Glossary

Giving you information and explanations for some of the terms used in the payments and technology industry.

Glossary

Giving you information and explanations for some of the terms used in the payments and technology industry.

A

AI (in ASR)

The integration of Artificial Intelligence in Automatic Speech Recognition, enhancing the ability to process and understand spoken language.

The process of verifying the identity of a user, device, or system, often used for secure access and transactions, typically through the use of usernames, passwords, biometrics, or other security measures.

Agent-Digital

A term describing a digital or virtual agent, typically a computer program or AI system, that performs tasks or provides assistance in a digital environment.

ASR (Automatic Speech Recognition)

Technology that converts spoken language into written text, allowing machines to understand and process spoken words.

Agent Assisted Payments

Agent Assisted Payments refer to transactions where a customer interacts with a customer service representative or agent to initiate and complete a payment.

Amazon Alexa

Amazon Alexa is a virtual assistant developed by Amazon, designed to interact with users through voice commands and natural language processing

API

APIs (Application Programming Interfaces) are sets of rules and protocols that allow different software applications to communicate and interact with each other.

Artificial Intelligence (AI)

Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think and learn like humans

ACH (Automated Clearing House)

The Automated Clearing House (ACH) is an electronic network used for processing and transferring funds between banks and financial institutions. It facilitates the direct transfer of money between accounts, typically used for transactions such as payroll deposits, bill payments, and other types of electronic transfers

Authentication

Agent-Digital

A term describing a digital or virtual agent, typically a computer program or AI system, that performs tasks or provides assistance in a digital environment.

ASR (Automatic Speech Recognition)

Technology that converts spoken language into written text, allowing machines to understand and process spoken words.

Alexa payment

Refers to payment transactions facilitated through Amazon’s virtual assistant, Alexa, often using voice commands or other interactions.

Agent

In the context of technology, an agent can refer to a program or system that acts on behalf of a user, performing tasks or providing assistance.

App (Application)

A software program designed to perform specific tasks or provide specific functions on a computer or mobile device.

Automation

The use of technology to perform tasks and processes without human intervention, often to improve efficiency and accuracy.

Approved Scan Vendor (ASV)

An Approved Scan Vendor (ASV) is an organization authorized by the Payment Card Industry Security Standards Council (PCI SSC) to conduct external vulnerability scanning services for PCI DSS compliance validation

AoC (Attestation of Compliance)

AoC refers to Attestation of Compliance. It is a document provided by a Qualified Security Assessor (QSA) or by an internal security assessor (ISA) after an organization has completed a PCI DSS (Payment Card Industry Data Security Standard) self-assessment or a full PCI DSS assessment. The AoC verifies that the organization has undergone the necessary assessments and meets the compliance requirements set by PCI DSS.

Acquirer

An acquirer, also known as an acquiring bank or merchant bank, is a financial institution that maintains the merchant’s bank account and enables merchants to accept card payments from customers. Acquirers facilitate transactions by providing merchants with the necessary equipment and software to process payments.

B

BACS

BACS stands for Bankers’ Automated Clearing Services

Biometric Payment Card

Credit or debit card incorporating biometric authentication technology for enhanced security.

Biometric Authentication

Verification method using unique biological traits, such as fingerprints or facial recognition.

BIN (Bank Identification Number)

The first six digits of a credit or debit card, identifying the issuing bank.

B2B (Business-to-Business)

Transactions and interactions between businesses, involving the exchange of goods, services, or information.

Blockchain

Distributed ledger technology ensuring secure and transparent transaction records.

C

Chargeback Prevention

Chargeback prevention refers to strategies and practices used by merchants, businesses, and payment processors to reduce the likelihood of chargebacks.

Customer Identification Program (CIP)

A Customer Identification Program (CIP) is a set of procedures and processes established by financial institutions and other regulated entities to verify the identity of their customers.

Cryptocurrency Wallet

A cryptocurrency wallet is a digital tool that allows users to securely store, manage, and interact with their cryptocurrency holdings.

