#Authorization: The process of verifying and approving a transaction for a merchant account or payment gateway, ensuring that funds are available and the transaction is valid.
#Capture: The process of transferring authorized funds from a customer’s account to the merchant’s account, completing the transaction.
Settlement: The process of transferring funds from the merchant’s account to their bank account, usually on a daily basis.
Chargeback: A disputed transaction initiated by a customer, resulting in funds being withdrawn from the merchant’s account and returned to the customer.
PCI DSS: Payment Card Industry Data Security Standard. A set of security standards that must be followed by merchants and payment gateways to protect cardholder data and ensure secure transactions.
Card-present transactions: Transactions where the customer’s payment card is physically present during the transaction, such as in a retail store.
Card-not-present transactions: Transactions where the customer’s payment card is not physically present during the transaction, such as online or over the phone.
CVV: Card Verification Value. A three- or four-digit code on a payment card used to verify that the customer has the card in their possession during a card-not-present transaction.
AVS: Address Verification Service. A security measure that verifies the billing address provided by the customer with the address on file with the card issuer.
Tokenization: The process of replacing sensitive cardholder data with a unique identifier called a token, reducing the risk of data theft.
Gateway: A service that acts as a bridge between the merchant’s website or point-of-sale system and the payment processor, securely transmitting transaction data.
Acquiring bank: The financial institution that processes and settles credit card transactions on behalf of the merchant.
Issuing bank: The bank or financial institution that issues payment cards to customers.
Interchange fee: A fee paid by the merchant’s acquiring bank to the cardholder’s issuing bank for each transaction, as part of the payment processing network.
Settlement period: The time it takes for funds from a transaction to be deposited into the merchant’s bank account, typically ranging from one to several business days.
Recurring billing: A feature that allows merchants to charge customers on a regular, predetermined schedule, such as monthly subscriptions.
E-commerce: Electronic commerce, the buying and selling of goods and services over the internet.
Fraud detection and prevention: Tools and measures implemented by payment gateways to identify and prevent fraudulent transactions.
3D Secure: An additional layer of security for online transactions that require customers to provide a password or one-time verification code, reducing the risk of fraud.
Virtual Terminal: A web-based interface provided by some payment gateways that allows merchants to manually process payments from customers.
Multi-currency support: The ability of a payment gateway to accept payments in different currencies and convert them into the merchant’s preferred currency.
Merchant category code (MCC): A four-digit code assigned to merchants by card networks to classify the type of products or services they offer.
ACH: Automated Clearing House. A network that facilitates electronic funds transfers and direct deposits between banks.
Recurring billing: A feature that allows merchants to charge customers on a regular, predetermined schedule, such as monthly subscriptions.
Refund: The process of returning funds to a customer’s account after a transaction has been completed.
Batch processing: The practice of submitting a group of transactions as a batch to the payment gateway for processing and settlement.
Risk management: Strategies and measures implemented by payment gateways to mitigate the risk of fraudulent transactions and chargebacks.
Gateway API: Application Programming Interface that allows merchants to integrate the payment gateway’s functionalities into their own software or website.
Secure Socket Layer (SSL): A cryptographic protocol that provides secure communication over the internet, commonly used for encrypting sensitive payment information.
Recurring billing: A feature that allows merchants to charge customers on a regular, predetermined schedule, such as monthly subscriptions.
Payment processor: A company that facilitates the authorization, capture, and settlement of payment transactions between the merchant and the acquiring bank.
Merchant account: A type of bank account that allows businesses to accept payments from customers via credit or debit cards.
Payment gateway: A service that securely processes payment transactions between the merchant and the payment processor.
Mobile payment: The ability to accept payments using a mobile device, typically through a mobile payment app or mobile card reader.
Card scheme: The network that operates the payment cards, such as Visa, Mastercard, American Express, or Discover.
BIN: Bank Identification Number. The first six digits of a payment card that identify the issuing bank.
MID: Merchant Identification Number. A unique identifier assigned to a merchant to track and process transactions.
Fraud chargeback: A chargeback initiated by the cardholder claiming that the transaction was fraudulent.
Authorization code: A unique code generated by the issuing bank to verify that a transaction has been approved.
Settlement report: A document that provides details of all transactions processed and settled within a specific time period.
Hosted payment page: A secure web page provided by the payment gateway where customers enter their payment information during the checkout process.
Instant payment notification (IPN): A feature that allows the payment gateway to notify the merchant’s system in real-time about the status of a transaction.
Gateway downtime: Periods when the payment gateway’s services are temporarily unavailable due to maintenance or technical issues.
Recurring billing: A feature that allows merchants to charge customers on a regular, predetermined schedule, such as monthly subscriptions.
Encryption: The process of encoding sensitive payment data to prevent unauthorized access or data theft.
Settlement statement: A report provided by the payment processor that summarizes the transactions settled and the corresponding funds deposited into the merchant’s account.
PCI compliance: The adherence to the Payment Card Industry Data Security Standard (PCI DSS) to ensure the secure handling of cardholder data.
Refund policy: The merchant’s policy regarding the conditions and process for issuing refunds to customers.
Network fee: A fee charged by the card network, such as Visa or Mastercard, for each transaction processed through their network.
Customer vault: A secure database provided by the payment gateway to store and tokenize customer payment information for future use.
