Anti-money laundering (AML) refers to the activities financial institutions perform to achieve compliance with legal requirements to actively monitor for and report suspicious activities.

An authorisation code (auth code) is a unique alphanumeric code generated by a card issuer or payment processor to confirm that a card transaction has been approved. It serves as proof that the issuer has authorised the transaction amount and is often included on receipts and transaction records for reference and verification purposes.

Address Verification Service (AVS) and Card Verification Value (CV2) are security measures used during card-not-present transactions to help prevent fraud. AVS checks the billing address provided by the customer against the address on file with the card issuer, helping to confirm the identity of the cardholder. CV2, also known as CVV or CVC, is a three- or four-digit code printed on the card (but not stored in the magnetic stripe), used to verify that the customer has physical possession of the card. Together, these tools add an extra layer of protection by detecting mismatches that may indicate unauthorised use.

A Bank Identification Number (BIN) is the first 6–8 digits of a card number that identifies the issuing bank.

The Bank Identifier Code (BIC) is a standardised international code used to uniquely identify banks and financial institutions across the globe, particularly in cross-border payments. Also known as a SWIFT code, it ensures that international money transfers are routed accurately to the correct financial institution. A BIC typically consists of 8 or 11 characters, representing the bank, country, location, and branch. It plays a crucial role in facilitating secure and efficient global financial transactions by reducing errors and delays in payment processing.

Batch processing is the method of collecting and grouping multiple transactions or data entries to be processed together at a scheduled time, rather than individually in real time. In payment systems, this often involves compiling a day’s credit or debit card transactions and submitting them as a single batch to the payment processor for settlement. This approach improves efficiency, reduces processing costs, and simplifies reconciliation for businesses.

Blended pricing is a payment model used by payment processors and acquirers where a single fixed fee is charged for each transaction, based on the card type used. This fee encompasses all associated costs, including the interchange fees, which are paid to the card-issuing bank, scheme fees charged by the card networks (such as Visa or Mastercard), and the margin that the payment processor or acquirer adds for their services.

Buy Now, Pay Later (BNPL) is a payment option that allows customers to make purchases immediately and then split the total cost into smaller, manageable installments, often with no interest or fees if paid within a specified period. BNPL services are typically offered at the point of sale, either online or in-store, and enable customers to select a payment plan that suits their budget and financial situation.

Card Not Present (CNP) refers to a type of payment transaction where the physical card is not present at the time of the transaction. This typically occurs in online or phone transactions, where the cardholder provides their card details (such as the card number, expiration date, and CVV) without physically swiping, inserting, or tapping the card.

The Card Verification Value (CVV) is a security feature designed to protect cardholders from fraud during online and telephone transactions. It is typically a 3- or 4-digit number that is located on the physical credit or debit card and is not part of the card’s primary number or expiry date. The purpose of the CVV is to ensure that the person making an online or over-the-phone purchase physically possesses the card, as the CVV is not typically stored in the merchant’s system or visible on the cardholder’s account.

Chargebacks happen when a payment you receive is later disputed by the cardholder or issuer, there is an administration fee associated with each Chargeback. The merchant will receive and email or letter from their acquirer if a Chargeback occurs, the communication from the acquirer will detail the instructions the merchant needs to follow. Chargebacks can be time sensitive so it is important to action this as quickly as possible.

Dynamic Currency Conversion (DCC) lets international customers pay in their home currency at the point of sale.

Example: A tourist is offered to pay in USD instead of EUR while abroad.

E-commerce (Ecomm) refers to the buying and selling of goods or services over the internet, enabling businesses and consumers to engage in commercial transactions without the need for physical interaction. It encompasses a broad range of online activities, from retail shopping and digital downloads to subscription services and B2B transactions. E-commerce platforms allow customers to browse products, compare prices, make purchases, and complete transactions entirely online.

An Electronic Point of Sale (ePOS) is a digital system for processing sales and managing inventory. It typically includes hardware like touchscreens, barcode scanners, and receipt printers, along with software for managing pricing, stock levels, and sales reporting.

End of Day totals are what you need to do when you finish trading for the day. This confirms exactly what you’ve sold and how much money you have taken for the day. Once done, this confirms the amount to your acquirer so they can batch the funds together to settle them so you can be paid. This report should be ran before the acquires banking window cut off time. If the totals do not agree then you will need to contact the acquirer to reconcile.

Face to Face relates to transactions processed by physically presenting a card or device to the terminal for contactless or chip and pin payment methods.

Friendly fraud occurs when a customer disputes a legitimate charge, often forgetting or denying the purchase.

Example: A customer claims they didn’t receive a product they actually did.

The General Data Protection Regulation (GDPR) is a comprehensive data protection law enacted by the European Union to safeguard individuals’ personal data and privacy. It applies to all businesses that collect or process data from EU residents, regardless of where the business is located. Under GDPR, organisations must obtain clear and informed consent before collecting, storing, or using personal data. It also grants individuals rights such as access to their data, the ability to correct inaccuracies, and the right to have their data deleted upon request. Non-compliance with GDPR can result in significant fines and reputational damage.

KYC (Know Your Customer) is the process by which businesses, particularly financial institutions, verify the identity of their clients to prevent fraud, money laundering, and other illegal activities. It involves collecting and verifying personal information, such as names, addresses, and identification documents, to ensure that customers are who they claim to be. KYC is a critical part of AML (Anti-Money Laundering) efforts and helps maintain the integrity of the financial system.

