A
Access Control Server (ACS)
An ACS is a computer or network device that controls access to a network or system. It typically authenticates users and grants them access to certain resources or services based on their user credentials and permissions.
Account Takeover (ATO)
Account takeover refers to the unauthorized access and control of an individual’s online account, often for the purpose of committing fraud or other malicious activities. This can occur through various methods, such as phishing attacks, password cracking, or social engineering.
Account Updater
Account updater is a service that helps merchants and financial institutions maintain up-to-date payment information for their customers. This can include updating expiration dates, card numbers, or billing addresses, as well as adding new payment methods.
ACH Chargeback
ACH chargeback is a process in which a financial institution reverses an electronic funds transfer that has been previously initiated. This can occur if there is an error in the transaction, if the funds were unauthorized, or if there is a dispute between the parties involved.
Acquirer Agreement
An acquirer agreement is a contract between a merchant and an acquirer that outlines the terms and conditions of the relationship, including the fees and services that the acquirer will provide to the merchant.
Acquirer Reference Number (ARN)
An acquirer reference number (ARN) is a unique identifier assigned to a credit or debit card transaction by an acquirer. The ARN is used to track and reconcile transactions, as well as to resolve disputes or chargebacks.
Acquirer
An acquirer is a financial institution that processes credit and debit card transactions on behalf of merchants. The acquirer receives the transaction information from the merchant, verifies the cardholder’s account, and debits the funds from the cardholder’s account.
Acquiring Banks
Acquiring banks are financial institutions that act as acquirers and process card transactions on behalf of merchants. They establish merchant accounts and provide the necessary hardware and software for merchants to accept card payments.
Address Verification Fees
Address verification fees are charges that are assessed to merchants when they request address verification services (AVS). AVS is a fraud prevention tool that compares the billing address provided by the cardholder with the address on file with the card issuer to ensure that the transaction is legitimate.
Address Verification Service (AVS)
Address verification service (AVS) is a fraud prevention tool that compares the billing address provided by the cardholder with the address on file with the card issuer to ensure that the transaction is legitimate. This service is often used by merchants to reduce the risk of fraud and chargebacks.
Adjustment
An adjustment is a change made to a credit or debit card transaction after it has been processed. Adjustments can be made for various reasons, such as to correct errors or to refund a portion of the transaction amount to the cardholder.
Advantage Buyer Program
The Advantage Buyer Program is a loyalty program offered by some merchants that provides customers with benefits such as discounts, free shipping, or other perks in exchange for their loyalty and frequent purchases.
Affinity Card
An affinity card is a credit or debit card that is cobranded with a specific organization or group, such as a university, sports team, or charity. Cardholders typically receive benefits or rewards for using the card, and a portion of the proceeds from each transaction may be donated to the affiliated organization.
Afterpay
Afterpay is a payment service that allows consumers to make purchases and pay for them in installments over a period of time, rather than paying the full amount upfront. Afterpay is often used for online and instore purchases, and it may also include a fee for the service.
Alternative Payments
Alternative payments refer to payment methods other than traditional credit or debit cards, such as ewallets, bank transfers, or mobile payments. These payment methods are often used to facilitate online transactions and may offer additional features or security measures.
Amazon One
Amazon One is a biometric payment system developed by Amazon that allows customers to make purchases using their palm prints. Customers can enroll in the service by linking their palm prints to a credit or debit card, and can then make purchases by scanning their palm at participating retailers.
American Bankers Association (ABA) Routing Number
a nine-digit code that is used to identify the financial institution issuing a payment in the United States. This code is typically printed on the bottom of a check and is used to facilitate the electronic routing of funds from one bank account to another. Which was developed in 1910 by the American Banker’s Association.
American Express (Amex)
American Express, or Amex, is a financial services company that offers a range of products and services, including credit cards, charge cards, and travel services. Amex is known for its high-end cards, which often come with additional perks and benefits for cardholders.
American Express SafeKey
American Express SafeKey is a fraud prevention tool that is used by Amex to verify the identity of cardholders during online transactions. When a cardholder makes a purchase, SafeKey prompts them to enter a onetime code that is sent to their phone or email, helping to ensure that the transaction is legitimate.
Amex External Sales Agent Agreement (Amex ESA)
The Amex External Sales Agent Agreement (Amex ESA) is a contract between American Express and an external sales agent that outlines the terms and conditions of the relationship. The Amex ESA specifies the responsibilities of the sales agent and the fees that they will receive for their services.
