Revolution Payment Systems

• August 23, 2010

  MasterCard acquires DataCash for $520 million in cash The company said Thursday that it will pay $520 million in cash for DataCash Group, which provides merchants with electronic payment and fraud prevention services.

• June 17, 2010

  New IRS Reporting Requirements for Business Introduction & Overview The Housing and Economic Recovery Act of 2008 is a new federal

• June 10, 2010

  NCR to Acquire Radiant Systems Processor NCR and Radiant Systems have announced a definitive agreement for NCR to acquire Radiant Systems for $1.2 billion.

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Merchant Terms

Processor

A Processor is the company that actually routes an Authorization Request from a Point of Sale device (such as a Verifone credit card terminal) to Visa or MasterCard, and then arranges for Fund Settlement to the merchant. Such processors are traditionally accessed via direct dial out modems connecting to their system.

Processors need to have a Sponsoring Bank in order to gain access to the Visa and MasterCard networks. When a Processor or other entity has made such an arrangement with a Sponsoring Bank to resell their services, they are called an Agent of that bank.

- Any entity that sells Visa or MasterCard must disclose themselves as an Agent of their Sponsoring Bank. Such sales entities may be a Processor, or an ISO/Agent of the Processor or Processor/Bank alliance.

- Many banks are also their own processors, while other banks will use a Third Party Processor to handle this processing for them (in their own brand name in some cases).