Every industry has its own language that is specific and unique to it. The same is true of the online payment service providers industry. It is important to be aware of these phrases, either as a consumer or as a business owner.
The world of online payments is characterized by terms such as these;
1. Payment Methods
A payment method is the way in which a buyer chooses to compensate the seller of a good or service that is acceptable to the seller. It is advisable to offer various payment options for your customers credit/ debit card payments and mobile payments. This offers convenience to your local and international customers.
2. PCI-DSS Certified
The Payment Card Industry Data Security Standard (PCI-DSS) is an information security standard for organizations that handle branded credit cards from the major card schemes. Major card schemes include American Express, Discover Financial Services, JCB International, MasterCard and Visa. The standard was created to increase controls around cardholder data in order to reduce credit card fraud.
3. Acquiring Bank
An acquiring bank is a financial institution that processes credit and debit card payments for your online business. Their main role is to accept (or acquire) credit or debit card payments and to verify the transactions made by customers.
4. Issuing Bank
An issuing bank is a financial institution that grants debit or credit cards directly to customers. You can easily identify who your issuing bank is, by simply looking at your credit or debit card.
5. Merchant Account
When entering a contract with an acquiring bank, your business will have a merchant account, which is a bank account where companies, such as yours, are able to process their customers’ debit or credit card payments.
A chargeback is also known as a reversal. It is a customer protection mechanism through which a disputed transaction is refunded or repaid either to the cardholder or the merchant, depending on the case. The most common reasons for a chargeback occur when:
– the product has not been received;
– the product received was drastically different from what was advertised; and
– the credit card used without authorisation of the card holder.
This is an edited version of an article originally published by paymill on April 17, 2015.