Amex OptBlue
Amex OptBlue is a pricing program offered by American Express that allows merchants to negotiate customized pricing for their card acceptance. The program allows merchants to choose from a range of pricing options, including flat fees, tiered pricing, or interchange plus pricing.
Annual Fee
An annual fee is a charge that is assessed to a merchant account on an annual basis. Annual fees are typically used to cover the cost of additional features or benefits offered by processors including but not limited to administration fees.
Anti-Money Laundering (AML)
Anti-money laundering (AML) refers to laws, regulations, and policies that are designed to prevent the illegal movement of money, often for the purpose of funding criminal activities. AML regulations typically require financial institutions and other businesses to report suspicious or unusual financial activity to regulatory authorities.
Apple Pay
Apple Pay is a mobile payment and digital wallet service developed by Apple Inc. that allows users to make purchases and payments using their iPhone, iPad, or Apple Watch. Apple Pay uses nearfield communication (NFC) technology to facilitate transactions, and it also includes additional security measures to protect against fraud.
Application Fee
An application fee is a charge that is assessed to an individual or business when they apply for a credit card, loan, or other financial product. Application fees are used to cover the cost of processing and reviewing the application, and they may vary depending on the product and issuer.
Application Programming Interface (API)
An application programming interface (API) is a set of protocols, routines, and tools for building software applications. APIs allow different systems or software to communicate with each other and exchange data, enabling developers to create more complex and interconnected software systems.
Arbitration
Arbitration is a process in which a neutral third party is used to resolve a dispute between two parties. In the context of finance and payments, arbitration may be used to resolve disputes related to credit card transactions, chargebacks, or other issues. Arbitration is often preferred to litigation because it is typically faster and less expensive.
Arrears
Arrears refer to a situation in which an individual or business has not paid a debt or obligation on time. For example, if a credit card bill is not paid by the due date, the cardholder is said to be in arrears.
Assessment Fees
Assessment fees are charges that are assessed by a financial institution or other organization for certain services or activities. These fees may be charged for services such as account maintenance, balance inquiries, or other account-related activities.
ATM Interchange Fee
An ATM interchange fee is a charge that is assessed to a financial institution when its cardholders use an ATM that is not owned by the institution. The fee is typically paid to the owner of the ATM and is used to cover the cost of operating and maintaining the machine.
Auth and capture
Auth and capture is a payment processing method in which an authorization is obtained for a credit or debit card transaction, and the funds are subsequently captured and transferred to the merchant. This method is often used by merchants who need to confirm the availability of funds before fulfilling an order.
Authentication
Authentication is the process of verifying the identity of an individual or device. In the context of payments, authentication may involve verifying the identity of a cardholder or the authenticity of a payment instrument, such as a credit or debit card.
Authorization Amount
The authorization amount is the amount of a credit or debit card transaction that is approved for authorization by the card issuer. The authorization amount may be different from the final transaction amount, which is the amount that is actually charged to the cardholder’s account.
Authorization Code
An authorization code is a unique code that is generated when a credit or debit card transaction is authorized. The authorization code is used to confirm the approval of the transaction and may be required to complete the transaction or to resolve any disputes that may arise.
Authorization fee
An authorization fee is a charge that is assessed to a merchant when a credit or debit card transaction is authorized. This fee is used to cover the cost of verifying the cardholder’s account and obtaining approval for the transaction.
Authorization
Authorization is the process of verifying that a credit or debit card transaction is legitimate and has been approved by the card issuer. This typically involves checking the cardholder’s account balance and available credit, as well as verifying the cardholder’s identity.
Authorize and Capture
Authorize and capture is a payment processing method in which an authorization is obtained for a credit or debit card transaction, and the funds are subsequently captured and transferred to the merchant. This method is often used by merchants who need to confirm the availability of funds before fulfilling an order.
Authorize Only (Payment Authorization/Credit Card Authorization)
Authorize only, also known as payment authorization or credit card authorization, is a payment processing method in which an authorization is obtained for a credit or debit card transaction, but the funds are not captured or transferred to the merchant. This method is often used by merchants who need to confirm the availability of funds before fulfilling an order.
Authorize.net
Authorize.net is a payment gateway service owned and operated by VISA that allows merchants to accept credit and debit card transactions online. The service provides secure processing of transactions, as well as tools for managing orders, fraud prevention, and customer management.