An MCC is a four-digit number that classifies the type of goods or services a business offers.

A unique identifier for merchants in payment processing systems.

A Merchant Management System (MMS) is a comprehensive software platform that enables businesses, payment service providers, or acquirers to efficiently manage all aspects of merchant operations. This includes onboarding new merchants, configuring and monitoring payment terminals, processing transactions, and generating detailed financial and operational reports. An MMS often supports risk management, compliance monitoring, and automated workflows to streamline day-to-day activities.

Merchant fees are charges that businesses must pay when they accept electronic payment methods, such as credit or debit cards. These fees are a combination of several different costs and are typically a percentage of the transaction amount, sometimes with an additional fixed fee. These charges can be a Blended rate or an Interchange ++ (IC++) rate.

A monthly minimum fee is a set minimum amount a merchant is required to pay in transaction charges each month. If the total processing fees from card transactions fall below this threshold, the merchant is charged the difference to meet the minimum billing amount.

Mail Order/Telephone Order (MOTO) refers to payments made by phone or mail without the card being physically present.

A Pay by Link transaction allows a merchant to send a payment request to a customer through a digital link, which takes the customer to a payment portal (provided by a Gateway Provider) to complete the transaction.

A technology that securely processes and authorises online transactions by transmitting payment data between the merchant, customer, and bank. It supports various payment methods, fraud prevention, and encryption for security.

PSD2 (Revised Payment Services Directive) is a European regulation aimed at increasing the security of electronic payments and reducing fraud. The regulation mandates the use of Strong Customer Authentication (SCA) which requires payment service providers to verify a customer’s identity using at least two of the following factors: something they know (e.g., PIN), something they have (e.g., smartphone), or something they are (e.g., fingerprint).

PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. Developed by the Payment Card Industry Security Standards Council, PCI DSS aims to protect cardholder data and reduce the risk of data breaches and fraud through strict requirements for network security, access control, encryption, and regular monitoring. Read our blog post to learn more.

A PIN Entry Device (PED) is a secure terminal or hardware device used by consumers to enter their Personal Identification Number (PIN) during payment transactions, typically at point-of-sale (POS) terminals, ATMs, or other payment processing systems. The primary purpose of a PED is to ensure that cardholders can securely input their PIN, which is a confidential code used to authenticate and authorise transactions, ensuring the cardholder’s identity and protecting against unauthorised access to their bank accounts or credit cards.

Pre-authorisation (Pre-auth) is a process where merchants temporarily hold funds on a customer’s card to ensure sufficient credit for a transaction. Common in industries like hospitality, it reserves a specific amount without charging immediately, typically for 7 to 30 days. This helps protect merchants from chargebacks and ensures the customer can cover the transaction.

A recurring transaction is a payment that is automatically processed on a regular basis, typically for ongoing services or subscriptions. These transactions are often set up by the cardholder or customer to occur weekly, monthly, or annually without the need for manual intervention each time.

SEPA (Single Euro Payments Area) is an initiative that standardises payments across European countries to make cross-border transactions easier and cheaper. It allows individuals and businesses to make euro payments under the same conditions, regardless of the country. SEPA includes credit transfers, direct debits, and card payments.

A SmartPOS (Smart Point of Sale) is an advanced POS terminal that combines traditional payment processing with smart features like touchscreen interfaces, cloud connectivity, app integrations, and built-in analytics. It supports multiple payment methods, including contactless, QR codes, and mobile wallets, making it ideal for modern retail and hospitality businesses.

SoftPOS (Software Point of Sale) is a technology that allows merchants to accept contactless payments directly on a smartphone or tablet without the need for additional hardware. SoftPOS can securely process payments from contactless cards, mobile wallets, or wearables.

Strong Customer Authentication (SCA) is a European requirement for verifying online payments using two of three security factors.
Example: A user confirms a purchase by entering a password and a fingerprint.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network that allows banks and financial institutions to securely exchange transaction information. It facilitates cross-border payments, securities, and foreign exchange transactions using standardised, encrypted messages.

A Terminal ID (TID) uniquely identifies a payment terminal in the payment network. Each store location’s card reader has its own TID.

TLS (Transport Layer Security) is a cryptographic protocol that ensures secure communication over a network by encrypting data and verifying the identity of the communicating parties. It is commonly used in HTTPS to protect sensitive information during web browsing.

A verification transaction confirms the validity of a card without actually charging it.

Virtual terminals / MOTO accounts provide the same functionality as a physical terminal except the merchant will use a Gateway Provider to provide a payment system to use online to manually key in the card information to process payment.

X Reports show a sub-total of all transactions performed and can be printed at any time during the day. X totals do not reset the totals within our card machines.

Z Reports show the total of all transactions processed through the terminal for each card company since the last Z Totals were performed. This report is usually completed at the end of the day. Once the Z Totals have been completed the totals within the terminal will be reset to Zero.

Two-Factor Authentication (2FA) is a security process that requires users to verify their identity using two separate methods before accessing an account or completing a payment. For example, after entering a password, a user might receive a one-time code via SMS or an authenticator app to complete the login or payment.

3D Secure is an online payment authentication protocol designed to reduce fraud and provide an additional layer of security during online credit and debit card transactions. It requires cardholders to complete an extra verification step, such as entering a password or a one-time code, during the checkout process. The protocol helps merchants and financial institutions verify that the transaction is being made by the legitimate cardholder, increasing transaction security.