Online Payment Gateways Terms Glossary: Online Payment Gateways Terms in 2024
3
3D Secure
3D Secure is an additional security layer used in online transactions to reduce the risk of fraud, requiring customers to provide an additional authentication step.
A
Ach (Automated Clearing House)
ACH is an electronic funds transfer system that allows money to be transferred between bank accounts in the United States.
Acquirer
An acquirer is a financial institution that enters into a contractual agreement with a merchant to process payment card transactions.
Acquirer Reference Number (Arn)
Acquirer Reference Number (ARN) is a unique identifier assigned to each completed payment transaction, used for tracking and reference purposes.
Acquiring Bank
An Acquiring Bank is a financial institution that processes online credit and debit card transactions on behalf of a business.
Anti-Money Laundering (Aml)
Anti-Money Laundering (AML) refers to a set of regulations and procedures implemented to prevent the processing of funds derived from illegal activities through financial systems.
Api
API stands for Application Programming Interface, which is a set of rules and protocols that allows different software applications to communicate and exchange data.
Authentication
Authentication is the process of verifying the identity of a person or entity to ensure that they have the authority to access or perform a certain action.
Authorization
Authorization is the process of approving a payment transaction, ensuring that the customer has sufficient funds and the transaction is valid.
Authorization Code
An authorization code is a unique code generated by the payment gateway to validate and approve a transaction.
Automatic Clearing House (Ach)
Automatic Clearing House (ACH) is an electronic network for financial transactions in the United States that allows for direct deposits and withdrawals between bank accounts.
Avs (Address Verification System)
AVS is a fraud detection feature that verifies the address provided by a customer during an online transaction by comparing it to the address on file with the issuing bank.
B
Batch Processing
Batch Processing is the method of processing multiple payment transactions simultaneously, typically performed at the end of the business day.
Biometric Authentication
Biometric Authentication is a security measure that uses unique physical or behavioral traits, such as fingerprints or facial recognition, to verify a person's identity.
C
Capture
Capture is the process of transferring the authorized funds from the customer's account to the merchant's account.
Card Association
A Card Association is a network that governs the use of payment cards, such as Visa, Mastercard, American Express, and Discover.
Card Issuer
A Card Issuer is a financial institution that issues payment cards, such as credit or debit cards, to customers.
Card Issuing Bank
A card issuing bank is the financial institution that issues payment cards to cardholders, such as credit cards or debit cards.
Card Verification Method (Cvm)
A card verification method (CVM) is a security feature used during a card-present transaction to verify the cardholder's identity, such as a PIN, signature, or biometric authentication.
Card-On-File
Card-on-file refers to the practice of storing a customer's payment card details securely for future transactions or recurring payments.
Cardholder Not Present (Cnp)
Cardholder not present (CNP) refers to transactions where the cardholder is not physically present, such as online or phone transactions.
Chargeback
A Chargeback is a customer's request to reverse a payment transaction, typically due to a dispute or fraud.
Chargeback Prevention
Chargeback prevention refers to the practices and measures taken by merchants to minimize the occurrence of chargebacks and resolve disputes before they escalate.
Cross-Border Payments
Cross-Border Payments are payments made between individuals or businesses located in different countries, involving currency exchange and international regulations.
Currency Conversion
Currency conversion is the process of converting the price of a product or service from one currency to another for international transactions.
Customer Vault
A customer vault is a secure storage system provided by a payment gateway to store sensitive customer payment information.
Cvv
CVV stands for Card Verification Value, and it is the three-digit code on the back of a payment card used for added security during online transactions.
Cvv (Card Verification Value)
CVV is a three or four-digit code printed on payment cards that is used as an additional security measure to verify card-not-present transactions.
D
Digital Currencies
Digital currencies, also known as cryptocurrencies, are digital or virtual forms of currency that use cryptography for security.
Digital Wallet
A Digital Wallet is a virtual platform or application that stores payment card information, allowing users to make payments electronically.
Direct Payment
Direct Payment is a payment method that allows customers to make a payment directly from their bank account, without the need for a credit or debit card.
Discount Rate
The discount rate, also known as the merchant discount rate, is a fee charged by the acquiring bank for processing credit or debit card payments.
Dispute Resolution
Dispute Resolution is the process of resolving conflicts or disputes between customers and merchants regarding payment transactions.
