Terminology
Last updated: January 28, 2026
ABU, Mastercard Automatic Billing Updater – A Mastercard service that helps merchants get updated information for cards that expire or are replaced.
acceptance rate – The percentage of successful payments that are ready to be captured out of all requested payments. It is calculated by dividing the number of accepted payments by the number of requested payments.
accepted payments – In the Dashboard, the total number of accepted or partially accepted payments in the specified time frame and currency.
ACH, automated clearing house – A US-based network that facilitates electronic funds transfers between banks.
acquirer – An entity that processes card payments for merchants, working with card schemes and issuers to settle transactions.
acquirer fee – The fee merchants pay to their acquirer for processing and handling card payments. A breakdown type field used in reconciliation reports.
acquiring bank – A financial institution that handles a merchant’s account so that they can accept credit or debit card payments.
ACS, Access Control Server – The server operated on the issuer’s domain to authenticate cardholders during 3D Secure transactions.
AFT, Account Funding Transaction – A transaction type used to transfer funds from a card account to non-merchant accounts, such as topping up a prepaid card.
amendments – Changes to a merchant’s contract or Merchant Agreement Framework (MAF) that require Checkout.com’s involvement, such as updates to pricing or agreements.
AML, anti-money laundering – Regulations and policies designed to prevent money laundering and detect illicit financial activities within legitimate financial channels.
AML questionnaire – A pre-onboarding questionnaire for merchants operating in certain industries, such as financial services, gambling, or bullion trading.
amount – In the Dashboard, the total value of payments reported in the specified time frame and currency.
API, application programming interface – Rules enabling communication between software applications, such as Checkout.com APIs for payments and payouts.
APM, alternative payment methods – Payment options beyond traditional credit and debit cards, such as digital wallets (for example, PayPal, Apple Pay), bank transfers, and buy now, pay later services.
ARN, Acquirer Reference Number – A unique number assigned to a payment by the acquiring bank, which is used to trace the payment throughout the payment processing ecosystem.
authenticated payments – In the Dashboard, the total number of payments that were successfully authenticated by the issuer or payment network in the specified time frame and currency.
authentication rate – The percentage of payments successfully authenticated by the issuer or payment network, out of those for which authentication was initiated. It is calculated by dividing the number of successfully authenticated payments by the total number of payments for which authentication was initiated.
authorization rate – The percentage of successfully authorized payments out of all payments submitted to the card scheme for authorization. It is calculated by dividing the number of successfully authorized payments by the total number of payments submitted to the card scheme for authorization.
authorized payments – In the Dashboard, the total number of authorized payments in the specified time frame and currency.
authorized representative – An individual with legal authority to bind the merchant to the agreement and make amendments on behalf of the merchant.
AVS, Address Verification Service – A fraud prevention tool used to verify a customer’s address against the cardholder’s billing address held by the issuer in card-not-present transactions. See Verify customer addresses.
bank – A licensed financial institution that accepts deposits, offers savings and checking accounts, provides loans, and facilitates electronic payments. Banks are often the back end partners that enable services, such as issuing accounts, settling transactions, and ensuring regulatory compliance.
bank payout – A payout transaction made to a bank account. See Request Bank Payouts.
BBAN, Basic Bank Account Number – The country-specific portion of an International Bank Account Number (IBAN), used to identify a bank account.
BIC, Bank Identifier Code – A standardized international code that banks use to identify themselves in financial transactions. It is also known as a SWIFT code.
BIN, Bank Identification Number – The first six to eight digits of a payment card number, which identifies the financial institution that issued the card.
blocked payments – The total number of payments that were declined due to risk, either before or after authorization, in the specified time frame and currency.
bp, basis point – A unit of measurement used in finance to describe percentage changes. Basis points make it easier to talk about very small changes in percentages. One basis point is equal to 1/100th of 1%, or 0.01%.
business day – A business day is a working day when financial institutions are open for processing transactions. Settlements and other financial operations usually occur only on business days. Business days differ by region and country. It is also known as a working day.
CAID, Card Acceptor ID – A unique number assigned to a merchant by their acquiring bank, which is used to identify the merchant in credit and debit card payments. It is also known as a merchant ID (MID).
