radio frequency card: a proximity card in which the coupling between the card and its interface device is by radio.

rainbow printing: infill printing using graded areas of colour which merge into one another.

RAM: see random access memory.

random access memory: a volatile memory used in integrated circuit cards that requires power to maintain data.

RBT: remote batch terminal. Remote from the computer to which it is connected which collects data for and returns data from batch processing.

reader-writer: a device which can both read from and write to a recording medium.

read-on-insertion: reading information from a magnetic stripe while the card is being inserted into the reader device.

read-only magnetic tracks: track 1 and track 2 on an ISO standard identification card. Only track 3 is read-write track.

read-only memory: non-volatile memory that is written once, usually during card production. It is used to store operating systems and algorithms employed by the microprocessor in an integrated circuit card during transactions.

read-on withdrawal: reading information from a magnetic stripe while the card is being removed from the reader device.

read-write track: track 3 on an ISO standard identifccation card. real time: of information processing, carried out promptly on demand.

reciprocity: in card payment systems, agreement between parties that they will provide to each other corresponding services in respect of each other's cardbases.

reconciliation: the process of checking that one or more transactions have been completely and correctly recorded between two parties in a payment system.

reconciliation control message: in a payment system, a message used to exchange information for the purpose of reconciliation.

reflex hologram: a hologram produced in film form similar to a photo negative which gives full 3D imagery.

reliability: measure of efficiency. Measured in up time or the average number of transactions which can be completed before failure occurs.

relief height: the height above the surface of the card of characters formed on it by embossing. For ISO standard identification cards this height should not exceed 0.48mm (defined in ISO 7811 ).

remote access banking: see home banking.

reset signal: an electronic signal applied at contact C2 of an integrated circuit card to reset it for use.

response time: the time taken for a terminal to obtain a reply from a remote control computer system.

retail banking: the part of a bank's operations providing services at its branches for small (in bank terms) account holders.

retinal-scanning: a device used to recognise patterns in the human retina. The device makes a digitised image of a strip of retina. This image can then be compared with a pre-stored one. Retinal patterns are almost unique to individuals and retinal scanning is currently one of the most powerful methods of biometric authentication.

reversal debit: a debit arising from reversal of a previous credit. reversal message: in a payment system, a message relating to a reversal.

reversal transfer: a transfer of funds arising from reversal of a previous transfer.

revolving credit: an account on which payment is any amount less than the total balance and the remaining balance carried forward is subject to applicable finance charges.

RF card: see radio frequency card.

risk management: part of a bank, or individuals, with responsibility for managing risk and measures designed to reduce risk of credit and fraud losses.

Rivest-Shamir-Adleman (RSA) cryptosystem: a public-key cryptosystem in which public and secret keys are derived from the factors of very large numbers. It is an asymmetric form of encryption using a private key to lock the data and a public key to unlock it.

ROM: see read-only memory. routing: the chain of transmissions by which a transaction passes from an acquirer to a card issuer in a payment system.

RSA: see Rivest-Shamir- Adleman cryptosystem.

RST: the designation given in ISO 7816 for the reset signal. runaway card: a lost or stolen card that is being misused frequently and fast.

S

SAM: a logical device used to provide security for insecure environments. Protected against tampering and a store for secret or critical information.

script: a command or string of commands transmitted by the issuer to the terminal for the purpose of being sent serially to the ICC.

SDN: see synchronous data network.

secret key: the key used in a symmetric cryptographic algorithm, where the same key is used for encryption and decryption. security printing: printing which incorporates anti-counterfeiting measures such as fcne-line security patterns, infill printing, lenticular patterns, rainbow printing, serial numbering, etc. and which is carried out under tightly controlled conditions to prevent fraud.

SEPP: Secure Electronic Payment Protocol.

server: a computer that serves other computers connected to it by LANs or Wide Area Networks. service code: a code recorded on track 1 of a financial transaction card indicating what kinds of facilities the cardholder may access with the card.

