Terminology
Last updated: February 26, 2025
acceptance rate: The percentage of successful payments that are ready to be captured out of all requested payments. Calculated by dividing the number of accepted payments by the number of requested payments.
accepted payments: The total number of accepted or partially accepted payments in the specified timeframe and currency.
access control server (ACS): The server operated on the card issuer’s domain to authenticate cardholders during 3D Secure transactions.
account funding transaction (AFT): A transaction type used to transfer funds from a card account to non-merchant accounts, such as topping up a prepaid card.
acquirer: An entity that processes card payments for merchants, working with card networks and issuers to settle transactions.
acquirer bank: A financial institution that handles a merchant’s account so that they can accept credit or debit card payments.
Acquirer Fee: The fee paid by merchants to the acquirer for the processing and handling of card payments. A breakdown type field used in reconciliation reports.
acquirer reference number (ARN): A unique identifier assigned to a credit or debit card transaction. Used to trace the payment throughout the payment processing ecosystem.
address verification service (AVS): A fraud prevention tool used to verify a customer’s address against the cardholder’s billing address held by the issuing bank in card-not-present transactions.
Alternative Payment Method Fee: The fee applied per transaction for using an alternative payment acquiring service, including fees from the payment scheme or third-party payment providers. A breakdown type field used in reconciliation reports.
alternative payment methods (APM): Payment options beyond traditional credit and debit cards, such as digital wallets (e.g., PayPal, Apple Pay), bank transfers, and buy now, pay later services.
amendments: Changes to a merchant’s contract or Merchant Agreement Framework (MAF) requiring Checkout.com’s involvement, such as updates to pricing or agreements.
anti-money laundering (AML): Regulations and policies designed to prevent money laundering and detect illicit financial activities within legitimate financial channels.
anti-money laundering (AML) questionnaire: A pre-onboarding questionnaire for merchants operating in certain industries like financial services, gambling, or bullion trading.
application programming interface (API): Application Programming Interface. Rules enabling communication between software applications, such as Checkout.com APIs for payments and payouts.
authenticated payments: The total number of payments that were successfully authenticated by the card issuer or payment network in the specified timeframe and currency.
Authentication Fixed Fee: Fees charged for determining whether a payment is being carried out by the legitimate cardholder. This includes authentications via the Checkout.com Standalone (Sessions) API. A breakdown type field used in reconciliation reports.
Authentication Fixed Fee Tax: Tax applied to any tiered pricing adjustments on fees eligible for tax. A breakdown type field used in reconciliation reports.
authentication rate: The percentage of all incoming payment requests that were successfully authenticated by the card issuer or payment network in the specified timeframe and currency. Calculated by dividing the number of successfully authenticated payments by the total number of payments that passed through authentication.
Authentication Variable Fee Tax: Tax applied to authentication fees. A breakdown type field used in reconciliation reports.
Authorization Fixed Fee: A specific fixed fee applied for authorized card payments. A breakdown type field used in reconciliation reports.
Authorization Fixed Fee Tax: Tax applied to authentication fees. A breakdown type field used in reconciliation reports.
authorization rate: The percentage of successfully authorized payments out of all payments submitted to the card network for authorization. Calculated by dividing the number of successfully authorized payments by the total number of payments submitted to the card network for authorization.
authorized payments: The total number of authorized payments in the specified timeframe and currency.
authorized representative: An individual with legal authority to bind the merchant to the agreement and make amendments on behalf of the merchant.
automated clearing house (ACH): A US-based network that facilitates electronic funds transfers between banks.
bank identification number (BIN): A four- to six-digit number that identifies the acquiring or issuing bank in card networks.
bank identifier code (BIC): A standardized international code used by banks to identify themselves in financial transactions, also known as a SWIFT code.
basic bank account number (BBAN): The country-specific portion of an International Bank Account Number (IBAN), used to identify a bank account.
Blended Fixed Fee: A fixed, flat fee applied to successful captures. A breakdown type field used in reconciliation reports.
Blended Fixed Fee Tax: Tax applied to blended rate fees. A breakdown type field used in reconciliation reports.