CAM, card authentication method – A method used by Europay, Mastercard, and Visa (EMV) to verify the authenticity of a card using encrypted certificates issued by the card scheme.
capture rate – The percentage of successfully captured payments that were accepted in the specified time frame. It is calculated by dividing the number of captured payments by the number of accepted payments.
captured payment – A payment that has been captured and becomes revenue available to you.
captures – In the Dashboard, the total number of captures in the specified time frame.
card – A card refers to a payment instrument – typically a debit, credit, or prepaid card – issued by a financial institution. It enables consumers to authorize transactions, usually via card schemes.
card account updater – A service provided by card schemes that helps merchants automatically update and maintain the latest, most accurate credit and debit card details for their customers.
card issuer – The financial institution that issues payment cards (credit or debit cards) to cardholders and authorizes card usage.
card payout – A payout transaction made to a card. See Request Card Payouts.
card scheme – A payment network that defines rules and guidelines for payments and settles transactions involving cardholders and merchants.
card token – A secure, temporary reference to card details that can be used for transactions instead of exposing sensitive cardholder data.
cardholder – The person to whom a payment card is issued and who is authorized to use it for transactions.
carry forward – The process of carrying a remaining payout balance from one period to the next.
cascading – A transaction processing method that retries declined transactions with multiple acquirers until successful authorization is obtained.
CAVV, cardholder authentication verification value – A value generated during 3D Secure authentication and returned to the merchant as part of the transaction process.
CDCVM, consumer device cardholder verification method – A verification method used for cardholder authentication through consumer devices, such as smartphones or tablets.
CDD, customer due diligence – The process of assessing a customer’s risk profile to prevent money laundering and fraud, including identity verification and transaction monitoring.
chargeback – A customer-initiated reversal of funds for a purchase, typically facilitated through their bank or payment service provider.
chargeback code – A code that represents the outcome of a dispute or arbitration. See Chargeback codes.
chargeback ratio – The percentage of total transactions that result in a chargeback, which is used to assess a merchant's risk level and compliance with card scheme rules.
chargeback threshold – A set percentage of a merchant's total transaction volume, after which chargebacks are flagged for further review or penalties may be incurred.
CIT, customer-initiated transaction – A payment where the customer actively initiates the transfer of funds to a merchant, typically by providing or confirming their payment information.
clearing failed – A payment that has failed clearing from schemes and APMs. If this happens, any affected financial actions are reversed. For example, a failed refund will be credited back to your balance.
client account – An account created for a business (merchant) to use Checkout.com's payment processing and other services. It enables merchants to process transactions, manage payouts, access reporting, and configure payment settings.
CNP, card not present – A payment transaction where the cardholder does not physically present the card at the point of sale, commonly used for remote payments like e-commerce.
count – In the Dashboard, the total number of payments reported in the specified time frame and currency.
cover negative position – An adjustment Checkout.com makes to resolve a negative balance. For example, to cover a shortfall.
CPD, central processing date – The date on which the card scheme processed a transaction.
CPV, card personalization validation – The process ensuring that an issued physical card meets all card scheme requirements before it is activated.
cross-border payments – Transactions involving parties from different countries, which often require additional processing for currency conversion and compliance checks.
CSS, card scheme screening – A risk-checking tool provided by card schemes, such as Mastercard's MATCH and Visa’s VMSS, used to assess merchants before entering into agreements.
currency – The system of money used by a country. For example, US dollars.
currency code – The three-letter ISO 4217 code which represents a currency. See Currency codes.
CVV, card verification value – A 3 to 4 digit security code on payment cards used to validate card-not-present transactions.
data controller – An entity that determines the purpose and means of processing personal data.
data processor – An entity that processes personal data on behalf of a data controller.
data subject – An individual whose personal data is processed by a data processor.
decline code – A short code (usually two digits) that indicates why a payment was declined.
declined payment – A payment that was declined during authorization. In the Dashboard, the total number of payments that were declined during authorization in the specified time frame and currency.
device IP address – The IP address of the device used to make the initial payment, often the end-user's IP address.
direct seller – A merchant that sells goods or services directly to customers, managing product ownership, pricing, and sales revenue.
disclosing party – The entity providing confidential information to the recipient, either voluntarily or required by terms of the agreement.
discounted value – The value of a transaction after all relevant fees are deducted.
dispute – When a customer questions the validity of a transaction with their bank or credit card issuer. This leads to an investigation and potential reversal of the charge.
disputed payment – A payment that resulted in a dispute from the cardholder. In the Dashboard, the total number of payments that were disputed in the specified time frame and currency.
due diligence – An investigation to assess potential risks and ensure compliance with regulations and policies.
