The Sertifi Payment Glossary: Round 2

Did you know that Sertifi has a payment glossary? 

The world of payments can be intimidating. To aide any confusion, we have created this payment glossary to set you up for success and have you speaking payment lingo like a pro. Here is a list of the latest additions:

• Basis Points – financial units of measure, individually equivalent to one-hundredth of 1% or 0.01%, that are commonly used to precisely calculate changes in the value or rate of a financial instrument, such as interest rates, bond yields, and investment returns
• Card Issuer – a financial institution that gives—or issues—credit and debit cards to cardholders 
• Card Network – an organization that facilitates payment card transactions 
• Card Verification Value (CVV) – a cardholder’s verification code on bank cards 
• Data Controller – the player in the data processing system that determines the purposes for which and how personal data is processed 
• Data Processor – a third party external to the company that processes personal data only on behalf of the controller 
• Electronic Checks (e-check) – an electronic version of a traditional paper check, and can be used to make payments online 
• Frictionless Payments – online and offline checkout processes where the barriers of buying have been minimized 
• General Data Protection Regulation (GDPR) – a law that sets guidelines for the collection and processing of personal information from individuals 
• Instant Bank Validation (IBV) – a process that verifies that a bank account number and account details are valid before a transaction is processed to reduce fraud, especially when processing a check or ACH payment 
• Level Two Credit Card Transactions – transactions that require more information, including taxes, customer details, and the merchant ZIP 
• Merchant Bank – institutions that provide loans and capital for business enterprises 
• The National Automated Clearing House Association (Nacha) – the organization that manages the development, administration, and governance of the ACH Network, the backbone for the electronic movement of money and data in the United States, and is an association for the payments industry 
• Online Transaction – business transactions which are conducted electronically through the network of computer 
• Payment Application – a software application that stores, processes, and/or transmits cardholder data as part of authorization or settlement, where the payment application is sold, distributed, or licensed to third parties  
• Payment Compliance – policies and procedures organizations follow to adhere to industry regulatory standards and best practices for risk avoidance and management 
• Surcharge – an additional fee charged by a merchant when receiving a payment by cheque, credit card, charge card or debit card meant to cover the cost of accepting that means of payment 
• Tokenization – the process of replacing sensitive data with unique identification symbols that retain all the essential information about the data without compromising its security 
• Two-Factor Authentication – a security system that requires two separate, distinct forms of identification to access something 
• Zero-Dollar Transaction – a pre-notification-type transaction that is formatted as a payment and contains an addenda record 
  
  

You can access the entire Sertifi payment glossary here.