Security standard developed by VISA and MasterCard for the authentication of online card payments.
The term acquiring bank (also referred to as a merchant bank, credit card bank, acquirer) denotes the independent financial institutions which authorise and process credit card payments on behalf of merchants. In this regard, an acquiring bank concludes what is known as a credit card acceptance agreement with the merchant as well as a licence agreement with the relevant credit card association (e.g. Visa or MasterCard). A merchant must have a credit card acceptance agreement with an acquiring bank in order to offer and accept credit cards as a payment method for their goods or services.
Address Verification Service (AVS)
Checking method for VISA, MasterCard and American Express to prevent fraud for credit card payments in long distance transactions in which the numerical address data provided by the customer.
Alternative payment methods
These mostly comprise non-card based payment methods such as payment services, wallets, vouchers and bank account based or prepaid methods.
Bank Identification Number (BIN)
The first six figures of a credit or debit card number.
Bank Identifier Code (BIC)
BIC (also known as SWIFT Code) is an 8 or 11 digit international bank sorting code for international bank transfer.
Billing and Settlement Plan (BSP)
The Billing and Settlement Plan (BSP) is the most widespread system in the world for simple processing of airline ticket sales.
A Cardholder which is not allowed to make a transaction or a Merchant who is not eligible to get a Merchant ID.
A process in which the card issuer can call back a transaction either in full or in part. The chargeback applies if a card holder disputes having performed a card transaction.
CNP, Card Not Present
Card transaction in which the card is not physically presented to the merchant, e.g. for an order in long distance trading (internet or MOTO).
A Co-branded card is a card issued by a licensed card issuer which bears the design of a third party company.
Contractual merchant number
A contractual merchant number, also known as a contractual company number is used to identify a credit card acceptance agreement between a merchant and an acquirer. It is issued by the acquirer.
A method used by banks to check consumers’ creditworthiness.
Card Verification Code 1, Card Verification Value 1. An encrypted security characteristic on a credit card’s magnetic strip which is read by the card reader when purchases are made.
CVC2, CVD, CVV2
A 3 or 4 digit card verification number on the front or back of a credit card that is used in CNP transactions. (Card Verification Code 2 = MasterCard, Card Verification Data = American Express, Card.
Electronic direct debits
Method in which purchasers issue the merchant with authorisation to debit funds directly from their account for a cashless transaction (in online trading by confirming the basket of goods.
Electronic Funds Transfer (EFT)
Refers to the paperless transfer of electronically recorded payment data representing a monetary value in a specific currency which is accepted by a customer/contractual merchant or a bank.
Abbreviation for Europay, MasterCard and VISA. Specification for payment cards that bear a chip.
Fraud Prevention Suite (FPS)
PaymentNetworks payment gateway risk management system which identifies suspicious data and/or behavior patterns in real time and effectively prevents fraud.
IBAN, International Bank Account Number
Standardised international bank account number (comprising account number, sorting code and prefix) for international payment transactions.
In-app payment refers to payment for goods or services via a mobile terminal in connection with a mobile application. Customers can store their desired payment type, such as credit cards.
Method to check fraud patterns for credit card transactions. The IP address is used to find the customer’s current location or internet access point.
Financial institution which issues payment cards (credit, debit and prepaid cards) as a member bank of the card organisations and receives transactions from its cardholders from other member banks.
Loyalty and Couponing Programmes
Serve to control specific marketing campaigns and are used in connection with mobile payments for location and/or transaction based customer loyalty programs.
Term used for people and companies who have entered into an undertaking in a contract with the acquirer to accept credit cards (VISA, MasterCard).
A bank account set up by a merchant for credit card revenues.
A bank which is licensed as a member of VISA/MasterCard to provide merchants with an account and therefore allows them to accept credit cards.
Merchant Identification Number (MID)
See contractual merchant number.
Mobile Card Reader
The card reader is a mobile add-on device which is attached to smartphones or tablets, turning the device into a payment terminal.
Includes, for example, the payment of digital or physical merchandise or a service on the mobile phone (payment on mobile/in-app payment) using the mobile phone (mobile at the point of sale) or the…
A mobile wallet managed via the mobile phone. Various digital cards can be stored in a mobile wallet.
MOTO, Mail Order/Telephone Order
The purchase of goods or services, with the purchase order issued by phone or in writing by fax or using an order card.
Near Field Communication (NFC) technology
NFC technology is the wireless transfer of data over a short distance (near field). Conditions for payments using mobile phone and NFC are: an NFC-enabled acceptance point.
Bridge technology to equip smartphones with contactless technology. NFC stickers can be attached to the rear of the mobile terminal and used to initiate payments in connection with a mobile wallet.
Confirmation of a payment using a PIN at the POS.
Payment hosted page
A Web-based payment page for simple and secure acceptance of various payment methods. End customers input their data into a website hosted by PaymentNetworks payment gateway to make online payments. The Payment Page enables merchants to charge their merchants.
PCI DSS (Payment Card Industry Data Security Standard) is a security standard initiated by VISA and Mastercard for merchants and payment service providers who process credit card payments.
Personal Identification Number (PIN)
Secret number which is only allocated to one single card, and which enables the card holder to confirm a POS payment or to access their account using a cashpoint.
PoS, Point of Sale
A terminal (card reader) in retail operations where the customer pays using a bank card and authorises the transaction using their PIN.
Has all of the features of a standard credit card and mostly licensed by VISA or MasterCard on a prepaid basis.
Storing card data in NFC-enabled smartphones in order to be able to make payments using the mobile phone. The card data is stored on the SIM card or in a secure area of the smartphone.
PSP, Payment Service Provider
A company which receives electronic payment transactions for merchants etc., authenticates these, processes them and in this regard also provides the merchant with the corresponding software.
Processing transactions and depositing the processed transaction with the merchant’s contractual bank (acquirer).
The currency in which settlement is performed in a bank account.
An 8 or 11 digit international bank sorting code issued by SWIFT (Society for Worldwide Interbank Financial Telecommunication) to identify a bank in international payment transactions.
This is a method in which sensitive data, such as credit card numbers, are replaced by reference values or tokens. A token can be used without restriction by systems and applications.
Currency in which a transaction is performed.
Transaction number (TAN)
A unique password issued by the card-issuing bank, which is used in addition to the PIN as extra security to confirm a transaction in internet banking.
A frequency check, in which payment transactions are reviewed for repeating patterns within a defined (short) period. The check can be performed based on various data for a payment transaction.
Internet assisted user interface for payment acceptance (including via MOTO), which is used, for example, in call centers. Allows direct payment acceptance without signature by the paying party. Risk management checks are performed in the same way as for online payments.
White label solution
PaymentNetworks solutions which companies create with their own corporate design and offer under their own name.