Definitions for the Payments Industry

By StarkPayments| Published on 07/05/2018
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Definitions for the Payments Industry

Acquirer

Acquirers, also known as Merchant Acquirers, collect card based payments which have been accepted via a Payment Gateway from retailers both on and offline. Any retailer or merchant that wishes to accept card payments in-store or online needs an Acquirer account.

Authorisation

Every retailer has a purchase limit above which they must seek authorisation from the card issuer before a sale can be completed. Authorisation is used to control credit card fraud. The cardholder’s available credit limit is then reduced by the authorised amount.

Address Verification Service (AVS)

A method of reducing fraud in mail order/telephone order transactions by using cardholder billing address information in the authorisation request.

Approval Response

Approval responses are part of the security measures that modern credit and debit card issuers use to reduce fraud and ensure that the ata has come from its claimed source, or of corroborating the claimed identity of a communicating party.

Bank Identification Number (BIN)

A bank identification number, s the initial four to six numbers that appear on a credit card. This number is used to identify the card issuing institution. The BIN is key in the process of matching transactions to the issuer of the charge card.

Card Issuer

Any association member financial institution, bank, credit union, or company that issues, or causes to be issued, plastic cards to cardholders. You may notice that VISA, MasterCard do not directly issue credit or debit cards to cardholders, yet well known banks and other financial institutes do.

Cardholder

An individual to whom a debit or credit card is issued, or who is authorised to use an issued card.

Cardholder

An individual to whom a debit or credit card is issued, or who is authorised to use an issued card.

Chargeback

A chargeback can be used to dispute a card transaction and secure a refund for the purchase. A chargeback voids a card transaction, withdrawing funds that were previously deposited into the merchant’s bank account and applying credit to the consumer’s card statement.

Credit Card Number

This is the unique 16 digit number assigned to a credit card

CVV

CVV is an anti-fraud security feature to help verify that you are in possession of your debit or credit card. It is normally the last 3 digits printed on the signature strip.

Debit Card

A debit card allows the cardholder to transfer money electronically from their bank account when making a purchase. Debit cards normally only works when the cardholder has sufficient credit in their bank account.

Data Encryption Standard (DES)

The Data Encryption Standard is a symmetric-key algorithm for the encryption of electronic data. Although insecure, it was highly influential in the advancement of modern cryptography.

E-Commerce

E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.

Encryption

Encryption is the process of disguising a message (using mathematical formulas called algorithms) in such a way as to hide its substance, a process of creating secret writing.

PCI Compliance

Technical and operational standards that businesses are required to adhere to in order to ensure that cardholder data is protected. PCI, or Payment Card Industry, compliance is enforced by the PCI Standards Council.

Payment Gateway

A payment gateway refers to the front-end technology that reads payment cards and sends customer information to the merchant acquiring bank for processing.

SSL

Secure Sockets Layer is an encryption standard devised by Netscape Communications for secure communication over the World Wide Web.

 
 
 
 
 

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