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Account Updater
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Service that updates customer card details automatically for regular or repeat payments, so businesses don’t have to worry about outdated cards.
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Acquirer (Acquiring Bank)
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Bank or company that processes card payments for businesses, making sure funds go from the customer’s bank to the business’s bank account.
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Acquirer Net Revenue
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Amount the acquirer earns from processing card payments, after paying out fees to card networks.
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Acquirer’s Markup
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Small fee the acquirer adds to cover costs and make a profit on each transaction; often negotiable.
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Acquirer Reference Number (ARN)
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Unique code given to each card payment, making it easy to track a transaction through the payment process.
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Address Verification System (AVS)
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Checks the cardholder’s billing address against the one on file with their bank to reduce fraud.
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Application Programming Interface (API)
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Bit of software that lets payment systems talk to each other, making online checkouts and forms work smoothly.
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Assessment Fees
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Small fees paid to card networks (like Visa or Mastercard) for using their systems.
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Authorisation
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Process of confirming that the cardholder has enough funds to cover a payment.
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Batch
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Group of transactions sent to the bank for processing, usually at the end of each day.
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Blended Pricing
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Pricing model where all fees are combined into one rate, making it easier to understand overall costs.
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Cardholder
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Person who owns the card and is authorised to use it for payments.
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Cardholder Verification Method (CVM)
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Way to confirm the customer is the rightful card owner, often with a PIN or signature.
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Card-acquiring Services
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Services provided by banks or processors to help businesses accept card payments.
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Card Issuer
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Bank or company that issued the credit or debit card to the customer.
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Card Network
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Companies like Visa and Mastercard that run the systems connecting banks and businesses for card payments.
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Card Number (PAN)
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Unique number on the front of a credit or debit card that identifies the cardholder’s account.
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Card Not Present (CNP) Transaction
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Payment where the card isn’t physically present, like online or over the phone.
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Card Payment System
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Overall system that allows payments by credit or debit card to happen.
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Card-present Transaction
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Payment where the card is physically present, like in a shop using a card machine.
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Card Transaction
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Any payment made with a card, including purchases, refunds, and chargebacks.
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Card Security Code (CVC, CVV, CID)
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The 3- or 4-digit code on the card used for security, especially in online payments.
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Chargeback
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When a customer disputes a payment, and the bank reverses the charge, returning money to the customer.
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Chargeback Fee
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Fee the bank charges the business to handle a chargeback.
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Chargeback Period
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Time a customer has to raise a dispute about a transaction, usually between 45 and 180 days.
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Chargeback Process
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Steps followed to resolve a disputed transaction.
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Clearing
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Part of the process where payment information is exchanged between banks to approve or reject a payment.
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Contactless
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Payment method where the customer taps their card or device to pay, no need to enter a PIN.
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Credit Card Processor
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Company that manages card payment details between the customer, business, and the banks involved.
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Debit
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Taking money out of an account, like when a payment is made.
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Decline
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When a payment is refused, often due to lack of funds or suspected fraud.
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Disbursement
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Process of dividing and sending out funds from a completed transaction.
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Discount Rate
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Rate charged by processors for handling credit card payments.
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Dispute
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When a customer questions a payment, potentially leading to a chargeback.
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Early Termination Fee
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Fee charged if a business ends its contract with a payment provider early.
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Ecommerce Platform
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Online software that allows you to build a website and sell products or services.
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Electronic Funds Transfer (EFT)
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Moving money electronically from one bank account to another without cash.
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Electronic Point of Sale (EPOS) System
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System that allows businesses to accept in-person payments and manage inventory, often includes card machines.
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EMV (Europay, Mastercard and Visa)
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Chip-and-PIN standard for credit and debit cards that adds security to in-person transactions.
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Fixed Pricing
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Pricing model with one flat rate for processing payments, making costs predictable.
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Floor Limit
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Maximum amount you can charge without online authorisation from the customer’s bank.
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Gateway Identification Number (GID)
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Unique ID used to identify the payment network your business uses.
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Incidental Fees
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Extra charges for things like setting up an account, handling chargebacks, or security checks.
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Interchange Plus (IC+) Pricing
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Pricing model that splits the service charge into interchange fees and a processor markup, so you see each cost separately.
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Interchange Plus Plus (IC++) Pricing
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Similar to IC+ but also breaks down scheme fees for a clearer look at all costs.
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Independent Sales Organisation (ISO)
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Company that sells payment processing accounts and services on behalf of acquirers.
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Independent Software Vendor (ISV)
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Business providing software, like an EPOS system or e-commerce platform, to help businesses sell products.
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Instant Payment Notification (IPN)
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Real-time alerts to track online purchases and other transactions.
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Integrated Payment
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Payment system linked to business management software to keep track of sales and inventory all in one place.
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Interchange
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Process where fees and transaction information are exchanged between banks for payment processing.
