EMS – High-Risk Accounts, Company Formation & Global IBANs
Website Glossary
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Account Takeover (ATO)
Account Takeover (ATO) refers to the hacking of someone’s account by another unauthorized person using illegal stolen credentials. ATO is one of the major incidents of banking and e-commerce frauds. Ever think how companies prevent ATO? Discover the security measures, such as multi-factor authentication. ATO might simply cause financial loss or identity theft, but it still requires attention. Did you know? Another way to keep accounts safe is to use strong passwords with unique login credentials.
Acquirer
An Acquirer is a financial institution that joins forces with merchants to accept card payments and complete the transaction successfully. Tired of knowing exactly how payments are processed? The acquirer functions as a middleman between the merchant and the bank of the cardholder; it controls authorization and settlement. Interested in how acquirers assist businesses? They also help prevent fraud and assist customers.
Acquirer Reference Number (ARN)
The Acquirer Reference Number (ARN) is an identifier given to a transaction by the acquirer. It’s how track, manage, and resolve chargebacks. Ever wondered how chargebacks happen? The ARN helps merchants and banks track their transactions with ease. Fun fact? Some chargebacks may take a whopping 60 days to resolve, so it pays to know your ARN.
Affinity Card
An Affinity Card refers to a credit or debit card that supports an organization or cause, giving the cardholder rewards, discounts, or benefits. Want to back your favorite cause with every purchase? Affinity cards can provide incredible perks, such as donate options to benefit charities or loyalty rewards for businesses. Wonder which cards have the best rewards? Discover your options to maximize value for your affinity card.
Anti-Money Laundering (AML)
Anti-Money Laundering (AML) is regulations and practices that aim to detect and prevent money laundering, which is when criminals hide dirty money as clean money. How do banks and financial institutions fight money laundering? AML practice includes transactions monitoring and filing of suspicious activities. Did you know? Banks can be penalized millions if they are in violation of a strict AML regulation.
Application Programming Interface (API)
An Application Programming Interface (API) is basically a set of rules that allows different software systems to be able to communicate with each other. Ever wondered how your favorite apps work together? APIs are the connectors behind seamless integrations. Curious about how APIs make payments easier? APIs enable businesses to add payment solutions, connect with vendors, and automate tasks.
ATM Interchange Fee
The ATM Interchange Fee is the fee a bank charges when its cardholder uses an ATM outside its network. Did you know? ATM fees can vary significantly across different banks. Typically, this fee is passed on from the cardholder’s bank to the owner of the ATM whose network was used. Ever wondered why ATM withdrawals, when using an ATM outside of your bank’s network, cost more? Learn how the fee structure works.
Authorization
Authorization is when a payment service provider checks if a transaction can be approved based on sufficient funds or available credit. How does authorization protect you during a purchase? This ensures that there are adequate funds for the cardholder and that the transaction is legitimate. Curious about your declined transactions? Click here to see what goes into authorization and how to avoid some problems.
Automated Clearing House (ACH)
Automated Clearing House (ACH) – an electronic payment system that conducts transfers between banks, such as payroll deposits or bill payments. Did you know? ACH payments are often cheaper than wire transfers. ACH payments happen in batches, which makes them great for processing high volumes. Want to avoid those pesky bank fees? ACH might be the cure-all.
Average Monthly Volume (AMV)
A business Average Monthly Volume (AMV) is the average value of transactions that passes through the business every month. Curious to know how your AMV impacts your processing fees? AMV helps a payment processor understand the volume of your transactions, which affects fees and terms of service. Want to know how to increase your AMV? Check strategies on how you can grow your business, increasing your sales.
Authentication
Authentication establishes a user’s identity, enabling access to a system or authorization for some transaction. How will authentication protect your online accounts? Passwords, biometrics, and two-factor authentication (2FA) are common examples of strong authentication. Want tighter security for your accounts? Discover how to use multi-factor authentication to better secure them.
Average Ticket
Average Ticket is a measure of how much, on average, customers spend with a merchant in any given time frame. Ever wondered how the merchants know their customers’ spending behaviors? The metric here will be very handy for merchants to know consumer behavior and influence pricing and sales strategy. Ever wondered how to increase your average ticket size? Discover the ways that can make the average spent increase through upsell and promotions.
Alternative Payment Methods (APMs)
Alternative Payment Methods (APMs) are any electronic payment methods other than digital wallets, mobile payments, or cryptocurrencies, which have gained immense traction globally. Need alternative payment solutions? APMs simply facilitate the convenience and sometimes security of making purchases for customers while skipping traditional credit or debit cards.
Want to know how these alternative payment methods are revolutionizing the future of e-commerce? Check out how opting for alternative payment solutions can help your business.
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Back Office Conversion (BOC)
Account Takeover (ATO) refers to the hacking of someone’s account by another unauthorized person using illegal stolen credentials. ATO is one of the major incidents of banking and e-commerce frauds. Ever think how companies prevent ATO? Discover the security measures, such as multi-factor authentication. ATO might simply cause financial loss or identity theft, but it still requires attention. Did you know? Another way to keep accounts safe is to use strong passwords with unique login credentials.
