Glossary

This glossary provides key terms from the payments industry, simplifying the complexities of payment processes for you.

3D Secure

An extra step to make online card payments safe.

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Acquiring Bank

The bank helping businesses accept card payments.

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Address Verification Service (AVS)

Matching your address with the card's address.

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Authorization

Getting a green light from the bank for a purchase.

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BIN (Bank Identification Number)

The first few numbers on a card that tell you the bank.

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Capture

Confirming and collecting a payment.

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Card Network

Companies like Visa and Mastercard that help with card payments.

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Card Not Present (CNP)

Transactions where the card isn't physically shown, like online shopping.

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Card Verification Value (CVV)

The 3 or 4 digits on your card's back for safety.

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Cardholder

The person who owns and uses a credit or debit card.

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Chargeback Analyst

An expert who checks if a chargeback claim is right.

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Chargeback Code

A code that tells why someone started a chargeback.

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Chargeback Period

The time a shopper has to start a chargeback.

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Chargeback Ratio

The percentage of sales that become chargebacks.

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Clearing

The step where payment details are checked and adjusted before the final payment.

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Compelling Evidence

Proof the business shows to fight a chargeback.

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Confirmation Number

A unique code for a specific purchase.

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Counterfeit Fraud

When a fake card is used for a purchase.

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Credit Memo

A note showing you've been refunded or credited.

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Decline Code

A code saying why a card wasn't accepted.

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Digital Goods

Things like eBooks or online courses.

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Dispute Resolution

Sorting out issues between a shopper and business.

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EMV (Europay Mastercard Visa)

A chip in your card for extra safety.

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Excessive Chargebacks

When a business gets too many chargebacks.

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Fraud Screening

Checking transactions for suspicious activity.

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Friendly Fraud

When a shopper wrongly starts a chargeback.

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Gateway

The middleman that checks and processes online payments.

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High-Risk Merchant

A business type that banks think might get many chargebacks.

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Holdback

Money the bank keeps for a bit, just in case.

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Interchange Fee

Fee that stores pay to banks for card transactions.

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Issuer

The bank that gave you your credit or debit card.

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Issuing Bank

The bank giving out credit or debit cards.

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Magnetic Stripe

The black line on the back of your card.

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Merchant Account

An account businesses use to get card payments.

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Merchant Category Code (MCC)

A code that tells what type of business a merchant does.

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Merchant Descriptor

How a business's name appears on your statement.

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Merchant ID (MID)

A business's unique code for card payments.

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Payment Processor

A helper for businesses to accept card payments.

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Pre-Arbitration

Before the final step in a chargeback fight.

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Preauthorization

A hold on funds before the purchase is finalized.

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Primary Account Number (PAN)

A unique number on payment cards identifying the card issuer and account holder.

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Re-presentment

When a business fights a chargeback.

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Reason Code

Why the chargeback was started.

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Representment Rights

A business's right to challenge a chargeback.

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Reserve Account

A special account where banks keep some of a merchant's money for security reasons.

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Retrieval Request

When the bank asks for details about a sale.

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Rolling Reserve

Money set aside for potential future issues.

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Secure Electronic Transaction (SET)

A system making online card payments safe.

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Settlement

Finalizing a transaction's money movement.

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Tokenization

Turning sensitive info into a safe code.

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Transaction Lifecycle

The journey of a sale from start to finish.

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Void Transaction

Canceling a sale before it's finalized.

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Zero Liability Policy

A promise you won't pay for unauthorized use.

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