Glossary

3DS

An extra security step for online card payments that helps confirm the shopper is the real cardholder.

3DS provider

The service that runs the 3DS security checks during online payments.

3DS V2

The newer version of 3D Secure that improves security and reduces checkout friction where possible.

3RI

A 3DS check started by the merchant (not the shopper), typically for repeat/recurring scenarios.

Acceptance ratio

The percentage of payment attempts that succeed compared to all attempts.

Acquirer

The bank/financial institution that processes card payments for a merchant (the “merchant’s bank” for card acceptance).

Alipay

A widely used digital wallet/payment method, popular in China, that can be used for online and in-store payments.

Alipay+

A platform that connects Alipay with other partner wallets to expand QR-code payment acceptance.

Alternative payments

Payment methods that are not standard card payments (e.g., wallets, bank transfers, local methods).

AML (Anti-Money Laundering)

Rules and controls designed to prevent the illegal movement of money.

API (Application Programming Interface)

A technical interface that allows software systems to communicate with each other.

Authorization

A real-time check with the cardholder’s bank to confirm the card is valid and funds are available (funds may be reserved).

AVS (Address Verification Service)

A fraud check that compares the billing address entered at checkout to the one on file with the card issuer.

Bank Identification Number (BIN)

The first digits of a card number that identify the issuing bank and card type.

Biometrics

Identity verification using physical traits (e.g., face, fingerprint).

Blacklist

A blocked list of cards/emails/IPs/countries that should not be allowed to transact.

Capture

The step that confirms an authorized payment should be settled (i.e., the merchant will get paid).

Card Not Present

A transaction where the physical card isn’t present (typical for e-commerce and phone/mail orders).

Card Present

A transaction where the card is physically used at a terminal (in-store).

Cascading

Retrying a payment through another route/provider when the first attempt fails.

Chargeback

A card payment reversal initiated by the cardholder via their bank.

Checkout

The payment step where a shopper enters details and completes the purchase.

Click to Pay

A card-based “wallet-like” checkout option that lets shoppers pay faster without re-entering card details each time.

Co-branded

A card that carries two brands/schemes (e.g., a local scheme + Visa/Mastercard).

Contactless

Tap-to-pay transactions using a card or phone near a terminal.

CVV (Card Verification Value)

The 3- or 4-digit security code on the card used to reduce fraud for online payments.

Data Security Standards (DSS)

Security requirements (like PCI DSS) that protect cardholder data.

Deferred debit

A payment where the shopper’s account is charged a short time after the transaction (not immediately).

Degraded mode

Processing payments when a terminal is offline or has limited connectivity (may be called “offline mode”).

Digital wallet

A payment method that stores payment credentials on a device/app (e.g., Apple Pay).

E-commerce

Online buying and selling of goods/services.

EMV

A global standard for chip-based card payments used to increase security in card-present transactions.

Financial provider

Another term often used for the acquiring bank/processor supporting a merchant’s card acceptance.

Fintech

Companies/technology that modernize or improve financial services.

Fraud

Unauthorized or illegal transactions (e.g., using stolen card details).

Friendly fraud

A chargeback where the shopper claims fraud or non-receipt even though the transaction was legitimate.

KYC (Know Your Customer)

Checks performed to verify a business/person’s identity as part of compliance and risk management.

Holdback

A portion of funds temporarily reserved to cover potential future chargebacks or risk.

Hosted Fields

Secure payment fields hosted by a payment provider that merchants embed to reduce sensitive data exposure.

Inclusion

Designing products/services so more people can access and use them equally (e.g., accessibility support).

Interchange

Fees exchanged between banks involved in a card transaction (part of overall card processing costs).

Issuer

The bank that issued the shopper’s card.

Issuer ACS

The issuer’s system that performs 3DS authentication and challenge handling.

Marketplace

A platform that connects multiple sellers with customers under one brand (e.g., Shopify ecosystems).

Merchant account

The merchant’s payment processing account used to accept and settle card transactions.

Merchant Agreement Form

The contract that sets the terms for a merchant to accept payments (pricing, settlement, conditions).

Merchant Application Form (MAF)

An onboarding form where the merchant provides business details to apply for payment acceptance.

Merchant Category Code (MCC)

A code that classifies a merchant’s business type for card networks and banks.

Merchant Identification Number (MID)

A unique identifier assigned to a merchant account by an acquiring bank/processor.

MIT (Merchant-initiated transaction)

A payment initiated by the merchant (not the shopper), often for subscriptions or add-ons.

MOTO

“Mail Order / Telephone Order” payments where details are taken remotely (often keyed in).

MPADS

A certification/standard for secure remote card payments in certain markets.

mPOS

Mobile point-of-sale: taking payments using a smartphone/tablet-based terminal.

Multi-acquiring

Using multiple acquiring banks to improve acceptance, coverage, or costs.

Omni-channel

A unified experience across channels (online + in-store) so payments and data work together smoothly.

Originator

The source of a transaction (e.g., website, app, or terminal) within a payment setup.

Pay by link

Sending a customer a link that opens a secure payment page to complete payment.

Payment Account Number (PAN)

The primary card number on a payment card.

Payment Account Reference (PAR)

A network identifier that links related tokens and PANs without exposing the actual card number.

Payment Facilitator (PF)

A company that enables sub-merchants to accept payments under a master arrangement (payfac model).

Payment gateway

Technology that securely sends payment data from the merchant to the processor/banks.

Payment page

A hosted checkout page where the shopper enters payment information.

PayXpress

A POS/payment application used on PayXpert devices to accept payments.

PSP (Payment Service Provider)

A provider that offers merchants payment acceptance services (gateway + processing access).

POS

Point of sale: the in-store device/system used to take payments.

Proximity

Another way to refer to in-person (POS) payments.

PSD2

EU regulation that strengthens payment security and governs payment services (including SCA).

Rebill

A repeat charge as part of a subscription or recurring agreement.

Reconciliation

Matching payment transactions to accounting records and settlements.

Representment

The process of reversing a chargeback decision by submitting evidence (merchant wins back the funds).

Retry

Attempting a payment again after an initial failure (sometimes with different routing).

Settlement

The process of moving funds from card networks/banks to the merchant’s account (merchant gets paid).

Seamless checkout

A checkout where payment fields are embedded directly into the merchant site/app for a smoother experience.

SCA (Strong Customer Authentication)

A security requirement (especially in Europe) that may require extra verification during online payments.

Scheme

The card network/brand (e.g., Visa, Mastercard).

Scheme Tokenization

Tokenization managed by the card schemes to reduce exposure of card numbers and support safer recurring payments.

Smart BIN routing

Routing transactions based on card BIN characteristics to improve approval rates or optimize processing.

SmartPOS

A modern, app-based payment terminal (often Android) with touchscreen and additional features.

SoftPOS

Turning a phone/tablet into a payment terminal via software (in some cases using NFC).

Statement descriptor

The text a shopper sees on their bank statement to identify the merchant for a purchase.

Subscription

A payment arrangement where a shopper is charged on a recurring schedule.

Technical provider

The behind-the-scenes system/provider that connects transactions through to processing networks.

Terminal

A POS device setup that processes in-person payments.

Terminal Management System

Software that manages and configures a fleet of payment terminals.

Telecollection (TLC)

Automated end-of-day processing/batch handling of transactions by the bank/processor.

Teleparameterization (TLP)

Updates to processing rules/parameters provided by banks/networks that affect transaction handling.

Tokenization

Replacing sensitive data (like card numbers) with a token to reduce risk and exposure.

WeChat Pay

A popular digital wallet/payment method (widely used in China) supporting QR-code payments.