Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 24 - Electronic Transfer of Funds › Rule 189-24.2 - 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.