Bankcard
A bankcard is a payment card issued from a financial institution, allowing one to access his or her bank accounts or buy commodities. A bankcard is either a debit, credit, or prepaid card. The Bankcards offer convenience and safety but you need to take precautions over your card information. Still unsure of which Bankcard is suitable for you? Consider your options and find the ways to use your card properly while keeping your bank information safe.
Bank Identifier Code (BIC)
A Bank Identifier Code is an international standard that can be used to identify a specific bank for international payments. This code is also referred to as a SWIFT code. The code ensures that money is transferred to the right bank. Do you check the BIC before sending or receiving money abroad? Using the correct BIC code helps you avoid errors and saves time on your transactions.
Bank Identification Number (BIN)
A BIN is the first six numbers on a credit or debit card. It reveals the name of the bank that issued the card, helping the recipient confirm whether or not the card is real. How do stores rapidly check the payment information on your credit or debit card? That’s where the BIN comes in, an essential step in ensuring a safe transaction. Want to know how BIN helps with safety in online shopping? Check out how this bank information keeps fraud at bay.
Bank Routing Number
A routing number is a nine-digit number in the US which helps a financial institution identify a bank through a payment processing route. This number is used for any type of direct deposits or wire transfers. All banks have unique routing numbers, and to make timely payments, ensure you’re using the correct number for payment. Here is how you can find your routing number and how you can safely use it in transactions.
Base Rate
The base rate is the interest rate of the central bank and flows into lending rates of the entire financial system. This is a benchmark by banks in determining the amount that they lend to customers at specified rates. Do you know how the base rate is affecting your loans or saving? Understanding base rates will enable one to make proper financial decisions upon borrowing or investing. Determine the impact of a change in base rate on your personal finance.
Basis Point (BPS)
A Basis Point (BPS) is one-hundredth of a percentage point, or 0.01%. It is usually used in finance to express small changes in interest rates or financial values. Do you want to see how small changes in interest rates can affect your investments? Learning to calculate and understand BPS can help you make better choices in the market. Discover how BPS can affect your financial plans and investments.
Batch
Handling multiple transactions or data at one time improves efficiency. Companies make use of batch processing in payroll, payments, and updating of the inventory. Do you want to streamline your operations? Batch processing saves you more time and minimizes error rates when handling large data sets. Find out how it can improve your workflow and ensure everything runs smoothly operat
Batch Processing
Batch processing is how one manages a large number of transactions or data all at once, rather than individually. This method is often applied in various industries to boost efficiency, including in finance and manufacturing. Does your business use batch processing? Knowing about it could boost your operational speed while minimizing errors. Learn more about how it can speed up the processing of your data, making it more reliable for your organization.
Beneficiary
A beneficiary is the one or an organization entitled to receive benefits such as money or property resulting from a financial deal or legal agreement. In wire transfer, for instance, a beneficiary is the one to whom the money is forwarded. Do you know your beneficiaries in your financial plans? It helps ensure that your money goes where it’s meant to go by knowing who your beneficiaries are. Learn how to create and maintain beneficiaries to your financial security effectively.
Blockchain
Blockchain is a digital ledger system where it safely records transactions among thousands of computers. As it is decentralized, it does not have a single central control or organization. Keen to know how blockchains work and why it’s so secure? Whether digital currencies or supply chain management, blockchain is revolutionizing industries by bringing transparency while minimizing the risk of forgery. Want to know how blockchain might influence your business or investment plans? Then delve into its applications and possibilities for changing industries.
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Capture
This is a condition whereby a credit card transaction gets approved and money transferred from the card holder account to the merchant account. A captured transaction can no longer be reversed except in extraordinary ways. Want your payments to be processed efficiently? Let’s see how a transaction gets captured, and its importance to make both business and customers feel secure.
Capture Date
The capture date is when the credit card transaction is completed and the payment is made. It is not the same as the authorization date, which only checks if the cardholder has sufficient funds. Did you know that the capture date is key for tracking your payment history? It allows both merchants and customers to maintain better records of their transactions. Learn how accurate capture dates can improve your reconciliation process.
Card Association
Card associations are networks like Visa, MasterCard, and American Express that allow banks and merchants to process payments. They set the rules for credit card transactions. Ever wonder how card associations impact your payments? The more you learn about them, the better you can understand fees, processing times, and international transactions. Learn about the major card associations and how they influence the payment system.
Cardholder
A cardholder is the owner of a credit or debit card. The cardholder should run the card according to how the bank requires it, with enough money for his payments. Are you a cardholder? Knowing your rights and duties can help you manage your money better, guard against fraud, and thus know how to use the card safely and avoid extra charges.
Card Issuer
A card issuer is a financial institution, such as a bank that issues credit or debit cards to its users. It deals with applications for cards and sets the credit limits for the users. Do you wish to see how your card issuer affects your financial choices? Once you know what role they play, you can select the best card for your use. Find out how your card issuer helps you with financial transactions and keeps your private information safe.
CNP accounts describe when the cardholder is not present, such as making online or phone purchases. Since these transactions are generally much riskier for fraud to occur, proper authentication allows even these transactions to be secured. Have you recently used your card to make an online or phone purchase? Understanding these transactions helps in protecting your personal information from happening when shopping online. Understand how businesses ensure secure transactions of these payments.
