This glossary provides key terms from the payments industry, simplifying the complexities of payment processes for you.
The time a shopper has to start a chargeback.
The designated timeframe during which a cardholder can raise a dispute against a transaction and initiate a chargeback.
A code that tells why someone started a chargeback.
A designated code provided by card networks that categorizes and details the reason for a chargeback initiation.
An expert who checks if a chargeback claim is right.
A specialist proficient in evaluating the legitimacy and reasons behind chargeback claims, often working on behalf of merchants or financial institutions.
Companies like Visa and Mastercard that help with card payments.
Organizations responsible for facilitating and overseeing card transactions between merchants, acquirers, and issuers.
The person who owns and uses a credit or debit card.
The authorized individual to whom a payment card has been issued and who is responsible for its transactions.
The first few numbers on a card that tell you the bank.
The initial series of numbers on a credit or debit card that identifies the issuing institution.
Getting a green light from the bank for a purchase.
The process by which a transaction is approved by the card-issuing bank, ensuring sufficient funds or credit availability.
Matching your address with the card's address.
A security feature that verifies the address provided by the cardholder matches the issuer's records.
Confirming and collecting a payment.
The process of finalizing a preauthorized transaction, ensuring funds are transferred from the cardholder's account.
The step where payment details are checked and adjusted before the final payment.
The process of matching, verifying, and reconciling payment instructions between the parties involved before settlement.
A special account where banks keep some of a merchant's money for security reasons.
An account maintained by the acquiring bank to hold funds as security against potential future liabilities, chargebacks, or disputes.
A code that tells what type of business a merchant does.
A four-digit code assigned to a business to classify its primary services or products. Examples include 5411 for 'Grocery Stores' or 5812 for 'Eating Places.'
The black line on the back of your card.
A strip of magnetic material on payment cards containing essential transaction data.
Transactions where the card isn't physically shown, like online shopping.
Transactions in which the payment card is not physically presented to the merchant.
The percentage of sales that become chargebacks.
The proportion of transactions disputed by customers compared to the total transaction volume.
The middleman that checks and processes online payments.
A technology solution that transmits payment data from the merchant to the payment processor.
Fee that stores pay to banks for card transactions.
A fee paid between banks for the acceptance of card-based transactions, often borne by the merchant.
A system making online card payments safe.
A standard protocol ensuring security and confidentiality of payment card transactions over the internet.
Money set aside for potential future issues.
A portion of the merchant's funds held by the acquiring bank as a protective measure against unforeseen liabilities, chargebacks, or other risks.
When a business gets too many chargebacks.
A situation where a merchant faces a disproportionately high number of chargebacks relative to their transaction volume.
When a fake card is used for a purchase.
Fraudulent activity resulting from the use of a fabricated or cloned payment card.
How a business's name appears on your statement.
The name or description of a merchant that appears on the cardholder's statement to identify transactions.
Things like eBooks or online courses.
Intangible items that are sold and delivered electronically, such as music downloads, e-tickets, or virtual goods.
A business type that banks think might get many chargebacks.
A merchant categorized as high-risk due to the nature of their industry or their higher likelihood of facing chargebacks.
A promise you won't pay for unauthorized use.
A policy ensuring cardholders are not held responsible for unauthorized transactions on their cards.
The journey of a sale from start to finish.
The entire process a transaction undergoes from initiation to final settlement.
The bank helping businesses accept card payments.
The financial institution that establishes an account for merchants to process their card transactions.
The bank giving out credit or debit cards.
The bank or financial institution that provides debit or credit cards to consumers and is responsible for their transactions.
A business's right to challenge a chargeback.
The rights granted to merchants allowing them to dispute and challenge chargebacks initiated by cardholders.
An extra step to make online card payments safe.
An authentication step for online card transactions to enhance security, requiring the cardholder to enter a password or use biometrics.
When a shopper wrongly starts a chargeback.
A situation where a legitimate transaction is disputed by the cardholder, often due to forgetfulness or misunderstanding.
The 3 or 4 digits on your card's back for safety.
A security code found on payment cards, used to authenticate online and over-the-phone transactions.
Canceling a sale before it's finalized.
A transaction that has been nullified or canceled before it has been settled or completed.
Turning sensitive info into a safe code.
A security measure where sensitive data, like card numbers, are replaced with a unique and random string of characters.
Finalizing a transaction's money movement.
The process where the transfer of funds between the merchant and the issuing bank is completed post-transaction.
When the bank asks for details about a sale.
A request made by an issuer to a merchant for documentation concerning a transaction, often preceding a chargeback.
When a business fights a chargeback.
The process by which a merchant disputes a chargeback, presenting evidence to prove the transaction's validity.
A hold on funds before the purchase is finalized.
The process where a certain amount of money is reserved on a cardholder's account before the final transaction occurs.
Money the bank keeps for a bit, just in case.
A portion of the merchant's revenue retained by the acquirer as a security against potential future chargebacks or disputes.
Why the chargeback was started.
A specific code provided by card networks detailing the primary reason for the initiation of a chargeback.
Before the final step in a chargeback fight.
The phase in a chargeback dispute before it reaches the final arbitration stage, offering one last chance for resolution between the parties.
A helper for businesses to accept card payments.
A company that handles the transaction process for merchants, facilitating the transfer of funds between buyers and sellers.
An account businesses use to get card payments.
A specialized bank account enabling businesses to accept and process credit and debit card payments.
A business's unique code for card payments.
A unique code assigned to a merchant by their payment processor or acquiring bank for identification purposes.
The bank that gave you your credit or debit card.
The financial institution that issues payment cards and is responsible for reimbursing the merchant's bank during transactions.
Checking transactions for suspicious activity.
A systematic procedure that evaluates transactions to detect potential unauthorized or fraudulent activity.
A code saying why a card wasn't accepted.
A specific code provided by payment gateways or banks, indicating the reason a transaction was not approved.
A chip in your card for extra safety.
Global standard for card payments, using chip-based technology to authenticate and secure transactions.
Proof the business shows to fight a chargeback.
Documentary evidence provided by the merchant to dispute and contest a chargeback claim.
Sorting out issues between a shopper and business.
The process by which conflicts arising from transactions, especially chargebacks, are settled between cardholders and merchants.
A note showing you've been refunded or credited.
A document issued by the merchant indicating that a refund or credit was provided to the cardholder's account.