Glossary

Quick definitions of common payment terms.

TermDefinition
Acquirer/Acquiring bankThe institution that processes card payments for a merchant.
AuthorizationThe real-time approval of a transaction by the issuing bank.
BatchA group of approved transactions submitted for clearing/settlement.
ChargebackA transaction reversal initiated by a cardholder’s bank.
CNP (Card‑Not‑Present)Transactions where the card isn’t physically present (ecommerce, phone).
InterchangeFees paid to issuing banks for each transaction.
IssuerThe cardholder’s bank that approves or declines transactions.
MCCMerchant Category Code classifying the type of business.
PCI DSSSecurity standard for handling cardholder data.
TokenizationReplacing card data with a surrogate token for storage/recurring use.