Term	Definition
2D Secure	2D Secure is a protocol developed by major card networks that provides an extra layer of security for online payment transactions by requiring the cardholder to verify their identity through a one-time password or biometric authentication.
3D Secure	3D Secure is a protocol developed by major card networks that provides an extra layer of security for online payment transactions by requiring the cardholder to verify
Account updater	An account updater is a service provided by card issuers that automatically updates stored payment information
ACH (Automated Clearing House)	ACH is a payment processing network that allows for electronic fund transfers between bank accounts in the United States. ACH transactions are commonly used for direct deposit
ACH Debit Block	ACH Debit Block is a feature provided by banks that allows merchants to block unauthorized ACH debit transactions from their account. This feature is particularly useful for high-risk merchants who are more vulnerable to fraudulent ACH transactions.
ACH returns	Automated Clearing House (ACH) returns are transactions that are returned by the receiving bank due to issues such as insufficient funds or incorrect account numbers.
Acquiring Bank	An acquiring bank is a financial institution that processes payment transactions for merchants and deposits the funds into their merchant account. Acquiring banks are responsible for underwriting merchants
Additional Technical Requirements	Additional technical requirements are specifications set by payment service providers that merchants must meet to be able to process payment transactions through their platform. These requirements are typically related to security
Address Verification Service (AVS) mismatches	AVS mismatches occur when the billing address provided during a transaction does not match the billing address on file with the card issuer.
Address Verification Service (AVS)	AVS is a fraud prevention tool used to verify a cardholder's billing address by comparing it to the address on file with the card issuer.
Aggregate volume cap	An aggregate volume cap is a limit on the total amount of transactions that a merchant can process within a specific timeframe.
Aggregator	An aggregator is a type of payment service provider that allows multiple merchants to use a shared merchant account for payment processing. Aggregators are often used by high-risk merchants who may have difficulty obtaining their own merchant account due to their business type or industry.
Anti-money laundering (AML)	AML refers to a set of laws
Anti-Money Laundering (AML)	AML refers to measures taken by payment service providers and financial institutions to prevent
API Integration	API Integration is a method of integrating a payment gateway into a merchant's website or application using application programming interfaces (APIs). This integration method allows merchants to customize their payment processing and provides more control over the user experience.
Association fee	An association fee is a fee charged by a card association
Authorization hold	An authorization hold is a temporary hold placed on a cardholder's funds to ensure that they are available to cover a pending transaction.
Authorization	Authorization is the process of verifying that a payment card has sufficient funds to cover a transaction.
Authorized Payment Institution	An Authorized Payment Institution is a type of financial institution that is authorized and regulated by a national regulatory authority to provide payment services
Batch Processing	Batch Processing is a method of processing multiple transactions at once in a batch
Batch processing	Batch processing is the process of submitting multiple transactions to a payment processor at the same time.
BIN (Bank Identification Number)	A BIN is the first six digits of a payment card number that identifies the issuing bank.
BIN blocking	BIN blocking is a fraud prevention technique used by merchants to block transactions from specific BINs known to be associated with fraudulent activity.
Card Association fines	Card association fines are penalties imposed on merchants for violating the rules and regulations of a card association.
Card Association	A card association is a network of financial institutions and payment service providers that sets standards and rules for payment card transactions. Major card associations include Visa
Card Issuer	A card issuer is a financial institution that issues payment cards to consumers
Card not present (CNP)	CNP refers to transactions in which a payment card is not physically present
Card scheme rules	Card scheme rules are the rules and regulations set by card associations that govern the acceptance of their payment cards by merchants.
Card Verification Code (CVC)	The CVC is a three or four-digit code on the back of a payment card used to verify the cardholder's identity during a transaction.
Cardholder Authentication	Cardholder Authentication is the process of verifying the identity of a payment cardholder to prevent fraud and unauthorized transactions. This can be done through various methods
Cardholder data	Cardholder data refers to any information that identifies a cardholder or can be used to make unauthorized transactions
Cash Advance	A cash advance is a type of short-term loan provided by credit card issuers that allows cardholders to withdraw cash from an ATM or a bank branch. Cash advances typically have higher interest rates and fees than other credit card transactions.
Cash Reserve Requirement	Cash Reserve Requirement is the minimum amount of cash that payment service providers are required to maintain with the central bank as a reserve to ensure the stability of the payment system.
