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Off-Line Transaction Processing
The process of authorizing and settling card transactions without an online connection to the payment network. Off-line transaction processing is often used in cases where the payment network is not available or when the merchant does not have the necessary equipment to process online transactions.
Office of Foreign Assets Control (OFAC)
A U.S. government agency that is responsible for implementing and enforcing economic sanctions against foreign countries, organizations, and individuals. OFAC administers a list of “specially designated nationals” (SDN) that includes individuals and entities that are subject to economic sanctions and may be prohibited from conducting financial transactions with U.S. persons or institutions. This is part of the underwriting process in addition to a background check.
Offline Debit Transaction
A debit card transaction that is not processed through the usual payment networks, but is instead authorized and settled through an alternative method. Offline debit transactions may be used in cases where the payment network is not available or when the merchant does not have the necessary equipment to process online debit transactions.
Offline Sale
A sale that is made without an online connection to the payment network. Offline sales may be made using a card reader or other point-of-sale terminal that stores the transaction information locally and submits it for processing at a later time when an online connection is available.
Omnichannel
A term used to describe a customer experience that is consistent and seamless across multiple channels, such as in-store, online, and mobile. Omnichannel strategies aim to provide customers with a cohesive and consistent experience regardless of how they choose to interact with a business.
On File Fee
A fee that is charged by a merchant or payment processor for keeping a customer’s payment information on file for future transactions. On file fees may be charged for storing credit or debit card information, electronic payment methods, or other types of payment information.
Online Debit
A type of payment that is made using a debit card and processed through the payment network in real-time. Online debit payments are typically faster and more secure than offline debit transactions and may offer additional benefits such as fraud protection and rewards programs.
Online Payments
Payments that are made using the internet or other electronic means, such as through a website or mobile app. Online payments can be made using a variety of methods, including credit and debit cards, electronic payment platforms, and mobile wallet apps.
Online Reporting Fees
Fees that are charged by a payment processor or other service provider for access to online reporting tools or other types of information about a merchant’s transactions. Online reporting fees are usually charged on a monthly or annual subscription fee.
Online Shopping Cart
A software application that is used to manage and track online orders and payments on a website. Online shopping carts typically allow customers to browse and select items, calculate shipping and tax charges, and process payments using a variety of methods.
Open Loop
A term used to describe a payment system or card that is not tied to a specific bank or financial institution, but can be used at a wide range of merchants and locations. Open loop cards and payment systems, such as Visa and Mastercard, are typically issued by banks and other financial institutions, but can be used anywhere that accepts them.
Operational Risk
The risk of losses that may arise from inadequate or failed internal processes, systems, or human error. Operational risk can include a variety of factors, such as inadequate controls, inadequate training, and inadequate risk management processes.
Order Insight (a Verifi solution)
A product offered by Verifi, a payment processing and risk management company, that provides merchants with visibility into the status of their orders and helps to resolve disputes and other issues that may arise. Order Insight uses data analytics and other tools to help merchants track and manage their orders and improve their overall customer experience.
Original Draft
The original copy of a check or other financial document that is used as the basis for a transaction. The original draft is typically kept on file by the issuer or originator of the document and may be used as evidence in case of a dispute or other issue.
Originating Depository Financial Institution (ODFI)
The financial institution that initiates a payment or other financial transaction on behalf of a customer or client. The ODFI is typically responsible for verifying the accuracy and completeness of the transaction and for forwarding it to the appropriate parties for processing.
Origination
The process of initiating a payment or other financial transaction. Origination may involve verifying the accuracy and completeness of the transaction, preparing the necessary documents or data, and forwarding the transaction to the appropriate parties for processing.
Originator
The person or entity that initiates a payment or other financial transaction. The originator is typically responsible for verifying the accuracy and completeness of the transaction and for forwarding it to the appropriate parties for processing.
Over-Limit/Overlimit
A term used to describe a credit card account or transaction that exceeds the credit limit established for the card. Overlimit transactions may be subject to additional fees or interest charges and may negatively impact a customer’s credit score if they are not paid in a timely manner.
P
P2P Payments
P2P, or Peer-to-Peer, payments are electronic financial transactions that are conducted directly between two individuals, without the involvement of a financial institution or third party. These types of payments are commonly made using mobile payment apps or online platforms.
