If you accept credit cards, electronic transfers, and other non-cash forms of payment, become familiar with the new terminology that you’ll have to be fluent in for your business. Here’s a vocabulary list; there’ll be a test!
- Chip cards.These are credit cards with integrated circuits in them (also called IC cards); see EMV below.
- CNP. Card Not Present are transactions processed without the merchant viewing the card (e.g., online transactions).
- Digital currency. This is convertible virtual currency, which is digitally traded between users and can be purchased for, or exchanged into, U.S. dollars or other real or virtual currencies.Example: bitcoin.
- EFTPS. This is the Electronic Federal Tax Payment System that you can use to deposit employment taxes as well as pay your income taxes, including estimated tax payments. There is no government fee for using this service.
- EMV. This is a global standard for authenticating credit and debit card transactions based on chip-and-pin, rather than magnetic strip, technology. The letters stand for Euro, MasterCard, and Visa. Starting in October 2015, merchants who fail to use EMV assume responsibility for fraudulent transactions. EMV may require new or additional equipment or software for your processing.
- ePayment. This refers to electronic payments, such as credit and debit card transactions processed electronically and PayPal.
- Form 1099-K. This is the information sent to the IRS and you by your payment processor if your annual transactions exceed 200 and total more than $20,000.
- PCI-DSS. Payment Card Industry Data Security Standard is a payment card security process developed by the Security Standards Council, which is in place today with most merchants. Starting in 2015, EMV becomes part of the PCI-DSS.
- POS terminals. Point of Sale terminals are the machines or devices used to swipe credit and debit cards at merchants’ locations.