Chargeback Management	Chargeback Management is the process of managing and resolving chargeback disputes between merchants
Chargeback monitoring program	A chargeback monitoring program is a service provided by some payment processors that monitors a merchant's chargeback rates and provides alerts if they exceed a certain threshold.
Chargeback	A chargeback is a dispute initiated by a customer with their bank or credit card issuer for a payment transaction. Chargebacks can occur due to fraud
Chargeback	A chargeback occurs when a cardholder disputes a transaction and the merchant is required to return the funds to the cardholder.
Checkout page	A checkout page is the final page of an online transaction where the cardholder enters payment information and completes the purchase.
Collateralization	Collateralization refers to the process of providing assets or other security to secure a loan or other financial obligation.
Compliance	Compliance refers to adherence to industry standards
Contactless payment	Contactless payment allows a cardholder to make a payment by simply tapping or waving their payment card or mobile device near a contactless-enabled terminal.
Continuous Compliance Monitoring (CCM)	CCM is a system of continuous monitoring of a merchant's compliance with card association rules and regulations.
Credit card	A credit card is a payment card that allows the cardholder to borrow funds from a financial institution to make purchases
Credit risk	Credit risk refers to the risk of loss that a merchant or financial institution faces if a borrower or customer fails to make required payments.
Cross-border fees	Cross-border fees are additional fees charged to merchants for processing transactions that involve foreign currencies or cross-border payments.
Cryptocurrency	Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Customer dispute	A customer dispute is a disagreement between a cardholder and a merchant over the terms or quality of a product or service purchased with a payment card.
Customer Due Diligence (CDD)	CDD is the process of verifying a customer's identity and assessing their risk for money laundering or terrorist financing activities.
CVV (Card Verification Value)	The CVV is a three or four-digit code on a payment card used to verify the cardholder's identity during a transaction.
De-risking	De-risking is the process of minimizing exposure to high-risk customers or business activities to avoid potential regulatory or financial risks.
Debit card	A debit card is a payment card that allows the cardholder to access funds from their own bank account to make purchases or withdraw cash.
Digital KYC	Digital KYC refers to the use of digital technologies to verify a customer's identity and conduct customer due diligence.
Digital signature	A digital signature is an electronic signature that is created using cryptographic techniques to verify the authenticity of a document or message.
Digital wallet	A digital wallet is a software application that allows a cardholder to store payment information and make purchases using a mobile device or computer.
Digital Wallet	A digital wallet is a software application that allows consumers to store payment card information and make online or in-person payments using their mobile device or computer. High-risk merchants may benefit from accepting digital wallet payments as they are more secure and convenient for consumers.
Direct Integration	Direct Integration is a method of integrating a payment gateway into a merchant's website or application by using the payment gateway's APIs to process transactions directly. This integration method provides more control over the payment processing and can be customized to meet the specific needs of the merchant.
Discount rate	A discount rate is the fee charged by a payment processor to a merchant for processing transactions.
Dynamic currency conversion (DCC)	DCC is a service that allows a cardholder to pay in their own currency when making a purchase in a foreign currency
E-commerce	E-commerce refers to the buying and selling of goods and services over the internet.
E-wallet	An e-wallet is a digital wallet that allows consumers to store and manage various forms of payment
Early warning system	An early warning system is a system used by payment processors to monitor for potential fraudulent or suspicious activity.
eCheck	An eCheck is an electronic version of a paper check that is processed through the Automated Clearing House (ACH) network.
EMV (Europay	Mastercard
EMV (Europay	Mastercard
Encryption	Encryption is the process of converting data into a code to protect it from unauthorized access.
Fraud detection and prevention tools	Fraud detection and prevention tools are software applications used by payment processors and merchants to identify and prevent fraudulent activity.
Fraud	Fraud refers to the deliberate misrepresentation or deception by a person or entity for financial gain.
Gateway fees	Gateway fees are the fees charged by a payment gateway provider for connecting a merchant's website to a payment processor's system.
Gateway	A gateway is a software application that connects a merchant's website to a payment processor's system to process transactions.
Gift card	A gift card is a payment card that is preloaded with a specific amount of funds for use at a particular merchant or group of merchants.
High Risk Merchant	A high-risk merchant is a merchant that is deemed to be at a higher risk of fraudulent activity or chargebacks due to the nature of their business
High-Risk Merchant Account	A High-Risk Merchant Account is a merchant account specifically designed for high-risk merchants who are more vulnerable to chargebacks
High-risk merchant account	A high-risk merchant account is a merchant account that is deemed to have a higher risk of fraud
Holding period	A holding period is the amount of time that funds from a transaction are held by a payment processor or financial institution before they are released to the merchant.