Partial Authorization
A partial authorization is a type of payment authorization that occurs when a credit card issuer approves only part of the requested transaction amount. This may occur if the cardholder’s available credit limit is insufficient to cover the full amount of the purchase.
Pass Through Fees
Pass through fees are charges that are passed along to the cardholder by the merchant, typically as a result of fees that the merchant incurs for processing the transaction. These fees may include charges for credit card processing, interchange fees, or other fees associated with the transaction.
Payee
A payee is the person or entity that receives a payment. In the context of credit card transactions, the payee is typically the merchant or service provider that is being paid by the cardholder.
Payment Amount
The payment amount is the total amount of money that is being paid or charged in a transaction. In the context of credit card transactions, the payment amount is the total cost of the purchase or service being provided, including any applicable taxes and fees.
Payment Authorization
Payment authorization is the process of verifying that a credit card transaction is valid and approved by the card issuer. This process typically involves checking the cardholder’s available credit limit, verifying the cardholder’s identity, and checking for any fraud or security alerts. Once a payment is authorized, the merchant can complete the transaction and the funds will be transferred from the cardholder’s account to the payee’s account.
Payment Card Industry (PCI) Attestation of Compliance
An Attestation of Compliance (AOC) is a document that is provided by a merchant or service provider to demonstrate that they are compliant with the Payment Card Industry (PCI) security standards. AOCs are typically required by credit card companies in order to accept and process transactions from the merchant or service provider.
Payment Card Industry (PCI) Fees
Payment Card Industry (PCI) fees are charges that are levied by credit card companies on merchants or service providers in order to cover the cost of maintaining and enforcing the PCI security standards. These fees may be assessed on a per-transaction basis, or as a flat fee.
Payment Card Industry (PCI)
The Payment Card Industry (PCI) is a set of security standards that were developed by the major credit card companies (such as Visa, Mastercard, and American Express) to ensure the secure handling of credit card transactions. The PCI standards cover a wide range of areas, including network security, data storage, and encryption of sensitive information.
Payment Card Industry Data Security Standard Compliance (PCI DSS)
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards that were developed by the Payment Card Industry (PCI) in order to protect sensitive credit card information from unauthorized access or misuse. Compliance with the PCI DSS is required for all merchants and service providers that accept credit card payments.
Payment Facilitator (PayFac)
A Payment Facilitator (PayFac) is a company that acts as an intermediary between merchants and credit card companies, providing merchants with the ability to accept and process credit card transactions. PayFacs typically handle the credit card processing and settlement of transactions on behalf of the merchant, as well as providing them with tools and resources to manage their payments.
Payment Gateway Fees
Payment gateway fees are charges that are levied by payment gateway providers in order to cover the cost of providing their services. These fees may be assessed on a pertransaction basis, or as a flat fee.
Payment Gateway Provider
A payment gateway provider is a company that provides merchants with the ability to accept and process credit card transactions online. Payment gateway providers typically offer a range of services, including payment processing, fraud protection, and data security.
Payment Gateways
Payment gateways are online platforms that enable merchants to accept and process credit card transactions. Payment gateways typically provide a range of services, including payment processing, fraud protection, and data security.
Payment Method
A payment method is the way in which a payment is made. In the context of credit card transactions, common payment methods include using a physical credit card, a mobile payment app, or an online payment platform.
Payment Processor
A payment processor is a company that handles the credit card processing and settlement of transactions on behalf of merchants and service providers. Payment processors typically provide merchants with tools and resources to manage their payments, as well as handling the technical aspects of the credit card processing process.
Payment Rails
Payment rails are the infrastructure and systems that enable the transfer of money between parties in a financial transaction. In the context of credit card transactions, payment rails include the networks, systems, and protocols that are used to process and settle transactions.
Payment Service Provider (PSP)
A Payment Service Provider (PSP) is a company that provides merchants and service providers with the ability to accept and process credit card transactions. PSPs typically offer a range of services, including payment processing, fraud protection, and data security.
PayPal
PayPal is an online payment platform that enables individuals and businesses to send and receive payments electronically. PayPal users can link their account to a bank account or credit card, allowing them to make payments and receive money from other users around the world.
PCI compliance
PCI compliance refers to the process of ensuring that a merchant or service provider is in compliance with the Payment Card Industry (PCI) security standards. PCI compliance is required for all merchants and service providers that accept credit card payments, and involves following a set of guidelines and best practices to protect sensitive credit card information.