Card Present (CP)
Card Present (CP) refers to transactions where the cardholder is physically present with his or her card, and the card reader or terminal scans it. These transactions are generally safer than CNP transactions. Do you know how to tell CP transactions apart from CNP ones? Knowing when to use CP transactions can help you avoid fraud. Explore the security measures in place for Card Present transactions.
Card Verification Code (CVC)
The Card Verification Code, or CVC, is a three- or four-digit security number found on credit or debit cards. It confirms online and phone transactions, helping reduce fraud through ensuring that a cardholder possesses the card. Have you ever checked the CVC of your cards? Check whether it’s actually an important security feature that adds a layer of protection to your purchases online. Read how CVC codes secure your transactions.
Card Verification Value (CVV)
The Card Verification Value (CVV) is a security feature appended to credit and debit cards. It is, as such, usually a three- or four-digit number useful for checking the transactions where the card is not present in reality. This security feature will help check if the card is actually with the cardholder at the time of the transaction. Interested to know how CVVs can improve your transaction security? Learn about it now: how to protect yourself against unauthorized charges during online shopping through the use of CVV codes.
Chargeback
A chargeback is actually where a cardholder’s bank reverses a payment that the cardholder had made to a merchant. A dispute over a transaction is commonly involved, or even if the cardholder feels that fraud had actually occurred. Did you know chargebacks can cost a business money? Knowing how to follow the chargeback process ensures consumers and businesses are capable of solving disputes better. How to handle chargebacks in order to avoid money-making penalties.Chargeback Defence Chargeback defense refers to the techniques and measures the merchants undertake to prevent or dispute chargebacks. For example, a record of transactions, proof of delivery, and having a transparent refund policy, among others. Are chargebacks affecting your business? Know how chargeback defense helps protect your revenue and losses. Learn how to combat chargebacks and how to handle them when they come.
Chargeback Period
Chargeback period is the time allowed to a cardholder for disputing the transaction and requesting a chargeback. The chargeback period differs with the type of card issuer and even the kind of transaction. Many people do not know the importance of taking swift actions during the chargeback period for merchants. You must know the chargeback period to settle disputes efficiently. Learn how to track chargeback deadlines for your business security.
Check 21
Check 21 is the US law that lets the banks clear electronic copies of the check rather than using the original check version. In this way, the check gets cleared and it also saves money. You will be surprised to know that the check payment became quicker because of Check 21. Know how this law streamlined and made it even safer for consumers and businesses regarding the payment procedure for a check.
Clearing
Clearing refers to the process of transfer of payment instructions between banks to ensure that the right funds are transferred and accounts are updated so that one checks whether the payer has sufficient funds available for the transaction. Ever wonder how clearing actually impacts your payments? Clearing ensures that your funds are properly moved and payments are duly reflected. Learn how the clearing process works and why it matters in making financial transactions run smoothly.
Compliance
Compliance is the observance of laws, regulations, and standards of an authority in a given industry. Financial compliance ensures businesses adhere to rules on security, privacy, and transaction processing. Is your business compliant? Being compliant reduces risks and builds customer trust. Learn which compliance regulations affect your financial operations and what you should do to stay compliant.
Credit Card Processors
Credit card processors are those companies that handle credit card transactions between merchants, cardholders, and banks. They ensure the approval of payments as well as the safe transfer of funds. Want to know how credit card processors work? Learn how they process transactions from approval to final settlement, ensuring safe and seamless payment processing for businesses and consumers alike.
Crowdfunding
Crowdfunding is the process of funding a project through gathering small amounts of money from numerous people, often online sites. It is very applicable to funding new businesses, artistic projects, and social projects. Do you want to begin crowdfunding? Know how it works, the potential to raise funds, and strategies for a successful campaign.
Cryptocurrency
Cryptocurrency is a type of digital money that uses cryptography as the way of security, and its impossible nature to counterfeit or misusing it. Bitcoins, Ethereum, and many other cryptocurrencies rely on decentralized systems, with the most widely used technology called blockchain. Want to get into cryptocurrency? Understand the process behind it to tap into more investment opportunities. Know how cryptocurrencies are changing finance and what to look out for when investing.
Currency Conversion
Currency conversion pertains to the process of one currency being exchanged for another utilizing the prevailing rate of exchange. This can be advantageous for international trade, travelers, or investors. You’d like to know how best to get the best of your money? Mastering currency conversion will enable you to always save money whenever you will be dealing with foreign currencies. Learn how to do it with low fees and in which way exchange rates really work.
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Data encryption
This process converts sensitive information into a format unreadable to anyone who is not authorized to access it. This is a key security measure in protecting personal and financial data during transactions. Learn how encryption keeps your data safe. Discover encryption technologies that secure everything from email to online payments, and learn why they are vital to maintaining your privacy.
Debit
A debit is defined as money that is withdrawn from your checking account using a debit card. You are spending your own money and not using borrowed money. Want to know why many people use debit over credit? Read on to see how debits impact your spending patterns and how it ties in with your checking balance.
Debit Card
A debit card links to your account. You use it to buy stuff or to withdraw money from an ATM. The money goes out of your account the moment you make the purchase. Surprisingly, you can avoid overspending using a debit card. Read about the convenience of debit cards over credit cards in daily transactions. Learn how to use a debit card with safety and convenience.
