Term Definitions

Recurring transactions triggered automatically at specified intervals using saved payment methods, reducing friction in billing cycles

A pre-scheduled transaction where funds are moved from one bank account to another, often used for subscriptions or billing cycles

The process of reattempting declined authorizations to improve success rates, often via smart routing, updated MCCs, or data enrichment

The percentage of successfully approved transactions during the authorization phase, a key performance indicator for payment optimization

A temporary reservation of funds on a customer’s account after authorization but before capture or settlement

The real-time approval of a payment transaction by the cardholder’s bank, verifying both identity and availability of funds

A set of protocols enabling communication between systems. In payments, APIs link merchant platforms to payment gateways or processors

A set of regulations and procedures aimed at preventing the use of financial systems for money laundering or terrorist financing

Non-traditional payment options such as e-wallets, local bank transfers, and cryptocurrencies, often tailored to specific markets

A method of managing commission-based payments to affiliates, influencers, or referral partners through automated payout systems

A unique transaction ID used to trace a card payment as it moves between the acquirer and the cardholder’s bank

A financial institution that processes card transactions on behalf of a merchant, ensuring authorization and fund settlement.

An electronic funds transfer system in the U.S. used for direct deposits, bill payments, and B2B transfers, a digital alternative to paper checks.

The act of users initiating a checkout process but failing to complete the payment, often due to friction, unclear pricing, or missing payment options.

Commercial transactions between two businesses, typically involving invoicing, extended payment terms, and bank-based settlements

A financing option that lets customers pay in instalments while the merchant receives full upfront payment from the BNPL provider

The use of blockchain infrastructure for real-time settlements, reduced transaction costs, and cross-border transparency in payments

A decentralised digital ledger where transaction records are publicly stored in immutable blocks, supporting transparency and security

A service enabling merchants to accept Bitcoin payments and convert them into local currency or hold in crypto wallets

Accepting Bitcoin directly or via a crypto processor as a form of online payment, converted into fiat or settled as crypto

A method of verifying user identity using fingerprint, facial recognition, or iris scan, mainly used in mobile payments

A globally recognized code that identifies financial institutions during international transfers, often used with IBANs

Specialized payment infrastructure for high-risk betting and gambling platforms, requiring fast settlement, KYC, and chargeback management

The grouping of multiple payment transactions for simultaneous processing, typically executed at the end of the business day

A payment method where funds are moved from one bank account to another, either domestically or internationally, often using ACH or SWIFT

The infrastructure that facilitates direct transfers between customer and merchant bank accounts in real time or via batch.

The first 6–8 digits of a card number that identify the issuing bank, card brand, and type used in fraud detection and routing.

A tool that provides visibility and control over available balances across currencies, payment methods, or payout accounts.

Personalized receipts including branding, messaging, legal info, and purchase details to improve post-payment experience and compliance

Transactions where the sender and recipient are in different countries; often involve FX conversion, regulatory checks, and network fees

Enables merchants to accept crypto payments, often converting them into fiat, while managing volatility and regulatory compliance

A decentralized digital asset used as a medium of exchange or store of value, e.g., Bitcoin, Ethereum, secured by cryptography

A card that allows users to borrow funds up to a set limit for purchases, with repayment due later, often with interest

A threshold amount under which a cardholder can pay via tap without entering a PIN; varies by country and card type

The process of reconciling and preparing a transaction for settlement between financial institutions, including fund allocation

Tools and processes designed to minimize chargebacks, including fraud screening, real-time alerts, and clear refund policies

A reversal of funds initiated by the cardholder’s issuing bank due to disputes, fraud claims, or processing errors

The final step in a purchase journey where users confirm their order and submit payment via the chosen method

A state-issued digital currency backed by a central bank, offering a regulated alternative to cash and commercial cryptocurrencies

A centralized banking platform used by financial institutions to manage customer accounts, transactions, loans, and reporting in real time

Specialized payment solutions tailored for licensed online casinos, including e-wallets, vouchers, and fast KYC-compliant methods

A 3- or 4-digit code used to verify card-not-present transactions and reduce fraud; typically located on the back or front of the card

Transactions where the card is not physically presented, including online, phone, and stored-card payments, requiring additional security checks

Payments made when the card is physically presented at the point of sale, typically via chip, swipe, or contactless methods

Organizations that set the rules for card payments and manage the infrastructure between issuers, acquirers, and merchants (e.g., Visa, Mastercard)

An individual to whom a payment card has been issued by a bank or financial institution and who is authorized to use it

A formal challenge raised by a customer against a payment, potentially resulting in a chargeback if not resolved favorably

