Glossary

Imprinter: A device used by merchants to imprint embossed card information onto the sales drafts for bankcard transactions.

Independent Authentication Organization (IAO): An entity that is sponsored by an Acquirer Member and that issues and verifies Authentication Tokens in connection with Retail ID Authentication Program STAR Internet Transactions.

Independent Sales Organization (ISO): Also called a member service provider. An outside company (not MasterCard or VISA member) which is contracted by members to administer merchant and/or cardholder servicing.

Indirect Processor: A Processor whose telecommunications connection goes from the Processor's mainframe or front-end computer through another Processor's mainframe or front-end computer to the STAR Switch.

Industry Server: A computer that facilitates electronic financial transactions and information flows. Servers function either via private (Intranet) or public (Internet) communication networks. Servers can have three potentially complementary sets of capabilities: 1) The gateway/switch function manages the connection between consumers and their financial institution(s). It also facilitates transfer of information between consumers and institutions. 2)The transaction processor executes consumer requests for transactions by assembling information in an appropriate form or actually conducting transactions. Electronic bill payment is a good example of a transaction facilitated by servers. 3) The settlement facilitator enables banks to settle transactions between themselves. Servers can prepare information for settlement as well as conduct settlement activities. The facilitator may use existing payment networks (e.g., Fedwire, ACH and ATM) or develop a new settlement approach.

Institution Identification Number (INN): A set of numbers, as established by the American Bankers Association and ISO, which appears in the primary account number and identifies an Issuer Member for purposes of Interchange. An INN may also be referred to as a BIN where appropriate in the context. (See “PAN Prefix.”)

Integrated Services Digital Network (ISDN): A faster digital phone service that operates at speeds as high as 128 kilobits per second.

Interactive Financial Exchange (IFX): A standard for the exchange of financial data and instructions independent of a particular network technology or computing platform. It builds upon previous industry experience, including OFX and GOLD, two standards currently implemented by major financial institutions and service providers to enable electronic exchange of financial data between themselves and their consumers.

Interactive Voice Response (IVR): The process in which the voice processing system prompts the caller for information which can then be used as a search key to a database. The result of the search is subsequently reported back to the caller. A typical and most common application of IVR is in the banking system. A caller calls the bank's IVR lines, enters an account number, and receives information such as account balance, last check cleared, etc.

Interbank CardAssociation Number (ICA): A four-digit number assigned by MasterCard to a financial institution, third-party processor, or other member to identify the member in transactions.

Interbank Receiving Member: A Member that receives an Interbank Credit for the benefit of an Interbank Transfer Recipient. Except as otherwise specifically provided herein, each Interbank Receiving Member shall also be treated as an Issuer Member.

Interbank Sending Member: A Member that holds an Access Account of an Interbank Transfer Sender used to fund an Interbank Debit. Except as otherwise specifically provided herein, each Interbank Sending Member shall also be treated as an Acquirer Member.

Interbank Transfer Recipient: A STAR Cardholder that receives an Interbank Credit.

Interbank Transfer Sender: A STAR Account Holder that initiates a STAR Interbank Transfer.

Interchange: The domestic and international systems operated by VISA and MasterCard for authorization, settlement and the passing through of interchange and other fees, as well as other monetary and non-monetary information related to bankcard activities.

Interchange Fee: Fees paid by the acquirer to the issuer to compensate for transaction-related costs. VISA and MasterCard establish interchange fee rates.

Internal Auditor: See “Approved Auditor.”

International Member: A financial institution that is organized under the laws of, and is headquartered in, a country other than the United States of America, that has all the requisite power and authority to participate in the STAR Network under the laws of the country in which it is organized and under the laws of any country in which it intends to participate in the STAR Network, that has been approved for membership by the President of STAR or an executive officer designated by the President, that has entered into a STAR International Member Agreement with STAR and agreed to be bound by these Rules, that has agreed to pay all applicable fees, dues, fines and assessments, and that participates in the STAR Network under the sponsorship of a United States-based Member that has entered into a STAR International Member Sponsorship Agreement and International Member Escrow Agreement with STAR. An International Member can issue STAR Cards, but its ATMs and POS Terminals located outside the United States cannot participate in the STAR Network.

Internet Bill Delivery and Payment (IBDP): An Internet-based service that securely and reliably delivers richly formatted bills, statements, invoices, notices and associated advertising to any online consumer or business, and returns payment, remittance instructions and related information to the biller and/or designated payee.

Internet Check Acceptance: A payment system that allows consumers to enter their checking information online; electronic items are created and processed through the Automated Clearing House network.

Internet Device Deployer (IDD): A Member that places STAR Internet Devices into service, or a third party that places STAR Internet Devices into service on behalf of an Acquirer Member, and is responsible to such Acquirer Member for the function of such devices.

Internet Payment Screen: The screen displayed to a STAR Account Holder during a STAR Internet Transaction payment process which allows the STAR Account Holder to select the payment method and to confirm understanding and agreement with payment terms, shipping and return policy, and to submit said STAR Internet Transaction for Authentication and Authorization.

Internet Protocol (IP): The networking protocol of the Internet.

Internet Service Provider (ISP): A commercial provider of a connection to the Internet, i.e., AOL, CompuServe, etc.

IP Address: The discrete identification of a location on the Internet as defined by the Internet Protocol.

ISO Prefix: International Standards Organization approved prefix. (See “PAN Prefix.” )

Issuer/Issuing Bank: The financial institution (a licensed member of MasterCard or VISA) which holds contractual agreements with and issues cards to cardholders.

Issuer Authorization System: The telecommunications and processing system operated by a Processor or a Member to authorize or decline STAR Transactions.

Issuer Member: A Member that issues STAR Cards to cardholders for use in conducting STAR Transactions. Except as otherwise specifically provided herein, each Interbank Receiving Member shall also be treated as an Issuer Member.

Issuer Processor: Any Processor that receives a request for Authorization of a STAR Transaction from the STAR Switch and/or authorizes STAR Transactions on behalf of an Issuer Member.

Issuer Zone: All processing points between and including the STAR Switch and the Issuer Authorization System.