Real-Time Payments: Real-time payments refer to transactions that are processed and settled immediately, usually within a matter of seconds, allowing funds to be transferred almost instantly from one party to another. These payments occur in real-time, meaning there is no delay between the initiation of the payment and the recipient’s access to the funds. Real-time […]
Payments Authorization: A payment authorization is a process in which a merchant (business) verifies if a customer’s payment method, such as a credit or debit card, has sufficient funds and is valid for the intended transaction. This process is done to ensure that the customer’s payment method can cover the cost of the purchase before […]
Level 1, Level 2, and Level 3 data refer to different levels of data requirements and reporting that merchants must adhere to when processing transactions, especially in the context of business-to-business (B2B) and corporate transactions. These levels are associated with the Payment Card Industry Data Security Standard (PCI DSS) and are relevant to businesses that […]
The issuing bank, in the context of payment processing, refers to the financial institution that provides payment cards (such as credit cards or debit cards) to consumers. These payment cards allow cardholders to make purchases, withdraw cash from ATMs, and engage in various financial transactions. The issuing bank plays a crucial role in the payments […]
A merchant account reserve in the payments industry refers to a portion of funds that a payment processor or acquiring bank holds as a security measure against potential financial risks associated with a merchant’s account. This reserve acts as a safeguard to cover chargebacks, disputes, and potential losses that could arise due to fraudulent or […]
In payment processing, the floor limit refers to the maximum transaction amount below which a merchant does not require authorization from the card issuer for a card transaction. It is also known as the floor limit amount or floor limit threshold. The floor limit helps streamline and expedite payment processing for smaller transactions, reducing the […]
The Fair Credit Billing Act (FCBA) is a federal law enacted in the United States to protect consumers in credit billing transactions. It applies to open-end credit accounts, such as credit cards and revolving credit accounts. The FCBA provides guidelines and procedures for addressing billing errors, unauthorized charges, and disputes between consumers and creditors. Here’s […]
The EMV (Europay, Mastercard, and Visa) liability shift refers to a significant change in the way liability for fraudulent card transactions is assigned between merchants, card issuers, and payment processors. It was introduced to encourage the adoption of EMV chip card technology, which provides greater security compared to traditional magnetic stripe cards. Prior to the […]
In the payments industry, an Electronic Funds Transfer (EFT) refers to the electronic transfer of funds from one bank account to another, allowing individuals, businesses, or organizations to send and receive money electronically without the need for physical checks or cash. Here’s how an Electronic Funds Transfer typically works: Throughout the process, various security measures, […]
In the payments industry, a dynamic descriptor refers to a feature that allows merchants to customize the information displayed on a customer’s payment card statement for a particular transaction. It provides merchants with the ability to include additional details or descriptors that help customers identify and remember the transaction more easily. Here’s how dynamic descriptors […]
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