A pull-based payment where a business withdraws funds from a customer’s bank account on agreed terms or schedule

An app or platform (e.g. Apple Pay, PayPal) that stores payment credentials and allows fast, secure payments online or in-store

An electronically delivered invoice, sent via email, SMS, or link, that allows customers to pay online instantly

A broad term covering all electronically stored currencies, including cryptocurrencies and centrally issued digital cash (CBDCs)

A card linked to a bank account that deducts funds in real time when used for purchases; supports both CP and CNP transactions

A feature allowing international customers to view and pay in their local currency at checkout, with exchange rates shown upfront

A rule where merchants assume fraud liability if they don’t support EMV chip transactions and process a counterfeit magnetic stripe card

A global standard for chip-based credit and debit card transactions that enhances in-person payment security

A digital version of a traditional paper invoice that enables faster processing and payment via integrated digital channels

A method of moving funds electronically between bank accounts, includes direct deposit, online transfers, and ATM withdrawals

Automated payments made through standardized electronic documents exchanged between business systems, streamlining B2B transactions

Payment processing infrastructure designed specifically for online stores, supporting multiple payment types and currencies

The buying and selling of goods or services over the internet using digital storefronts and electronic payment methods

An electronic method for generating, sending, and managing invoices and bills, reducing manual effort and paper usage

Unauthorized or deceptive activity in payments, including identity theft, card testing, phishing, and chargeback abuse

Government-issued money not backed by a physical commodity. Examples include USD, EUR, and GBP

An intergovernmental body that sets global standards to combat money laundering and terrorist financing

A direct server-to-server integration method enabling secure, high-volume transaction processing without frontend involvement, best for enterprises

A business category with elevated fraud, chargeback, or regulatory exposure (e.g. gaming, adult, forex), requiring specialized payment solutions

The financial institution that provides a card to a consumer, approves or declines transactions, and handles repayment and disputes

A system enabling real-time data sharing between vehicles, infrastructure, and external services, with emerging applications in embedded commerce and payments

A network of internet-connected devices that can exchange data, in payments, used in smart terminals and unattended commerce

A payment solution supporting global transactions, multi-currency processing, and cross-border compliance for international merchants

A fee paid by the acquiring bank to the issuing bank for processing a card transaction, set by card networks and influenced by card type, region, and risk

A digital tool that automates invoice creation, sending, tracking, and payment collection, improving billing workflows for businesses

A standardized international bank account format used to ensure accurate and efficient cross-border bank transfers

A regulatory process where businesses verify the identity of clients to prevent fraud, money laundering, and financial crime

Payment solutions preferred in specific countries or regions (e.g. iDEAL in the Netherlands, Boleto in Brazil), enhancing checkout conversion locally

Predefined thresholds set for transactions, accounts, or payment flows, used to manage risk, fraud exposure, or regulatory compliance

A security protocol requiring users to verify their identity through two or more factors

A payment gateway capability that allows merchants to accept payments in different currencies while settling in their preferred currency

An app or embedded phone feature that securely stores card details for contactless or in-app payments (e.g. Apple Pay, Google Wallet)

Payment tools designed specifically for smartphones and tablets, includes wallets, QR codes, and mobile banking apps

A broad term for transactions initiated via mobile devices, including tap-to-pay, mobile wallets, and in-app payments

A unique identifier assigned to a merchant by the acquiring bank or PSP, used for transaction routing and reporting

The acquiring bank that underwrites the merchant account, handles transaction settlements, and assumes processing risk

A special type of bank account that allows a merchant to accept and settle payments from card or digital transactions

A business or individual that sells goods or services and accepts electronic payments through various channels

A four-digit code used to classify merchants by business type, impacts transaction fees, risk assessments, and reporting

A 3D Secure protocol by Mastercard requiring cardholder authentication during online payments to reduce fraud

Automated alerts triggered by payment events (e.g. successful transaction, failure, refund), sent to merchants or end users in real time

Unique digital assets stored on a blockchain, representing ownership of items such as artwork, media, or in-game items

A wireless technology enabling close-range communication between devices, widely used in tap-to-pay contactless payments

A framework allowing third-party providers to access consumer financial data (with consent) for services like account aggregation or direct bank payments

A checkout feature that enables repeat customers to complete purchases instantly using securely stored payment credentials

A form of online fraud where attackers impersonate trusted entities to steal sensitive information such as passwords or payment details

A secret numeric code used by cardholders to authenticate transactions at ATMs or POS terminals

Direct payments between individuals using digital apps, often without intermediaries

A validation that confirms a company complies with PCI DSS security requirements for storing, transmitting, or processing card data