Cross-Border Payments

Cross-border payments refer to financial transactions that involve the transfer of funds between parties located in different countries.

Cardholder Verification Method (CVM)

Cardholder Verification Method (CVM) refers to the process used to authenticate the identity of the cardholder during a payment transaction.

Cardholder

A cardholder is an individual or entity that possesses and is authorized to use a payment card, such as a credit card, debit card, or prepaid card.

Contactless payment

Contactless payment refers to a method of transaction that allows users to pay for goods or services without having to physically touch or insert a payment card or device into a point-of-sale (POS) terminal.

Cashless

Cashless refers to a system or method of payment that does not involve the use of physical money, such as coins or banknotes.

Crypto payments

Crypto payments are transactions where digital currencies, such as Bitcoin, Ethereum, or other cryptocurrencies, are used as a method of payment.

CNP (Card not present)

CNP (Card Not Present) refers to transactions where the cardholder’s physical credit card is not required at the point of sale.

Credit Card Fraud

Credit card fraud is the unauthorized use of someone’s credit card information to make purchases or obtain funds, typically through theft, phishing, or hacking.

Chargeback

A chargeback is a reversal of a credit card transaction, initiated by the cardholder’s bank or credit card company, typically due to a dispute or fraud.

Computer Speech Recognition

Computer Speech Recognition, also known as Automatic Speech Recognition (ASR), is a technology that enables computers and software systems to understand and interpret human speech

Cortana

Cortana is a virtual assistant developed by Microsoft, similar to Amazon Alexa and Google Assistant. It is integrated into Microsoft Windows operating systems and available as an app on mobile devices.

Click to Pay

Click to Pay is a streamlined online payment method that allows users to complete transactions with a single click by using pre-stored payment and shipping information.

Cryptocurrency

Cryptocurrency is a digital or virtual form of money that uses cryptography for security

Contact Centre

A Contact Centre (or Contact Center) is a centralized hub where customer interactions across various communication channels (e.g., phone calls, emails, live chat, social media) are managed and handled by customer service representatives or agents. Contact centres are integral to customer support, sales, and service delivery operations of organizations.

CVV (Card Verification Value)

Three-digit code on credit cards for added security in online transactions.

Compliance

Compliance generally refers to adhering to rules, regulations, or standards set by an authoritative body or organization. In the context of payment card industry (PCI) compliance, it specifically relates to following the requirements outlined by the Payment Card Industry Data Security Standard (PCI DSS).

Cardholder Data (CHD)

Cardholder data refers to any information related to an individual who owns a payment card. This typically includes the cardholder’s name, primary account number (PAN), expiration date, and any other data relevant to processing a payment or verifying the identity of the cardholder. Protecting cardholder data is crucial to prevent fraud and maintain trust in electronic payment systems.

D

Direct Debit

Direct Debit is recommended for business and billing organizations that enables recurring payments and automated collection.

Data breach

A data breach is an incident where unauthorized individuals gain access to confidential or sensitive information, often leading to the exposure, theft, or misuse of that data.

Digital Currency

Virtual currency existing only in electronic form, not physically tangible

DALL-E

DALL-E is an AI model developed by OpenAI that generates images from text descriptions.

Decoded

The process of converting encoded information into its original and understandable format.

DTMF (Dual-Tone Multi-Frequency)

Dual-Tone Multi-Frequency (DTMF) is a signalling method used in telecommunication systems to transmit data by generating a combination of two distinct audio frequencies.

Direct Debit

Direct Debit is a financial arrangement that allows a business or organization to automatically withdraw funds from a customer’s bank account to cover recurring payments.

Debt collection

Debt collection refers to the process of pursuing payments owed by individuals or businesses to creditors.

E

ERP Systems

ERP (Enterprise Resource Planning) – integrated software systems designed to manage and streamline core business processes across departments.

E-Mandate

An e-mandate is a digital authorization that allows a payee to collect payments from a payer’s bank account via direct debit.

