TERM

DEFINITION

Payment method

Way of making a payment, such as Visa, MasterCard, American Express, Invoice or Internet bank payment.

PSP

Payment Service Provider. A PSP company serves as the link between a merchant and a bank.

Charge Back

When a cardholder sees an unfamiliar transaction on their account statement, they can file a complaint about the transaction with their bank. The bank can then challenge the transaction with the acquiring bank, which may result in a Reversal (Chargeback), where the merchant loses money on the transaction.

Refunding

A refund is a repayment of the original transaction to the cardholder. Ordinarily if an order is cancelled the transaction is refunded.

PCI

PCI, or PCI DSS which is the correct term, stands for Payment Card Industry Data Security Standards. It is the security standard that the card networks have agreed on for PSPs or merchants that handle or store card information.

Credit card fraud

Credit card fraud is a growing problem. In addition to causing inconvenience for the consumer, fraud can also have a financial impact on the online merchant. The most common form of fraud is purchases made with stolen cards or card numbers.

Fraud Screening

A system intended to prevent fraud by establishing a group of control rules which make it more difficult for a fraudster to complete a transaction.

Settling / Settlement

Settlement is the payment made to the merchant for purchases completed during a specific period. The Payment Service Provider supplies the merchant with a complete compilation of the transactions completed and their value.

Transaction

A purchase using a card or other payment method. A transaction may also be the opposite, i.e. a credit.

Transaction data

This encompasses all the information on a transaction, such as amount, currency, transaction number etc.

Card payments

Payments using all types of payment cards, such as Visa, MasterCard, American Express, Diners, etc. When making a card payment, the customer provides his card number to pay for the order. Consumers who pay by card are protected by the card networks’ rules and regulations.

Internet bank payments

Payments using different types of Internet banks; in Sweden these may be Nordea, SEB, Swedbank or Handelsbanken. Also called “direct payment via Internet bank.” Internet bank payments are increasing in popularity in many countries.

Invoice

A payment based on an invoice is made later, after a service has been supplied.

3D-Secure

3D Secure is a security verification system developed by Visa and MasterCard where cardholders must provide a code to identify themselves when making Internet purchases.

Card issuer

A card issuer is the financial institution that issues a payment or credit card, such as a bank.

Acquiring bank

An acquiring bank is the bank that makes it possible for a merchant to be paid for card purchases made by its customers. The acquiring bank manages the transfer of funds from the issuing bank to the merchant.

Acquiring agreement

A merchant needs an agreement with an acquiring bank to receive payment for card transactions.

Transaction fee

Ordinarily the merchant pays a transaction fee to cover all of the costs involved in completing a card transaction. This may take the form of a percentage of the purchase transaction, a fixed fee per transaction or both. Both banks and PSPs may assess a transaction fee.

Transaction volume

Turnover as the number of transactions or the total amount of a merchant’s monthly turnover.

E-commerce platform

Turnkey platforms are available for online merchants to set up their stores on the Internet. These platforms have standard solutions for the store, including links to PSPs etc. that are ready to go.