Blended Variable Fee: A variable fee applied to successful captures. A breakdown type field used in reconciliation reports.
blocked payments: The total number of payments that were declined due to risk, either before or after authorization, within the specified timeframe and currency.
business day: A standard working day, excluding weekends or public holidays, when banks are open for business operations. Also referred to as a working day in some regions.
capture rate: The percentage of captured payments out of all requested payments. Calculated by dividing the number of captured payments by the number of requested payments.
captured payment: A payment that has been captured, becoming revenue available to you.
card acceptor ID (CAID): A unique numeric identifier assigned to a merchant's account by the acquirer. It helps identify store locations or transaction points for tracking and managing payments.
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 authentication method (CAM): A method used by EMV to verify the authenticity of a card using encrypted certificates issued by the card network.
card issuer: The financial institution that issues payment cards (credit or debit cards) to cardholders and authorizes card usage.
card not present (CNP): 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.
card payout: A payout transaction made to a card.
card personalization validation (CPV): The process ensuring that an issued physical card meets all card scheme requirements before it is activated.
card scheme: A payment network that defines rules and guidelines for payments and settles transactions involving cardholders and merchants.
card scheme screening (CSS): 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.
card token: A secure, temporary reference to card details that can be used for transactions instead of exposing sensitive cardholder data.
Card Verification Fixed Fee: A specific fixed fee applied for card verifications to determine whether a card is valid. A breakdown type field used in reconciliation reports.
Card Verification Fixed Fee Tax: Tax applied to gateway related fees. A breakdown type field used in reconciliation reports.
card verification value (CVV) or card verification code (CVC): A 3- to 4-digit security code on payment cards used to validate card-not-present transactions.
cardholder: The person to whom a payment card is issued and who is authorized to use it for transactions.
cardholder authentication verification value (CAVV): A value generated during 3D Secure authentication and returned to the merchant as part of the transaction process.
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.
central processing date (CPD): The date on which a transaction is processed by card schemes.
charge (original transaction ID): A charge includes all key details of a purchase and each transaction event, with an original ID representing the first transaction in a charge.
chargeback: A chargeback is a customer-initiated reversal of funds for a purchase, typically facilitated through their bank or payment provider.
chargeback ADJM: The chargeback has been issued. Your account has been debited the disputed amount.
chargeback ARBL: You have lost the arbitration case. Your account has been debited an arbitration fee.
chargeback ARBW: You have won the arbitration case. Your account has been credited with the amount you did not accept liability for.
chargeback ARWS: You avoided a formal chargeback by accepting the dispute upfront. Your account has been debited the disputed amount.
chargeback AUTO: The chargeback was received, but the bank automatically represented it for a specific reason. For example, the transaction may have already been refunded before the chargeback was received.
chargeback CBRV: The chargeback was reversed/canceled by the issuing bank. Your account has been credited the disputed amount.
chargeback code: A code that represents the outcome of a dispute or arbitration. For more information, see Chargeback codes.
Chargeback Fixed Fee: A fee incurred for payments that are triggered on certain chargeback events. A breakdown type field used in reconciliation reports.
Chargeback Fixed Fee Tax: Tax applied to chargeback related fees. A breakdown type field used in reconciliation reports.
chargeback ratio: The percentage of total transactions that result in a chargeback. Used to assess a merchant's risk level and compliance with card network rules.
chargeback RPDW: You have won the dispute. Your account has been credited the disputed amount.
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.
chargeback UPDT: Your account was financially adjusted after a dispute was processed.
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: A client account is an account created for a business (merchant) to use the payment processing services provided by Checkout.com. It allows businesses to process transactions, manage payouts, access reporting, and configure payment settings through Checkout.com.
Client Settlement Domestic Fixed Fee: A fee charged when funds are settled through domestic bank transfer. A breakdown type field used in reconciliation reports.
Client Settlement Domestic Variable Fee: A fee charged when funds are settled through domestic bank transfer. A breakdown type field used in reconciliation reports.
Client Settlement International Fixed Fee: A fee charged when funds are settled through international bank transfer. A breakdown type field used in reconciliation reports.
