Whether you’ve just started your online drop ship business or whether you’ve been at it for a long time, there are some specific terms related to ecommerce that you outght to be familiar with. This list focuses on some of the terms related to business processes. Next time, we’ll take a look at those terms that specifically relate to sales and marketing in an ecommerce environment.
AVS (Address Verification Service): This is a service that verifies the zip code and the billing address that a customer supplies during an online transaction. It checks to make sure that the information matches the information on the credit card statements. This, in turn, helps to reduce fraud.
Authorization: A request that the processor of payments approve the reserving of customer funds.
Auth: This is a transaction that is authorized immediately, that doesn’t require physical shipment.
Batch: A group of credit card transactions that are waiting to be settled.
CVM (Card Verification Method): This is a process by which the 3 or 4 digit code on the back of a credit card is recorded during a transaction.
Chargeback: When a customer disputes a transaction and the merchant bank takes the amount of a sale from the merchant’s account.
Digital receipt: An email notice of an order from an ecommerce website. It has no legal standing.
Merchant: The organization that accepts a credit card payment. In the case of a drop ship business, it would typically be the business itself.
Order: A request of services or goods that your customer initiates, or that you initiate with your wholesale supplier.
Partial Shipment: A situation where only some of the goods in a given order are provided.
POS (Point of Sale): The place at which the customer’s order is entered. In the brick and mortar world, it is typically a cash register. For online drop ship businesses, it is a web form.
SSL (Secure Socket Layer): This is an ecommerce technology that encrypts data when its sent across the Internet.
Settlement: When money is actually transferred from the cardholder to a merchant.
Transaction: A record of an action that is taken during the process of an order.
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