Glossary

The Great Payment Glossary

The world of online payments is a complicated one. It has its own language which to those who have yet to be initiated may find confusing and alienating. No more! This glossary is a gateway into the world of online payments lingo. We have put together the most frequently searched terms and answered their most frequently asked questions. Discover more about what payment orchestration can do for your business here.

Acquirer

An acquiring bank or acquirer is a bank or financial institution that handles payments by credit or debit card on behalf of a merchant, allowing the merchant to accept card payments.

Acquirer

An acquiring bank or acquirer is a bank or financial institution that handles payments by credit or debit card on behalf of a merchant, allowing the merchant to accept card payments.

Alternative Payment Methods

Alternative Payment Methods, often abbreviated to APMs, are what people in the payment industry call a payment method which is not Credit/Debit card. There are many different types of payments available and their popularity depends on regions, and markets.

Alternative Payment Methods

Alternative Payment Methods, often abbreviated to APMs, are what people in the payment industry call a payment method which is not Credit/Debit card. There are many different types of payments available and their popularity depends on regions, and markets.

Acquirer

An acquiring bank or acquirer is a bank or financial institution that handles payments by credit or debit card on behalf of a merchant, allowing the merchant to accept card payments.

Alternative Payment Methods

Alternative Payment Methods, often abbreviated to APMs, are what people in the payment industry call a payment method which is not Credit/Debit card. There are many different types of payments available and their popularity depends on regions, and markets.

Authorization

Credit card authorization is the process of verifying that a customer has sufficient funds to complete a transaction. The customer’s bank (the issuing bank) is responsible for authorizing the transaction.

Authorization

Credit card authorization is the process of verifying that a customer has sufficient funds to complete a transaction. The customer’s bank (the issuing bank) is responsible for authorizing the transaction.

Authorization

Credit card authorization is the process of verifying that a customer has sufficient funds to complete a transaction. The customer’s bank (the issuing bank) is responsible for authorizing the transaction.

Card Vaulting

A card vault provides a means of storing and tokenizing your customers’ payment data. Choose an independent PCI-DSS Level 1, PCI 3DS, and GDPR-compliant solution for additional flexibility, reliability and the highest degree of independence from your payment service providers.

Card Vaulting

A card vault provides a means of storing and tokenizing your customers’ payment data. Choose an independent PCI-DSS Level 1, PCI 3DS, and GDPR-compliant solution for additional flexibility, reliability and the highest degree of independence from your payment service providers.

Cross-Border Payments

A cross border payment is a monetary transaction that takes place between banks, financial institutions, businesses or individuals operating in different countries that may or may not share a border.

Card Vaulting

A card vault provides a means of storing and tokenizing your customers’ payment data. Choose an independent PCI-DSS Level 1, PCI 3DS, and GDPR-compliant solution for additional flexibility, reliability and the highest degree of independence from your payment service providers.

Cross-Border Payments

A cross border payment is a monetary transaction that takes place between banks, financial institutions, businesses or individuals operating in different countries that may or may not share a border.

Digital Wallet

Also referred to as an e-wallet, a digital wallet lets users make payment using an electronic device such as a mobile phone, desktop PC or notebook. Examples of digital wallets include Google Pay, Apple Pay and PayPal.

Cross-Border Payments

A cross border payment is a monetary transaction that takes place between banks, financial institutions, businesses or individuals operating in different countries that may or may not share a border.

Digital Wallet

Also referred to as an e-wallet, a digital wallet lets users make payment using an electronic device such as a mobile phone, desktop PC or notebook. Examples of digital wallets include Google Pay, Apple Pay and PayPal.

Digital Wallet

Also referred to as an e-wallet, a digital wallet lets users make payment using an electronic device such as a mobile phone, desktop PC or notebook. Examples of digital wallets include Google Pay, Apple Pay and PayPal.

EMV

EMVCo is privately owned by American Express, Discover, JCB, Mastercard, UnionPay and Visa, 5 major credit card schemes. EMVCo manages EMV specifications like PCI DSS and 3DS that safeguard credit card transactions.

EMV

EMVCo is privately owned by American Express, Discover, JCB, Mastercard, UnionPay and Visa, 5 major credit card schemes. EMVCo manages EMV specifications like PCI DSS and 3DS that safeguard credit card transactions.

