Glossary
Plain-language payments glossary for merchants: key terms in cards, APMs, fraud, chargebacks, compliance and orchestration, each with a short definition.
What is an acquirer? Acquiring bank meaning in card payments
Acquirer definition: the licensed bank or payment institution that settles card payments to merchants, how it differs from issuers and PSPs, and what it costs.
Authorization and capture: how card payments are approved and collected
Authorization reserves funds on a card; capture collects them. How auth and capture work, when to capture later, partial captures, voids and expiry.
What is a credit note? Meaning, VAT and when to issue one
A credit note reduces or cancels an issued invoice, for example after a return or a pricing error. What it contains, EU VAT rules and how it links to refunds.
IBAN: what an International Bank Account Number is and how it is built
An IBAN identifies one bank account across borders: up to 34 characters under ISO 13616, 22 in Germany, 18 in the Netherlands. Format, check digits, SEPA.
What is an interchange fee? Meaning and EU caps
The interchange fee is paid by the acquirer to the card issuer on each card payment. How it works, EU caps for consumer cards and what it means for you.
What is payment cascading?
Payment cascading automatically retries a failed payment through another provider. Learn how it works, when to use it and how to set safe rules.
What is a payment gateway? Definition, how it works and examples
Payment gateway meaning: how it captures, tokenises and routes payments to the acquirer, gateway vs PSP vs processor vs orchestrator, and a $0.10 fee example.
What is a payment processor? Front-end vs back-end processing explained
Payment processor definition: how front-end and back-end processing work, processor vs acquirer vs gateway, and examples such as Fiserv and Global Payments.
Refund vs chargeback: what is the difference?
Refund vs chargeback: who starts it, fees, time limits and dispute ratios. Why a fast refund is usually cheaper than a chargeback, and how to handle each.
Remittance advice: what it is, what it contains and why it matters
A remittance advice tells a supplier which invoices a payment covers: what it contains, how it differs from an invoice and how it speeds up reconciliation.
What is settlement in payments? Meaning, timing and payouts
Settlement in payments is the final transfer of funds between banks and to the merchant. How card and bank settlement works, timing and reconciliation.
SWIFT code (BIC): what it is, its format and SWIFT vs IBAN
A SWIFT code or BIC identifies a bank in international transfers: 8 or 11 characters under ISO 9362. Format, SWIFT vs IBAN, and when SEPA needs no BIC.
What is transaction risk scoring?
Transaction risk scoring rates each payment's fraud risk from data signals. Learn how scores work, common signals and how to set thresholds.