A set of global security standards created by major card networks to protect cardholder data in payment systems

The transfer of funds from a business or platform to individuals or merchants, typically for withdrawals, settlements, or commissions

A company that offers businesses the ability to accept digital payments, manage risk, and connect to multiple payment methods and acquirers

A European Union regulation governing electronic payments, mandating SCA and open banking access for increased security and competition

The cancellation of a previously authorized transaction before settlement, typically initiated by merchant, gateway, or customer

The technical provider that handles the transaction flow between merchant, gateway, and financial networks

Charges applied per transaction by PSPs or acquirers, usually a fixed fee + percentage based on volume, method, and risk

The end-to-end workflow from payment initiation to settlement, including authorization, capture, and reconciliation

The web interface where customers input their payment details, may be hosted, embedded, or custom-built

A strategy that routes transactions across multiple PSPs, acquirers, and processors to optimize cost, success rate, and UX

A system-generated message confirming the status of a transaction (success, failure, reversal) to the merchant or system

The range of available options customers can use to pay, including cards, wallets, bank transfers, and cryptocurrencies

A shareable URL that redirects users to a secure checkout page, enabling simple payment collection via email, SMS, or chat

A licensed third party in open banking that initiates direct payments from a customer’s bank account on their behalf

A unique reference number used to distinguish and trace a payment transaction within the system

Ready-to-use modules that connect popular CMS or e-commerce platforms (e.g. WooCommerce, Magento) with payment systems

Ongoing updates, monitoring, and support activities that ensure the secure and uninterrupted operation of a payment gateway

The process of connecting a merchant’s platform with the payment gateway API to enable transaction flow and reporting

A technology solution that securely transmits customer payment data to the processor, handles authorization, and returns status updates to the merchant

An intermediary that allows sub-merchants to process payments without obtaining their own merchant account, typically used by platforms

A unique code generated during transaction approval by the issuer, used as proof of authorization

A service provider that enables multiple merchants to accept payments under a single master account, reducing onboarding complexity

The capability of a business to receive payments through various channels, including cards, bank transfers, and alternative methods

The recipient of a payment. Can be an individual, business, or organization receiving funds via any method

The full card number embossed or printed on a payment card, used to identify the issuer, account, and check digit

Scannable matrix barcodes used to initiate payments, open checkout pages, or connect users to digital content in offline-to-online commerce

The logic used to direct payment transactions through the most efficient or cost-effective processor, acquirer, or payment method

Cross-border transfers of funds from individuals to recipients in another country

A payment returned to the customer, in full or partially, due to order cancellation, product return, or dispute resolution

A pre-authorized payment setup that charges the customer at fixed intervals for ongoing services or products

Automated invoicing and charging of customers at regular intervals, typically used in SaaS, subscriptions, or memberships

The process of matching incoming payments with invoices, bank records, or platform reports to ensure transaction accuracy and completeness

The ability to process, authorize, and settle a transaction instantly, reducing delays and improving user satisfaction

A global identifier for financial institutions used in international wire transfers, ensures proper routing of cross-border payments

A recurring billing model where customers pay at regular intervals for continuous access to products or services

A type of cryptocurrency pegged to a fiat currency or asset to minimize volatility used in settlements or cross-border payments

A cryptographic protocol that ensures encrypted data transmission between a user’s browser and the server, replaced by TLS in modern systems

A business model where users access cloud-hosted software via subscriptions, often involves recurring payments and digital contracts

The final transfer of funds from the customer’s bank to the merchant’s account after authorization and clearing

An initiative that standardizes euro-denominated payments across EU and select non-EU countries, simplifying cross-border transfers

An EU-mandated security protocol requiring two or more independent authentication elements during checkout, aligned with PSD2

A security measure requiring users to verify identity via two methods (e.g. password + SMS code or biometric scan)

An exchange of value between buyer and seller, typically includes authorization, clearing, and settlement

The process of replacing sensitive payment data with a non-sensitive token, used to protect card data during storage and transfer

A secure repository for storing encrypted payment tokens used for recurring billing and one-click checkout

The cancellation of a payment before settlement, typically used when a transaction was made in error or needs to be halted before funds transfer

A web-based interface that allows merchants to manually process card-not-present transactions, often for phone or email orders

A payment made using a temporary or digital-only card number, typically used for secure online purchases or B2B disbursements

The process of moving funds from a payment system or digital wallet into a bank account or other payout destination

End-to-end handling of transactions through a third-party system that is fully branded as the reseller’s own solution

A rebrandable payment platform that enables businesses to offer payment processing under their own name without building infrastructure from scratch

A service or product developed by one provider but rebranded and resold by another entity under their own brand