Hosted payment page	A hosted payment page is a payment page hosted by a payment processor on their own website
Hosted Payment Page	A Hosted Payment Page is a web page hosted by a payment service provider that allows customers to enter their payment card information to complete a transaction. Hosted Payment Pages are often used by high-risk merchants who want to minimize their PCI compliance requirements and reduce the risk of fraud.
iFrame Integration	iFrame Integration is a method of integrating a payment gateway into a merchant's website or application using an HTML iFrame. This integration method allows merchants to customize the look and feel of the payment form while still maintaining the security of the payment information.
Independent Sales Organization (ISO)	An ISO is a third-party company that is authorized to resell or market payment processing services on behalf of a payment processor.
Interchange fee	An interchange fee is a fee paid by a merchant's acquiring bank to a card issuer's issuing bank for processing a payment card transaction.
Interchange Plus Pricing	Interchange Plus Pricing is a pricing model used by payment processors that separates the interchange fee paid to the card issuer from the markup charged by the processor. This pricing model is often preferred by larger merchants or those with higher transaction volumes
International ACH Transactions (IAT)	IAT refers to cross-border ACH transactions that involve foreign currencies or foreign financial institutions.
ISO	An ISO
Issuer	An issuer is a financial institution that issues payment cards to consumers
Know Your Business (KYB)	KYB is the process of verifying the identity and legitimacy of a merchant's business to mitigate the risk of financial or reputational damage.
Know Your Customer (KYC)	KYC is the process of verifying the identity of a customer and assessing their risk for money laundering or terrorist financing activities.
KYB/KYC	KYB/KYC (Know Your Business/Know Your Customer) is the process of verifying the identity and legitimacy of a merchant's business and its beneficial owners to mitigate the risk of financial or reputational damage. KYB/KYC requirements are typically set by payment service providers
Liability shift	A liability shift occurs when the responsibility for fraudulent transactions shifts from the issuer to the merchant or vice versa
Limit increase request	A limit increase request is a request by a merchant to increase their transaction or volume limits with a payment processor.
Magnetic stripe	A magnetic stripe is a stripe on the back of a payment card that contains encoded information about the cardholder and account.
Merchant account	A merchant account is a type of bank account that allows a merchant to accept payment card transactions.
Merchant Cash Advance	A merchant cash advance is a type of financing provided by a third-party lender that allows merchants to receive a lump sum of cash in exchange for a percentage of their future sales. Merchant cash advances typically have higher interest rates and fees than traditional bank loans.
Merchant category code (MCC)	An MCC is a four-digit code assigned to a merchant by a payment card network that identifies the merchant's business type.
Merchant Category Code	A Merchant Category Code is a four-digit code assigned to merchants by the credit card associations that indicates the type of business they operate. High-risk merchants may be assigned a higher risk MCC code
Merchant Monitoring Program (MMP)	An MMP is a program that monitors a merchant's transactions to identify potential fraudulent or suspicious activity.
Merchant Reserve Fund (MRF)	An MRF is a reserve account set up by a payment processor to hold a portion of a merchant's funds to cover potential chargebacks or other losses.
Merchant	A merchant is a business or individual that sells goods or services and accepts payment cards as a form of payment.
Mobile payments	Mobile payments allow a cardholder to make a payment using a mobile device
Mobile SDK Integration	Mobile SDK Integration is a method of integrating a payment gateway into a mobile application using software development kits (SDKs). This integration method allows merchants to provide a seamless payment experience within their mobile app and can support various payment methods
Multi-Currency Processing	Multi-Currency Processing is a feature provided by some payment gateways that allows merchants to accept payments in multiple currencies and settle funds in their preferred currency. This integration method is particularly useful for high-risk merchants who operate in multiple countries and need to accept payments in local currencies.
Multi-currency processing	Multi-currency processing is the ability to process payments in multiple currencies
Negative reserve balance	A negative reserve balance occurs when the funds in a merchant's reserve account are insufficient to cover chargebacks or other losses.
Onboarding process	The onboarding process is the process of setting up a new merchant account with a payment processor or financial institution.
One-Click Payment	One-Click Payment is a feature provided by some payment gateways that allows customers to make a payment with a single click
Online payment gateway	An online payment gateway is a software application that connects a merchant's website to a payment processor's system to process transactions.
