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3D Secure

The purpose behind the development of 3D Secure is to offer an extra security layer for online financial transactions via credit and debit cards. This XML based protocol has been imbibed by most of the credit card companies that include Visa (Verified by Visa), American Express (SafeKey), MasterCard (SecureCode) and JCB (J/Secure).

Acquirer

A financial institution or a bank can be termed as an acquirer (acquiring bank). It processes both debit and credit card payments in place of a merchant. Acquirer also holds a license for settling funds to merchants.

Alternative Payment Method

These payment methods are alternatively used with mainstream debit and credit cards. Some prominent examples would be to include online banking methods (like SOFORT and giropay) along with e-wallets.

American Express

American Express (abbreviated form is Amex) is a globally renowned credit card especially popular in USA that accounts for 24% of entire dollar volume of online financial transactions via credit cards.

Authorisation
Authorisation feature helps to verify the validity of shopper's card (both credit and debit). It also checks the available balance kept with the line of credit.
Address Verification Service (AVS)

This is an enhanced security layer that validates the address of the cardholder against the address of the issuer. This process is undertaken to reduce the chances of fraudulent transactions. If addresses are found to be identical then the issuer returns a code validating its accuracy.

Bank Transfer

Through the use of the term called bank transfer, wide range of financial transactions in particularly the credit transfers like cash and giro-payments are defined. Even wire transfers fall under this category. Such financial transfers are conducted through associated banks.

Capture

This is the payment submission by the merchant on behalf of the issuer based on authorised transactions after the delivery of goods and services to the shoppers.

Card Not Present

Herein this type of transaction, a card (debit or credit) is not present in physical form at the moment of sale. The merchant could not see the card or swipe it and neither do shopper signature is gathered. Mostly these transactions are done via telephone or online.

Credit Card

Merchants accept plastic payment cards as a method of payment. Over a time period, users are allowed to pay the balances over certain time period and interest is added up with the outstanding.

Card Verification Value (CVV)

Numeric value is either found at the back of MasterCard, Visa and Discover cards (3 digits) or at the front of the cards of American Express. CVV is an enhanced security feature that is designed to reduce the chances of card frauds on through the transactions of card not present types.

Card Present

Herein this type of transaction, a card (debit or credit) is physically present at the moment of sale. The merchant will be able to see the card as well as obtain the shopper's signature.

Chargeback

The chargeback process is initiated by cardholders to report disputes of transactions on their accounts. Once initiated, paid funds are debited from the merchant's account and returned back to the shopper. There are various reasons for which chargebacks could be initiated such as frauds, not received goods or damaged

Cross-border Payments

Herein these kind of transactions, payments originate from a shopper staying in one country and send to a merchant living in another country.

Debit Card

Plastic payment card is linked with the bank account of the card holder. If one uses debit card to pay the bill, the funds are immediately deducted from shopper's bank account.

Intelligent Payment Routine
For assuring maximum success rate, automatic transaction routing connection is established between various acquiring banks that also includes subscription retries and failovers.

Payment Card Industry

Data Security Standard (PCI)

This is a set of requirements for ensuring the processes of storing and transmitting the debit and credit card information to maintain secured environment.

Prepaid Credit Card

Prepaid credit card is a secured card usually affixed with a logo from major card schemes and carries pre-deposited amount. Until the fund is exhausted, the card is reused as credit cards.

Presentment Currency

The currency using which shoppers purchase both goods and services from the merchant.

Payment Processor

This company is appointed by a merchant so that users could easily submit payment transactions. Often third-party companies are appointed as payment processors.

Refund

Refund allocates credit to cardholders because of remediation of the return of goods or services.

Settlement Currency

The currency that merchants receive to fund in.

Recurring Billing

Allow merchants to modify customer's debit and credit card after regular time frames to avail recurring services like subscriptions and membership fees.

Velocity Check

Through this method, a particular data element (name, address, card number etc.) is scrutinised many times to detect fraud. The scrutiny is done within well-framed time period.

Visa

Visa is one of the globally recognised financial services corporations that monitors and controls the use of debit and credit cards in between the merchants and issuing banks.

Wire Transfer

Wire transfer is electronic payment service to transfer funds through wire. SWIFT is an appropriate example of wire transfer method. Other significant examples are Clearing house Interbank Payments System and the Federal Reserve Wire Network.

Anatomy of Payment Gateway