Person-to-Person (P2P)
Person-to-Person (P2P) refers to financial transactions that are conducted directly between two individuals, without the involvement of a financial institution or third party. P2P transactions are typically made using mobile payment apps or online platforms.
Personal Identification Number (PIN)
A Personal Identification Number (PIN) is a numeric code that is used to authenticate a credit card transaction or access a financial account. PINs are typically used in conjunction with a physical credit card or debit card, and are required for certain types of transactions, such as ATM withdrawals or point-of-sale purchases.
PIN Authorization Request (PIN verification)
A PIN authorization request (also known as PIN verification) is a request made by a merchant to the card issuer to verify the validity of a credit card transaction using the cardholder’s Personal Identification Number (PIN). This type of request is typically made when a cardholder uses a debit card to make a purchase, in order to confirm that the cardholder is the legitimate owner of the card.
Pin Debit
Pin Debit refers to a type of debit card transaction that requires the cardholder to enter their Personal Identification Number (PIN) in order to authenticate the transaction. Pin Debit transactions are typically processed through the cardholder’s bank or financial institution, rather than through a credit card network.
PIN Verification
PIN verification is the process of verifying the validity of a credit card transaction using the cardholder’s Personal Identification Number (PIN). This process is typically used for debit card transactions, in order to confirm that the cardholder is the legitimate owner of the card.
PINless Debit Transaction
A PINless debit transaction is a type of debit card transaction that does not require the cardholder to enter their Personal Identification Number (PIN) in order to authenticate the transaction. PINless debit transactions are typically processed through the cardholder’s bank or financial institution, rather than through a credit card network.
Pinpad
A pinpad is a device that is used to input Personal Identification Numbers (PINs) in order to authenticate credit card or debit card transactions. Pinpads are typically found at pointofsale terminals, ATMs, and other locations where card transactions are processed.
Point of Sale System (POS)
A Point of Sale (POS) system is a computerized system that is used to process and record retail transactions. POS systems typically include a computer, a printer, and a point-of-sale terminal, and are used to manage inventory, track sales, and process credit card transactions.
Point-of-Sale (POS) Terminal
A Point-of-Sale (POS) terminal is a device that is used to process credit card transactions at a retail location. POS terminals typically include a card reader, a display screen, and a keyboard or touchpad, and are used to enter transaction information and process payments.
Point-to-Point Encryption (P2PE)
Point-to-Point Encryption (P2PE) is a security technology that is used to protect sensitive credit card information as it is transmitted from the point of sale to the card issuer. P2PE involves the encryption of credit card data at the point of sale, and the decryption of the data at the card issuer, in order to prevent unauthorized access or tampering with the data.
Pre-Arbitration/Arbitration Chargeback
A pre-arbitration or arbitration chargeback is a type of dispute resolution process that is used to resolve disputes between merchants and cardholders over credit card transactions. Pre-arbitration and arbitration chargebacks allow merchants and cardholders to seek resolution of disputes through a neutral third party, rather than through the courts.
Prepaid Cards
Prepaid cards are payment cards that are pre-loaded with a certain amount of money, which can be used to make purchases or withdraw cash. Prepaid cards are typically reloadable, meaning that additional funds can be added to the card as needed.
Pretty Good Privacy (PGP)
is a data encryption and decryption software that is used to protect the confidentiality of electronic communications. PGP is often used in conjunction with email and other forms of online communication to protect sensitive information from unauthorized access or tampering.
Primary Account Number (PAN)
A Primary Account Number (PAN) is a unique identifier that is assigned to a credit card or debit card. The PAN is typically embossed or printed on the front of the card, and is used to identify the card and the cardholder when processing transactions.
Processor
A processor is a company that handles the credit card processing and settlement of transactions on behalf of merchants and service providers. Payment processors typically provide merchants with tools and resources to manage their payments, as well as handling the technical aspects of the credit card processing process.
Purchase Cards
Purchase cards are credit cards that are issued to employees or organizations for the purpose of making business purchases. Purchase cards may be issued to individuals or departments within an organization, and are typically used to make purchases of goods or services that are related to the organization’s business activities.
Push-to-Card
Push-to-Card is a type of payment technology that enables merchants and service providers to push payments directly to the cardholder’s credit or debit card account. Push-to-Card payments are typically made using a mobile payment app or online platform, and do not require the cardholder to physically present their card to the merchant in order to make a payment.