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Interchange Fee
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Fee that acquirers pay to issuers for handling a payment, usually passed on to the business.
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Issuer
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Bank or institution that issued the credit or debit card to the customer.
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Know Your Customer (KYC)
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Process of verifying customer identities to help prevent fraud.
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Merchant
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Business or person that accepts payments for goods or services.
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Merchant Account
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Bank account that lets businesses accept card payments.
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Merchant Account Provider
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Company that helps businesses set up accounts to accept card payments.
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Merchant Agreement
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Contract between a business and a payment provider detailing each side’s responsibilities.
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Merchant of Record (MoR)
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Entity responsible for accepting payments and managing customer transactions, refunds, and disputes.
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Merchant ID Number (MID)
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Unique code given to a business by their payment processor to identify them in transactions.
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Merchant Service Charge (MSC)
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Fee that merchants pay to cover processing, network, and other service costs.
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Merchant Service Provider
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Company that offers payment processing and other services, like fraud protection, to businesses.
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Mobile Point of Sale (mPOS)
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Portable device or app that lets businesses accept payments on the go.
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Multi-factor Authentication (MFA)
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Security check that requires multiple types of verification, like a password and a fingerprint.
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Net Settlement
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Final stage where the payment is completed, and funds are distributed.
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Next-day Funding
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Service that lets businesses get funds from transactions as soon as the next business day.
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Near Field Communication (NFC)
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Contactless technology that lets customers tap to pay using a card or mobile device.
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Non-sufficient Funds (NSF) Fee
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Fee for transactions that bounce due to lack of funds in the merchant’s account.
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Omnichannel
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Sales approach that allows customers to pay in various ways, like online, in-store, or through an app.
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One-click Payment
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Quick payment option that saves customer details for future purchases, needing only a security code to confirm.
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Operator of a Card Payment System
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Company that manages a card payment system, allowing banks to issue cards and process transactions.
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Payee
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Person or business receiving payment in a transaction.
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Payment Aggregator
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Also known as a third-party processor, lets businesses accept card payments without needing their own merchant account.
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Payment Card Industry (PCI)
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Sector focused on managing and securing cardholder information.
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PCI Data Security Standard (PCI DSS)
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Required security standards for businesses that handle cardholder information, helping to prevent data breaches.
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Payment Facilitator (PayFac)
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Company offering card acceptance and processing services, often acting as an intermediary between merchants and banks.
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Payment Gateway
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Software that securely collects and sends card payment details to the payment processor for approval.
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Payment Method
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Type of payment used, like credit card, debit card, or bank transfer.
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Payment Processor
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Company that connects a merchant’s bank account with a customer’s account to process payments.
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Payment Service Provider (PSP)
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Company working with acquirers to enable merchants to accept electronic payments and offer other services like fraud protection.
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PDQ Machine
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Card machine or POS terminal used for in-person transactions.
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PIN Verification
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Security check where the cardholder enters their PIN to confirm their identity.
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Point of Sale (POS)
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Location and device where a business processes a card payment, like a card machine in a shop.
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Point-to-Point Encryption (P2PE)
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Encryption method that protects card data from the POS terminal to the payment processor to prevent fraud.
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POS Terminal
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Device used at the point of sale to process a card-present transaction.
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Prepaid Card
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Debit card that uses preloaded funds, not linked to a bank account.
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Reconciliation
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Process of matching transactions in a business’s system with bank account records.
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Recurring Payment
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Payment charged to a customer’s card at regular intervals, like monthly subscriptions.
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Refund
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Transaction that returns funds to a customer for a cancelled or returned purchase.
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Scheduled Payment
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Payment set to be taken from a customer’s card on a specific date.
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Scheduled Fees
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Regular fees that acquirers charge to keep a merchant account open, often monthly.
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Scheme Fees
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Fees acquirers pay to card networks for each transaction, typically passed on to merchants.
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Scheme Rules
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Policies and regulations that govern how card payments work, such as transaction rules and participant requirements.
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Settlement
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Completion of a transaction where funds are transferred to the merchant.
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Standard Pricing
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Another term for Blended Pricing, where all fees are combined into a single rate.
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Strong Customer Authentication (SCA)
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Security check for online payments requiring two forms of verification.
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Terminal Fee
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Fee businesses pay to rent or use a POS terminal.
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Terminal Identification Number (TID)
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Unique ID code for each POS terminal a business uses.
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Third-party Payment Processor
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Also called a payment aggregator, allowing businesses to process payments without their own merchant account.
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Transaction Fee
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Fee for processing each card payment, generally higher for credit cards and international cards.
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Value-added Services
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Extra services provided by payment processors, like data analytics and customer management tools.
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Void
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Cancelling a transaction before funds are transferred to the business.
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White Label Payment
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Payment services a company can rebrand and offer as their own.
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Wholesale Fees
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Fixed fees charged by card networks to use their services, non-negotiable.
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