The collection of funds on which a check is drawn and payment of those funds to the holder of the check.
A bill of exchange or draft on a bank drawn against deposited funds to pay a specified sum of money to a specified entity (e.g., a person or business) on demand. A check is considered cash and is negotiable when endorsed.
A chargeback occurs when a cardholder disputes a credit card transaction with his or her credit card issuer. The card issuer initiates a chargeback against the merchant account. The amount of the disputed transaction is immediately withdrawn from the merchant’s bank account, and the merchant has 10 days in which to dispute the chargeback with supporting documentation such as proof of purchase, customer signature, proof of delivery, etc. A chargeback is ultimately decided and resolved by the card association. A chargeback fee is usually assessed to the merchant on top of the actual transaction. See also Retrieval request.
The customer to whom a card has been issued, or the individual authorized to use the card.
A payment card industry governing body that sets rules and interchange rates. Visa, Mastercard, Discover, and American Express are the four largest card associations in North America.