Client Settlement International Variable Fee: A fee charged when funds are settled through international bank transfer. A breakdown type field used in reconciliation reports.
consumer device cardholder verification method (CDCVM): A verification method used for cardholder authentication through consumer devices, such as smartphones or tablets.
cover negative position: An adjustment made by Checkout.com to resolve a negative balance. This could be to cover a shortfall for example.
cross-border payments: Transactions involving parties from different countries, which often require additional processing for currency conversion and compliance checks.
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.
customer due diligence (CDD): The process of assessing a customer’s risk profile to prevent money laundering and fraud, including identity verification and transaction monitoring.
customer-initiated transaction (CIT): A payment where the customer actively initiates the transfer of funds to a merchant, typically by providing or confirming their payment information.
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 being processed.
decline code: A short code (usually two digits) that indicates why a payment was declined.
declined payment: A payment that was declined during authorization.
device IP address: The IP address of the device used to make the initial payment, often the end-user's IP address.
digital wallet operator (DWO): A financial institution that stores digital payment information and enables electronic transactions.
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: A challenge by a cardholder or issuer against a transaction. This leads to an investigation and potential reversal of the charge in the form of a chargeback.
disputed payment: A payment that resulted in a dispute from the cardholder.
Disputed Return Fixed Fee: A fixed fee applied to returns that were deemed unauthorized for an alternative payment method. A breakdown type field used in reconciliation reports.
due diligence: A process of investigation to assess potential risks and ensure compliance with regulations and policies.
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.
electronic commerce indicator (ECI): A code indicating the level of security used in a transaction when the cardholder provides payment details.
electronic money institution (EMI): A financial organization authorized to issue and manage electronic money for online transactions.
entity: An entity is 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 entity 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 governing data privacy within the European Union, including GDPR and related laws.
EU payment services directive: Directive 2007/64/EC, which governs payment services and regulations within the EU.
Excessive Fraud Fee: A fee applied if a merchant’s reported Fraud-to-Sales Ratio exceeds 1% over three consecutive months. A breakdown type field used in reconciliation reports.
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.
financial conduct authority (FCA): The UK regulatory authority overseeing financial services, ensuring fair practices and compliance.
Fixed Fee Tax: Tax applied to blended rate fees. A breakdown type field used in reconciliation reports.
foreign exchange (FX) rate: The exchange rate at which one currency is traded for another during international transactions.
fraud reports: Reports relating to fraudulent activity. This includes reports received from the card schemes. For example, Visa TC40 and Mastercard SAFE.
FX payouts (FXP): A service for converting and paying out funds in foreign currencies.
Gateway Fees: Fees for using the Payment Gateway Service, as specified in the Pricing Schedule. A breakdown type field used in reconciliation reports.
Gateway Fixed Fee: A fixed fee incurred on actions across the payment lifecycle. For example, authentication, authorization, void, and refund. A breakdown type field used in reconciliation reports.
Gateway Fixed Fee Tax: Tax applied to gateway related fees. A breakdown type field used in reconciliation reports.
General Data Protection Regulation (GDPR): EU regulation designed to protect personal data and privacy, including data processing and consent practices.
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.
incoming payment request: A payment request sent to Checkout.com. The request is reviewed and processed if valid.
independent sales organization (ISO): A third-party entity contracted by a bank to facilitate merchant accounts and processing services.
Intelligent Acceptance Fixed Fee: A fixed fee applied for transactions optimized by Intelligent Acceptance. A breakdown type field used in reconciliation reports.
Intelligent Acceptance Fixed Fee Tax: Tax applied to Intelligent Acceptance fees. A breakdown type field used in reconciliation reports.
interbank card association (ICA): A unique identifier issued by Mastercard for transaction identification among members.
interchange currency: The currency in which interchange fees are settled, applicable to IC++ merchants.
Interchange Fees: fees merchants pay to card networks and issuers for processing credit and debit card transactions; part of the overall transaction costs. A breakdown type field used in reconciliation reports.
