3-DS (3-D Secure)
3-D Secure is a security protocol used to authenticate cardholders during card payments. It connects the issuing bank, the merchant, and the systems that support communication between them.
Fintech World
Glossary.
The world of payments, especially digital payments, is full of concepts and details that can cause confusion. This category has grown impressively in recent years and is expected to continue growing.
In today's technology-driven market, it is important for companies selling products or services online to understand the digital payments landscape and stay up to date. The more you learn, the easier it is to find the right payment solutions and strategies for companies and consumers.
A good payment system is essential for a company's profitability and important for management and sales optimization. Online merchants should understand what is included in the digital payments ecosystem.
Below you will find new terms and others you may already know. Keep this glossary handy to understand the everyday terms used across digital payments.
Acquirer
A financial institution that connects a merchant to card issuing banks and helps manage card payment processing.
Alternative Payment Methods
Payment options outside standard card payments, such as bank transfers, instant payments, digital wallets, and cash.
Authentication
The process of verifying that a user or transaction is genuine. Methods can include passwords, one-time codes, or biometrics.
Authorization
The issuer checks whether a card is valid and funds or credit are available, then approves or declines the transaction.
Blockchain
A distributed digital ledger that records transactions chronologically in blocks, with copies stored across multiple computers.
BNPL (Buy Now, Pay Later)
A payment model that lets a customer receive a product now and pay later, either on a due date or in installments.
Capture
The step that collects a previously authorized card payment and starts its transfer to the merchant.
Chargeback
A process for reviewing a card transaction disputed by the cardholder or issuer and, when appropriate, reversing the payment.
Checkout
The payment stage where a customer completes an order. It may use a hosted page, direct payment, or an embedded payment window.
Digital Wallet
A payment method that stores funding sources such as cards, bank accounts, or stored value for digital payments.
E-commerce
The sale and purchase of products and services over the internet.
EFT (Electronic Funds Transfer)
An electronic transfer of funds between bank accounts.
Issuer
The bank or financial institution that provides a payment card and manages transactions made with it.
Omnichannel
An approach that provides a consistent customer experience across channels, regardless of where a purchase starts or ends.
Payment Gateway
Technology that securely passes payment information from a website or device to payment processors for authorization.
PSP (Payment Service Provider)
A provider that helps businesses accept multiple payment methods and manage payment operations.
PCI DSS
A security standard that organizations handling payment card data must follow to protect that data.
QR Code
A two-dimensional barcode that can be scanned by a camera and used to share payment details quickly.
Tokenization
A data protection method that replaces sensitive information, such as card details, with a substitute token.