Failed Transactions

Online payments can fail for various reasons ranging from incorrectly entered data to a lack of funds or suspicions of fraud. An error code is sent whenever a transaction fails and indicates the reason for the failure.

Failed Transactions

Online payments can fail for various reasons ranging from incorrectly entered data to a lack of funds or suspicions of fraud. An error code is sent whenever a transaction fails and indicates the reason for the failure.

EMV

EMVCo is privately owned by American Express, Discover, JCB, Mastercard, UnionPay and Visa, 5 major credit card schemes. EMVCo manages EMV specifications like PCI DSS and 3DS that safeguard credit card transactions.

Failed Transactions

Online payments can fail for various reasons ranging from incorrectly entered data to a lack of funds or suspicions of fraud. An error code is sent whenever a transaction fails and indicates the reason for the failure.

Interchange Fee

Interchange fee is a term used in the payment card industry to describe the fee paid to the cardholder's issuing bank from the merchant's acquiring bank when a transaction is made.

Interchange Fee

Interchange fee is a term used in the payment card industry to describe the fee paid to the cardholder's issuing bank from the merchant's acquiring bank when a transaction is made.

Interchange Fee

Interchange fee is a term used in the payment card industry to describe the fee paid to the cardholder's issuing bank from the merchant's acquiring bank when a transaction is made.

Issuer

An issuing bank or issuer is a bank or financial institution that issues credit or debit cards on behalf of credit card schemes such as Visa, Mastercard and American Express. Payments using the card are debited to the holder’s bank account at the issuing bank.

Issuer

An issuing bank or issuer is a bank or financial institution that issues credit or debit cards on behalf of credit card schemes such as Visa, Mastercard and American Express. Payments using the card are debited to the holder’s bank account at the issuing bank.

Know Your Customer (KYC)

KYC is the process of verifying that a customer is who they say they are, and by extension, that a financial organization is able to legally conduct business with that customer. KYC roots are in legislation laying out requirements for financial entities to protect against money laundering and the financing of terrorism.

Issuer

An issuing bank or issuer is a bank or financial institution that issues credit or debit cards on behalf of credit card schemes such as Visa, Mastercard and American Express. Payments using the card are debited to the holder’s bank account at the issuing bank.

Know Your Customer (KYC)

KYC is the process of verifying that a customer is who they say they are, and by extension, that a financial organization is able to legally conduct business with that customer. KYC roots are in legislation laying out requirements for financial entities to protect against money laundering and the financing of terrorism.

MOTO

A MOTO (mail order, telephone order) payment is a card not present transaction. In order to complete and pay for an order, the relevant data is provided by the customer via phone or email. Merchants need access to a virtual terminal where they can enter the information provided to process the payment.

Know Your Customer (KYC)

KYC is the process of verifying that a customer is who they say they are, and by extension, that a financial organization is able to legally conduct business with that customer. KYC roots are in legislation laying out requirements for financial entities to protect against money laundering and the financing of terrorism.

MOTO

A MOTO (mail order, telephone order) payment is a card not present transaction. In order to complete and pay for an order, the relevant data is provided by the customer via phone or email. Merchants need access to a virtual terminal where they can enter the information provided to process the payment.

MOTO

A MOTO (mail order, telephone order) payment is a card not present transaction. In order to complete and pay for an order, the relevant data is provided by the customer via phone or email. Merchants need access to a virtual terminal where they can enter the information provided to process the payment.

Open Banking

Open Banking is a payment method. It allows customers to pay by bank transfer, sending funds directly from their bank account to the merchant. It is fast and secure, and requires no card or personal data.

Open Banking

Open Banking is a payment method. It allows customers to pay by bank transfer, sending funds directly from their bank account to the merchant. It is fast and secure, and requires no card or personal data.

Pay By Link

Pay By Link or payment links is the process of using a URL or QR code that takes customers to a stand-alone web page where they can complete the transaction.

Pay By Link

Pay By Link or payment links is the process of using a URL or QR code that takes customers to a stand-alone web page where they can complete the transaction.

Open Banking

Open Banking is a payment method. It allows customers to pay by bank transfer, sending funds directly from their bank account to the merchant. It is fast and secure, and requires no card or personal data.