Dynamic Currency Conversion (Dcc)
Dynamic Currency Conversion (DCC) is a service that allows customers to pay in their own currency when making international transactions, with the conversion rate provided by the payment processor.
Dynamic Descriptor
A dynamic descriptor is a customizable payment description or statement that provides additional information to the cardholder about a specific transaction.
E
E-Check
An electronic check (e-check) is a digital version of a paper check that is processed through the Automated Clearing House (ACH) network.
E-Commerce
E-commerce, short for electronic commerce, is the buying and selling of goods and services over the internet.
E-Commerce Platforms
E-commerce Platforms are online platforms or software solutions that enable businesses to sell products or services online, often integrated with payment gateways for seamless transactions.
Emv (Europay, Mastercard, And Visa)
EMV is a global standard for payment cards equipped with embedded microchips, providing stronger security and reducing the risk of counterfeit fraud.
Encryption
Encryption is the process of converting information or data into a code to prevent unauthorized access or data theft.
Expired Card
An expired card is a payment card that is no longer valid for making transactions due to its expiration date being reached.
F
Fallback
Fallback is the process of switching from a contactless payment method, such as NFC, to a traditional payment method, such as inserting or swiping a payment card, due to technical issues or limitations.
Financial Technology (Fintech)
Financial Technology (Fintech) is an industry that applies technology and innovation to improve financial services and processes, including online payment gateways.
Fraud Chargeback
A fraud chargeback occurs when a customer disputes a transaction due to unauthorized activity on their account.
Fraud Detection
Fraud detection refers to the methods and techniques used to identify and prevent fraudulent transactions or activities.
Fraud Detection And Prevention
Fraud Detection and Prevention refers to the measures and systems put in place to identify and prevent fraudulent transactions.
Fraud Prevention
Fraud prevention involves implementing measures and strategies to proactively detect and prevent fraudulent activities during online transactions.
Fraud Prevention Tools
Fraud prevention tools are software features or services provided by payment gateways to help merchants detect and prevent fraudulent transactions.
G
Gateway Api
A gateway API, also known as a payment gateway API, is a set of programming instructions that enables communication between an e-commerce website and a payment gateway.
Gateway Dashboard
A gateway dashboard, also known as a merchant dashboard, is a web-based interface provided by the payment gateway to merchants for accessing transaction data, reports, and managing account settings.
Gateway Fee
A gateway fee is a fee charged by the payment gateway for processing online transactions on behalf of merchants.
Gateway Integration
Gateway integration refers to the process of connecting a merchant's website or application to a payment gateway for processing payments.
Gateway Plug-In
A gateway plug-in, also known as a payment module or extension, is a software component that integrates a payment gateway with an e-commerce platform or content management system.
Guest Checkout
Guest Checkout is an option provided by online merchants that allows customers to make a purchase without creating an account or providing extensive personal information.
H
Hosted Payment Page
A Hosted Payment Page is a web page provided by a payment gateway that securely collects payment information from customers.
I
In-App Payments
In-App Payments are payments made within a mobile application, allowing users to purchase goods or services without leaving the app.
Interchange Fee
An interchange fee is a fee paid by the acquiring bank to the cardholder's issuing bank for each credit or debit card transaction, covering the cost of the card network's services and fraud prevention.
Invoice Payments
Invoice payments allow customers to make payments for goods or services based on an invoice or bill received from the merchant.
Invoicing
Invoicing is the process of generating and sending bills or invoices to customers for payment.
Ipn (Instant Payment Notification)
IPN is a feature provided by payment gateways that sends real-time notifications to merchants regarding the status of a transaction, allowing for automated order processing.
Issuing Bank
An issuing bank is a financial institution or credit card company that provides payment cards to customers.
K
Know Your Customer (Kyc)
Know Your Customer (KYC) regulations refer to the process of verifying and validating the identity of customers before providing them with financial services.
M
Merchant Account
A Merchant Account is a type of bank account that allows businesses to accept and process credit and debit card payments.
Merchant Dashboard
A Merchant Dashboard is a web-based interface provided by the payment gateway, allowing merchants to manage and monitor their payment transactions, generate reports, and perform administrative tasks.