Interchange Fixed Fee: A fixed fee set by card schemes and paid out to the cardholder’s issuing bank. This fee is refunded to you for processed refunds. A breakdown type field used in reconciliation reports.
Interchange Fixed Fee Tax: Tax applied to interchange fees. A breakdown type field used in reconciliation reports.
interchange plus plus (IC++): A pricing model where credit card processing costs are split into three parts: interchange, card scheme fees, and Checkout.com processing fees.
Interchange Variable Fee: A variable fee set by card schemes and paid out to the cardholder’s issuing bank. This fee is refunded to you for processed refunds. A breakdown type field used in reconciliation reports.
Interchange Variable Fee Tax: Tax applied to payout related fees. A breakdown type field used in reconciliation reports.
international bank account number (IBAN): A standardized international format for identifying bank accounts across countries.
invoice settlement: An amount that has been paid by bank transfer for amounts owed on an invoice.
issuer: The financial institution issuing credit or debit cards to customers and managing transaction authorization.
issuing bank: A financial institution that provides payment cards (such as credit or debit cards) to consumers on behalf of card networks like Visa or Mastercard.
issuing BIN: 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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know your business (KYB): A due diligence process designed to prevent money laundering and assess the business’s legitimacy.
know your customer (KYC): The process of verifying a customer's identity to prevent fraud and ensure regulatory compliance, often overlapping with customer due diligence (CDD).
line of business (LOB): The specific products or services a business offers.
local payment method (LPM): Payment methods popular in a specific region, such as bank transfers or e-wallets.
manual adjustment: An internal adjustment made 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.
marketplace transfer (MPT): The movement of funds between internal accounts within the platform before payouts are finalized.
Mastercard Automatic Billing Updater (ABU): A Mastercard service that helps merchants obtain updated information for cards that expire or are replaced.
Mastercard Internet Gateway Service (MIGS): A Mastercard payment gateway product that facilitates secure transaction processing for merchants.
Mastercard Payment Gateway Service (MPGS): A successor to MIGS, offering enhanced payment processing features.
merchant: A business accepting payments for goods or services via Checkout.com.
merchant account: An account provided by an acquirer enabling a merchant to process electronic payments.
merchant bank account: A bank account where Checkout.com settles funds for merchants.
merchant category code (MCC): A four-digit code that classifies a merchant's business based on the type of goods or services they provide.
merchant ID (MID): A unique number assigned to a merchant by their acquiring bank. Used to identify the merchant in credit and debit card payments. Also referred to as a Card Acceptor ID (CAID).
merchant of record (MoR): The entity legally responsible for processing payments and managing customer disputes, acting as the seller to the cardholder.
merchant onboarding: The process by which a new merchant is registered, evaluated, and set up for payment processing services with Checkout.com.
merchant plug-In (MPI): Software that connects acquirers to card issuers for 3D Secure authentication and authorization.
Merchant Service Agreement (MSA): A binding contract between Checkout.com and the merchant that defines terms of service and responsibilities.
merchant-initiated transaction (MIT): 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.
Minimum Billing Fee: A fee applied to a nominated sub-account, subject to any minimum billing agreements made with Checkout.com. A breakdown type field used in reconciliation reports.
Minimum Billing Fee Tax: Tax applied to other fees. A breakdown type field used in reconciliation reports.
mobile payment: Payment services made through mobile devices such as smartphones or smartwatches, using technologies like NFC, QR codes, and mobile wallets.
multi-factor authentication (MFA): An added layer of security requiring two methods of identity verification to access accounts or complete transactions. Sometimes referred to as two-factor authentication (2FA).
natural refund rate: The total volume of all payments that were refunded, either partially or fully, out of all payments that were captured within the specified timeframe and currency. Calculated by dividing the number of partially and fully refunded payments by the number of captured payments in the same timeframe.
network token: Network tokens are unique digital placeholders that replace sensitive card details during payment transactions, enhancing security and convenience. They are automatically generated by card schemes and can be used across the entire payment ecosystem.
Network Token Provisioning Fixed Fee: A one-time fee per successful card tokenization with the respective card schemes. A breakdown type field used in reconciliation reports.