Pay By Link

Pay By Link or payment links is the process of using a URL or QR code that takes customers to a stand-alone web page where they can complete the transaction.

Payment Fraud

Payment fraud is the act of making a transaction with fraudulent details. The victim can be an individual or a business.

Payment Fraud

Payment fraud is the act of making a transaction with fraudulent details. The victim can be an individual or a business.

Payment Fraud

Payment fraud is the act of making a transaction with fraudulent details. The victim can be an individual or a business.

Payment Life-Cycle

A payment life-cycle refers to the process of what happens when a transaction is made. There are different payment lifecycles as they depend on the payment method that was used. Currently, the most common payment methods are credit or debit card.

Payment Life-Cycle

A payment life-cycle refers to the process of what happens when a transaction is made. There are different payment lifecycles as they depend on the payment method that was used. Currently, the most common payment methods are credit or debit card.

Payment Orchestration

Payment orchestration gives merchants complete control over their payment stack. By choosing an acquirer-agnostic provider, merchants are free to connect to the most appropriate payment methods to reach the markets they sell in. Increase conversion with transaction routing and payment pages based on geolocation, platform specific data, and payment history. Get a complete and accurate overview of with state-of-the-art reporting functions, and analyze your reconciliation and settlements any way you like.

Payment Life-Cycle

A payment life-cycle refers to the process of what happens when a transaction is made. There are different payment lifecycles as they depend on the payment method that was used. Currently, the most common payment methods are credit or debit card.

Payment Orchestration

Payment orchestration gives merchants complete control over their payment stack. By choosing an acquirer-agnostic provider, merchants are free to connect to the most appropriate payment methods to reach the markets they sell in. Increase conversion with transaction routing and payment pages based on geolocation, platform specific data, and payment history. Get a complete and accurate overview of with state-of-the-art reporting functions, and analyze your reconciliation and settlements any way you like.

Payment Service Provider

A payment service provider (PSP) helps merchants accept payments via methods such as credit cards, bank transfers and digital wallets. As well as handling payments, PSPs offer additional services such as risk management, fraud protection and reporting.

Payment Orchestration

Payment orchestration gives merchants complete control over their payment stack. By choosing an acquirer-agnostic provider, merchants are free to connect to the most appropriate payment methods to reach the markets they sell in. Increase conversion with transaction routing and payment pages based on geolocation, platform specific data, and payment history. Get a complete and accurate overview of with state-of-the-art reporting functions, and analyze your reconciliation and settlements any way you like.

Payment Service Provider

A payment service provider (PSP) helps merchants accept payments via methods such as credit cards, bank transfers and digital wallets. As well as handling payments, PSPs offer additional services such as risk management, fraud protection and reporting.

Payment Service Provider

A payment service provider (PSP) helps merchants accept payments via methods such as credit cards, bank transfers and digital wallets. As well as handling payments, PSPs offer additional services such as risk management, fraud protection and reporting.

PCI

PCI stands for "Payment Card Industry Data Security Standard". It is the term used to described the compliance that is necessary in order to transmit, store, handle or accept credit/debit card data. The full acronym is PCI DSS, but it is usually referred to as PCI for short.

PCI

PCI stands for "Payment Card Industry Data Security Standard". It is the term used to described the compliance that is necessary in order to transmit, store, handle or accept credit/debit card data. The full acronym is PCI DSS, but it is usually referred to as PCI for short.

PSD2

The Payment Services Directive Two (PSD2) is European Union legislation that ensures payment providers (card providers, banks, payment facilitators, and more) improve customer authentication processes. The regulations were implemented due to the increased popularity in online shopping and online payments.

PSD2

The Payment Services Directive Two (PSD2) is European Union legislation that ensures payment providers (card providers, banks, payment facilitators, and more) improve customer authentication processes. The regulations were implemented due to the increased popularity in online shopping and online payments.

PCI

PCI stands for "Payment Card Industry Data Security Standard". It is the term used to described the compliance that is necessary in order to transmit, store, handle or accept credit/debit card data. The full acronym is PCI DSS, but it is usually referred to as PCI for short.

PSD2

The Payment Services Directive Two (PSD2) is European Union legislation that ensures payment providers (card providers, banks, payment facilitators, and more) improve customer authentication processes. The regulations were implemented due to the increased popularity in online shopping and online payments.