Merchant Id
A merchant ID is a unique identifier assigned to a merchant by the payment gateway or acquirer, allowing them to securely process transactions.
Merchant Identification Number (Mid)
A merchant identification number (MID) is a unique number assigned to a merchant by the acquiring bank for identification and tracking purposes.
Merchant Services
Merchant Services are financial services provided to businesses, including payment processing, online payment gateways, and related services.
Mobile Point Of Sale (Mpos)
Mobile Point of Sale (mPOS) refers to the use of mobile devices, such as smartphones or tablets, as a portable payment terminal, enabling businesses to accept card payments anywhere.
Mobile Wallet
A Mobile Wallet is a digital version of a physical wallet, allowing users to make payments using their smartphones or other mobile devices.
Moto (Mail Order/Telephone Order)
MOTO refers to card-not-present transactions that are conducted via mail order or telephone, where the cardholder's information is manually entered.
Multi-Currency Support
Multi-currency support enables online payment gateways to accept payments in different currencies, converting them into the merchant's preferred currency.
O
One-Click Payment
One-click payment allows customers to make a purchase using stored payment information, without the need to enter their card details every time.
Online Payment Gateway
An Online Payment Gateway is a service that processes online payments for e-commerce websites and facilitates the transfer of funds between the customer, merchant, and acquiring bank.
Open Banking
Open Banking is a system that allows third-party financial service providers to access and utilize customer banking data, with the customer's consent, to provide innovative payment solutions.
P
P2Pe (Point-To-Point Encryption)
P2PE is a security framework that encrypts cardholder data from the point of entry, such as a payment terminal, through to the payment processor, providing enhanced protection against data breaches.
Payment Api
A payment API is an interface that allows merchants to integrate their systems with the payment gateway to automate payment processes.
Payment Card
A payment card, such as a credit or debit card, is a physical or virtual card that allows a customer to make payments.
Payment Card Industry (Pci)
Payment Card Industry (PCI) refers to the organizations, businesses, and systems involved in payment card transactions, including card issuers, payment processors, and merchants.
Payment Card Industry Data Security Standard (Pci Dss)
Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to protect cardholder data during payment card transactions.
Payment Card Industry Professional (Pcip)
A Payment Card Industry Professional (PCIP) is an individual who has received certification in PCI compliance and is knowledgeable about the payment card industry's security standards.
Payment Card Processing Fee
A Payment Card Processing Fee is a fee charged to merchants for processing payment transactions. It may include interchange fees, assessment fees, and payment gateway fees.
Payment Facilitator
A Payment Facilitator is a company or platform that enables businesses or individuals to accept payments from customers, often by aggregating multiple merchants under their own account.
Payment Gateway
A payment gateway is a technology solution that facilitates online transactions by connecting merchants, customers, and financial institutions.
Payment Gateway Aggregator
A Payment Gateway Aggregator is a service provider that consolidates multiple merchants or businesses under a single payment gateway account.
Payment Gateway Api
A Payment Gateway API (Application Programming Interface) is a set of protocols and tools that allow merchants to integrate their websites or applications with a payment gateway.
Payment Gateway Integration
Payment gateway integration is the process of connecting an online payment gateway to an e-commerce website or application, enabling the acceptance of online payments.
Payment Gateway Service Level Agreement (Sla)
A payment gateway service level agreement (SLA) is a contractual agreement between a payment gateway provider and a merchant, defining the terms of service, performance, and availability guarantees.
Payment Link
A payment link is a unique URL that is generated by a payment gateway, allowing customers to make online payments by clicking on the link.
Payment Method
A payment method is a way for customers to provide payment for their online purchases, such as credit cards, digital wallets, or bank transfers.
Payment Notification
A payment notification is a message sent by the payment gateway to the merchant to notify them of a successful payment.
Payment Notifications
Payment Notifications are alerts or messages sent to merchants or customers to confirm the status and details of payment transactions, such as successful payments or declined transactions.
Payment Processor
A Payment Processor is a company or service provider that handles the technical aspects of the payment transaction process, including authorization, settlement, and security.
Payment Reconciliation
Payment Reconciliation is the process of matching and balancing the records of payment transactions between different parties, such as the payment gateway, merchant, and acquiring bank.
Payment Risk Assessment
Payment risk assessment is the evaluation of the likelihood of fraud or improper payment behavior before approving a transaction.