DWO, digital wallet operator – A financial institution that stores digital payment information and enables electronic transactions.
ECI, electronic commerce indicator – A code indicating the level of security used in a transaction when the cardholder provides payment details.
ecommerce – The buying and selling of goods or services online, encompassing various business models and transaction types.
effective date – The date on which a contract or agreement becomes legally binding after all parties have signed.
EMI, electronic money institution – A financial organization authorized to issue and manage electronic money for online transactions.
entity – A legally distinct organization or business unit associated with a merchant. Entities are used to separate functional or operational units within a merchant's ecosystem, helping Checkout.com manage relationships, maintain compliance, and ensure accurate security and financial tracking.
entity segment – Entity segments can represent a combination of the brand or website where the payment originated, the business category of the payment, or the location or market region where the payment was made. Each segment must be associated with a single entity.
escrow – A financial arrangement where a third party securely holds and manages funds or assets until all conditions of a transaction are met.
EU data protection law – Legislation that governs data privacy within the European Union, including the GDPR and related laws.
EU payment services directive – Directive 2007/64/EC, which governs payment services and regulations within the EU.
FCA, Financial Conduct Authority – The UK regulatory authority overseeing financial services, ensuring fair practices and compliance.
fee structure – The model that defines how fees are charged for different types of transactions, often including a combination of per-transaction charges and flat or percentage-based fees.
fees – Charges applied to transactions or a merchant’s account for services rendered.
fraud report – A report relating to fraudulent activity. This includes reports received from the card schemes. For example, Visa TC40 and Mastercard SAFE. In the Dashboard, the total number of fraud reports, such as TC40 (Visa) and SAFE (Mastercard), received from the card schemes in the specified time frame.
FX rate – foreign exchange – The exchange rate at which one currency is traded for another during international transactions.
FXP, FX payouts – A service for converting and paying out funds in foreign currencies.
GDPR, General Data Protection Regulation – An EU regulation designed to protect personal data and privacy, including data processing and consent practices.
gross revenue – The gross revenue for an acquirer consists of interchange and scheme fees, plus the acquirer premium.
growth – In the Dashboard, the overall increase of a metric over time. Often used to track key performance indicators (KPIs) related to payments over a specific period.
hard decline – A transaction rejection that requires the issuer or cardholder to resolve the issue before retrying.
Hosted Payment Pages – A pre-built, secure payment interface hosted by Checkout.com, where customers can enter their payment details. See Accept a payment on a hosted page.
IBAN, international bank account number – A standardized international format for identifying bank accounts across countries.
IC++, interchange plus plus – A pricing model where credit card processing costs are split into three parts: interchange, card scheme fees, and Checkout.com processing fees.
ICA number, Interbank Card Association number – A unique identifier issued by Mastercard for transaction identification among members.
incoming payment request – A payment request received by Checkout.com's API. If Checkout.com deems a payment request to be invalid, it is not processed. In the Dashboard, the total number of payment requests that were received by Checkout.com's API in the specified time frame and currency.
interchange currency – The currency in which interchange fees are settled, applicable to IC++ merchants.
interchange fees – Fees merchants pay to card schemes and issuers for processing credit and debit card transactions, which form part of the overall transaction costs.
invoice settlement – An amount that has been paid by bank transfer for amounts owed on an invoice.
ISO, independent sales organization – A third-party entity contracted by a bank to facilitate merchant accounts and processing services.
issuer, issuing bank – A financial institution that provides payment cards (such as credit or debit cards) to customers on behalf of card schemes like Visa or Mastercard, and manages transaction authorization.
issuing BIN – The first six to eight digits of a payment card number. It identifies the financial institution that issued the card. It is equivalent to the bank identification number (BIN).
issuing country – The country where the financial institution that issued a customer's payment card (such as a credit or debit card) is located.
