Iowa Administrative Code › Agency 187 - Banking Division › Chapter 10 - Electronic Transfer of Funds › Rule 187-10.2 - Terms Defined

Current through Register Vol. 47, No. 3, July 24, 2024
For the purpose of these rules, the following terms shall have
				the meaning indicated in this chapter. The definitions set out in Iowa Code
				section
				527.2 shall be
				considered to be incorporated verbatim in these rules.
"Cardholder"
means a person who has received
				an access device from a cardholder financial institution to access a customer
				asset account or customer asset accounts maintained at that financial
				institution by means of a satellite terminal.
"Cardholder financial institution"
means the
				financial institution maintaining the customer asset account(s) of a cardholder
				which is accessible by means of an access device issued by that financial
				institution.
"Certification"
means the process by which a
				central routing unit ensures that access devices, satellite terminals, software
				vendors, and the data processing center of an establishing or cardholder
				financial institution meet certain minimum operational standards established by
				the central routing unit to ensure that the central routing unit and electronic
				funds transfer system are in compliance with Iowa Code chapter 527. The
				certification process may be performed by a central routing unit prior to
				initial operation of a satellite terminal or data processing center and at any
				subsequent time as determined appropriate by a central routing unit to ensure
				continued compliance with Iowa Code chapter 527.
"Customer card number"
means a unique number
				assigned to each cardholder to identify the cardholder financial institution,
				the cardholder, and the particular business location or office of the
				cardholder financial institution where the cardholder's customer asset
				account(s) is maintained which may be accessed by the access device issued by
				the cardholder financial institution.
"Electronic funds transfer system"
means the
				electronic system which is used to process transactions initiated at a
				satellite terminal and includes the access device, the satellite terminal, the
				cardholder financial institution and its data processing center, the
				establishing financial institution and its data processing center, and a
				central routing unit.
"Establishing financial institution "
means
				the financial institution that owns or retains control of a satellite
				terminal.
"Front-end processor"
means a data processing
				facility directly connected to an on-line point-of-sale terminal, as defined by
				Iowa law, which is utilized in an electronic funds transfer system in
				conjunction with another data processing facility that is certified by an
				approved central routing unit. A front-end processor and certified data
				processing facility that are directly connected constitute a single data
				processing center, as defined by Iowa law, only if the following specified
				conditions are satisfied:
(1) All
			 on-line point-of-sale satellite terminal transactions received by the front-end
			 processor of the certified data processing facility that cannot be immediately
			 authorized or rejected by the certified data processing facility must be
			 immediately transmitted to an approved central routing unit, subject to the
			 exceptions expressed in Iowa Code subsection
			 527.5(9);
			 and
(2) All on-line point-of-sale
			 satellite terminal transactions received by the front-end processor of the
			 certified data processing facility which are capable of being immediately
			 authorized or rejected by the certified data processing facility must be
			 transactions initiated by cardholders of financial institutions directly
			 serviced by the certified data processing facility and must be immediately
			 authorized or rejected by the certified data processing facility.
"Reversal"
means the procedure implemented to
				cancel a previously transmitted transaction from a satellite terminal initiated
				by a cardholder through the use of an access device. A reversal may be
				cardholder generated or system generated.
"Switch-behind"
means an electronic funds
				transfer system configuration in which a satellite terminal is directly
				connected to the establishing financial institution's data processing center,
				which is directly connected to a central routing unit.
"Switch-in-front"
means an electronic funds
				transfer system configuration in which a satellite terminal is directly
				connected to a central routing unit.
"Transaction"
means each separate,
				identifiable financial function as authorized by Iowa Code chapter 527,
				performed at a satellite terminal capable of completing the financial function,
				by a cardholder properly using an access device and an electronic personal
				identifier at the satellite terminal.