Glossary

3D Secure

Verified by VISA & MasterCard Secure Code
A process for validating credit card payments in online commerce that protects against the fraudulent use of stolen card data. In addition to the card data (card number, cardholder, expiry date and card validation code), the cusomter must also enter a password/TAN during checkout. This additional authentication of the customer as the cardholder increases security against fraudulent payments and chargebacks.

Acquirer

Credit card institution with which the merchant agrees on a credit card acceptance contract. The acquirer bank accepts payments on behalf of the merchant and settles these with the card-issuing institution (issuer) of the customer/cardholder.

API

Application Programming Interface
An interface that is provided a software firm and via which the systems of users of the software can communicate with the application.

BIC

Bank Identifier Code
Internationally valid identification number of a bank as defined by the SWIFT (Society for Worldwide Interbank Financial Telecommunication).

Chargeback

Reversal/cancellation of the booking by the credit card/account holder at the expense of the merchant. Chargebacks usually incur additional costs for the merchant on the acquirer/bank side.

Debt Collection

Collection of receivables by a licensed collection agency. A company (dealer, vendor) can hand open receivables to a debt collection company that takes care of the communication with the debtor (buyer/debtor), the debt collection, the dunning process and the judicial dunning procedure.

Disagio

Percentage deduction on a nominal amount. For transaction-related fees, the agreed discount relates to the transaction amount.

Factoring

Transfer of unpaid receivables of (customer/debtor) from a company (merchant/creditor) to a credit institution/company specialized in the acquisition of receivables. In the case of a complete acquisition of receivables, the risk of defaults is also transferred.

Issuer

Card issuing entity. The issuer provides credit cards to people and organizations. If these use the issued credit cards, the acquirer (institute which accepts card payments) settles the transactions with the issuer.

PCI DSS

Payment Card Industry Data Security Standard
International standard for the protection of credit card data and the containment of payment fraud. The standard was developed by the PCI Security Standards Council. All companies that process, store or transmit cardholder data must meet the standard and be certified in accordance with the PCI DSS.

Plug-In

Extension/additional module which extends an existing software (e.g. an e-shop) with additional functionality (e.g. online payment).

PSP

Payment Service Provider
A company specialized in the processing of payment data, which offers the connection to a variety of payment systems and services around payment processing for companies and e-shops.

Refund

A partial or total refund made by the merchant.

Retrieval

Request from the (issuing) bank for information on a transaction/debit to a credit card/account, e.g. a request from the card/account holder, incomplete transaction information, suspected fraud.

Rolling Reserve

Security retention [x%] of credit card turnover by acquirer/bank to cover possible future chargebacks. The security retention is usually settled to the merchant account after 180 days of retention.

SAAS

Software As A Service
Offering software as a service.

Scoring

A numerical value that is assigned on the basis of a statistically evaluated database. The score value in payment risk management represents a forecast of payment behavior based on historical data and the resulting probability that a payment obligation will be fulfilled.

SEPA

Single Euro Payments Area
Designation of the euro payment area, consisting of 34 countries (28 EU member states plus Iceland, Norway, Liechtenstein, Monaco, San Marino and Switzerland).

TAN

Transaktionsnummer
One-time authentication code used in online banking.

Virtuelles Terminal

Input mask for credit card and SEPA account data to initiate a transaction via manual input in the payment system. This functionality is mainly used for e-mail and telephone (MOTO) orders.