Decline
A decline is when there isn’t enough money, wrong information, or security issues. If your card is declined, then it’s good to understand the reason and solve it promptly. Have you ever experienced a declined payment? The knowledge of why will keep you from encountering the same again. Understand what to do when your card is declined and how to deal with continuing to pay challenges.
Disbursement
Disbursement is the act of paying out funds from a central source to multiple recipients. This can be the payment of employee salaries, settling of bills with suppliers, or giving loans. Are you in charge of handling disbursements in your organization? Knowing how disbursements work can make financial activities easier and timely payments more efficient. Know how effective disbursement management can help cash flow and minimize financial mistakes.
Discount Rate
The discount rate is that rate at which central banks provide short-term loans to commercial banks. It also means the rate at which businesses give discounts to their customers. Curious about how the discount rate influences interest rates or pricing strategies? This information can be helpful for you in banking and when speaking of pricing to customers. Discover how the discount rate affects borrowing costs and pricing techniques.
Dispute
A dispute involves when two parties cannot settle over a transaction or any payment. Some common forms include failure to deliver a product or overcharging a client. Chargebacks and other interventions from customer service departments as well as lawsuits settle disputes. Have you ever fought for your money back on the credit card? Knowing how to dispute can prepare one in case of unexpected trouble over transactions. Learn how you can protect yourself and settle such disputes efficiently.
Doing Business As DBA
DBA, or Doing Business As, is the legal term for when a business operates under a name different from its official registered name. This is often used by sole proprietorships or partnerships to enhance branding. Thinking about starting a business with a different name? Find out how registering a DBA can help establish your brand and meet legal obligations. You will discover the steps to obtain your DBA and its benefits for your business.
Due Diligence
It means due analysis and evaluation of the business or investment opportunity in confirmation to determine if it meets all the legal, financial, and operational criteria. If one is to purchase a business or shares, then doing due diligence will become that important step to minimize the risk factor. With respect to this knowledge on doing due diligence may be an effective way in protection in terms of business operations where the decision may avoid cost-making errors. Identify what due diligence does to deals and what to keep watch for while assessing.
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E-Check (E-Cheque)
An e-check or an e-cheque is actually a paper cheque in its digital form used for the transfer of money over the Internet. It transfers money, just like a traditional cheque, but it’s faster and safer. Want to know how e-checks can work for online payments? Learn how they can assist in transactions and be the more secure alternative for large amounts or recurring bills and payments.
Electronic Banking
Electronic banking refers to the management of your bank account and financial transactions through digital platforms such as online banking, mobile apps, or ATMs. It gives you easy access to account services 24/7, including transfers, bill payments, and account management. Do you want to know the benefits of e-banking? It will understand how much time it will save, improve security, and it will be even easier to handle your finance on any given day. Let’s see the different type of services offered to its user.
E-pay Electronic Bill Payment
E-pay or electronic bill payment allows the consumer to pay bills over the Internet using the bank or a third-party service through direct bank transfers or card payments. It is very fast and secure for utility bills, loans, and subscriptions. Want to make your bill payments easy? Learn how e-pay can help you manage your finances better, avoid late fees, and save time by automating your payments.
Electronic Check/Cheque Acceptance (ECA)
ECA can deliver business the digital equivalents of their paper cheques so payment is processed directly over electronics. In that manner, a paper cheque would thus be transformed to make the electronic payment but using much faster and effective ways to do so. Know how ECA can advantage your business? Saves time in the wait until cheques get clear from banks and completely chances are removed to experience a bouncence with respect to cheques. See how ECA can boost your cash flow and payment acceptance process.
E-commerce
E-commerce is said to be the buying and selling of products or services over electronic networks including online shopping and digital markets. Do you ever hear about the launching of an online business? E-commerce will give you many more chances where you can reach customers in the world. Discover how e-commerce might help you expand your business and develop your sales approach.
Electronic Fund Transfer (EFT)
Electronic Funds Transfer or EFT refers to the transferring of money between one’s bank account and another, in its entirety electronic. This also means that such transaction does not necessarily call for paper-type of transactions. EFTs are generally acquired for direct deposits, bill pay, as well as inter-transfer funds from one account in the bank to another. Learn more about EFTs: Make this relatively safe, fast, cost-free, and efficient technique for payments less complicated to process with your financial transactions.
Encryption
Encryption is the way of making confidential information unintelligible by transforming it into some sort of code, and thus it cannot be read for unauthorized persons. Encryption is the most basic element of security when Internet services are used, such as when paying with your credit card or entering personal data. Want to protect your data? Learn how encryption protects your privacy when shopping online or sending confidential documents. Explain why encryption plays such a critical role in secure digital communication.
Europay, Mastercard and Visa (EMV)
EMV is a global standard of Europay, Mastercard, and Visa; EMV defines the credit or debit card that uses chip for supplementing security more than the conventional magnetic stripe card in fighting fraud and counterfeiting. Want to know what makes EMV secure your card? Learn the technology that powers EMV cards strengthen the security of your transaction-from the supermarket check out counter to your computer browser.
E-Money Institution (EMI)
An E-Money Institution, on the other hand, refers to a financial institution providing e-money for online electronic payments and digital transactions. EMIs are considered alternate banks that offer services involving prepaid cards and digital wallet services. If you’re one of those people who are also interested in digital currencies, find how EMIs are changing the face of finance by offering safe as well as adaptable payment techniques. Determine how they function and why it is becoming a highly desired choice for everyone, from businesses to consumers.