Reconciliation

Payment reconciliation is the term given to the comparison of financial records to make sure that the accounting is accurate.

Reconciliation

Payment reconciliation is the term given to the comparison of financial records to make sure that the accounting is accurate.

Reconciliation

Payment reconciliation is the term given to the comparison of financial records to make sure that the accounting is accurate.

Recurring Payments

More and more goods and services are provided on an ongoing, periodic basis. Therefore, recurring payments have become one of the most frequent payment models.

Recurring Payments

More and more goods and services are provided on an ongoing, periodic basis. Therefore, recurring payments have become one of the most frequent payment models.

SCA

Strong Customer Authentication (SCA) is multi-factor authentication (MFA), sometimes also referred to as two-factor authentication (2FA). It involves using at least two out of three possible forms of identification to complete an online purchase.

Recurring Payments

More and more goods and services are provided on an ongoing, periodic basis. Therefore, recurring payments have become one of the most frequent payment models.

SCA

Strong Customer Authentication (SCA) is multi-factor authentication (MFA), sometimes also referred to as two-factor authentication (2FA). It involves using at least two out of three possible forms of identification to complete an online purchase.

Secure Remote Commerce

SRC provides consumers with a digital wallet where they can store all their credit card details. It attempts to address some of the disadvantages of Card on File (COF) payments by ensuring that credit card details are always up-to-date and provides consumers with a single unified platform to manage their payments.

SCA

Strong Customer Authentication (SCA) is multi-factor authentication (MFA), sometimes also referred to as two-factor authentication (2FA). It involves using at least two out of three possible forms of identification to complete an online purchase.

Secure Remote Commerce

SRC provides consumers with a digital wallet where they can store all their credit card details. It attempts to address some of the disadvantages of Card on File (COF) payments by ensuring that credit card details are always up-to-date and provides consumers with a single unified platform to manage their payments.

Secure Remote Commerce

SRC provides consumers with a digital wallet where they can store all their credit card details. It attempts to address some of the disadvantages of Card on File (COF) payments by ensuring that credit card details are always up-to-date and provides consumers with a single unified platform to manage their payments.

Settlement

A settlement in online payments is the transfer of assets to the merchant for the purchasing of goods and or services. It is the completing of the payment life cycle. Settlement time varies depending on the method of payment and the parties involved.

Settlement

A settlement in online payments is the transfer of assets to the merchant for the purchasing of goods and or services. It is the completing of the payment life cycle. Settlement time varies depending on the method of payment and the parties involved.

Tokenization

Tokenization is the process of protecting sensitive payment data by replacing it with a randomly generated number called a token.

Tokenization

Tokenization is the process of protecting sensitive payment data by replacing it with a randomly generated number called a token.

Settlement

A settlement in online payments is the transfer of assets to the merchant for the purchasing of goods and or services. It is the completing of the payment life cycle. Settlement time varies depending on the method of payment and the parties involved.

Tokenization

Tokenization is the process of protecting sensitive payment data by replacing it with a randomly generated number called a token.

Transaction Routing

Transaction routing is a feature of a multi-provider setup and gives merchants control of their payments. It allows for the customization of payment flows, flexible load distribution, lower transaction costs, and the use of fall-back routing and cascading in case of provider downtimes.

Transaction Routing

Transaction routing is a feature of a multi-provider setup and gives merchants control of their payments. It allows for the customization of payment flows, flexible load distribution, lower transaction costs, and the use of fall-back routing and cascading in case of provider downtimes.

White Label

A white label payment gateway is the name given to a technical service provider that gives businesses the ability to manage and process payments under their own brand while using third-party SaaS (Software as a Service).

Transaction Routing

Transaction routing is a feature of a multi-provider setup and gives merchants control of their payments. It allows for the customization of payment flows, flexible load distribution, lower transaction costs, and the use of fall-back routing and cascading in case of provider downtimes.

White Label

A white label payment gateway is the name given to a technical service provider that gives businesses the ability to manage and process payments under their own brand while using third-party SaaS (Software as a Service).

White Label

A white label payment gateway is the name given to a technical service provider that gives businesses the ability to manage and process payments under their own brand while using third-party SaaS (Software as a Service).

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