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KYB, know your business – A due diligence process designed to prevent money laundering and assess the business’s legitimacy.
KYC, know your customer – The process of verifying a customer's identity to prevent fraud and ensure regulatory compliance, often overlapping with customer due diligence (CDD).
LOB, line of business – The specific products or services a business offers.
LPM, local payment method – A payment method that is popular in a specific region. For example, iDEAL in the Netherlands.
manual adjustment – An adjustment Checkout.com makes to an account to correct discrepancies.
marketplace – A platform that allows multiple sellers to sell their products or services under a unified system, handling payments, settlements, and disputes.
MCC, merchant category code – A four-digit code that classifies a merchant's business based on the type of goods or services they provide. See Merchant category codes.
merchant – A business that accepts payments for goods or services via Checkout.com.
merchant account – An account provided by an acquirer that enables a merchant to process electronic payments.
merchant bank account – A bank account where Checkout.com settles funds to merchants.
merchant onboarding – The process by which a new merchant is registered, evaluated, and set up for payment processing services with Checkout.com.
MFA, multi-factor authentication – An added layer of security requiring two methods of identity verification to access accounts or complete transactions. For example, two-factor authentication (2FA).
MID, merchant ID – A unique number assigned to a merchant by their acquiring bank, which is used to identify the merchant in credit and debit card payments. It is also known as a card acceptor ID (CAID).
MIGS, Mastercard Internet Gateway Service – A Mastercard payment gateway product that facilitates secure transaction processing for merchants.
MIT, merchant-initiated transaction – A payment initiated by the merchant without the customer actively participating. This is usually done after an initial agreement is set up between the merchant and the customer during a customer-initiated transaction (CIT). Examples of MITs include recurring payments, installments or account top-ups.
mobile payment – A payment made through a mobile device, such as a smartphone or smartwatch, using technologies like NFC, QR codes, and mobile wallets.
MoR, Merchant of Record – The entity legally responsible for processing payments and managing customer disputes, acting as the seller to the cardholder.
MPGS, Mastercard Payment Gateway Service – A successor to MIGS, offering enhanced payment processing features.
MPI, merchant plug-in – Software that connects acquirers to card issuers for 3D Secure authentication and authorization.
MPT, marketplace transfer – The movement of funds between internal accounts within the platform before payouts are finalized.
MSA, Merchant Service Agreement – A binding contract between Checkout.com and the merchant that defines terms of service and responsibilities.
natural refund rate – The total volume of all payments that were refunded, either partially or fully, out of all payments that were captured in the specified time frame and currency. It is calculated by dividing the number of partially and fully refunded payments by the number of captured payments in the same time frame.
net revenue – The net revenue for an acquirer is the acquirer premium.
network token – A unique digital identifier that replaces sensitive card details during payment transactions, enhancing security and convenience. Tokens are automatically generated by card schemes and can be used across the entire payment ecosystem.
non-business day – A non-business day is a non-working day when financial institutions are not open for processing transactions. This can be due to weekends or state mandated public holidays. Settlements and other financial operations usually do not happen on non-business days. Non-business days differ by region and country. It is also known as a non-working day.
non-card payment – A transaction made without using a traditional credit or debit card. For example, ACH transfers, mobile payments, or buy-now-pay-later solutions.
OCT, original credit transaction – A type of transaction that enables direct fund transfers to a cardholder’s account. For example, Visa Direct and Mastercard MoneySend.
omni-channel commerce – A sales approach that provides a seamless customer experience, across the channels of shopping online, on mobile devices, or in-store.
operational funding release – When Checkout.com releases funds from your Operational balance to your Available balance. See Balances.
operational funding reservation – A temporary hold on funds to ensure there is sufficient balance for operational expenses. The reserved amount remains unavailable for other transactions until it is released or settled.
original transaction ID charge – A charge that includes all the key details of a purchase and each transaction event, with an original ID representing the first transaction in a charge.
P2PE, point-to-point encryption – A security standard that immediately encrypts card data upon collection, ensuring it is securely transferred directly to the payment processor before decryption and processing.