SET: Secure Electronic Transactions. Developed by Visa, Microsoft and MasterCard, to provide security via encryption to all parties involved in transactions over open networks such as the Internet.

settlement conversion rate: the rate applied to convert a transaction value from the currency of denomination into the relevant settlement currency.

settlement currency: the currency in which settlement of debts between two parties in a payment system takes place.

settlement date: within a payment system, the date of settlement between an acquirer and a card issuer; for a cardholder the date when he must settle his account with the card issuer.

settlement fee: a fee charged by a party in the payment system for handling or processing settlements.

settlement system: that part of a payment system which processes and effects settlements.

signature pad: an electronic device which captures a digitised image of a person's signature to facilitate signature verification electronically.

signature panel: the area of an identification card in which the bearer enters his signature (defined in ISO 7810).

signature verification: checking a person's identity by comparing signature with a previously supplied specimen. To date this has been done almost entirely manually, but electronic signature veriiication systems are beginning to appear.

SIM: subscriber identification module. The chip card necessary for the operation of GSM phones. It provides the subscriber's identity to the network operator for billing purposes.

skimming: To copy the magnetic stripe encoding from one card to the stripe on another card; also called bit-copying. A common type of counterfeit fraud.

slip printer: a machine in an EPOS or EFTPOS installation which prints out sales vouchers. smart card: a card capable of processing and storing information. An integrated circuit card with microprocessor and memory. See chip card.

SNA: see Systems Network Architecture.

source authentication: proof of the point of origin or the identity of the originator of a message or transaction in a payment system.

SRAM: see static random access memory.

stand-alone terminal: an electronic payment terminal not connected on-line to a computerbased payment system.

static random access memory: random access memory which does not need to be refreshed on each memory cycle.

store-and-forward: a mode of message handling in which online and off line operation are mixed. Store-and-forward operation occurs when a message cannot be transmitted on-line immediately to its destination but is retained for transmission when the destination system comes on-line again.

store card: a financial transaction card associated with a retailer or group of retail stores which can be used only for purchases from the retailers concerned.

stored value card: also known as a cash card, electronic purse, or prepaid card. A financial card used to purchase goods and services, usually of low cost, that is loaded beforehand with a certain amount of money. With each purchase, the amount is then deducted from the total on the card.

substrate: see polyester laminate.

super-smart card: a smart card incorporating a key pad and visual display permitting the user to interact with processing functions within the card.

surcharge: additional fee charged on a card transaction by the acceptor to cover the additional cost of taking a card rather than cash or cheque.

SWIFT: Society for Worldwide Interbank Financial Telecommunication. Communication mechanism owned by over 1,000 banks worldwide and used to transmit funds, transfer instructions and administrative messages.

swipe reader: a magnetic stripe reader in which the magnetic stripe is. read by passing the card manually right through the reader past the magnetic heads. SWITCI: a UK domestic debit card run by a consortium of UK banks.

switching: establishment and disestablishment of connections in a communications network. synchronous: of data transmission, encoded with digital pulses indicating the boundaries between successive individual bits.

synchronous data network: a data communications network in which data is transmitted synchronously on the links of the network.

system network architecture: a proprietary network architecture for IBM computer.

systems trace audit number: a number which identifies a translation uniquely within a payment system.

T

T=0: character-oriented asynchronous half duplex transmission protocol used to talk to ICCs.

T=1: block-oriented asynchronoús half duplex transmission protocol.

T&E card: see travel and entertainment card.

Tag: read only or read-write electronic device carried inside a vehicle for toll payment. An identification number on the tag can be read remotely.

tamper-proof: made resistant to interference. Most electronic payment terminals are tamper-proof to some extent. Common tamperproofing measures include automatic erasure of sensitive information, automatic shutdown and automatic physical locking.

