Glossary

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

Primary Account Number (PAN)

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

Void Transaction

Canceling a sale before it's finalized.

Preauthorization

A hold on funds before the purchase is finalized.

Zero Liability Policy

A promise you won't pay for unauthorized use.

Transaction Lifecycle

The journey of a sale from start to finish.

Turning sensitive info into a safe code.

Finalizing a transaction's money movement.

Secure Electronic Transaction (SET)

A system making online card payments safe.

Rolling Reserve

Money set aside for potential future issues.

Retrieval Request

When the bank asks for details about a sale.

Reserve Account

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

Representment Rights

A business's right to challenge a chargeback.

Why the chargeback was started.

When a business fights a chargeback.

Merchant Category Code (MCC)

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

Pre-Arbitration

Before the final step in a chargeback fight.

Payment Processor

A helper for businesses to accept card payments.

Merchant ID (MID)

A business's unique code for card payments.

Merchant Descriptor

How a business's name appears on your statement.

The bank that gave you your credit or debit card.

Merchant Account

An account businesses use to get card payments.

Magnetic Stripe

The black line on the back of your card.

The bank giving out credit or debit cards.

Interchange Fee

Fee that stores pay to banks for card transactions.

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

High-Risk Merchant

A business type that banks think might get many chargebacks.

The middleman that checks and processes online payments.

When a shopper wrongly starts a chargeback.

Things like eBooks or online courses.

Fraud Screening

Checking transactions for suspicious activity.

Excessive Chargebacks

When a business gets too many chargebacks.

EMV (Europay Mastercard Visa)

A chip in your card for extra safety.

Dispute Resolution

Sorting out issues between a shopper and business.

A code saying why a card wasn't accepted.

An online security protocol designed to prevent fraud in card-not-present transactions.

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

A note showing you've been refunded or credited.

Counterfeit Fraud

When a fake card is used for a purchase.

Compelling Evidence

Proof the business shows to fight a chargeback.

Chargeback Ratio

The percentage of sales that become chargebacks.

Chargeback Code

A code that tells why someone started a chargeback.

Chargeback Analyst

An expert who checks if a chargeback claim is right.

Card Verification Value (CVV)

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

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

Card Not Present (CNP)

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

Companies like Visa and Mastercard that help with card payments.

Confirming and collecting a payment.

BIN (Bank Identification Number)

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

Getting a green light from the bank for a purchase.

The bank helping businesses accept card payments.

Address Verification Service (AVS)

Matching your address with the card's address.

Chargeback Period

The time a shopper has to start a chargeback.

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Term

Simple defination

Interchange Fee

Fee that stores pay to banks for card transactions.

Issuer

The bank that gave you your credit or debit card.

Issuing Bank

The bank giving out credit or debit cards.

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