Payment Glossary A–Z
100+ payment terms explained in plain English, with practical merchant context.
Definitions are written for practical merchant use. Exact legal, scheme and provider meanings can vary by market.
Acquirer
An organisation providing acquiring services to merchants, including transaction processing and settlement arrangements.
Acquiring bank
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
ACH
A US electronic payment network used for bank transfers and certain recurring payment flows.
Address verification service (AVS)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Alternative payment method (APM)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
API
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Authentication
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Authorisation
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Authorisation hold
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Bank transfer
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Bacs
A UK payment system used for Direct Debit and other bank-payment processes.
Beneficiary
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
BIN
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Card acceptance
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Card-not-present (CNP)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Card-present
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Card network
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Card-on-file (COF)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Card verification value (CVV/CVC)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Capture
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Chargeback
A card dispute process that can reverse a transaction through issuer, network and acquirer procedures.
Chargeback representment
A card dispute process that can reverse a transaction through issuer, network and acquirer procedures.
Checkout
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Clearing
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Contactless
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Cross-border transaction
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Currency conversion
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Customer authentication
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Digital wallet
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Direct Debit
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Dispute
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Dynamic currency conversion (DCC)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
EMV
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Ecommerce
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Electronic funds transfer
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Encryption
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Failed payment
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Faster Payments
A UK payment system designed for near-real-time bank transfers, subject to scheme and bank availability.
Fraud scoring
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Gateway
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Gross settlement
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Interchange
A fee within card-payment economics generally transferred between the acquirer and issuer.
Issuer
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Issuing bank
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
KYC
Customer or merchant identity and business verification procedures used for onboarding and risk management.
Know your customer
Customer or merchant identity and business verification procedures used for onboarding and risk management.
Local payment method
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Marketplace payments
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
MCC
Merchant Category Code, a code used to classify a merchant business activity for payment purposes.
Merchant account
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Merchant category code
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Merchant descriptor
The transaction description shown to a customer on a statement, subject to provider and network rules.
Merchant ID
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Merchant of record
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Mobile wallet
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Net settlement
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Network fee
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Open Banking
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Payment facilitator (PayFac)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Payment gateway
Technology that securely transmits payment data between the merchant checkout and payment infrastructure.
Payment method
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Payment orchestration
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Payment processor
A service involved in transmitting and processing payment transaction messages.
Payment service provider (PSP)
A provider that bundles payment acceptance and related services into a platform.
Payment token
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
PCI DSS
A payment-card security standard covering organisations that store, process or transmit card data.
Payout
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Point of sale (POS)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Presentment
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Recurring payment
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Refund
A merchant-initiated return of funds for a previously processed transaction.
Representment
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Reserve
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Risk engine
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
SCA
A customer-authentication requirement relevant to certain European payment transactions, subject to scope and exemptions.
Scheme
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Settlement
The process by which transaction funds are reconciled and paid to the merchant or relevant account.
Settlement account
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Settlement currency
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Soft decline
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Strong Customer Authentication
A customer-authentication requirement relevant to certain European payment transactions, subject to scope and exemptions.
Stored credentials
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Subscription billing
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Terminal
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Three-domain secure (3-D Secure)
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Tokenisation
Replacing sensitive payment credentials with a token that can be used within an authorised payment environment.
Transaction fee
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Transaction routing
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Transaction monitoring
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Underwriting
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Wallet
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Webhook
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Zero liability
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
3DS challenge
An interactive authentication step presented to a cardholder during a 3-D Secure flow.
3DS frictionless flow
A 3-D Secure authentication flow completed without an interactive challenge when the issuer and transaction risk assessment permit it.
Account updater
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
ACH return
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Batch processing
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
BIN range
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Card testing
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Cash advance
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Chargeback ratio
A card dispute process that can reverse a transaction through issuer, network and acquirer procedures.
Credential-on-file
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Descriptor
The transaction description shown to a customer on a statement, subject to provider and network rules.
Fallback
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Hard decline
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Interchange-plus
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Level 2 data
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Level 3 data
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
MOTO
Mail Order/Telephone Order transactions where card details are entered without the card being physically presented.
Payment orchestration layer
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Payout schedule
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Retry logic
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Rule-based fraud screening
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Settlement cycle
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Split payment
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Step-up authentication
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Virtual terminal
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Void
A payment-industry term describing part of the process, infrastructure, economics, risk controls or merchant operations. Its precise meaning depends on the payment rail and market.
Tip: search by the acronym or phrase you see in a provider quote, statement or integration document.