Authorized Pending Capture
Authorized pending capture is a payment processing status that indicates that a credit or debit card transaction has been authorized but the funds have not yet been transferred to the merchant. This status may occur when a merchant has implemented a delayed capture process, in which the funds are not captured until a later time.
Automated Clearing House (ACH)
The Automated Clearing House (ACH) is a network that facilitates the electronic transfer of funds between banks and other financial institutions. ACH transactions can include direct deposits, electronic bill payments, and other types of financial transactions.
Automated Clearing House Refund (ACH Refund)
An automated clearing house refund (ACH refund) is a type of electronic refund that is processed through the Automated Clearing House (ACH) network. ACH refunds can be initiated by merchants or financial institutions and are typically used to return funds to a customer’s account.
Automated Clearing House Return (ACH Return)
An automated clearing house return (ACH return) is a type of electronic transaction that is returned to the sender through the Automated Clearing House (ACH) network. ACH returns can occur for various reasons, such as insufficient funds, incorrect account information, or other errors.
Automated Clearing House Transfers (ACH Transfers)
Automated clearing house transfers (ACH transfers) are electronic transactions that are processed through the Automated Clearing House (ACH) network. ACH transfers can include direct deposits, electronic bill payments, and other types of financial transactions.
Automated Response Unit (ARU)
An automated response unit (ARU) is a system that is used to automatically respond to customer inquiries or requests. ARUs are often used in customer service and support to provide quick and efficient responses to common questions or issues.
AutoPay
AutoPay is a feature that allows customers to automatically pay their bills or make other recurring payments using a preauthorized payment method, such as a credit or debit card. AutoPay is often used to ensure that bills are paid on time and to avoid late fees or other penalties.
Average Monthly Volume (AMV)
Average monthly volume (AMV) is a measure of the total value of credit and debit card transactions processed by a merchant over a given period of time, typically a month. AMV is used to calculate merchant fees, establish a volume cap and determine the volume of transactions that a merchant is capable of handling.
Average Sale
Average sale is a measure of the average value of a sale or transaction made by a merchant. Average sale is often used to determine a merchant’s revenue or profitability and can be calculated by dividing the total sales by the number of transactions.
Average Ticket Size (AVT)
Average ticket size (AVT) is a measure of the average value of a transaction made by a merchant. AVT is often used to determine a merchant’s revenue or profitability and can be calculated by dividing the total sales by the number of transactions. AVT is similar to average sale, but may include additional factors such as the number of items or services purchased in a single transaction.
B
B2B Transaction
B2B (business-to-business) transactions refer to financial transactions that occur between two businesses, rather than between a business and a consumer. B2B transactions may involve the sale of goods or services, the exchange of payment for services rendered, or other financial transactions.
B2C Transaction
B2C (business-to-consumer) transactions refer to financial transactions that occur between a business and a consumer, rather than between two businesses. B2C transactions may involve the sale of goods or services, the exchange of payment for services rendered, or other financial transactions.
Back End Processor
A back end processor is a company that handles the processing and settlement of credit and debit card transactions on behalf of merchants. Back end processors typically provide merchants with the necessary hardware and software to accept card payments, as well as handle the authorization, capture, and settlement of transactions.
Balance
The balance of a financial account, such as a credit card or bank account, refers to the total amount of money available in the account. The balance may include available credit, available funds, or outstanding debt, depending on the type of account.
Bank Account Number
A bank account number is a unique identifier assigned to a bank account by the financial institution that manages the account. The bank account number is used to identify the account and to facilitate financial transactions, such as deposits, withdrawals, or electronic payments.
Bank Account Type
Bank account type refers to the type of bank account that an individual or business holds with a financial institution. There are several types of bank accounts, including checking accounts, savings accounts, and money market accounts, each of which may have different features and requirements.
Bank Card
A bank card is a payment card issued by a financial institution, such as a credit card or debit card. Bank cards are typically linked to a bank account and can be used to make purchases, withdraw cash, or access other financial services.
Bank Identification Code (BIC)
A bank identification code (BIC) is a unique identifier that is assigned to a financial institution by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The BIC is used to identify the institution and facilitate financial transactions, such as wire transfers or foreign exchange transactions.
Bank Identification Number (BIN)
A bank identification number (BIN) is a unique identifier that is assigned to a financial institution by the card issuer. The BIN is used to identify the institution and facilitate credit and debit card transactions.
