Packet:
A bundle of data organized in a specific way for transmission. The three principal elements of a packet include the header, the text, and trailer (error detection and correction bits).

PIN:
Personal Identification Number used by cardholder to authenticate card ownership for ATM or debit card transactions. The cardholder enters his/her PIN into a PIN pad. Customer entry of his/her PIN is required to complete an ATM/Debit card transaction.

PIP:
Refers to Plural Interface Processing. Split dial capability that allows terminal to process American Express directly thru the AMEX network, thereby eliminating AMEX authorization fees.

Point of Sale (POS):
The place and time at which a transaction occurs. This term also refers to the devices or software used to capture transactions.

Post Authorization:
A sale transaction for which you received a VOICE AUTHORIZATION at an earlier time.

POS Terminal:
A piece of equipment used at a merchant location that is connected to the bank and or their authorization service provider via phone lines to authorize, record and forward information electronically. If the credit card is available, the merchant can swipe the card through the terminal. See also swipe discount rate and MOTO discount rate.

Posting:
The process of recording debits and credits to individual cardholder account balances.

Point of Sale (POS):
The merchant location where the customer makes a purchase.

PreAuth:
An event where no money flows but the cardholder's account is asked whether a pending Sale is likely to be successful. The authorization/approval of a PreAuth usually indicates that a follow-up Sale will also be Approved, but do keep in mind that the favorable condition of the cardholder's account may change before you can issue a Sale.

Presentment:
The process the acquirer uses to send transaction information to the issuer for reimbursement.

Private Label:
Proprietary cards only accepted at that merchants retail location.

Prior Authorization:
An authorization that has been obtained previously, either through operator or through credit card equipment.

Processor:
A transaction processor; a large computer center that processes data from credit card transactions and settles funds to merchants.

Protocol:
A specific set of rules for organizing the transmission of data in a network.

Public Key Encryption:
A method of encrypting electronic data. Developed to account for weaknesses in symmetric encryption, public key encryption does not require the transmission of decoding keys themselves.