Network Token Provisioning Fixed Fee Tax: Tax applied to network token provisioning fees A breakdown type field used in reconciliation reports.
Network Token Update Fixed Fee: A fee for receiving and processing a network token update notification (from the card scheme) for a given network token. A breakdown type field used in reconciliation reports.
Network Token Update Fixed Fee Tax: Tax applied to network token update fees A breakdown type field used in reconciliation reports.
non-card payment: A transaction made without using a traditional credit or debit card, such as with ACH transfers, mobile payments, or buy-now-pay-later solutions.
omni-channel commerce: A multichannel sales approach providing a seamless customer experience, whether shopping online, on mobile devices, or in-store.
Onboarding Fixed Fee: A one-off fixed fee applied when a sub-entity is created. A breakdown type field used in reconciliation reports.
operational funding release: The release of funds from the Operational balance back to the available balance.
operational funding reservation: A temporary hold on funds to ensure sufficient balance for operational expenses. The reserved amount remains unavailable for other transactions until it is released or settled.
original credit transaction (OCT): A type of transaction enabling direct fund transfers to a cardholder’s account. Examples include Visa Direct and Mastercard MoneySend.
partial capture: A payment that has been partially captured as part of a series of multiple captures or a single partial capture.
partial refund: A partial refund refers to the refund of only a portion of the funds to the customer after payment, rather than the full amount.
pay to bank (PTB): A transaction disbursing funds to a bank account.
pay to card (PTC): A transaction disbursing funds to a payment card.
payer authentication: The process of verifying the identity of a customer before completing a transaction, typically through authentication methods like biometrics or 3D Secure.
payment authentication response (PARes): A response from the issuer after a cardholder completes 3D Secure authentication.
Payment Card Industry Data Security Standard (PCI DSS): A global security standard ensuring secure storage and transmission of cardholder data to reduce fraud.
Payment Card Industry Data Security Standard (PCI DSS): Security requirements ensuring secure processing, storage, and transmission of cardholder data.
Payment Card Industry Security Standards Council (PCI SSC): An industry body that develops data security standards for payment safety.
payment count: In a report, this represents the total number of payments reported in the specified timeframe and currency.
payment facilitator (PayFac): 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.
payment gateway: A service that authorizes and processes electronic payments for online or traditional businesses.
payment ID: The unique identifier of a payment.
payment instruction form (PIF): A contractual document used to capture changes to a merchant's bank account details, particularly when the settlement is 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.
payment IP address: The IP address from which the payment request was sent to Checkout.com, often the merchant's IP address.
payment method: A means of accepting payments from buyers, including cards, online transfers, direct debits, and others offered by Checkout.com. 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 out of jurisdiction form (PJF): A document required when funds are settled into a merchant’s bank account located outside the merchant’s jurisdiction. For example, this applies if an EU merchant requests payouts to a bank account in Singapore, provided the account is owned by the merchant.
payment processor: A company that facilitates secure fund 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 settlements processed by Checkout.com. Merchants have the option to specify this using the billing descriptor.
payment request: A formal instruction generated and sent by a merchant to a customer requesting funds for goods or services. A payment request initiates the payment process.
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 Service Provider (PSP): A third-party entity that facilitates payment processing services for merchants. Checkout.com is a PSP.
Payment Services Directive 2 (PSD2): 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.
payment token: A unique and encrypted token that substitutes sensitive credit card details to safeguard against data breaches.
payment volume: Total monetary value of processed transactions over a specific period.
payout: A card or bank payout transaction that is paid to a beneficiary of your choice.
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 Confirmed Fixed Fee: A fee charged for all payout transaction requests. A breakdown type field used in reconciliation reports.
Payout Confirmed Fixed Fee Tax: Tax applied to payout related fees. A breakdown type field used in reconciliation reports.
payout currency: The currency in which remitted funds are paid to the merchant.
payout cycle: The predetermined schedule for when Checkout.com disburses funds to the merchant.
payout date: The business day specified by Checkout.com when a payout occurs, reflecting the “Payout Frequency” listed in the pricing schedule.
payout rejected: A payout which has been rejected by Checkout.com. For example, due to a failed sanctions screening.
payout returned: A payout which has been returned by our banking partners. For example, due to incorrect beneficiary bank details.
