Definitions on ISO 8583

Some ATM use ISO 8583 protocol to talking with The ATM Controller, but this minority, The popular is NDC or DDC protocol. The ISO 8583 commonly using on EDC machine and Host to Host Connection in financial service .
ISO 8583 Standard for Financial Transaction Card Originated Messages - Interchange message specifications is the International Organization for Standardization standard for systems that exchange electronic transactions made by cardholders using payment cards.
A card-based transaction typically needs to travel between a number of systems. For example, a purchase made in a store may travel from the merchant terminal, through an acquirer network or networks, to the issuing bank where the cardholder's account is held. The transaction carries information about the type of transaction, the card used, the merchant, the transaction amount,security information, and so on. The response, authorizing or declining the transaction, needs to be returned via the same route to the terminal.

ISO 8583 defines a message format and a communication flow so that different systems can exchange these transactions. The vast majority of transactions made at Automated Teller Machines use ISO 8583 at some point in the communication chain, as do transactions made when a customer uses a card to make a payment in a store.

The ISO 8583 uses a concept called bit map whereby each data element us assigned a position indicator in a control field, or bit map. The presence of a data element in a specific message is indicated by a one in the assigned position, the absence of a data element is indicated by a zero in the assigned position.

Here is the definitions using in ISO 8583 sort by alfabet.

1. Acquirer : Financial institution which acquires from card acceptor the data relating to the transaction and initiates that data into an interchange system.
2. Advice : Message which notifies a party of an action that has been taken. Requiring no approval.
3. Authorization : The Approval or guarantee given by the card issuer to the acquirer.
4. Card Acceptor : Party Accepting the card and presenting transaction data to an acquirer.
5. CardHolder : Customer Associated with the primary account number requesting the transaction form the card acceptor.
6. Cardholder Accounts Transfer : The Movement of funds by a cardholder from one o his account to another of his accounts both of which are held by the same financial instution.
7. Card Issuer : institution which issues the indentification card to card holder.
8. Credit Transaction :A Claim for funds by the the card holder or the credit his account.
9. Debit Transaction : An approval by the card holder of the debit to his account.
10. Interactive Message : Message to be transmited and responded to while the transaction is taking place.
11. Intermediate Network facility : Any message processing entity positioned between the acquirer and the issuer.