Bank Secrecy Act
The Bank Secrecy Act (BSA) is a federal law that requires financial institutions to report certain financial transactions and activities to the government. The BSA is designed to prevent money laundering and other financial crimes and requires financial institutions to maintain records and report suspicious activity to the Financial Crimes Enforcement Network (FinCEN).
Basis Points
Basis points are a unit of measure used to express the percentage change in the value of a financial instrument or index. One basis point is equal to 1/100th of 1%, or 0.01%. Basis points are often used to express changes in interest rates, yield, or or even transaction charges.
Batch Fee
A batch fee is a charge that is assessed to a merchant for processing a batch of credit or debit card transactions. Batch fees may be charged on a per-transaction basis or as a percentage of the total value of the batch.
Batch Out (Settlement)
Batch out, also known as settlement, is the process of transferring funds from a merchant’s account to the financial institution that issued the credit or debit card used in the transaction. Batch out typically occurs at regular intervals, such as daily or weekly, and may involve the transfer of funds for multiple transactions at once.
Batch Processing
Batch processing is a method of processing financial transactions in which a group of transactions is processed together, rather than individually. Batch processing is often used to improve efficiency and reduce the time and resources required to process transactions.
Batch Report
A batch report is a document or summary that provides information about a batch of financial transactions. Batch reports may include details such as the total value of the transactions, the number of transactions, and any fees or charges associated with the batch.
Batch Upload
Batch upload is the process of uploading a group of financial transactions to a payment processing system for processing. Batch uploads may be used to process transactions more efficiently, particularly for merchants with high volumes of transactions.
Batch
In the context of financial transactions, a batch refers to a group of transactions that are processed together. Batches may be processed at regular intervals, such as daily or weekly, or may be processed on demand.
Beneficiary
In the context of financial transactions, a beneficiary is an individual or organization that is entitled to receive a payment or other financial benefit. For example, in a wire transfer, the beneficiary is the recipient of the funds.
BIC11
BIC11 is a unique identifier that is assigned to a financial institution by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The BIC11 is used to identify the institution and facilitate financial transactions, such as wire transfers or foreign exchange transactions.
BIC8
BIC8 is a unique identifier that is assigned to a financial institution by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The BIC8 is used to identify the institution and facilitate financial transactions, such as wire transfers or foreign exchange transactions.
Billbacks
Billbacks are charges that are assessed to merchants for services or products that have been provided by a third party. Billbacks may be used to recover the cost of services such as fraud prevention or chargeback representation.
BIN Attack Fraud
BIN attack fraud is a type of credit card fraud in which a criminal uses a stolen or compromised bank identification number (BIN) to create fake credit cards. BIN attack fraud can be difficult to detect and may result in significant losses for merchants and financial institutions.
Biometric Payments
Biometric payments are financial transactions that are authenticated using biometric data, such as fingerprints, facial recognition, or voice recognition. Biometric payments can provide an additional layer of security and can help to reduce the risk of fraud or unauthorized transactions.
Bitcoin
Bitcoin is a decentralized digital currency that is based on a peer-to-peer network. Bitcoin transactions are secured by cryptography and are recorded on a distributed ledger called the blockchain. Bitcoin can be used to make purchases, transfer funds, or store value.
Brick and Mortar
Brick and mortar refers to a physical retail store or business that has a physical location and can be visited in person by customers. Brick and mortar stores are in contrast to online or virtual businesses, which operate primarily through the internet.
Bundled Pricing Model
A bundled pricing model (also known as tiered pricing) is a pricing structure that dictates the amount merchants pay per transaction. In a bundled pricing model credit card fees are segmented into three buckets or tiers: qualified, mid-qualified, and nonqualified. Qualified being the cheapest while nonqualified are the most expensive.
Buy Now Pay Later (BNPL)
Buy now pay later (BNPL) is a type of financing option that allows customers to purchase goods or services and pay for them over time, typically in installments. BNPL options may be offered by retailers, financial institutions, or third-party providers and may be interest-free or may charge a fee for the financing.
Buy Online Pick Up in Store (BOPIS)
Buy online pick up in store (BOPIS) is a shopping option that allows customers to purchase goods online and pick them up at a physical store location. BOPIS allows customers to avoid shipping fees and to receive their purchases more quickly than if they were shipped to their home.