Terminology
Last updated: December 18, 2024
Application Programming Interface. Rules enabling communication between software applications, such as Checkout.com APIs for payments and payouts.
The percentage of accepted payments relative to requested payments, indicating payment success.
Authorized transactions deemed acceptable for processing and settlement.
An entity that processes card payments for merchants, working with card networks and issuers to settle transactions.
A unique identifier tracking transactions processed through acquiring banks.
The fee paid by merchants to the acquirer for the processing and handling of card payments.
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.
Payments that have successfully been validated to ensure that the person attempting to make the payment is the legitimate cardholder.
The percentage of transactions successfully authenticated out of all attempted authentications.
The ratio of approved payments to total payment requests, reflecting transaction success rates.
Payments approved by the issuer, confirming sufficient funds or credit.
The first six to eight digits of a payment card number, identifying the issuing bank or institution.
Authorized payments processed to completion, deducting funds from the customer’s account.
The person to whom a payment card is issued and who is authorized to use it for transactions.
A dispute initiated by the cardholder, leading to the reversal of a transaction due to unauthorized charges or service dissatisfaction.
The percentage of transactions resulting in chargebacks, used to assess a merchant's risk level and compliance with card network rules.
A set percentage of a merchant's total transaction volume, after which chargebacks are flagged for further review or penalties may be incurred.
Transactions involving parties from different countries, which often require additional processing for currency conversion and compliance checks.
The process of assessing a customer’s risk profile to prevent money laundering and fraud, including identity verification and transaction monitoring.
A challenge by a cardholder or issuer against a transaction, potentially escalating to a chargeback.
Transactions contested by customers or issuers, potentially leading to chargebacks.
The buying and selling of goods or services online, encompassing various business models and transaction types.
A financial arrangement where a third party securely holds and manages funds or assets until all conditions of a transaction are met.
The exchange rate at which one currency is traded for another during international transactions.
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.
Pre-built, secure payment interfaces hosted by a payment service provider.
Fees merchants pay to card networks and issuers for processing credit and debit card transactions; part of the overall transaction costs.
The financial institution issuing credit or debit cards to customers and managing transaction authorization.
The country where a card was issued, used for tracking regional trends.
The process of verifying a customer's identity to prevent fraud and ensure regulatory compliance, often overlapping with customer due diligence (CDD).
A business accepting payments for goods or services via Checkout.com.
A unique identifier assigned to a merchant account by an acquirer for transaction processing and reporting.
An account provided by an acquirer enabling a merchant to process electronic payments.
The process by which a new merchant is registered, evaluated, and set up for payment processing services with a payment provider.
Payment services made through mobile devices such as smartphones or smartwatches, using technologies like NFC, QR codes, and mobile wallets.
Revenue remaining after deducting fees, refunds, and other operational costs.
A transaction made without using a traditional credit or debit card, such as with ACH transfers, mobile payments, or buy-now-pay-later solutions.
Payment Card Industry Data Security Standard. Security requirements ensuring secure processing, storage, or transmission of cardholder data.
The process of verifying the identity of a customer before completing a transaction, typically through authentication methods like biometrics or 3D Secure.
A third-party service that aggregates payments on behalf of sub-merchants, providing them with access to payment processing services without the need for a direct relationship with an acquirer.
A third-party service offering merchants electronic payment solutions, including gateways and payment processing services.
An EU directive that outlines requirements for authenticating online payments. These requirements, known as Strong Customer Authentication (SCA), apply to customer-initiated online payments and online banking transactions made within Europe.
A service that authorizes and processes transactions for e-commerce sites and merchants.
A company that facilitates secure fund transfers between a merchant and a customer's bank.
A unique and encrypted token that substitutes sensitive credit card details to safeguard against data breaches.
Funds transferred from a merchant's account to their bank account or another specified payment method.
Fraudulent transactions identified after authorization but before settlement.
The process of ensuring that transaction records in the payment system align with bank and financial records, identifying any discrepancies.
A transaction reversal returning funds to the customer after payment.
Completed payments reversed to reimburse customers either fully or partially.
Payments initiated by merchants or users through Checkout.com, representing the total number of submitted payment requests.
A process of reversing a transaction, usually initiated by the merchant to cancel or correct a previously authorized or settled payment.
Evaluating the potential risks in a transaction based on customer behavior, transaction details, and fraud indicators.
Payments flagged and declined by Checkout.com’s risk systems based on high-risk patterns or fraud indicators.
Identifying, evaluating, and mitigating risks in payment processing, including fraud detection and compliance strategies.
A standard encryption technology ensuring secure data transmission between web servers and browsers.
Funds successfully transferred from the issuer to the merchant's account post-authorization and capture.
Transferring funds from an acquirer to a merchant’s account following transaction authorization and capture.
An EU initiative enabling simplified euro bank transfers, treating cross-border payments like domestic transactions.
An EU regulation mandating additional security checks to reduce fraud and secure online payments.
An additional fee levied on a transaction, often used when merchants pass along the cost of processing credit card payments to customers.
Replacing sensitive payment data with a secure, unique token to improve transaction security.
An exchange of value between a customer and a merchant, typically involving payment for goods or services.
An added layer of security requiring two methods of identity verification to access accounts or complete transactions.
An online system enabling merchants to manually process card-not-present (CNP) transactions.
Payments canceled prior to completion, preventing fund transfers from the customer’s account.
Total monetary value of processed transactions over a specific period.
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.