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Financial Institution
A financial institution refers to a business that renders services relating to banking, investments, insurance, and loans. Among the institutions are credit unions, banks, and companies specializing in investment. For example, if you require the service of a financial institution, it becomes easier to choose the correct one either for saving, borrowing, or investment. Find out the functioning of these institutions and their advantage towards your services.
Fund
Funding is giving money to specific purposes, such as in widening a business, doing investments, or even a person project. It can receive lots of sources, such as from loans, grants, and also an investor. Do you require a funding for your business or the venture? Here are the many alternatives for funding and how best support to reach your financial aims.
Funds Transfer System
A funds transfer system is an apparatus that enables money to flow from one individual, organization, and financial institution to another. Systems such as SWIFT, ACH, and wire transfers, among others, provide a method through which such money can be transmitted with so much safety and quickness. Do you know how your money transfers from one account to another? Fund transfer systems enable you to be smarter in the process of making payments either way. Learn more about different types of fund transfer systems.
Fraud Detection
This involves identifying fraud and how to prevent fraud in any financial transaction. Financial companies use machine learning, pattern recognition, and data analytics to identify and flag patterns of activities as suspicious due to fraud risks. What are you concerned about about fraud? Understand the multiple techniques that could be adopted in detecting fraud and mechanisms of protecting against fraudulent behaviors in banking and online purchasing, among many others.
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Gateway
A financial institution refers to a business that renders services relating to banking, investments, insurance, and loans. Among the institutions are credit unions, banks, and companies specializing in investment. For example, if you require the service of a financial institution, it becomes easier to choose the correct one either for saving, borrowing, or investment. Find out the functioning of these institutions and their advantage towards your services.
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High-Risk Merchant
A high-risk merchant is a company conducting business in an industry that charges more frequently, has a high rate of fraud, or financial risk. Some examples of industries that are regarded as having a higher risk include adult entertainment, gambling, travel, and subscription services. Is your business a high-risk business? This information on the challenges and demands of high-risk merchants will guide you to the best payment processing companies. Learn to operate at risk and stay compliant while working in a high-risk industry.
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International Bank Account Number (IBAN)
IBAN is a globally harmonized form of the expression for a bank account number, meaning that it facilitates the recognition of any account at any given bank more rapidly and accurately. If ever you needed to transfer funds to another country, it ensures your money hits the right target without misdirection. You will find out how to locate your IBAN and succeed in cross-border payments securely.
Interchange
Interchange is the charge of fees that the banks give for servicing card transactions. Every time a client pays for goods, then his bank gives an interchange fee for this transaction to the credit holder’s bank in accordance with the interchange network system. How does the exchange influence businesses? This interchange service contributes much to payment processing, as such knowledge reduces cost charges. Learn more about interchange operation and the influence exerted on fees from a business’s perspective.
Issuing Bank
An issuing bank is the financial institution that issues credit or debit cards to customers. It authorizes transactions and checks if cardholders have enough funds or credit for their purchases. Want to know how issuing banks work? Knowing their role can help you make better choices about using your card and understanding payment processes. Find out more about what issuing banks do and how they influence your financial transactions.
Issuer
An issuer is usually a financial institution or bank that issues payment cards that include credit or debit cards to the account holders. Issuers will extend credit, determine available spending amounts, and administer accounts that belong to cardholders. Want to know who issues your payment card? The issuer safeguards your transactions and stands ready to ensure access to your funds. Learn about the issuer’s responsibilities that impact your card benefits and fees.
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Joint Account
A joint account is a form of bank account shared among two or more people. All the account holders may access the money and make transactions as well. They are often created by couples, business partners, or among family members. If one considers opening a joint account, they should be in the know of the rights as well as the responsibilities to share. One should learn about how joint accounts work and if they best suit one and his co-account holders.
Japanese Credit Bureau (JCB)
Japanese Credit Bureau (JCB) is one of the greatest companies globally offering a credit card system, issuing credit cards as well as supporting card payment services. JCBs are increasingly accepted around the globe. Consider having a look at the kind of security the card provides for you as a client with regard to the level of flexibility you enjoy with flexible payments while considering getting a JCB card for traveling, making purchases or doing your shopping worldwide.
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Know Your Business (KYB) / Know Your Customer (KYC)
KYB and KYC refer to techniques utilized by financial institutions and organizations to verify the identities of customers and assess the risk linked to illegal activities, such as money laundering or fraud. KYB is used in checking business entities while KYC relates to individual customers. Do you comply with KYB/KYC requirements? These ways guarantee the protection of your business from fraudsters and other scammers; therefore, you have workable customers and partners. Know how KYB/KYC operates to protect businesses and the persons in finance.
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Liquidity Risk
Liquidity risk refers to the likelihood that a business or an individual will not be able to service short-term debts since it lacks adequate liquid funds. This situation occurs in a case of inadequate liquidation of assets into cash or when cash flows cannot be foreseen. Fearful of liquidity risk? Then understand how to manage your cash and have on hand, you will not lose financial ground. Learn how to analyze and mitigate liquidity risk to ensure stable finances.