TBACS: see token-based access control system.

telemarketing: selling goods or services over the phone by getting cardholders to quote the identification number of a financial transaction card to ensure payment.

telephone card/credit card: a card enabling the cardholder to pay for telephone calls only. temperature range: ISO standard identification cards are supposed to remain structurally reliable and useable at ambient temperatures üp to 35 degrees Celsius (defined in ISO 7810).

terabyte: a trillion bytes. terminal: a device which allows a user to send data to, receive data from and invoke functions of a remote computer system.

terminal access control: measures taken to ensure that access to terminals is obtained only by individuals for whom it is authorised.

terminal emulation: making a microcomputer mimic a terminal wired directly to a mainframe, by use of a communications program.

terminal-resident: of a function in a terminal, carried out entirely by processing elements within the terminal itself.

thermal transfer printer: a printer which forms character images by local heating of specially sensitised paper. The most common types of matrix printers work by electrical discharge from wires in the print head.

thickness: the thickness of an ISO standard financial transaction card should be 0.76mm +/0.08mm (defined in ISO 7813).

thin card: low-cost thin-section polyester laminate used to fabricate identification cards which are not required to comply with the thickness requirements of ISO 7813.

third-party processing: processing of transactions by a party acting under contract to card issuers or acquirers.

ticket value: the transaction value recorded on a sales voucher.

tipping: coating the raised area of an embossed image with ink to make it more easily readable.

token: an object carned out by an individual as proof of his identity. It is most often an identification card but the term is general and includes any device of similar purpose, especially one used as a form of access control.

token-based access control system: a means of network control whereby a terminal can transmit only when it has received an electronic token from the network.

touch screen: an interactive visual display device which the user interacts by touching the screen to select options from a displayed menu. Touch screens work by sensing the position of the finger using infra-red sensors located in the screen surround.

town card: see city card.

track 1: the first magnetic track on a financial transactlon card. It is read-only and recorded at 8.3 bpmm (contents are defined in ISO 7813).

track 2: the second magnetic track on a financial transaction card. It is read-only and recorded at 3 bpmm (contents are defmed in ISO 7813).

track 3: the third magnetic track on a financial transaction card. If present it is read-wrlte and is recorded at 8.3 bpmm (contents are defined in ISO 4909).

transaction: an exchange of money for goods or services; within a payment system the totality of data relating to such an exchange.

transaction cost: any cost incurred by a party in a payment system relating to a transaction but not forming part of the value of the transaction.

transaction currency: the currency in which a transaction is denominated (compare cardholder bilhng currency).

transaction description: data describing a transaction for billing purposes.

transaction processing: a mode of computer operation supporting real-time, on-hne processing of transactions.

transaction processing fee: a fee charged by a party in a payment system for handling or forwarding transactions.

transaction value: the price of goods or services obtained in a transaction.

transmission date/time: the time of day at which the details of a transaction are entered into a payment system.

travel and entertainment card (T&E card): a general term for financial transaction cards, usually charge cards, used primarily by business executives. American Express and Diners Club cards are often referred to as T&E cards because their original growth was mostly in this market.

travel assistance service: when associated with a financial transaction card, an enhancement service offering help in making travel arrangements and while travelling. The best known such services are travellers cheques, reservation guarantees, lost card replacement and emergency cash services.

U

unattended terminal: an electronic payment terminal not attended by a card acceptor's representative and operated by the cardholder (e.g. an ATM).

up-line loading: loading of data from a merhant's teminal to an acquirer's computer system via an intermediate network facility (e.g. to transmit reconciliation data).

UV printing: printing with ink which is visible only under ultraviolet light as an anti-counterfeiting measure.

V

VCC: the ISO standard designation for the supply voltage to an integrated circuit card (defined in ISO 7816).

VDU: visual display unit.

very large scale integration (VLSI): packing lots of components onto a silicon chip (Beware - the term is used loosely).

video banking: generic term for on-line computerised retail banking. It includes home bank Eltron Card Printer Products pert of Zebra. Going, small business on-line banking and other retail banking conducted remotely from computers or terminals in offices, hotel rooms, pay phones and elsewhere.