Automated Clearing House
A U.S. network used for specified electronic transfers between financial institutions; settlement, returns and authorizations depend on the applicable service and rules.
Payments reference library
The payments encyclopedia
Clear definitions, connected to the questions merchants and industry professionals actually ask.
Useful terms, not sales jargon.
Definitions are introductory, not legal or contractual interpretations. Refer to current network and provider documents when precise technical definitions matter.
Acquiring institution
A financial institution in the payment acceptance chain that supports a merchant's card acceptance through appropriate arrangements.
Transaction authorization
A request/response process indicating whether the issuer or other decisioning system approves a proposed transaction; it is not the same as final settlement.
Settlement batch
A group of transactions submitted or closed for clearing/settlement depending on the acceptance system.
Bank Identification Number
An identifier used in card issuing and network routing contexts. Modern identifiers can have different lengths; don't assume one fixed rule.
Remote payment channel
A transaction where the payment credential is not presented through an in-person card-present acceptance flow.
Card dispute reversal process
A dispute-related mechanism subject to the applicable card network's procedures, reason codes and time limits.
Historical cost ratio
Total defined processing charges divided by corresponding processed volume, typically expressed as a percentage.
Payment gateway
Technology that transmits, secures, and/or orchestrates payment messages between the merchant application and payment ecosystem.
Interchange fee component
A card transaction fee component governed by applicable network programs, often part of a merchant's broader acceptance cost.
Pass-through with markup
A pricing structure that identifies underlying charges and additional processor/acquirer markup, subject to contractual details.
Independent Sales Organization
A business involved in merchant acquisition or sales/support under applicable processor, sponsor, and network arrangements.
Independent Software Vendor
A company building software that may integrate payments for a particular workflow or vertical.
Merchant Category Code
A classification associated with a merchant's business activity that can influence payment rules and programs.
Merchant identification number
An identifier used by providers to distinguish a merchant account or relationship; not a number to share publicly.
Payment Card Industry Data Security Standard
The PCI Security Standards Council data security standard covering applicable environments that store, process, or transmit cardholder data.
Payment facilitator
A model in which a registered facilitator enables payment acceptance for qualifying submerchants under defined arrangements.
Payment processor
A participant or service provider that supports authorization, clearing, settlement or other processing functions depending on the arrangement.
Held merchant funds
Funds retained or restricted under particular processing, underwriting or risk arrangements; contractual rules matter.
Ongoing compensation
Recurring compensation to an agent or organization under specific merchant/processor economics and written agreements.
Tokenized credential
The replacement of sensitive payment credentials with a token that may reduce exposure in appropriate system designs.
Merchant risk evaluation
Provider review of business, transaction, financial and compliance characteristics in determining account eligibility and conditions.
Movement toward merchant funding
The clearing and funds-transfer stage following authorization; timing and availability vary by arrangement.
Point-of-sale system
Hardware/software supporting merchant checkout, transaction initiation, reporting, and related operating workflows.
Dispute measurement
A measure of dispute activity relative to a defined transaction base; calculation and thresholds depend on the relevant program.
Applicable card-data environment
The systems, people, processes, and service relationships relevant to a merchant's card-data security responsibilities.
Related resources
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Look up fee labels found on statements.
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