PAN, primary account number – The full, unique card number found on payment cards, such as credit, debit, or prepaid cards.
PAR, payment account reference – A unique identifier for a primary account number (PAN). The reference is shared across the physical card and all associated network tokens, like Apple Pay or Google Pay. This enables you to link all transactions made with the card or tokens to the same account.
PARes, payment authentication response – A response from the issuer after a cardholder completes 3D Secure authentication.
partial capture – A payment that has been partially captured as part of a series of multiple captures or a single partial capture.
partial refund – When only a portion of the funds are refunded to the customer after payment, rather than the full amount.
passkey – A passkey is a secure authentication method that replaces passwords with cryptographic key pairs. In fintech, passkeys improve user login and transaction authentication by using biometrics or device-based security, aligning with FIDO2 standards.
payer authentication – The process of verifying the identity of a customer before completing a transaction, typically through authentication methods like biometrics or 3D Secure.
PayFac, payment facilitator – An entity that contracts with a payment service provider to offer payment processing to sub-merchants. PayFacs assume liability for the accounts of their sub-merchants.
payin – An incoming payment into an account or wallet, often initiated by users adding funds using cards, bank transfers, or other payment methods. In transaction processing, payins must be authorized and settled before the funds are available for use.
payment count – In Checkout.com reports, the total number of payments in the specified time frame and currency.
payment gateway – A service that authorizes and processes electronic payments for online or traditional businesses.
payment ID – The unique Checkout.com identifier of a payment.
payment IP address – The IP address from which the payment request was sent to Checkout.com, often the merchant's IP address.
payment method – The way the customer pays for goods or services. Card payments are categorized by the card scheme (for example, Visa), and alternative payment methods (APMs) are categorized by individual methods (for example, Klarna).
payment processor – A company that facilitates secure funds transfers between a merchant and a customer's bank.
payment recipient – The individual or entity that receives funds from a payment transaction. The payment recipient can be a business, an individual, or a financial institution.
payment reference – The description displayed on a merchant’s bank statement for payments processed by Checkout.com. Merchants can specify the reference using the billing descriptor.
payment request – A formal instruction generated and sent by a merchant to a customer requesting funds for goods or services. The payment request initiates the payment process. In the Dashboard, this is the total number of payment requests that were received and processed by Checkout.com in the specified time frame and currency.
payment scheme – A payment system provider, such as Visa, Mastercard, JCB, or alternative providers like Klarna or iDEAL.
payment scheme rules – The regulations and operating guidelines issued by payment schemes, with which merchants must comply when using their payment methods.
payment token – A unique and encrypted token that substitutes sensitive credit card details to safeguard against data breaches.
payment volume – The total monetary value of transactions processed over a specific period.
payments blocked by Checkout.com – In the Dashboard, the total number of payments that Checkout.com declined due to risk, either before or after authorization, in the specified time frame and currency.
payout – A card or bank transaction that is paid to a beneficiary of your choice. Checkout.com's Funds Pooling solution enables merchants to process payouts, even when a sub-account does not have sufficient funds.
payout bank account – The bank account belonging to the cardholder to whom the funds are remitted.
payout calculator service – A tool that identifies which funds need to be distributed and determines the appropriate beneficiary.
payout currency – The currency in which remitted funds are paid to the merchant.
payout date – The date a payout is paid to the recipient.
payout rejected – A payout that Checkout.com rejected. For example, due to a failed sanctions screening.
payout returned – A payout that was returned by our banking partners. For example, due to incorrect beneficiary bank details.
PCI DSS, Payment Card Industry Data Security Standard – A global security standard that ensures secure storage and transmission of cardholder data to reduce fraud.
PCI DSS, Payment Card Industry Data Security Standard – Security requirements that ensure secure processing, storage, and transmission of cardholder data.
PCI SSC, Payment Card Industry Security Standards Council – An industry body that develops data security standards for payment safety.
personal data – Information that relates to an identified or identifiable individual (data subject), such as name, identification number, location data, or an online identifier. This can include personal and financial information related to a customer, as well as a merchant’s employees, directors, shareholders, or the merchant as a sole trader.
