3D Secure
An authentication protocol that adds a verification step for online card payments, helping confirm the cardholder and shift certain fraud liability.
Learn more →Acquirer
The bank or financial institution that processes card payments on behalf of a merchant and settles funds into the merchant’s account. Also called the acquiring bank.
Address Verification Service (AVS)
A check that compares the billing address entered by a customer with the address on file at the card issuer.
Assessment fees
Fees charged by card networks for use of their networks, usually a small part of total processing cost.
Learn more →Authorization
The real-time request to the card issuer asking whether a transaction can be approved and funds are available.
Learn more →Average ticket
The typical value of a single transaction — total volume divided by number of transactions.
Learn more →Batch
A group of authorized transactions submitted together for settlement, often at the end of a business day.
BIN
Bank Identification Number — the first digits of a card number, identifying the issuing bank and card type.
Capture
The step that finalizes an authorized payment so it can be settled.
Card testing
A fraud pattern where criminals run many small transactions to check whether stolen card numbers work.
Learn more →Card-not-present (CNP)
A transaction where the card isn’t physically presented, such as online, phone or keyed-in payments.
Learn more →Card-present (CP)
A transaction where the card or device is physically used at a terminal — tap, chip or swipe.
Learn more →Chargeback
A disputed transaction reversed by the card issuer at the cardholder’s request, pending the merchant’s response.
Learn more →Chargeback ratio
Chargebacks as a share of transactions over a period. Card networks monitor it closely.
Learn more →Contactless
Tap-to-pay payments made with a card, phone or wearable using near-field communication (NFC).
Learn more →CVV / CVC
The security code printed on a card, used to help verify card-not-present transactions.
Decline
A transaction the issuer or processor doesn’t approve — for reasons like insufficient funds, suspected fraud or incorrect details.
Learn more →Descriptor
The business name that appears on a customer’s card statement. A clear descriptor helps prevent confused-customer disputes.
Digital-asset settlement
Receiving part or all of payouts in supported digital assets instead of only to a bank account.
Learn more →Dunning
The process of communicating with customers and retrying payments after a recurring charge fails.
Learn more →Effective rate
Total processing fees divided by total card volume for the same period — the fairest way to compare processors.
Learn more →EMV
The chip-card standard used for secure card-present payments.
Encryption
Scrambling data so it can only be read with the right key, protecting it in transit and at rest.
Learn more →Fraud screening
Real-time analysis of transactions using signals like velocity, device and geography to stop suspicious payments.
Learn more →Gateway
The technology that securely transmits payment data from a checkout to the processor.
Learn more →High-risk merchant
A business that card networks or acquirers consider higher risk because of industry, billing model, dispute history or other factors.
Learn more →Hosted checkout
A secure payment page hosted by the provider, keeping sensitive card data off the merchant’s servers.
Learn more →Interchange
The fee paid by the merchant’s acquirer to the cardholder’s issuing bank on each card transaction, set by the card networks.
Learn more →Interchange-plus
A pricing model that passes through interchange and network fees at cost plus a fixed, visible markup.
Learn more →Issuer
The bank that issued the customer’s card and approves or declines authorizations.
MCC
Merchant Category Code — a four-digit code that classifies a business by what it sells.
Learn more →Merchant account
An account that allows a business to accept card payments, where funds settle before being paid out to the business bank account.
Learn more →Mobile wallet
A digital wallet such as Apple Pay or Google Pay that stores tokenized cards on a device.
Learn more →MRR
Monthly recurring revenue — the predictable revenue a subscription business earns each month.
Learn more →Payment facilitator
A provider that onboards many merchants under its own master merchant account.
Learn more →Payment link
A shareable URL that lets a customer pay without a full checkout integration.
Payout
The transfer of settled funds from the merchant account to the business’s bank account (or wallet).
Learn more →PCI DSS
The Payment Card Industry Data Security Standard — security requirements for businesses that handle card data.
Learn more →Processor
The company that moves transaction data between merchants, card networks and banks to authorize and settle payments.
Learn more →Recurring billing
Charging customers automatically on a schedule using a stored, tokenized payment method.
Learn more →Refund
Returning funds to a customer for a completed transaction, initiated by the merchant.
Rolling reserve
A percentage of revenue held for a set period to cover potential chargebacks or refunds.
Learn more →Routing
Choosing the path a transaction takes through processing networks. Intelligent routing evaluates paths to help more payments succeed.
Settlement
The process of moving funds for approved transactions from the issuer, through the networks, to the merchant.
Learn more →Statement descriptor
See Descriptor.
Tiered pricing
A pricing model that groups transactions into rate tiers such as qualified, mid-qualified and non-qualified.
Learn more →Tokenization
Replacing card details with a unique token so the real card number doesn’t travel or get stored.
Learn more →Underwriting
The review a provider performs to assess a business before approving a merchant account.
Learn more →Velocity check
A fraud rule that flags unusually frequent transactions from the same card, device or location.
Virtual terminal
A web-based tool for keying in card payments taken by phone or mail.
Webhook
An automated message sent to your system when an event happens, such as a payment succeeding or failing.
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