Term
Simple defination
3D Secure
An online security protocol designed to prevent fraud in card-not-present transactions.
Acquiring Bank
The bank helping businesses accept card payments.
Address Verification Service (AVS)
Matching your address with the card's address.
Authorization
Getting a green light from the bank for a purchase.
BIN (Bank Identification Number)
The first few numbers on a card that tell you the bank.
Capture
Confirming and collecting a payment.
Cardholder
The person who owns and uses a credit or debit card.
Card Network
Companies like Visa and Mastercard that help with card payments.
Card Not Present (CNP)
Transactions where the card isn't physically shown, like online shopping.
Card Verification Value (CVV)
The 3 or 4 digits on your card's back for safety.
Chargeback Analyst
An expert who checks if a chargeback claim is right.
Chargeback Code
A code that tells why someone started a chargeback.
Chargeback Period
The time a shopper has to start a chargeback.
Chargeback Ratio
The percentage of sales that become chargebacks.
Clearing
The step where payment details are checked and adjusted before the final payment.
Compelling Evidence
Proof the business shows to fight a chargeback.
Counterfeit Fraud
When a fake card is used for a purchase.
Credit Memo
A note showing you've been refunded or credited.
Decline Code
A code saying why a card wasn't accepted.
Digital Goods
Things like eBooks or online courses.
Dispute Resolution
Sorting out issues between a shopper and business.
EMV (Europay Mastercard Visa)
A chip in your card for extra safety.
Excessive Chargebacks
When a business gets too many chargebacks.
Fraud Screening
Checking transactions for suspicious activity.
Friendly Fraud
When a shopper wrongly starts a chargeback.
Gateway
The middleman that checks and processes online payments.
High-Risk Merchant
A business type that banks think might get many chargebacks.
Holdback
Money the bank keeps for a bit, just in case.
Interchange Fee
Fee that stores pay to banks for card transactions.
Issuer
The bank that gave you your credit or debit card.
Issuing Bank
The bank giving out credit or debit cards.
Magnetic Stripe
The black line on the back of your card.
Merchant Account
An account businesses use to get card payments.
Merchant Category Code (MCC)
A code that tells what type of business a merchant does.
Merchant Descriptor
How a business's name appears on your statement.
Merchant ID (MID)
A business's unique code for card payments.
Payment Processor
A helper for businesses to accept card payments.
Pre-Arbitration
Before the final step in a chargeback fight.
Preauthorization
A hold on funds before the purchase is finalized.
Primary Account Number (PAN)
A unique number on payment cards identifying the card issuer and account holder.
Reason Code
Why the chargeback was started.
Re-presentment
When a business fights a chargeback.
Representment Rights
A business's right to challenge a chargeback.
Reserve Account
A special account where banks keep some of a merchant's money for security reasons.
Retrieval Request
When the bank asks for details about a sale.
Rolling Reserve
Money set aside for potential future issues.
Secure Electronic Transaction (SET)
A system making online card payments safe.
Settlement
Finalizing a transaction's money movement.
Tokenization
Turning sensitive info into a safe code.
Transaction Lifecycle
The journey of a sale from start to finish.
Void Transaction
Canceling a sale before it's finalized.
Zero Liability Policy
A promise you won't pay for unauthorized use.