PIF, payment instruction form – A contractual document used to capture changes to a merchant's bank account details, particularly when settlements are paid to a legal entity other than the one on the Master Services Agreement (MSA) or Merchant Agreement Form (MAF). Approval for a PIF is contingent on anti-money laundering and regulatory risk evaluations conducted by the Compliance team.
PIN on glass – Point-of-sale (POS) solutions that enable merchants to accept card payments directly through a mobile device without additional hardware.
PJF, payment out of jurisdiction form – A document required when funds are settled to a merchant’s bank account located outside the merchant’s jurisdiction. For example, if an EU merchant requests payouts to a bank account in Singapore, provided the account is owned by the merchant.
PoS, point of sale – A physical location, such as a retail store, where a cardholder completes a transaction.
post-authorization fraud – Fraudulent transactions identified after authorization but before settlement.
pp, percentage point – A unit of measurement for the absolute difference between two percentages.
pre-auth risk strategy – Risk checks that take place before authorization, based on rules set by the merchant and Checkout.com. As a result of of this assessment, a payment may be declined or forced to undergo authentication.
pricing profile base currency – The base currency used for gateway fees. This is distinct from processing, settlement, and remittance currencies.
pricing schedule – The document from Checkout.com that specifies the applicable fees merchants pay for our services.
private key – A key used for secure authentication between a merchant’s server and Checkout.com’s payment gateway (server-to-server).
processing channel – A set of configurations that defines how payments are processed for each of a merchant's legal entities. An entity can have more than one processing channel.
processing currency – The currency in which a transaction is processed.
PSD2, Payment Services Directive 2 – A European regulation aimed at increasing payment security, fostering innovation, and adapting services to new technologies. PDS2 also outlines Strong Customer Authentication (SCA) requirements for authenticating customer-initiated online payments made within Europe.
PSP, payment service provider – A third-party entity that facilitates payment processing services for merchants. Checkout.com is a PSP.
PTB, pay to bank – A transaction that pays funds out to a bank account.
PTC, pay to card – A transaction that pays funds out to a payment card.
public key – A key used for secure authentication between the customer’s browser and Checkout.com’s payment gateway.
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reconciliation – The process of ensuring that transaction records in the payment system align with bank and financial records, identifying any discrepancies.
recurring transaction – A transaction scheduled to recur regularly, as agreed between the merchant and customer. For example, a monthly subscription to a streaming service.
reference – A merchant-supplied reference you can use to identify a payment. For example, an order number. This field is available in the Request a payment or payout endpoint and is limited to 80 characters.
refund – A transaction reversal that returns funds to the customer after payment. In the Dashboard, the total number of refunds, either fully or partially, to customers in the specified time frame and currency.
remittance – The transfer of funds from one party to another, typically for the purpose of payment or settlement. Remittances can be domestic or international and may involve banks, payment processors, or financial institutions.
remittance currency – The currency in which the merchant receives funds.
remittance date – The business day (as notified by Checkout.com) on which the remittance occurs, based on the remittance cycle and threshold defined in the pricing schedule.
reported fraud-to-sales ratio – The ratio of reported fraud value to gross sales volume, calculated on a monthly basis.
representative – Employees, officers, directors of either the Merchant’s Group Company or the Checkout.com Group Company, and appointed lawyers, statutory auditors, or advisors (for example, accountants, financial advisors, consultants) with whom confidential information may be shared with written consent.
requested payment – A payment request received by Checkout.com. If the incoming payment request is valid, we process the payment.
response code – A code that indicates the outcome of a payment, sent back from the issuer to the payment processor after a payment is attempted. For more information, see API response codes.
reversal – When the funds for a transaction are reversed back to the sender, usually initiated by the merchant to cancel or correct a previously authorized or settled payment.