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Merchant Account
A merchant account is one of the special bank accounts for businesses that enables a business to accept payments via debit or credit cards. When card transactions take place, it temporarily holds money and transfers it later to the main account of the company. Interested in card payments for your business? Find out why having a merchant account is necessary to ensure safe payment processing.
Merchant Acquirer
A merchant acquirer is the financial institution, or payment service that has to facilitate business transactions and process credit and debit card payments. They bridge the business to the card networks that ensure acceptance and settlement of the payments. Want to know who services your card payments? Understand how a merchant acquirer operates and you will be in a better position to make the right choice of the payment processor to use. Learn how acquirers keep your payment experience seamless.
Merchant Agreement
This term refers to the arrangement of a business and an acquiring or payment processor relating to terms of accepting payments. More often than not, a merchant agreement entails transaction fees, responsibility, and guidelines relating to chargebacks and refunds. Have you prepared a merchant agreement for your company? Learning the definition will enable you to maintain control over the expenses more and ensure that the firm rule complies with them. Know how to review and negotiate a merchant agreement for your advantage.
Merchant ID Number or MID
A Merchant ID Number, also known as MID, is a unique code given to a business by a payment processor. This code lets the tracking of transactions, and identification of each merchant at the payment system. Do you need your MID? Yes, is very important for making payment and ensuring security. Let’s learn how your MID facilitates hassle-free transaction processing and simplifies reconciliation of payments.
Merchant of Record
The merchant of record is technically the business responsible for processing the transaction. It includes such things as handling payments, chargebacks, and customer disputes. The term most often utilized in the world of e-commerce is the merchant of record, which will be listed on the customer’s payment statement. Are you a merchant of record? Know what your role is regarding processing payments. Discover how being the merchant of record impacts your legal and financial responsibilities.
Magnetic Ink Character Recognition (MICR)
Magnetic Ink Character Recognition or MICR is the technique used for reading special ink that is printed at the bottom of cheques. This ink allows the banks to process cheque payments quite speedily and accurately. Do you ever think about how your cheque is processed? MICR allows cheques to clear very quickly and with high accuracy. Understand how this technology works and how it is essential to the financial transaction.
Money Laundering (ML)
Money laundering is an illegal process of making money acquired through any form of crime such as sales of drugs or fraud appear to be legitimized. This process comprises three major steps: placement, layering, and integration. Do you care about the money-laundering risk? Learn how financial institutions detect and prevent ML activities. Know why AML efforts matter.
Money Transmitter License (MTL)
A firm, by law, has to be engaged in facilitating the transfer of money to its clients, such as digital wallets and remittances services. This requires it to have an MTL. It only adds a check for companies in order to follow state and federal rules and avoid scams or even money laundering. An MTL in advance could be beneficial during the planning for launching a business involving money transfer- how would this be helpful in providing legal operation and compliance with doing this kind of business? And how does one acquire an MTL?
Multi-Factor Authentication (MFA)
MFA is a technique used in authentication. It calls for several factors to identify the user and allow them access to any account or perform any kind of transaction. Factors could include something you know, like the password, something you have, like your smartphone or even something you are, referring to your fingerprint. Are you interested in securing online accounts? MFA ensures an increased level of one’s security, thereby making it pretty tough for any unauthorized persons to have access to one’s information. Let’s now see how MFA helps in securing your data.
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Near Field Communication (NFC)
NFC stands for Near Field Communication. This is the technology where devices transfer data over short distances, almost touching each other. This technology majorly uses contactless payments. Easy and safe transactions can be availed by tapping on one’s smartphone or card. How does this NFC work? It helps power tap-and-go payment systems. With that, purchases become easier and faster. Here is how NFC improves payments safety and facilitates the transaction process.
The National Automated Clearing House Association, or NACHA
NACHA is the National Automated Clearing House Association that governs America’s ACH network. NACHA sets requirements for ACH transactions which ensure safety, efficiency, and timeliness in electronic payments from direct deposits to bill pay. Ever wondered more about ACH payments? Well, NACHA is the key to ensuring compliance and uniformity of electronic payments all over the country. Discover how NACHA enables the clearing of billions of transactions annually.
Net Settlement
This is a process whereby different transactions offset against each other. Then, only the net amount is paid among the parties involved. Therefore, all individual settlements for every transaction would become unnecessary, and more efficient payment schemes would emerge. Ever wonder how net settlement in banking or any card transaction works? Understand how it streamlines settlements in accounts, diminishes costs, and makes use of efficiency in any system of finance.
Network Fee
Network fees are fees payable by the payment networks including Visa, MasterCard, or PayPal to allow the settlement of transactions from the merchants to the customers. Frequently, such fees are covered by merchants; however their rate depends on the transaction involved. Have you ever questioned how network fees impact your business? By learning to understand them, you are able to manage the costs of payment processing for your business much better. Learn how network fees work and how they might impact your total cost of acceptance for card payments.
Non-Banking
A non-bank is a financial service provider which operates without a banking license. This includes payment processors, lenders, and insurance companies. They offer services including money transfers, loans, and prepaid cards but cannot offer the traditional banking products of savings accounts. Interested in learning more about non-banks? Discover how these institutions are revolutionizing the face of finance with new alternative solutions to traditional banking. Learn how non-banks can introduce flexibility and innovation into your financial transactions.