Payment Card Industry Professional	A Payment Card Industry Professional is an individual who has been certified by the Payment Card Industry Security Standards Council as an expert in payment card security and compliance. High-risk merchants may benefit from working with a PCI Professional to ensure their compliance with PCI DSS and other security standards.
Payment card	A payment card is a physical or virtual card that allows the cardholder to make purchases or withdraw cash from an ATM.
Payment Facilitation	Payment facilitation is the process of enabling merchants to accept electronic payments through a third-party platform
Payment facilitator	A payment facilitator is a company that facilitates payment transactions between a merchant and a payment processor
Payment Gateway	A Payment Gateway is a software application that connects a merchant's website or point-of-sale system to their payment processor to facilitate payment transactions. High-risk merchants may require specialized payment gateways that can handle their unique needs
Payment gateway	A payment gateway is a software application that connects a merchant's website to a payment processor's system to process transactions.
Payment Method	A payment method is a way in which a customer can pay for goods or services
Payment Processor	A Payment Processor is a financial institution or third-party provider that handles the processing of payment transactions between merchants and card issuers. High-risk merchants may require specialized payment processors that can manage their higher risk of chargebacks
Payment service provider (PSP)	A PSP is a company that provides payment processing services to merchants
Payment Service Provider	A Payment Service Provider is a company that provides payment processing services to merchants
Payment terminal	A payment terminal is a device used to accept payments in-person
Payment Widget Integration	Payment Widget Integration is a method of integrating a payment gateway into a merchant's website or application using a pre-built widget or plugin. This integration method is quick and easy to set up and can provide a seamless payment experience within the merchant's existing website or application.
PCI Compliance	PCI compliance refers to the adherence to the Payment Card Industry Data Security Standards (PCI DSS)
PCI DSS (Payment Card Industry Data Security Standard)	PCI DSS is a set of security standards designed to protect cardholder data and prevent fraud in payment card transactions.
PCI DSS Compliance	PCI DSS Compliance refers to the adherence to the Payment Card Industry Data Security Standards (PCI DSS)
PIN (Personal Identification Number)	A PIN is a four or six-digit number used by a cardholder to verify their identity during a transaction.
Point-of-Sale Integration	Point-of-Sale Integration is a method of integrating a payment gateway into a merchant's physical point-of-sale system to process in-person transactions. This integration method can support various payment methods
POS (Point of Sale)	POS refers to the location where a payment transaction occurs
Processor reserve	A processor reserve is a portion of a merchant's funds held by a payment processor to cover potential losses or chargebacks.
Recurring Billing API	Recurring Billing API is a feature provided by some payment gateways that allows merchants to set up and manage recurring payments for subscription services or membership programs. This integration method is particularly useful for high-risk merchants who need to process recurring payments on a regular basis.
Recurring payments	Recurring payments are payments that occur on a regular basis
Redirect Integration	Redirect Integration is a method of integrating a payment gateway into a merchant's website or application by redirecting the customer to the payment gateway's web page to complete the transaction. This integration method reduces the merchant's PCI compliance requirements and can provide an additional layer of security for the payment information.
Regulated Payment Institution	A Regulated Payment Institution is a type of financial institution that is authorized and regulated by a national regulatory authority to provide payment services
Remote Deposit Capture (RDC)	RDC is a service that allows a merchant to deposit paper checks electronically using a scanner or mobile device.
Reserve account	A reserve account is a bank account set up by a payment processor or financial institution to hold a portion of a merchant's funds to cover potential losses or chargebacks.
Residuals	Residuals are recurring payments made by a payment processor to an independent sales organization (ISO) or agent based on the volume or value of transactions processed by the merchants they referred to the processor. Residuals are typically paid as a percentage of the transaction volume and provide an ongoing source of revenue for the ISO or agent.
Risk assessment	A risk assessment is the process of evaluating a merchant's risk for fraud
Risk Assessment	Risk Assessment is the process of evaluating the level of risk associated with a merchant's business and its payment processing activities. High-risk merchants require specialized risk assessment services to identify and manage potential risks related to fraud
Rolling reserve	A rolling reserve is a percentage of a merchant's funds held in reserve by a payment processor to cover potential losses or chargebacks.
Rolling Reserve	Rolling Reserve is a mechanism used by payment service providers to hold a portion of a merchant's revenue as a reserve to cover potential chargebacks or other risks. Rolling reserves are often required for high-risk merchants to mitigate the higher risk associated with their business.