E-wallet

Electronic wallet for storing digital currency or payment information.

EPOS

System facilitating electronic transactions at retail locations.

Encryption

Process of converting sensitive data into a coded format for secure transmission and storage.

EFT (Electronic Funds Transfer)

Electronic transfer of money from one bank account to another.

E-commerce

The buying and selling of goods and services conducted over the internet, involving online transactions.

ECOM

Abbreviation for Electronic Commerce, encompassing online buying and selling of goods and services.

F

Fintech

Financial technology, encompassing innovative solutions and technologies in the financial sector.

Fraud Prevention

Techniques and measures implemented to detect and prevent fraudulent activities in payment transactions

FCA (Financial Conduct Authority)

A regulatory body overseeing financial markets and firms to ensure consumer protection and market integrity.

Fraud

Deceptive practices intended for financial gain, posing risks to individuals, businesses, or systems

G

Gatekeeper

Security feature preventing unauthorized access to sensitive payment information.

Gateway

Software or hardware connecting online merchants to payment processors for transaction authorization.

GDPR

European Union regulations ensuring the protection and privacy of personal data.

H

Housing association

A housing association is a non-profit organization that provides and manages affordable housing for individuals and families.

I

ISO 27001

an international standard for managing information security. It provides a framework for establishing, implementing, maintaining, and continuously improving an Information Security Management System (ISMS) to protect sensitive data and minimize security risks. Organizations certified under ISO 27001 demonstrate a commitment to safeguarding information through systematic risk management and security controls.

ISO

An international body establishing and publishing standards to ensure product quality, safety, and efficiency.

Integration

The process of combining different systems or software to work together seamlessly, enhancing efficiency and functionality.

IVR Payment

A payment method conducted through Interactive Voice Response systems, enabling secure transactions via phone interactions.

IVR

A technology allowing automated interactions with callers through voice and keypad inputs, commonly used in customer service systems.

K

KYB

a process used to verify the identity and legitimacy of a business entity, similar to KYC (Know Your Customer) but focused on companies rather than individuals. It involves checking business details such as registration, ownership, and financial status to prevent fraud and ensure regulatory compliance

KYC

Verification process ensuring the identity of customers before providing services.

M

Mobile Banking

Banking services accessed and conducted through mobile device

Multi Channel Payment

payment that span various channels, including online, mobile, and over-the-phone transactions.

Moto Transaction

A financial transaction conducted through Mail Order/Telephone Order methods, often used in remote purchasing scenarios.

MOTO (Mail Order/Telephone Order)

A type of payment transaction where orders are placed via mail or phone, typically without a physical card present.

Masking

Hiding sensitive data such as payment and personal information is best practice.

Merchant Account

A specialized bank account that enables businesses to accept payments, including credit card transactions.

Mobile payment

transaction conducted through mobile devices.

N

Faster Payments

Faster Payments is a service used by businesses to make and receive payments in real-time.

Nacha

Nacha stands for the National Automated Clearing House Association. It is a nonprofit association that governs the ACH network, which enables the electronic transfer of funds between bank accounts in the United States.

NFC (Near-Field Communication)

Near-Field Communication (NFC) is a short-range wireless communication technology that enables devices to exchange data over very short distances, typically up to 10 centimetres (4 inches).

O

Over the phone payment

A payment method where transactions are conducted by providing payment details verbally over the phone.

Omnichannel

A business approach providing a seamless and integrated customer experience across various channels, including online and offline.

Outbound payments

Financial transactions initiated by a payer to transfer funds to another party.

P

Payment Processor

A Payment Processor is a company or service that handles the transactions between a merchant and a customer’s bank during the purchase process.

Payment Facilitator

Entity simplifying the onboarding process for merchants to accept electronic payments.

Prepaid Card

Payment card with a predetermined value, often used as a gift or budgeting tool.

POS (Point of Sale)

Physical location where a transaction occurs, often referring to retail checkout counters.