Payment Settlement Period
Payment Settlement Period refers to the time it takes for funds to be transferred from the acquiring bank to the merchant's bank account.
Payout
A Payout is the process of transferring funds from a merchant's account to the merchant's designated bank account.
Payouts
Payouts refer to the process of transferring funds from a merchant's account to a recipient's account, such as payment of commissions or refunds.
Pci Compliance
PCI compliance refers to following the guidelines and requirements set by the Payment Card Industry Security Standards Council to ensure the secure handling of cardholder information.
Pci Dss
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards that merchants must comply with to protect cardholder data.
Pci Saq (Self-Assessment Questionnaire)
A PCI SAQ is a questionnaire provided by the Payment Card Industry Security Standards Council to help merchants assess their compliance with the PCI DSS requirements.
R
Real-Time Payment
Real-Time Payment is a payment method that provides instant or near-instant transfer of funds, allowing customers and merchants to receive and access funds immediately.
Reconciliation
Reconciliation is the process of comparing and matching transaction data, such as sales records and payment settlements, to ensure accuracy and identify discrepancies.
Reconciliation Reports
Reconciliation reports are detailed summaries provided by payment gateways to merchants, showing all processed transactions, fees, reserves, and chargeback information for a specified period.
Reconciliation Statement
A Reconciliation Statement is a document that summarizes the records of payment transactions and financial activities, ensuring the alignment and accuracy of data between different parties.
Recurring Billing
Recurring billing is the process of automatically charging customers at regular intervals for ongoing services or subscriptions.
Recurring Payment
A recurring payment is an automatic payment that is scheduled to recur at regular intervals, such as a monthly subscription.
Recurring Payments
Recurring Payments are payments that are scheduled to be automatically processed on a regular basis, such as monthly or annually, without the need for manual authorization.
Refund
A Refund is the process of returning funds to a customer for a previously processed payment.
Reserve Account
A reserve account is a portion of a merchant's funds that is held by the acquiring bank as a security measure against potential chargebacks or other risks.
Risk Assessment
Risk Assessment is the process of evaluating and analyzing the potential risks associated with payment transactions and implementing appropriate security measures.
S
Secure Socket Layer (Ssl)
Secure Socket Layer (SSL) is a protocol used to secure online communication and protect data transmitted between a web server and a browser.
Secure Sockets Layer (Ssl)
Secure Sockets Layer (SSL) is a security protocol that encrypts data transmitted between a website or online service and a user's web browser.
Settlement
Settlement is the process of completing a payment transaction by transferring the funds from the acquiring bank to the merchant's bank account.
Smart Routing
Smart routing is a feature of payment gateways that dynamically selects the most cost-effective or reliable payment processor for each transaction, based on various factors.
Stored Card Vault
A Stored Card Vault is a secure storage system provided by a payment gateway to store and manage customers' payment card data for recurring or future transactions.
Subscription
A subscription is an agreement between a customer and a merchant where the customer pays a regular fee to access a product or service.
Subscriptions
Subscriptions are recurring payments made by customers for access to products or services on a regular basis, usually at fixed intervals.
Surcharge
A surcharge is an additional fee or percentage added to a transaction amount to cover the cost of processing credit or debit card payments.
T
Tokenization
Tokenization is the process of replacing sensitive card data with a unique identifier, known as a token, to enhance security and reduce the risk of data breaches.
Transaction
A transaction refers to the exchange of funds between a customer and a merchant for a product or service.
Transaction Fee
A Transaction Fee is a fee charged to the merchant or customer for each payment transaction processed through a payment gateway.
Transaction Id
A transaction ID, also known as a payment reference, is a unique identifier assigned to each online transaction to facilitate tracking and reconciliation.
Two-Factor Authentication (2Fa)
Two-Factor Authentication (2FA) is a security measure that requires users to provide two different types of authentication factors, such as a password and a unique code sent to a mobile device, to verify their identity.
V
Virtual Terminal
A Virtual Terminal is an online platform that enables merchants to process payments manually, entering payment card details on behalf of customers.
Z
Zero-Day Fraud Protection
Zero-Day Fraud Protection refers to advanced fraud detection systems and algorithms that can identify and prevent fraudulent transactions in real-time, even on the day they appear.