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Onboarding Process
Onboarding steps refer to the different steps that a company carries out to welcome new customers, clients, or employees to its operations. For customers, it generally means creating their accounts, verifying their identity, and setting up all possible ways of paying. For the newly recruited employees, onboarding encompasses training, issuance of required documents, and getting to know the culture. Want to level up your onboarding experience? Smoother transition and smooth engagement come from a good onboarding process. Learn why effective onboarding is so important for customer satisfaction and employee productivity.
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Payment Card Industry (PCI)
The Payment Card Industry is the global network of companies that conduct credit, debit, and prepaid card transactions. The following list contains card issuers, payment processors, merchants, and other companies that perform those transactions. Want to know more about how this industry operates? Learn about PCI – which provides businesses with information related to their security standards, as well as protecting the sensitive cardholder information they hold. Read more about PCI and its work in keeping card payments around the world safe.
PCI Compliance
PCI compliance refers to how cardholder data must be executed safely and in an up-to-date manner that fulfills Payment Card Industry Data Security Standard (PCI DSS) guidelines. PCI DSS compliance in most business concerns means doing so above for security away from breach and fraud attacks by various ways of safety threat. Does your business conform to being PCI compliant? Learn how PCI compliance can keep your business safe while creating better customer trust and avoiding penalties of expensive fines. Learn how to bring your business into PCI compliance.
Payee
A payee is, in financial transactions, a receiver of money. In a cheque, the payee is the name or the name and address of the individual or business and thus the intended receiver of the money. Curious about how payments work? Knowing the payee’s role ensures that money is transferred safely and correctly. Learn all about the responsibilities of payees in digital and traditional kinds of transactions.
Payment Service Provider
A Payment Service Provider is an organization that makes it possible for businesses to accept their customers’ online payments. Some of the services they give include a payment gateway, fraud protection, and supporting multiple payment channels such as credit cards, bank transfers, among others. If you want to be able to accept online payments then a PSP can make it possible and even safer. Learn some of the advantages associated with the utilization of a PSP for your business.
PIN: Personal Identification Number
A Personal Identification Number is a secret number for the card holder to make a transaction particularly one of debit or credit. It adds a feature of safety to transactions as well as accounts. So, it is important for your transactions to be prevented from unauthorized use of PIN. Here’s why it must be guarded as a prerequisite of security towards your financial assets.
PIN Authentication Request (PIN Verification)
A PIN authorization request is a kind of message sent from a point-of-sale system to the bank or payment network seeking verification of a cardholder’s PIN during a given transaction. This process then verifies that the correct PIN has been entered before a pay or withdrawal is approved. Did you ever wonder how all your card transactions are approved? Learning about PIN verification can provide you with a better knowledge of how banks protect your account from fraud. You can explore how this secures your card payments.
Point of Sale (POS)
A Point of Sale (POS) refers to the location or system on which a retail transaction occurs, typically involving a card payment terminal. It encompasses software and hardware used during sales. Need to have transactions accelerated and streamlined? A contemporary POS system not only accepts card payments but tracks inventory, manages customer records, and provides detailed reports of sales. Discover how modernizing your POS system may benefit your business.
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QR Code Payments
Using their smartphone or device, users will now pay by scanning a QR code. This code then links into a payment site or wallet digital format, enabling instant payments minus cash or cards. How do QR code payments work? They provide a fast, secure, and contactless way to pay for items and services. Learn how companies and customers alike can easily be secure with QR code payments.
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Risk Assessment
The risk assessment is the process of discovering, analyzing, and prioritizing the possible risks a business, project, or system may encounter. This process involves looking into threats that might lead to financial loss, fraud, or operational disruption and designing strategies to minimize or mitigate such risks. Looking to protect your business? An understanding of the risk and proactive action can reduce vulnerabilities and strengthen security. Learn how to perform an in-depth risk assessment to safeguard your assets.
Reason Code
A reason code is a number or letter code that describes the why of a specific event or action, such as a chargeback or declined transaction. It helps merchants, banks, and customers understand why the reverse or dispute transaction happened. Ever wonder why a payment wouldn’t go through? Reason codes explain transaction problems and are critical in solving disputes. Determine how reason codes can help you resolve payment problems and deal with transaction disputes.
Reconciliation
Reconciliation is testing two sets of account records such as your bank statements and accounting records so that they will agree, and in which financial transactions are also correctly recorded. This is very basic in identifying a discrepancy, error, and fraud. Make accounting less complicated. Regular reconciliation maintains your financial records to become correct, current, and compliant. Know how reconciliation is important to maintain clarity and financial reliability.
Reserve Account
A reserve account is a special account through which a business or financial institution keeps money set aside to handle possible expenses, for example, chargebacks, refunds, or unforeseen costs. This would help ensure that the business is able to handle the problems without disrupting its everyday business operations. Want to reduce the risk? A reserve account can protect your business against financial difficulties. Learn how reserve accounts work and their role in managing cash flow.
Routing Transit Number (RTN)
This code identifies an RTN; otherwise known as a Routing Transit Number. This is assigned when it identifies any institution taking part in the U.S. wire transfer or any ACH payments. For simpler words, it would mean that money is supposed to arrive at the right bank or credit union. Planning on sending an ACH or a wire transfer? Want to know what an RTN is? It’s simply an extremely important identifier: Money goes directly into the proper account.
