|
Account
Number or Primary Account Number (PAN) |
The long
number on a payment card that identifies the cardholder’s account. |
|
ACH |
A U.S.
bank network that moves money electronically between bank accounts. |
|
Acquirer |
The bank
(or its agent) that sets up a merchant to accept card payments and routes the
transactions. |
|
Acquiring
Bank/Merchant Bank |
The bank
that processes card payments for a merchant and deposits the funds. |
|
Address
Verification Service (AVS) |
A fraud
check that compares the billing address entered at checkout with the address
on file at the card issuer. |
|
Adjustments |
Manual
changes to a merchant’s account, such as fee corrections, chargeback
reversals, or other credits/debits. |
|
Affinity
Card |
A card
linked to a group (like a school or charity) where part of the revenue
supports that group. |
|
AMEX |
American
Express, a card network and issuer. |
|
ATM
Interchange Fee |
A fee
charged when a cardholder uses an ATM that isn’t owned by their bank. |
|
Authorization |
The
real-time approval step that checks if the card is valid and funds are
available, and reserves the amount. |
|
Average
Ticket |
The
average dollar amount of each transaction. |
|
Bank
Routing Number |
A
9-digit number that identifies a bank for ACH and wire transfers. |
|
Bankcard |
A
payment card issued by a bank, such as credit or debit cards on Visa or
Mastercard. |
|
Batch |
The set
of transactions submitted together in one batch. |
|
Batch
Processing |
Grouping
transactions together and sending them for processing at the end of a day or
shift. |
|
Business
Day |
A day
banks are open for processing (usually Monday–Friday, excluding holidays). |
|
Capture
Date |
The date
a transaction is finalized and included in a batch for settlement. |
|
Card
Issuer |
The
bank or company that issued the customer’s card. |
|
Card
Verification Code (CVC) |
The 3-
or 4-digit security code on a card used to confirm the card is in hand. |
|
Card
Verification Value (CVV) |
Another
name for the card security code used for verification (often the same as
CVC). |
|
Cardholder |
The
person whose name is on the card and who is allowed to use it. |
|
Cardholder
Data |
Information
from a payment card, like the card number and expiration date. |
|
Cardholder
Data Environment (CDE) |
The
systems and networks that store, process, or transmit cardholder data. |
|
Chargeback |
A
reversal where the cardholder’s bank returns funds to the customer after a
dispute. |
|
Chargeback
Period |
The time
window when a cardholder can dispute a transaction. |
|
Check
Verification |
A
service that checks whether an e-check is likely to be valid (for example,
account status and history). |
|
Chip |
The
small computer chip in many cards that improves security (EMV). |
|
Clearing
Account |
A
temporary account used to hold funds while transactions are being processed
and settled. |
|
Clearing
Bank |
The bank
that handles clearing—moving transaction data and funds between parties. |
|
Compliance |
Meeting
required rules and standards (like PCI DSS) for processing payments safely. |
|
Counterfeit
Card |
A fake
or altered card used for fraud. |
|
Credit
Account |
An
account that lets a customer borrow up to a limit and pay back later. |
|
Credit
Card |
A card
that lets customers pay using borrowed funds from a credit account. |
|
Credit
Limit |
The
maximum amount a customer can borrow on a credit account. |
|
Daily
Discount |
When
processing fees are taken out of deposits each day instead of billed monthly. |
|
Data
Encryption |
Protecting
data by turning it into unreadable code unless you have the key. |
|
Database |
A
structured system for storing and organizing data. |
|
Debit |
Money
taken out of an account; also a type of card that draws from a bank account. |
|
Debit
Card |
A card
that pulls money directly from the customer’s bank account. |
|
Debit
Transaction |
A
payment that withdraws funds from a bank account (often using a debit card). |
|
Decline
OR Declined |
A
transaction the issuer or network does not approve (for example, insufficient
funds or a fraud concern). |
|
Deposit
Account |
A bank
account used to hold funds, like checking or savings. |
|
Discount
Rate |
The
percentage fee charged on card transactions (a key part of processing costs). |
|
Doing
Business As (DBA) |
The
public-facing name a business uses, which may differ from its legal name. |
|
Downgrade |
When a
transaction is charged a higher rate because it didn’t meet certain
processing requirements. |
|
E-Check |
An
electronic check payment that uses bank account and routing numbers. |
|
Electronic
Bill Payment |
A
service that lets customers pay bills electronically from a bank account. |
|
Electronic
Funds Transfer (EFT) |
An
electronic transfer of money between accounts, including ACH and wire
transfers. |
|
EMV |
A global
standard for chip-card payments (named after Europay, Mastercard, and Visa). |