P2P (Peer-to-Peer) Payments

Direct transfer of funds between individuals without intermediaries.

Payment Card Industry (PCI) Council

An organization that develops and maintains security standards for payment cards.

Payment Processing

The entire cycle of handling and facilitating the movement of funds between a payer and a payee.

Payment API (Application Programming Interface)

an API that allows software applications to connect and communicate with the payment processing system.

Pause and resume

A feature allowing users to temporarily halt and later continue processes or transactions.

PSD2 (Revised Payment Service Directive)

European Union regulations promoting competition and innovation in the financial services sector.

Pay by Link

A payment method where users receive a clickable link to complete transactions, simplifying the payment process.

Pay by Bank

A payment method allowing users to make transactions directly from their bank accounts, enhancing security and convenience.

PCI DSS (Payment Card Industry Data Security Standard)

(Payment Card Industry Data Security Standard): Security standards ensuring the safe handling of credit card information to prevent fraud.

Payment gateway

a service that facilitates the secure transfer of payment data between a merchant and a payment processor.

Q

QR Code Payments

Transaction method using Quick Response codes for efficient and secure information exchange.

R

Residual Payment

Ongoing payments received by a merchant for continued use or subscription to a service.

Risk Management

Strategies and practices to identify and mitigate potential financial risks.

Reconciliation

Matching and balancing financial transactions to ensure accuracy and consistency.

Remittance

Transfer of money by a person working in a foreign country to their home country.

Recurring Payments

a payment model where customers are charged at regular intervals, often used for subscription-based services.

S

SUN

A Service User Number (SUN) is a unique identifier assigned to a service user in payment systems, particularly in the context of direct debit transactions

SEPA

(Single Euro Payments Area) is an initiative of the European Union that simplifies bank transfers in euros.

Settlement

Finalization of a financial transaction, often involving the transfer of funds between parties.

Smart Card

Card embedded with a microprocessor chip, enabling additional functionalities beyond traditional cards.

STT ( Speech to Text)

-Speech to Text (STT), also known as voice recognition or automatic speech recognition (ASR), is a technology that converts spoken language into written text.

SWIFT

SWIFT generally refers to the “Society for Worldwide Interbank Financial Telecommunication,” a system that enables secure and standardized communication between financial institutions, primarily for international money transfers.

Secure Socket Layer (SSL)

Standard security technology for establishing encrypted links between web servers and browsers.

SMS Payment

A payment method conducted through Short Message Service (SMS), allowing users to make transactions via text messages.

Suppression

The process of excluding specific information or contacts from a database or communication list.

SCA (Strong Customer Authentication)

A security measure requiring additional authentication steps to verify the identity of the user in online transactions.

SFTP (Secure File Transfer Protocol)

A secure version of File Transfer Protocol (FTP), ensuring the safe and encrypted transfer of files.

T

Tap to Pay

Contactless payment method where users tap their cards or devices on a reader for transactions.

Transaction Fee

Charge imposed for processing a financial transaction.

3D Secure (Three-Domain Secure)

An additional layer of security for online credit and debit card transactions, providing an extra authentication step.

Token Vault

A secure storage system where tokenized payment information is stored for future use.

Two-Factor Authentication (2FA)

an additional layer of security requiring users to provide two different authentication factors.

Transcription

The conversion of spoken or written words into text, often used in various applications, including medical and legal fields.

Tokenisation

The process of substituting sensitive data with a unique identifier (token) to enhance security in transactions.

U

UPI

Indian real-time payment system enabling instant money transfers.

V

Virtual Card

Digital representation of a physical payment card used for online transactions.

Verified by Visa/Mastercard Secure Code

Additional security layer for online credit card transactions, requiring user authentication

VRN

VRN stands for Value-Added Tax (VAT) Registration Number.

Virtual Terminal

Online interface allowing merchants to manually enter and process card transactions, typically used for mail or phone orders.

Z

Zero Trust Security Model

Security approach where no entity is trusted by default, requiring verification for access.

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