Glossary of terms

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There are currently 35 names in this directory

Accepted Transaction / Approved Transaction
A successfully acquired transaction that has been submitted to MasterCard, Visa, JCB, AMEX or other card brands.

Acquirer
A licensed financial institution and member of Visa or MasterCard that processes credit or debit card transactions on behalf of a merchant.

Adjustments
A method of handling differences or inconsistencies between financial institutions.

American Express
A financial services company predominately known for issuing travellers cheques, credit cards, charge cards and acquiring transactions via its multi-national network.

AMEX
Abbreviation for “American Express”.

API (Application Programming Interface)
Abbreviation for “Application Programming Interface”. An API is an application programming interface which enables the creation of an application via functions, protocols and access to the features and data used by other existing applications, operating systems or software.

API (Authorised Payments Institution)
Abbreviation for “Authorised Payment Institution”.

Basis Point
Calculated as 1/100 of a percentage point. Basis points are used to describe merchant discount rates.

Batch File
A file, usually in .csv format, containing card information used to process batch payments.

Batch Payment Processing
The settlement of multiple authorised transactions at the same time.

Card Association
A network of issuers, issuing banks, acquirers and acquiring banks that process payment cards belonging to a particular brand.

Card Holder
A registered member to whom a payment card is issued.

Card Holder Data
The information held on the magnetic strip found on the reverse of a payment card, in the chip, visible information printed on the card and card information passed via contactless RFID or NFC payment methods.

Card Scheme
Payment networks that are linked to payment cards, whereby authorised banks or financial institutions may become a member. Membership of card schemes allows financial institutions to issue and/or acquire payment cards operating on the network of the said card scheme.

Chargeback
A method of reversing a transaction by returning funds to a card holder who has previously been charged. The process is forcibly initiated by an issuing bank or issuer on behalf of the card holder.

CNP
Abbreviation for “Card Not Present”. Card Not Present transactions occur whenever a cardholder does not physically present the card to the merchant at the time of purchase.

CSV
An abbreviation for “Comma Separated Values”. CSV is a file format with one line per record, with each value separated by a comma. CSV files are a common file format recognised by most data processing software.

CUP (China Union Pay)
Abbreviation for “China Union Pay.

DBA
Abbreviation for “Doing Business As”.

Dynamic Descriptor
A type of billing descriptor with the added functionality of being able to modify a payment description on a per-transaction basis. A Dynamic Descriptor operates as a supplementary customer authentication tool on behalf of the merchant.

Interchange
A fee paid to an issuing bank by an acquiring bank by way of a card brand. Interchange is charged as a small percentage of the total transaction amount, and varies depending on the brand and type of card being used. The card brand does not keep this fee, unless they are also the issuer.

ISO
Abbreviation for “Independent Sales Organisation”. An Independent Sales Organisation must be sponsored by an acquirer or member bank and be registered with the relevant card brand.

MasterCard Inc.
A multinational financial services company with its headquarters in New York, USA, that works with financial institutions to issue credit, debit and other payment cards.

Merchant Account
A type of pecuniary account that enables a merchant to accept payments.

MSP
Abbreviation for “Merchant Service Provider”. A Merchant Service Provider must be sponsored by an acquirer or member bank and be registered with the relevant card brand.

NABU
Abbreviation for “Network Access and Brand Usage”. NABU or Card Brand Fees are charged and retained by the card brands for the use of its brand.

NFC
Abbreviation for “Near Field Communication”. NFC technology is predominantly used for making secure contactless payments by close proximity between two electronic devices such as a smartphone, tablet or computer and a point of sale terminal.

POS
Abbreviation for “Point of Sale”. A time and physical location where a payment transaction is completed between a customer and a merchant.

QSA
Abbreviation for “Qualified Security Assessor”. A list of individuals endorsed by the PCI Security Standards Council whom are qualified to assess the security of systems and processes in accordance with the PCI Security Standards Council’s criteria.

Reconciliation
The process of confirming the accuracy of accounting records but comparing balances of transactions.

RFID
Abbreviation for “Radio Frequency Identification”. RFID technology is predominantly used for making secure contactless payments by close proximity between a card, mobile device, key fob and a point of sale terminal.

SAQ
Abbreviation for “Self Assessment Questionnaire”. A means to aid merchants and service providers to self-evaluate their compliance with the Payment Card Industry Data Security Standard (PCI DSS).

SEPA
Abbreviation for “Single Euro Payments Area”. SEPA is an initiative aimed at integrating and simplifying payments and bank transfers made within the European Union for Euro denominated transfers.

Virtual Terminal
A web interface used to enter payment card data for card not present transactions.

Visa Inc.
A multinational financial services company with its headquarters in California, USA, that works with financial institutions to issue credit, debit and other payment cards.