Category: Terminology

Biometric payments refer to a method of making transactions or authorizing payments using an individual’s unique biological characteristics. Instead of traditional payment methods like cash, cards, or PIN numbers, biometric payments rely on physical or behavioral traits, such as fingerprints, iris scans, facial recognition, or voice recognition. Here’s how biometric payments typically work: Biometric payments […]

Batch processing with a merchant account refers to a method of processing multiple credit or debit card transactions simultaneously. It is commonly used by businesses to streamline their payment processing operations. Here’s how it works: Batch processing offers several advantages for businesses: It’s important to note that batch processing is a common method, but it […]

In the payments industry, Basis Points (BPS) are a unit of measurement used to express small percentage changes or differences. One basis point is equal to one-hundredth of a percentage point (0.01%). BPS is commonly used in financial transactions, including credit card processing, to calculate fees, interest rates, or other financial metrics. Here’s how it […]

In the payments industry, the Bank Identification Number (BIN) refers to the first six digits of a payment card number. The BIN serves as an identifier that provides information about the issuing bank or financial institution. Here’s how the BIN works: The BIN is crucial for routing transactions, identifying the issuing institution, and implementing fraud […]

In the payments industry, a bank card refers to a plastic card issued by a financial institution, such as a bank or credit union, to its customers. Bank cards are used by cardholders to make electronic payments for goods and services, withdraw cash from ATMs, and perform other financial transactions. Here’s how a bank card […]

An Automated Teller Machine (ATM) is a self-service electronic device that enables bank customers to perform various financial transactions without the need for human assistance. ATMs are commonly found in banks, retail stores, airports, and other public locations. Here’s how an ATM typically works: It’s important for ATM users to exercise caution and be aware […]

In the payments industry, an authorization hold, also known as a card authorization or pre-authorization, is a practice used by merchants and card issuers to verify the availability of funds or credit on a payment card before the actual transaction takes place. It is a temporary hold placed on the cardholder’s account for a specific […]

In the payments industry, the authorization amount refers to the maximum amount approved by the card issuer or payment network for a particular transaction. It represents the maximum value of the transaction that the merchant can request authorization for. The authorization amount is typically determined based on the available credit limit or funds in the […]

An Application Programming Interface (API) is a set of rules and protocols that allows different software applications to communicate and interact with each other. It defines the methods, data formats, and rules that enable seamless integration and interaction between different software systems. Here’s how an API works: APIs are crucial for enabling integration between different […]

Amex SafeKey, also known as American Express SafeKey, is a security feature and authentication protocol developed by American Express to enhance the security of online transactions. It is a form of 3-D Secure technology, similar to Verified by Visa and Mastercard SecureCode. Here’s how Amex SafeKey works: The Amex SafeKey authentication process adds an extra […]