The world of payments and fraud is full of acronyms and terminology. Here’s our handy guide to find your way through.
Online payments which have been authenticated do not carry a risk of fraud for the Merchant.
The Acquirer or “Acquiring Bank” is a bank which acquires funds for merchants from a cardholder.
Authentication is the process of proving an identity to be valid, typically using a shared secret.
This is commonly an act of “logging in” using a static password, or a One Time Password (OTP) sent over SMS or generated by a 2nd factor device, known only to the two parties.
An Authorisation is the process of an Issuer verifying the payment details provided by a consumer and reserving funds in the consumer’s account.
Once an Authorisation has been granted, the payment is completed by ‘Capturing’ the authorisation.
Issuers subject Authorisation requests to risk analysis based around the consumer’s prior activity and the details of the Authorisation attempt itself.
Once an Authorisation has been granted, the payment is not complete until it has been Captured.
Capturing a payment starts the process of the funds transferring to the merchant from the consumer.
Dispute are used interchangably but collectively refer to the process by which a cardholder seeks a return of funds from a Merchant.
The ‘Dispute Process’ is initiated by a cardholder complaint to their Issuing Bank about a particular transaction.
The Merchant then has an opportunity to
Defend the transaction by submitting evidence to support their belief that the transaction was fair.
At the end of the process a decision is reached, at which point the cardholder and merchant will respectively
The General Data Protection Regulation (GDPR) applies to all companies processing and holding the personal data of data subjects residing in the European Union, regardless of the company’s location. Read more about Ravelin and the GDPR.
The Issuer or “Issuing Bank” is a bank that issues cards for cardholder to make payments with.
A Payment Gateway is a service that allows Merchants to initiate and manage online payments. Payment Gateways are not typically involved in the flow of money. When they offer other ‘bundled’ services they transmogrify into Payment Service Providers.
Payment Service Providers offer a variety of bundled services to Merchants, typically combining the services of a Payment Gateway with an Acquirer either of their own or through multiple connections to different Acquirers and payment networks.