Payout Returned Fixed Fee: A fee charged for every returned payout, which will be linked to an underlying returned payout via an action ID. A breakdown type field used in reconciliation reports.
Payout Returned Fixed Fee Tax: Tax applied to payout related fees. A breakdown type field used in reconciliation reports.
Payout Success Fixed Fee: A fee charged on a successful Card Payouts transaction. A breakdown type field used in reconciliation reports.
Payout Success Variable Fee: A fee charged on a successful Card Payouts transaction. A breakdown type field used in reconciliation reports.
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 the buyer, as well as the merchant’s employees, directors, shareholders, or the merchant as a sole trader.
PIN on glass: Point-of-sale (POS) solutions enabling merchants to accept card payments directly through a mobile device without additional hardware.
Platform Management Variable Fee: A fee charged when you successfully perform a card or bank payout to a sub-entity. A breakdown type field used in reconciliation reports.
Point-of-Sale (POS): A physical location, such as a retail store, where a cardholder completes a transaction.
point-to-point encryption (P2PE): A security standard that encrypts card data immediately upon its collection, ensuring secure transfer directly to the payment processor before decryption and processing.
post-authorization fraud: Fraudulent transactions identified after authorization but before settlement.
Pre-dispute Accepted Fixed Fee: A fee incurred for receiving a pre-dispute notification. A breakdown type field used in reconciliation reports.
Pre-dispute Accepted Fixed Fee Tax: Tax applied to chargeback related fees. A breakdown type field used in reconciliation reports.
Pre-dispute Declined Fixed Fee: A fee incurred for receiving a pre-dispute notification. A breakdown type field used in reconciliation reports.
Pre-dispute Declined Fixed Fee Tax: Tax applied to chargeback related fees. A breakdown type field used in reconciliation reports.
Premium Fixed Fee: A fixed fee applied to successful captures when processing payments with Checkout.com. A breakdown type field used in reconciliation reports.
Premium Fixed Fee Tax: Tax applied to Checkout.com premium fees. A breakdown type field used in reconciliation reports.
Premium Variable Fee: A variable fee applied to successful captures when processing payments with Checkout.com. A breakdown type field used in reconciliation reports.
Premium Variable Fee Tax: Tax applied to Checkout.com premium fees. A breakdown type field used in reconciliation reports.
pricing profile base currency: The base currency used for gateway fees. This is distinct from processing, settlement, and remittance currencies.
pricing schedule: The document that specifies applicable fees for services.
primary account number (PAN): The full, unique 16-digit number found on payment cards, such as credit, debit, or prepaid cards.
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 processing channel refers to the method through which a transaction is processed. This could involve various payment systems, technologies, or routes used to authorize, capture, and settle payments. This ensures that the transaction reaches the appropriate payment network or financial institution for processing. Each processing channel is associated to a merchant's legal entities. A legal entity can have more than one associated processing channel.
processing currency: The currency in which a transaction is processed.
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 upon 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 our Request a payment or payout endpoint and is limited to 80 characters.
refund: A transaction reversal returning funds to the customer after payment.
Refund Fixed Fee: A specific fixed fee applied for refunded payments. A breakdown type field used in reconciliation reports.
Refund Fixed Fee Tax: Tax applied to gateway related fees. A breakdown type field used in reconciliation reports.
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: Refers to: employees, officers, directors of either the Merchant’s Group Company or the Checkout.com Group Company, and appointed lawyers, statutory auditors, or it can refer to advisors (e.g., accountants, financial advisors, consultants) to whom confidential information may be shared with written consent.
Representment Fixed Fee: A fee incurred during the disputes process. Representment occurs when an issuer will review the evidence provided by you. A breakdown type field used in reconciliation reports.