RFI, request for information – A formal inquiry from card schemes, regulators, or other entities, seeking additional details or clarification about a specific transaction or activity. At Checkout.com, an RFI may involve providing documentation or explanations related to payment processing, compliance, or fraud investigations.
risk assessment – An assessment of the potential risks in a transaction based on customer behavior, transaction details, and fraud indicators.
risk management – The process of identifying, evaluating, and mitigating risks in payment processing, including fraud detection and compliance strategies.
risk-declined payment – A payment flagged and declined by Checkout.com’s risk systems based on high-risk patterns or fraud indicators, usually because of concerns about potential fraud or other security issues. In the Dashboard, the total number of payments that were declined due to risk before authorization, in the specified time frame and currency.
rolling reserve – A reserve of merchant's funds held by Checkout.com, typically in the remittance currency, for 28 weeks. This reserve, which usually ranges from 5-10% of each charge, is assessed daily. If the remittance currency changes, the reserve converts at the current exchange rate and may include a markup.
rolling reserve deducted – An amount deducted from a payment capture and held by Checkout.com in reserve for a period of agreed time.
rolling reserve released – An amount released to the client after the period of agreed reserve time elapses.
sandbox – A controlled testing environment where you can test changes before they go into production, isolated from the production environment.
SBP, subscription billing platform – A system that enables merchants to manage and automate recurring billing for their products or services. It supports various subscription models, enabling businesses to process payments at predefined intervals, such as monthly or annually, while maintaining a seamless payment experience for customers. This platform integrates with the Checkout.com payment gateway to ensure secure and efficient payment processing for recurring transactions.
SCA, Strong Customer Authentication – An EU regulation that mandates additional security checks to reduce fraud and secure online payments. Contained under the Payment Services Directive 2 (PSD2) in Europe, it enhances the security of online payments by requiring multi-factor authentication. To meet SCA requirements, Checkout.com supports merchants by offering tools that validate the cardholder's identity using at least two of the following: something they know, something they have, and something they are. For example, a password, a phone or hardware token, and a fingerprint or other biometric data, respectively.
schedule – A document that details Merchant Underwriting Data, Merchant Bank Account, URLs, and pricing.
scheme currency – The currency in which scheme fees are settled by the card scheme for IC++ merchants.
SDK, software development kit – A set of tools for creating software for specific platforms.
security deposit release – The release of funds from your Collateral balance to your Available balance. See Balances.
security deposit reservation – An adjustment made to your Available balance to move funds into your Collateral balance to cover any credit risk while processing with us.
sensitive authentication data – Data related to authentication used to validate cardholders and authorize transactions. This includes card validation codes, full track data, PINs, and PIN blocks.
SEPA, Single Euro Payments Area – An EU initiative that enables simplified euro bank transfers, treating cross-border payments like domestic transactions.
SEPA mandate – A legal agreement between the merchant and the customer to authorize a SEPA Direct Debit transaction.
settled payments – In the Dashboard, the total number of payments that were settled in the specified time frame and currency.
settlement – The process of transferring funds to a merchant's account after a payment is authorized and captured. There are three types of settlement, including issuer settlement, settlement payouts, and scheme settlement. Settlement can be gross, where funds are transferred without fees deducted, or net, where fees are subtracted before the transfer.
settlement currency – The currency in which a settlement is paid by the card scheme.
settlement delay – The average number of days a merchant takes to complete a transaction.
SFTP, Secure File Transfer protocol – A method of securely accessing, managing, and transferring files over the internet.
Smart Dunning – A Checkout.com solution that improves payment recovery by predicting and scheduling retries at optimal times. The optimal schedule is determined through analyzing payment network data, leveraging advanced machine learning algorithms, and monitoring real-time network alerts. See [Smart Dunning retries(/payments/manage-payments/retry-a-payment/smart-dunning-retries).
smart retry – A process where, if a zero-dollar authorization fails, the system retries with a one-dollar authorization to verify cardholder payment details.
soft decline – A declined transaction that may succeed on a subsequent attempt.
SoR, Seller of Record – The entity legally identified as the seller in a transaction, which sells directly to the consumer.
spot refund rate – The percentage of refunded payments relative to the total number of captured payments in the specified time frame. It is calculated by dividing the number of refunded payments by the number of captured payments in the specified time frame.