|
Encryption |
The
process of encoding data to keep it private. |
|
Financial
Institution |
A bank,
credit union, or similar organization that provides financial services. |
|
Funding |
The
deposit of processed payment amounts into the merchant’s settlement account. |
|
Interchange |
The
system that moves transaction data and funds between the merchant’s bank and
the card issuer. |
|
Interchange
Fee |
A fee
paid to the card issuer as part of processing a card transaction. |
|
Internet
Protocol Address (IP) |
A
network address that identifies a device on the internet. |
|
Issuer/Issuing
Bank |
The bank
or company that issued the customer’s card and approves transactions. |
|
Magnetic
Stripe |
The
black stripe on the back of some cards that stores card data. |
|
Member |
A bank
or institution that belongs to a card network (like Visa or Mastercard). |
|
Merchant |
A
business or organization that accepts payments for goods or services. |
|
Merchant
Acquirer |
Another
name for the acquiring bank or organization that enables a merchant to accept
cards. |
|
Merchant
Agreement |
The
contract between a merchant and a processor/acquirer that sets payment terms
and fees. |
|
Merchant
Number |
A unique
ID assigned to a merchant for processing card payments. |
|
Monthly
Discount |
When
processing fees are deducted from the account monthly rather than daily. |
|
Monthly
Minimum |
A
minimum monthly fee; if processing fees don’t reach it, the merchant pays the
difference. |
|
Net
Payment |
The
amount deposited after subtracting fees, refunds, and other adjustments. |
|
Net
Revenue |
Revenue
after subtracting costs and fees. |
|
Net
Settlement |
The
final amount moved between banks after all transactions in a period are
netted together. |
|
Non-Qualified |
Transactions
that don’t meet certain criteria and are charged the highest processing rate. |
|
Originator |
The
party that starts an ACH transaction, such as a business or bank. |
|
Paper |
A
paper-based payment or record, such as a paper check or printed receipt. |
|
Payment
Card Industry Data Security Standard (PCI DSS) |
The
security standard organizations follow when they store, process, or transmit
card data. |
|
Payment
Gateway |
Software
that securely sends payment information from a website/app to the processor. |
|
PCI |
Short
for the Payment Card Industry; often used to refer to PCI DSS security
requirements. |
|
PIN
(Personal Identification Number) |
A secret
number used to authorize certain debit card and ATM transactions. |
|
PIN Pad |
A
device where customers enter a PIN for debit transactions. |
|
Point of
Sale (POS) |
Where a
sale happens, such as a checkout counter, and the tools used to take payment. |
|
POS
Terminal |
The card
reader/device used at the point of sale to accept card payments. |
|
Prepaid
Cards |
Cards
loaded with money in advance; you can spend up to the balance on the card. |
|
Processor |
The
company that handles card transaction processing between the merchant,
networks, and banks. |
|
Reason
Code |
A code
that explains why a transaction was declined, returned, or charged back. |
|
Receipt |
A
record of a payment showing what was paid and when. |
|
Recurring
Transaction |
A
payment that repeats on a schedule, like monthly utilities or subscriptions. |
|
Reference
Number |
A
unique number used to track a specific transaction. |
|
Remittance
Information |
Details
that explain what a payment is for (invoice number, account number, etc.). |
|
Retrieval |
A
request for information about a transaction, often related to a dispute. |
|
Sales
Draft |
A record
of a card sale (paper or electronic), sometimes used as proof in a dispute. |
|
Scope |
The
parts of your systems and processes that are covered by a requirement (like
PCI scope). |
|
Self-Assessment
Questionnaire (SAQ) |
A
self-check form used by merchants to document PCI DSS compliance. |
|
Service
Provider |
A third
party that stores, processes, or transmits card data on behalf of a merchant. |
|
Settlement |
The step
where money from transactions is transferred and deposited into the
merchant’s account. |
|
Settlement
Statement |
A report
showing deposits, fees, and adjustments for a settlement period. |
|
Shopping
Cart Software |
Website
software that lets customers add items and check out online. |
|
Smart
Card |
A card
with an embedded chip that can store data and support secure transactions. |
|
Standard
Industry Code (SIC) |
A code
that classifies a business by industry type. |
|
Third-Party
Processing |
When a
separate company processes payments on behalf of a merchant. |
|
Transaction
Date |
The
date the payment happened. |
|
Transaction
Fees |
Per-transaction
charges for processing payments. |
|
Virtual
Payment Terminal or Virtual Terminal (VT) |
A
web-based tool that lets staff manually enter payments (like phone orders)
without a physical card reader. |