Representment Fixed Fee Tax: Tax applied to chargeback related fees. A breakdown type field used in reconciliation reports.
request for information (RFI): A formal inquiry from card networks, 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.
requested payment: Payment request received by Checkout. If the incoming payment request is valid, the payment is processed.
response code: A code that indicates the outcome of a payment, sent back from the card issuer to the payment processor after a payment is attempted. For more information, see Response codes.
Retrieval Fixed Fee: A fee incurred before the disputes process. Retrieval occurs when the cardholder’s issuer requests information from you before raising a dispute. A breakdown type field used in reconciliation reports.
Retrieval Fixed Fee Tax: Tax applied to chargeback related fees. A breakdown type field used in reconciliation reports.
Return Fixed Fee: A fixed fee applied to returns for an alternative payment method. A breakdown type field used in reconciliation reports.
reversal: A process of reversing a transaction, usually initiated by the merchant to cancel or correct a previously authorized or settled payment.
risk assessment: Evaluating the potential risks in a transaction based on customer behavior, transaction details, and fraud indicators.
risk check (Pre-Auth): Risk checks that take place before authorization, based on rules set by the merchant and Checkout.com. As a result of of this risk assessment, a payment may be declined or forced to go through authentication.
risk declined payments: Payments 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.
Risk Engine Fixed Fee: A fixed fee applied for transactions screened by Fraud Detection Pro. A breakdown type field used in reconciliation reports.
Risk Engine Fixed Fee Tax: Tax applied to Fraud Detection Pro fees. A breakdown type field used in reconciliation reports.
risk management: Identifying, evaluating, and mitigating risks in payment processing, including fraud detection and compliance strategies.
rolling reserve: A reserve held by Checkout.com from the merchant, 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 will convert 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 used to test changes before they go into production, isolated from the production environment.
schedule(s): Documents detailing 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.
Scheme Fixed Fee: A fixed fee applied by card schemes to various steps within the payment lifecycle. A breakdown type field used in reconciliation reports.
Scheme Fixed Fee Tax: Tax applied to scheme fees. A breakdown type field used in reconciliation reports.
Scheme Variable Fee: A variable fee applied by card schemes to various steps within the payment lifecycle. A breakdown type field used in reconciliation reports.
Scheme Variable Fee Tax: Tax applied to scheme fees. A breakdown type field used in reconciliation reports.
secure file transfer protocol (SFTP): A method of securely accessing, managing, and transferring files over the internet.
secure socket layer (SSL): A standard encryption technology ensuring secure data transmission between web servers and browsers.
security deposit release: The release of funds from your Collateral balance to your Available balance.
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.
seller of record (SoR): The entity legally identified as the seller in a transaction, selling directly to the consumer.
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 mandate: A legal agreement between the merchant and the customer to authorize a SEPA Direct Debit transaction.
settled payments: The total number of payments that were settled in the specified timeframe and currency.
settlement: The process of transferring funds to a merchant's account after a payment has been authorized and captured. There are three types of settlement, including issuer settlement, merchant settlement, and scheme settlement. Settlement can be gross, where funds are transferred without fees deducted, or net, where processing fees are subtracted before transfer.
settlement currency: The currency in which a charge is paid by the card scheme.
settlement delay: The average number of days a merchant takes to settle or complete a transaction.
Single Euro Payments Area (SEPA): An EU initiative enabling simplified euro bank transfers, treating cross-border payments like domestic transactions.
smart retry: A process where, if a zero-dollar authorization fails, the system retries with a one-dollar authorization to verify cardholder payment details.
Society for Worldwide Interbank Financial Telecommunication (SWIFT): A network that facilitates secure global financial transactions.
soft decline: A declined transaction that may succeed on a subsequent attempt.
software development kit (SDK): A set of tools for creating software for specific platforms.
spot refund rate: The percentage of partially and fully refunded payments relative to the total number of captured payments within the specified timeframe and currency. Calculated by dividing the number of partially and fully refunded payments by the number of captured payments.
Strong Customer Authentication (SCA): Strong Customer Authentication (SCA) is an EU regulation mandating 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.
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.
subscription billing platform (SBP): A system that enables merchants to manage and automate recurring billing for their products or services. It supports various subscription models, allowing 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.