Secure Remote Commerce (SRC)	SRC is a protocol developed by major card networks that provides a standardized
Secure Sockets Layer (SSL)	SSL is a protocol for encrypting and authenticating internet traffic to protect against unauthorized access or interception.
Settlement Agent	A settlement agent is a third-party provider that processes settlement between acquiring banks and card issuers. Settlement agents are responsible for ensuring that funds from payment transactions are transferred between the parties involved and that each party receives the correct amount of money.
Settlement period	A settlement period is the time it takes for funds from a transaction to be transferred from a customer's account to a merchant's account.
Settlement	Settlement is the process of transferring funds from a customer's account to a merchant's account for a completed transaction.
Skimming	Skimming is a method of stealing payment card information by using a device to read the magnetic stripe on the back of the card.
Third-Party Processor	A Third-Party Processor is a company that provides payment processing services on behalf of another company
TMF/MATCH List	The TMF/MATCH list is a database of merchants that have been terminated or marked as high risk by payment service providers or credit card associations due to fraudulent or suspicious activity
Token	A token is a unique identifier used in place of sensitive payment card information to protect against fraud and unauthorized access. Tokens can be generated by payment processors or issuers and can be used to process transactions without exposing the cardholder's actual payment card information.
Tokenization	Tokenization is a security feature provided by some payment gateways that replaces sensitive payment card information with a unique token
Tokenization	Tokenization is the process of replacing sensitive payment card information with a unique token to protect against fraud and unauthorized access.
Transaction fee	A transaction fee is a fee charged by a payment processor to a merchant for each transaction processed.
Transaction Laundering	Transaction Laundering is a type of fraud where a merchant processes transactions on behalf of another merchant without the latter's knowledge or consent. High-risk merchants are more vulnerable to transaction laundering and require specialized fraud prevention measures to mitigate this risk.
Transaction limit	A transaction limit is a maximum amount that can be processed in a single payment transaction.
Transaction monitoring	Transaction monitoring is the process of monitoring payment transactions for potential fraudulent or suspicious activity.
Transaction volume	Transaction volume is the total number of transactions processed by a merchant or payment processor within a specific timeframe.
Transfer hold	A transfer hold is a temporary hold placed on a merchant's funds by a payment processor or financial institution to cover potential losses or chargebacks.
Virtual Currency	Virtual currency is a type of digital currency that is not backed by any government or physical commodity. Virtual currencies
Virtual Terminal Integration	Virtual Terminal Integration is a method of processing payments through a web-based application that allows merchants to manually enter payment card information to process transactions. Virtual Terminal Integration is often used by high-risk merchants who do not have a physical point-of-sale system or who need to process transactions remotely.
Virtual terminal	A virtual terminal is a web-based application that allows a merchant to manually process payment transactions using a computer or mobile device.
Virtual Terminal	A Virtual Terminal is a web-based application that allows merchants to manually enter payment card information to process transactions. Virtual terminals are often used by high-risk merchants who do not have a physical point-of-sale system or who need to process transactions remotely.
Voice Authorization	Voice Authorization is a process used to verify a payment transaction by phone
Volume cap	A volume cap is a limit on the total amount of transactions that a merchant can process within a specific timeframe.
Volume Caps	Volume caps refer to the maximum volume or amount of transactions that a payment service provider allows a merchant to process in a given period. This limit is often put in place to prevent fraud
Webhook Integration	Webhook Integration is a method of integrating a payment gateway into a merchant's website or application by using a callback URL to receive notifications about payment events
White Label Integration	White Label Integration is a method of integrating a payment gateway into a merchant's website or application using a customized branding and user interface. This integration method allows merchants to provide a seamless payment experience within their own brand and can increase customer trust and loyalty.
Whitelisting	Whitelisting is a security feature provided by some payment gateways that allows merchants to specify which IP addresses or domains are authorized to access their payment processing system. This integration method can help prevent unauthorized access to the payment processing system and minimize the risk of fraud or data breaches.
Wire Transfer	A Wire Transfer is a type of electronic transfer of funds between banks or financial institutions. Wire transfers are often used for large or international transactions and can be subject to additional fees and regulatory requirements for high-risk merchants.
Zero floor limit	A zero floor limit is a policy that requires all transactions to be authorized
Zero Floor Limit	Zero Floor Limit is a feature provided by some payment processors that requires all transactions to be authorized in real-time