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Settlement Account
It is the type of account used by businesses or financial institutions to settle and post payment transactions. When all transactions are done, money from these payments is transferred into this account before it hits the merchant’s main operating account. Ever wonder what happens to your payments? A settlement account guarantees that money is sent over and tracked safely. Explain why this type of account is essential in cash flow maintenance and accurate recordation of transactions.
Security Compliance Review
It is a security compliance review, checking how well the business follows the security standards, regulations, and policies. This helps ensure that sensitive information such as payment details remains safe from breaches and fraud. Worried about your business’s security measures? Regular reviews maintain compliance with laws like GDPR or PCI DSS and safeguard both your customers and your business against potential threats. Learn how a security compliance review can better your security and reduce vulnerabilities.
Settlement
Settlement is the process of carrying out a financial transaction that involves transferring money from one party to another. In the terms of payment, it is more or less transferring funds from the bank of a cardholder to the account of the merchant after a purchase. Want to know how payments are settled? Settlement guarantees that all funds will be transferred correctly and cleared between banks or payment processors. Discover more about how settlement processes operate and impact your business cash flow.
Settlement Statement
A settlement statement is a detailed report given to a merchant or business summarizing the finalization of payment transactions over a specified period. It contains information such as the amount of transactions, fees, and net funds transferred. Need a clearer view of your transactions? A settlement statement helps you reconcile payments, monitor fees, and track cash flow. Learn how reviewing your settlement statements can help you stay organized and financially transparent.
Swipe Fees
Swipe fees, or charges that are leveled on merchants to accept debit or credit card payments via a point of sale, or POS, terminal upon a customer swiping through their card, generally happen as a percentage of a transaction amount and will then be paid to both the issuer and the payment processor. Looking to reduce swipe fees? Understanding these costs may better prepare you to negotiate for improved payment processor rates. Learn how swipe fees affect your bottom line and ways to optimize payment processing costs.
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Transaction Fee
A transaction fee is the cost that a payment processor or bank charges to process a payment or financial transaction. It can either be a fixed amount or a percentage of the entire transaction. Interested in learning how these fees affect your business? They are a means of offsetting the expenses associated with processing, security, and other transaction services. Learn how to manage and minimize transaction fees to maximize your profit.
Third-Party Processing
The processing of payment or transaction or financial services for a different business by an outsider third-party company is defined as third-party processing. The services include credit card payment, ACH, among others. Want to paystreamline your payment procedure? Third-party processors make possible faster, more secure and cheaper options for a company of any size. Read on to learn more on how outsourcing payment processing lets you focus on growing your business.
Transaction
A transaction is an action of buying goods, services, or money exchanged between two parties usually accompanied by a payment for goods or services. All the sales, purchases, or transfers are considered as a transaction. Want to learn how transactions are accounted? Awareness of how they get processed, approved, and finally finalized is a must to handle the business operations smoothly. Learn about the various transaction types and their effects on the financial books.
Transaction of date
A date of transaction is a date of occurrence of any financial transaction like buying, selling or transferring money. The date is essential in recording, accounting, and payment reconciliation. Want to be a better manager of your finances? Knowing the date of your transactions helps you monitor your payments and manage cash flow. Discover how to properly record and use dates of transactions in your accounting operations.
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Underwriting
Underwriting is the technique that the banks or insurance companies apply to evaluate risk in granting loans or insurance to a client. They take into account factors such as health, credit score, and the chances of losing. Ever wonder how loans or insurance are approved? Underwriting assists the institution to make decisions whether to accept or reject applications based on risk. See how underwriting protects business while promoting responsible and fair lending or insurance practices.
Ultimate Beneficial Owner (UBO)
The Ultimate Beneficial Owner is the owner or even the controller, even indirect, of a particular business behind some other business. Establishing the UBO is particularly important as a way of following Anti-money laundering and KYC guidelines. Want your business to be transparent? Knowing more about UBOs assists in preventing the financial crimes that may be there and fulfills the regulations applied. Understand why UBO recognition is important for good corporate governance and financial integrity.
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Virtual Terminal
It is an online application where credit card payments are processed manually by the businesses via computer or mobile. You input your card number and the expiration date on the virtual terminal. It processes your transaction after you input that information. If you are running a business that doesn’t have a physical point-of-sale system, this would be a great option for accepting payments remotely. Learn how a virtual terminal can help you accept safe payments from anywhere.
Void
A void is the cancellation of a transaction before it is completed or settled. For example, if the customer mistakenly puts down the payment information, the merchant can void the transaction to prevent any charge from being incurred. Correcting a transaction error by voiding and avoiding transfer of money is best, for you would do this even before the payment has reached finalization or was submitted for settlement. Learn how to distinguish void from refund and when to use either.
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Wire Transfer
A wire transfer is a type of electronic money movement where funds are sent from one bank account to another; this can happen within a country or internationally. A wire transfer is fast, reliable, and usually applied on large amounts of money transactions for businesses and money transfers. Curious on how this all works? Then, do not worry as wire transfers involve payment systems such as SWIFT or Fedwire with a fee generally attached to them. Learn how wires can be a fast and very reliable way to make safe money transfers between banks.