SSL, Secure Sockets Layer – A standard encryption technology that ensures data is transmitted securely between web servers and browsers.
sub-account – A secondary account under your Checkout.comclient account used to manage, organize, or allocate funds with greater granularity while maintaining centralized control. Each sub-account typically holds funds in a single currency. Sub-accounts enable merchants to segregate funds, for example, by brand, user, or processing channel, and to handle multiple currencies across different payment flows.
sub-entity – A sub-entity is a child of an entity and operates under the primary merchant’s structure. Sub-entities represent branches, subsidiaries, clients, or specific business lines associated with the main merchant but are tracked and managed separately within the payment ecosystem.
sub-processor – An entity engaged by the data processor to process personal data on behalf of the Data Controller.
surcharge – An additional fee charged for a transaction, often used when merchants pass along the cost of processing credit card payments to customers.
SWIFT, Society for Worldwide Interbank Financial Telecommunication – A network that facilitates secure global financial transactions.
TARGET2 – A real-time gross settlement system for the Eurozone that enables funds to be settled between banks.
TDM, transaction distribution management – When transactions are redirect to a different acquirer if the initial acquirer declines the transaction.
third-party agent – An entity that sells third-party goods or services and manages disputes under its name. It is also known as an aggregating entity.
third-party servicer – An entity contracted by acquirers to offer payment-related services, such as gateway processing, fraud management, and token services.
token – A randomly generated string of characters that acts as a substitute for a primary account number (PAN), the actual 16-digit number on a credit or debit card. Tokens help protect sensitive payment information and ensure the security of online payments.
tokenization – The process of replacing sensitive payment data with a secure, non-sensitive, and unique token to improve transaction security.
TPA, third-party acquirer – A third-party processor that partners with Checkout.com to provide payment processing services in certain regions. For example, US and MENA.
TPP, third-party processor – An intermediary processor that connects the acquirer to the card scheme, enabling secure communication.
TPPP, third-party payment partner – A financial institution authorized by a payment scheme to manage routing transactions and distributing funds.
TPPP rules, third-party payment partner rules – The regulations governing the actions and responsibilities of third-party payment partners.
transaction amount discrepancy – A manual adjustment Checkout.com makes to correct any transaction discrepancies or transfer funds from one sub-account to another.
transaction ID – The unique Checkout.com identifier for a transaction.
transaction/authorization currency – The currency in which a transaction is originally offered to the buyer and submitted to the payment scheme.
UBO, ultimate beneficial owner – A natural person who ultimately owns or controls an entity, or on whose behalf transactions are performed.
uplift – In the Dashboard, an increase in a specific metric caused by a particular action or treatment. This is used to measure the incremental impact of an intervention on payment-related KPIs.
URL, uniform resource locator – A reference used to specify an address on the internet, enabling users to find specific websites or files.
UTC, Coordinated Universal Time – The primary time standard globally used to regulate clocks and time.
VAU, Visa Account Updater – A Visa service that helps merchants obtain updated information for cards that expire or are replaced.
VCR, Visa Claims Resolution – A system provided by Visa for resolving disputes.
virtual card – A digital-only payment card that functions like a physical card but exists only in electronic form. It is used for online transactions and can be single-use or multi-use.
virtual terminal – An online system that enables merchants to manually process card-not-present (CNP) transactions.
VMAS, Visa Merchant Alert Service – A service that helps acquirers track the movement of merchants between acquirers and mitigate the risks of acquirer hopping.
VMID, Visa Merchant Identifier – A unique identifier assigned to merchants in the Visa Trusted Listing program.
VMSS, Visa Merchant Screening Service – A service that helps acquirers identify high-risk, unreliable, or fraudulent merchants and third-party agents before onboarding, reducing exposure to fraud, brand damage, and compliance risks.
voided payment – A payment that was voided after authorization, but before funds were captured.
voids – In the Dashboard, the total number of voids, either fully or partially, in the specified time frame and currency.
webhook – An automated notification Checkout.com sends merchants when triggered by a specific event, which enables merchants to take action.
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zero-dollar authorization – A zero amount authorization request used to verify the cardholder's payment information without billing the customer.
2FA – two-factor authentication – An added layer of security requiring two methods of identity verification to access accounts or complete transactions. A form of multi-factor authentication (MFA).
3DS – 3D Secure – An authentication protocol that enhances security for online card payments, while also increasing the likelihood of a frictionless transaction. You can request exemption for eligible transactions that need to comply with PSD2.