Dynamic currency conversion (DCC): A service offered by payment gateways that allows customers to pay in their own currency while the merchant receives payment in their local currency, with a conversion fee.
Address Verification System (AVS): A fraud prevention measure that compares the customer’s billing address with the address on file with the issuing bank.
Card verification value 2 (CVV2): A three-digit security code on the back of a payment card used to authenticate card-not-present transactions.
Tokenization: The process of replacing sensitive payment card data with a unique identifier, known as a token, to enhance security.
One-click checkout: A feature that allows returning customers to make purchases with a single click, without re-entering their payment information.
Gateway integration: The process of connecting a merchant’s website or software with a payment gateway to enable payment processing.
Recurring billing management: Tools and features provided by payment gateways to manage and automate recurring billing for subscriptions and memberships.
Decline: When a payment transaction fails due to various reasons, such as insufficient funds or an expired card.
Merchant statement: A report provided by the payment processor that outlines the merchant’s transaction history, fees, and settlement information.
Dynamic pricing: The ability to adjust product prices in real-time based on various factors, such as demand, inventory levels, or customer segments.
Authorization hold: A temporary hold placed on a customer’s funds to ensure the availability of funds for an upcoming transaction.
Payment facilitator: A service provider that allows businesses to accept payments on their platform on behalf of sub-merchants.
Card scheme rules: The policies and regulations established by card networks that merchants and payment gateways must adhere to.
Merchant category code (MCC): A four-digit code that classifies merchants based on the type of products or services they offer.
Recurring billing failure: When an attempt to charge a customer for a recurring payment fails due to reasons such as expired card, insufficient funds, or payment gateway issues.
Settlement delay: The time it takes for funds to be deposited into the merchant’s bank account after the settlement process.
Gateway downtime: Periods when the payment gateway’s services are temporarily unavailable due to maintenance or technical issues.
Payment gateway plugins: Software extensions or modules that integrate a payment gateway into popular e-commerce platforms, such as WooCommerce or Magento.
Batch processing: The consolidation of multiple transactions into a batch, which is then sent to the payment gateway for processing and settlement.
Chargeback representment: The process of disputing a chargeback by providing evidence and documentation to prove the validity of a transaction.
Recurring billing cancellation: The process of terminating a recurring payment schedule or subscription.
Card issuer: The financial institution or bank that issues payment cards to customers.
Merchant onboarding: The process of establishing a merchant account and integrating it with a payment gateway to start accepting payments.
Gateway downtime: Periods when the payment gateway’s services are temporarily unavailable due to maintenance or technical issues.
Merchant-defined data: Additional information or custom fields that merchants can include with a transaction to aid in reconciliation or reporting.
Account updater service: A service provided by some payment gateways that automatically updates customers’ payment card information to prevent declined transactions.
Address verification response (AVR): The response code generated by AVS indicating the level of match between the provided billing address and the cardholder’s address on file.
Rolling reserve: A portion of a merchant’s funds withheld by the acquiring bank as a security measure against potential chargebacks or financial risk.
Payment gateway sandbox: A testing environment provided by payment gateways where developers can simulate transactions without processing actual payments.
Merchant funding: The process of transferring funds from the merchant’s account to their designated bank account.
Chargeback prevention: Strategies and measures implemented by merchants and payment gateways to minimize the occurrence of chargebacks.
Address verification system response (AVS response): The result of the AVS check indicating the level of match between the provided address and the cardholder’s address on file.
Virtual terminal: A web-based interface provided by payment gateways that allows merchants to manually enter and process payments.
Card encryption: The process of encrypting payment card data to protect it during transmission and storage.
Account updater service: A service provided by some payment gateways that automatically updates customers’ payment card information to prevent declined transactions.
Soft decline: A temporary decline of a transaction that can be retried later, typically due to issues such as network connectivity or system overload.
Chargeback ratio: The percentage of chargebacks compared to the total number of transactions processed by a merchant.
Gateway error codes: Numerical codes generated by payment gateways to indicate the specific type of error encountered during transaction processing.
Recurring billing management: Tools and features provided by payment gateways to manage and automate recurring billing for subscriptions and memberships.
Risk threshold: The predetermined level of acceptable risk that a merchant or payment gateway sets to monitor and manage potential fraud.
Settlement period: The time between the transaction date and the funds being deposited into the merchant’s bank account.
Gateway tokenization: The process of replacing sensitive payment card data with a token provided by the payment gateway for enhanced security.
Payment gateway reporting: The ability to generate and access detailed reports on transaction history, sales, chargebacks, and other metrics.
Merchant services: Financial services provided to businesses, including payment processing, merchant accounts, and related solutions.
Chargeback representment: The process of disputing a chargeback by providing evidence and documentation to prove the validity of a transaction.
Gateway API: Application Programming Interface that allows merchants to integrate the payment gateway’s functionalities into their own software or website.
Recurring billing plan: A configured schedule and amount for recurring payments, often used for memberships or subscription-based services.
Card scheme fees: Fees charged by the card networks, such as Visa or Mastercard, for the use of their payment processing services.
Refund processing: The procedure for returning funds to a customer’s account after a refund request has been initiated.
Payment gateway customization: Tailoring the appearance, branding, and functionality of the payment gateway to align with the merchant’s requirements.