Subscription Fixed Fee: A fixed fee charged monthly. This is based on the number of active sub-entities for that month. A breakdown type field used in reconciliation reports.
Success Fixed Fee Tax: A tax applied to fixed payout-related fees. A breakdown type field used in reconciliation reports.
Success Variable Fee Tax: A tax applied to variable payout-related fees. A breakdown type field used in reconciliation reports.
surcharge: An additional fee levied on a transaction, often used when merchants pass along the cost of processing credit card payments to customers.
TARGET2: A real-time gross settlement system for the Eurozone, allowing funds to be settled between banks.
third-party acquirer (TPA): A third-party processor that partners with Checkout.com to provide payment processing services in certain regions (e.g., US and MENA).
third-party agent: An entity that sells third-party goods or services and manages disputes under its name. Also referred to as an aggregating entity.
third-party payment partner (TPPP): A financial institution authorized by a payment scheme to manage transaction routing and fund distribution.
third-party payment partner (TPPP) rules: The regulations governing the actions and responsibilities of third party payment partners.
third-party processor (TPP): An intermediary processor connecting the acquirer to the card scheme, enabling secure communication.
third-party servicer: Entities 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 act of replacing sensitive payment data with a secure, non-sensitive, and unique token to improve transaction security.
tokenization service: A service that provides tokenization functionality.
top-up: A top-up to the Operational balance to cover Payouts and Issuing payments when the Available balance is insufficient.
transaction amount discrepancy: A manual adjustment made by Checkout.com to correct any transaction discrepancies or transfer funds from one sub-account to another.
transaction distribution management (TDM): Redirecting transactions to a different acquirer if the initial acquirer declines the transaction.
transaction ID: A unique identifier for each transaction.
transaction/authorization currency: The currency in which the transaction is originally offered to the buyer and submitted to the payment scheme.
Transfer Fixed Fee: A one-off fixed fee when a transfer is performed. A breakdown type field used in reconciliation reports.
Transfer Variable Fee: A one-off variable fee when a transfer is performed. A breakdown type field used in reconciliation reports.
two-factor authentication (2FA): An added layer of security requiring two methods of identity verification to access accounts or complete transactions. Also referred to as multi-factor authentication (MFA).
ultimate beneficiary owner (UBO): The natural person(s) who ultimately owns or controls an entity, or for whom transactions are conducted on behalf of.
uniform resource locator (URL): A reference used to specify an address on the internet, enabling users to find specific websites or files.
virtual terminal: An online system enabling merchants to manually process card-not-present (CNP) transactions.
Visa Account Updater (VAU): A Visa service that helps merchants obtain updated information for cards that expire or are replaced.
Visa Claims Resolution (VCR): A system provided by Visa for managing dispute resolutions.
Visa Merchant Alert Service (VMAS): A service that helps acquirers track the movement of merchants between acquirers and mitigate the risks of acquirer hopping.
Visa Merchant Identifier (VMID): A unique identifier assigned to merchants in the Visa Trusted Listing program.
Visa Merchant Screening Service (VMSS): 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.
Void Fixed Fee: A specific fixed fee applied for voided card payments. A breakdown type field used in reconciliation reports.
Void Fixed Fee Tax: A tax applied to void-related fees. A breakdown type field used in reconciliation reports.
Void Variable Fee: A variable fee applied when a request to void an alternative payment method transaction is made. A breakdown type field used in reconciliation reports.
voided payment: A payment that was voided after authorization, but before funds were captured.
webhook: Automated notifications sent based on specific events, allowing merchants to take action in response to these triggers.
working day: A standard working day, excluding weekends or public holidays, when banks are open for business operations. Also referred to as a business day in some regions.
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zero dollar authorization: A zero amount authorization request used to verify the cardholder's payment information without billing the customer.
3D Secure (3DS): An additional authentication protocol enhancing security for online card payments, while also increasing the likelihood of a frictionless transaction. You can request a 3D Secure (3DS) exemption for transactions that need to comply with PSD2, provided that they meet the exemption's criteria.