The Payzli Dictionary

Home , Chargeback, Credit card, Payment card

ACH

Automated Clearing House. An automated clearing house is a computer-based electronic network for processing transactions, usually domestic low-value payments, between participating ﬁnancial institutions. It may support both credit transfers and direct debits.

API

Application Programming Interface. An application programming interface is an interface that deﬁnes interactions between multiple software applications or mixed hardware-software intermediaries.

Basis Points

A basis point refers to the 1/100th of a percent. For example, 0.01% would equal 1 point, 0.25% would equal 25 points, and so on.

Batch

Batch credit card processing is the practice of a merchant processing all its authorized credit card transactions for the day after the close of the business day, or at a time determined by the credit card processor. Credit card batch processing is the merchant’s second step towards getting paid for its customers’ credit card transactions.

Card-Not-Present Fraud

Also known as E-commerce Fraud, card-not-present fraud occurs in fraudulent transactions where a cardholder does not present a card to a merchant in person. It includes internet, phone and mail-order transactions. In most cases, this type of fraud happens after a crook steals card information such as a card number with hacking, skimming or phishing.

Chargebacks

A chargeback is a return of money to a payer of some transaction, especially a credit card transaction. Most commonly the payer is a consumer. The chargeback reverses a money transfer from the consumer's bank account, line of credit, or credit card.

Cardholder Veriﬁcation Method

Cardholder Verification Method or is a payment card verification method used to validate (authenticate) that the person presenting the Bank Card Number is the valid cardholder. Card issuers decide the requirements for Cardholder Verification Method.

EMV

Euro MasterCard Visa (EMV) is a payment method based upon a technical standard for smart payment cards and for payment terminals and automated teller machines which can accept them.

EMV Dip

Card dipping is the insertion of a credit or debit card into a reader in an automated teller machine or EMV point of sale terminal. Dipping can be contrasted with swiping, the act of sliding a magnetic stripe card quickly through a magnetic stripe reader.

E-check

A digital version of a paper check. It is also known as an electronic check, online check, internet check, and direct debit. E-Checks use the Automated Clearing House (ACH) to direct debit from a customer's checking account into a merchant's business bank account, with the help of a payment's processor.

Interchange fees

Transaction fees that the merchant's bank account must pay whenever a customer uses a credit or debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud, bad debt costs, and the risk involved in approving the payment.

Gateway (Payment Gateway)

A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.

Interchange Cost Plus (IC+)

Interchange-plus is a pricing model used by credit card processors to determine the per-transaction cost paid by merchants. The model consists of two components — the interchange fee determined by the card networks and a markup set by the credit card processor itself.

Interchange optimization

Obtaining the best rate for B2B and B2G purchases by giving extra detail about each transaction.

Integrated Payments

Integrated Payments is a broad term, but it essentially means a payment system that communicates with all other critical software your business uses. That means the exact structure of an integrated system is unique to every business.

Mobile Payments

This is referred to payment services operated under ﬁnancial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a wide range of services and digital or hard goods.

MSP

Merchant Services Provider. The company that provides merchants with the tools and services they need to process credit or debit cards.

Next-Day Funding

When a merchant will receive funds from credit and debit transactions on the next business day.

NFC

Near Field Communication. A wireless technology that allows users to make payments by placing a NFC device like a smartphone or credit card within a few centimetres of another NFC device such as a payment.

NSF

Non-Sufﬁcient Funds. More commonly known as insufﬁcient funds, NSF, refers to a checking account that does not have enough funds to successfully process a payment.

Online Retrieval

Online retrieval and chargebacks go hand in hand, Online retrieval is a request for information on a transaction. If a transaction does turn out to be fraudulent it then becomes a chargeback.

Processor

Payment Processor. Facilitates the disbursement of funds between the card networks, issuing and acquiring banks, and merchant's account.

P2PE

Point-to-Point Encryption is a standard established by the PCI Security Standards Council. Payment solutions that offer similar encryption but do not meet the P2PE standard are referred to as end-to-end encryption solutions.

POS

Point Of Sale. The point of sale or point of purchase is the time and place where a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer, and indicates the options for the customer to make payment.

SaaS

Software as a service is a software licensing and delivery model in which a software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as an "on- demand software" and was formerly referred to as "software plus services" by Microsoft.

Virtual terminal

Software or web-based solution allows the merchant to process payments from their desktops or laptops. The card doesn't have to be present.