Glossary

Independent Service Organization (ISO)

In the payment systems industry, a third party organization that facilitates merchant registration to accept charge or credit cards.

Interchange

The exchange of information, transaction data and money among banks. Interchange systems are managed by Visa and MasterCard associations according to their requirements and are very standardized so banks and merchants worldwide can use them.

Interchange Fee

A fee paid by the acquiring bank/merchant bank to the issuing bank. 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 cardholder.

Interchange Reimbursement Fee

One of the following: A fee that an acquirer pays to an issuer in the clearing and settlement of an interchange transaction, based on either the standard (paper-based) rate or electronic rate. A fee that an issuer pays to an acquirer for making a cash disbursement to a cardholder or check purchaser.

Internet

A global public network consisting of millions of interconnected computers all linked together using the Internet Protocol.

Introductory Rate

Various credit cards offer a low introductory rate that switches to a higher variable or fixed rate in order to attract customers. It could be described as a special offer, or discount. Make sure that you know how long the introductory rate is applicable and what APR the card will carry after the introductory period elapses. Be aware that the introductory rate for some cards may be very different to the actual standard rate.

ISO

Independent Service Organization. In the payment systems industry, a third party organization that facilitates merchant registration to accept charge or credit cards.

ISP

Internet Service Provider.

Issuer

Any association member financial institution, bank, credit union, or company that issues, or causes to be issued, plastic cards to cardholders.