical SLA often referenced in a "5 nines" SLA for internet hosting services, this means that the hosted system will be up 99.999% of the time.Back to top
Stakeholder
in relation to a business, any party that has an interest in or is effected by the way the business operates-- stakeholders include external parties such as shareholders, lenders, customers, vendors, and the community in which the business operates. Internal stakeholders include owners, managers and other employees.Back to top
Street Price
the price a consumer is likely to pay for a product or service. The street price typically includes deductions for all common discounts and rebates attached to a purchase, and is thus lower than the MSRP (Manufacturers Suggested Retail Price). For example, a flat screen TV may wholesale to a retailer for $1000, carry a MSRP of $1500, but can commonly be purchased for $1200--the street price (as it is often on sale, discounted, etc.).Back to top
Stretching Accounts Payable
the habit of always paying invoices late. Small businesses should be on the look out for this-- often large companies doing business with small companies will attempt to improve their own cash flow by paying invoices later than the agreed upon terms. The large company thinks that the small one wants its business so badly that it will put up with the late payments.Back to top
Swipe Machine
in relation to retail sales, the swipe machine is a piece of hardware that connects to a computer or other Point of Sale System through which a credit card's magnetic stripe is scanned into the system.Back to top
Tangible Net Worth
in relation to balance sheet accounting, Tangible net worth is the value of the company when all intangible assets (such as goodwill, trademarks, and copyrights) are removed.Back to top
Tax Exempt
something that is not subject to tax, at a Federal, State or Local level. For example, some bonds are tax exempt, meaning that you pay no tax on the interest earned (at the federal/state and/or local level). Some transactions are tax-exempt, meaning that the government does not require that tax be paid on their purchase.Back to top
TEL
in relation to ACH Transactions, TEL is the NACHA designation code for an ACH transaction that is authorized via the telephone.Back to top
Terminal
equipment used to capture, transmit and store credit card tansactionsBack to top
Terminal Identification Number
a unique number assigned to each POS terminal, Unique identifier used to identify the terminal where the transaction originally occurred (for example, card swipe, phoned in, and so on).Back to top
Terminal Software
programming that determines the characteristics and features of the terminalBack to top
Third-Party Processor
a third party processor is an independent processor that is contracted with by a Bank or Processor to conduct some part of the transaction processing process.Back to top
Transactions
there are two meanings of the term. Generally, transaction refers to purchase and return activity taken at a merchant/client site that is sent for processing and accepted for payment. However, in regards to Retrieval and Chargeback data, ADRP uses the term transaction to refer to each stage within a case’s lifecycle. For example, a case may go through many stages such as a retrieval stage, a first chargeback stage, and a second chargeback stage. ADRP creates a transaction record for each of these stages. So, cases may contain multiple transactions.Back to top
Total Asset Turnover Ratio
sales / total assets. This ratio measures the turnover of all of a company's assets to determine whether it is using them effectively. The ratio tells you whether a company is generating sufficient sales, given its asset volume. Higher values are better for this ratio.Back to top
Total Debt Ratio
total debt / total assets. The Total Debt Ratio measures the percentage of funds provided to a business that are a result of loans and other debt, as opposed to equity. Creditors typically look for low Debt Ratios, as the lower it is, the less risk they take. Investors may prefer higher Debt Ratios, as that typically means higher earnings, but those earnings come at a higher risk of bankruptcy.Back to top
Turnover
in relation to product sales, turnover is the amount of time it takes to sell a set number of items. For example, if production is 50 units a day, and it takes two days to sell 50 units, then turnover time for one day's production is 2 days.Back to top
UI-User Interface
user interface. In regard to software applications, the UI, sometimes called GUI (for graphical user interface), is the set of screens on the front end of a software application through which a user interacts with the software. Basically, it’s the part of a software application you see.Back to top
Underwriting
the process of examining, assessing, and accepting or rejecting risk. For example, the company providing your ACH or credit card merchant account is taking risk on every transaction it processes for you (if a business processes fraudulent transactions and then disappears-- it is liable for the money). Thus before providing you with a credit card or ACH merchant account, you business will be assessed to determine the maximum transaction amount they can process, as well as the total volume of transactions that can be processed on a daily and monthly basis.Back to top
Velocity
in relation to transaction processing, a velocity is the number and dollar volume of transactions that a company or individual is enabled to process in a given time period-- for example a day or a month-- it is essentially a payment processing limit.Back to top
Virtual Store Front
a business website that offers goods or services for sale, via which a potential customer can browse and/or shop. See digital storefront.Back to top
Void
in relation to transaction processing, to cancel a transaction before it has begun processing-- i.e. for an ACH transaction before it has been submitted to the bank, for a Credit Card transaction before the settlement batch has been submitted.Back to top
WEB
in relation to ACH transactions, WEB is the NACHA designation for a one-time transaction authorized via the Internet, or for a recurring transaction for which the schedule was authorized via the Internet.Back to top
Working Capital
the total of a firm's short term assets that can be used to operate and grow the business-- the sum of cash, marketable securities, inventory, and accounts receivable.Back to top
