The Payments Glossary

Money is a tricky thing, especially in the Indian ecosystem, which is highly regulated as well as an efficient system governed by a system of well-placed laws in place.

It takes more than a village to raise a startup and a whole lot more to scale. And, in that process Payments hold a primal position - it is ultimately how customers signal that they value the product. So, let’s take a look at different terms in Payments, which we deal with daily.

2-Factor Authentication

Two-factor authentication, commonly referred to as 2FA, ensures unambiguous user identification through the amalgamation of two distinct elements. It combines “what you have” – the physical card with its number, expiry date, and CVV – with “what you know” – the PIN, which can either be a static code or a one-time generated code – to validate your identity.

3-D Secure

The 3-D Secure protocol, built on XML technology, serves as an extra layer of security for online transactions involving credit and debit cards. Initially created by Arcot Systems, Inc., this protocol is recognised under various names, including Verified by Visa, MasterCard Secure Code, and American Express SafeKey.

3-D Secure 2.0

3-D Secure 2.0 is an upgrade to 3DS and comes with an improved design, which dramatically increases the user experience on mobile devices by being fully compatible with mobile wallet applications and in-app transactions. 3DS 2.0 also considers additional parameters for authentication compared to 3DS

ACH (Automated Clearing House)

ACH, a payment solution managed by NPCI, empowers member banks to facilitate fund transfers among themselves through an offline method. Operating on a paper-based mandate, ACH proves beneficial for merchants in collecting recurring payments like insurance premiums, loan amounts, and more.

Acquiring Bank

An acquiring bank or acquirer is the merchant’s bank. It accepts payments for the merchant through the payment processor and networks such as Visa, MasterCard, Maestro, RuPay and maintains the merchant account.

Address Verification Service (AVS)

AVS is a system established by credit card processing associations that serves the purpose of validating customer billing addresses in e-commerce payment transactions. It is important to note that AVS does not verify the authenticity or legitimacy of a transaction. Instead, Card Not Present merchants utilise AVS to make decisions on accepting or declining transactions based on the accuracy and validity of the billing address information provided by the customer.

AMEX

AMEX is the abbreviated form of American Express, a financial institution that offers credit cards and credit lines to both consumers and businesses. Operating as a comprehensive payment ecosystem, American Express functions as the acquirer, issuer, and provides a wide range of schemes to cater to different needs.

Android

An open-source smartphone and other device operating system that was created by Android, Inc. and later acquired by Google.

API (Application Programmable Interface)

APIs are a set of operations and functions that allow the development of programmes that have access to the functions or information of an operating system, programme, or other service.

ARN

The Acquirer Reference Number (ARN) is a unique number that marks a card transaction as it travels from the acquiring bank to the cardholder’s bank through the card scheme.

Authorisation

The acknowledgement provided by a card-issuing bank in response to a merchant’s request for transaction authorisation and confirming that the customer’s credit card is valid and has funds available.

Authorisation Amount

The transaction amount that is submitted for funding approval to the bank that issued the card. This sum is held in reserve against a customer’s available balance.

Authorisation Capture

A request for a credit card transaction to authorise and capture, or settle, money for an acquisition. The payment gateway sends the request to the bank that issued the card for authorisation; if it is granted, it will then send the transaction for settlement automatically.

Authorisation Code

A code that the card-issuing bank assigns to a credit card transaction to indicate whether it has been authorised or declined.

Authorised Signatory

The individual who has been designated by the business through business resolution as an authorised signatory for vendor engagement.

Bank Account Number

The account number assigned by a bank to a current or savings account holder.

Bank Card

A credit or debit card; a payment card that a bank or financial institution issues to a customer.

Bank Identification Number (BIN)

An identification number given to each of the banks, financial institutions, and processors that make up Visa and MasterCard.

Base 1

The world’s first electronic payment authorisation system, Base 1, was introduced in 1973. It is used to check whether a specific card, XXXX, will permit the deduction of any specific amount.

Base 2

The first electronic clearing and settlement system in the world is called Base 2. With the assistance of card networks like Visa and MasterCard, merchants use this system to complete batch settlements.

Basis Point (BP)

It is used to measure fee rates and is equal to.01 percent, or one hundredth of one percent. Instead of using decimal points, rate changes are frequently expressed in basis points. For instance, a fee rate increase from 1.95 to 2.0 percent would be expressed as a rise of 5 basis points.

Batch

A collection of transactions submitted collectively to the appropriate processing networks for clearing and settlement over a predetermined amount of time Group Upload a tool for the merchant interface that allows you to upload multiple transactions at once from a spreadsheet or unpublished business programme.

BIN Validation

The procedure for comparing the card’s BIN to the participating BIN list Red Listing the activity of gathering data to identify dishonest customers or high-risk merchants in an effort to stop frauds.

Business Continuity Plan

A business entity uses BCP, a risk management procedure, to create secondary backups in the event that the primary service is momentarily unavailable.

Cancel a payment

An authorised payment can either be captured (where money is transferred to the merchant’s account) or cancelled (where the merchant decides to refuse the payment due to a factor like a high fraud risk).

It should be noted that payments that have already been captured cannot be cancelled. To send money back to a customer in this situation, the merchant should start a refund. Because they modify the status of an authorised payment request, captures, cancellations, and refunds collectively are referred to as modifications.

Card Association

Payment networks that are connected to payment cards, like debit or credit cards, and to which a bank or any other financial institution that meets the requirements can join. The ability to issue or obtain cards that operate on the network of that card scheme is made available to the member by joining the scheme.

Card capture page

The secure page where card details are captured. Card information can only be captured by organisations that have received PCI DSS certification. Examples of organisations with card capture pages

• An acquiring bank, such as IMSL
• An aggregator, such as PayU
• A merchant, such as Flipkart
• A third-party service provider, such as JusPay

Card Holder

A customer to whom a credit or debit card has been issued by the bank or the credit card companies.

Card networks (or Card schemes)

Networks for processing payments that issue cards and provide infrastructure for processing card payments. An issuer and an acquirer must both belong to the same network as the card in order for a payment to be made. Visa, Mastercard, American Express, and UnionPay are a few examples of well-known card networks.

Card schemes impose fees for handling payments and control the interchange fee’s value, which varies depending on a number of factors for each individual transaction.

Card Not Present (CNP)

When transacting (such as when shopping online), the card is not physically present. Due to the risk involved with CNP transactions, a second level of security (2nd Factor Authentication) is required. As the risk is higher in CNP, TDR/MDR cases are typically more common than CP cases (rates are adjusted for risks).

Card Number

The account number given to a cardholder by a bank or credit card association. To use a credit card to make a purchase, a customer must give the merchant this information.

The series of numbers printed on the front of the card (these numbers denote the band’s identification number, category, and currency, among other things).

16 digits for Visa, MasterCard, Maestro, and RuPay

15 digits for Amex

Card on File (CoF)

When card information is saved to speed up checkout for frequent customers. This can be applied to pay-per-use services, one-click payments, and any other recurring payment that is not based on a set schedule.

A subscription is a recurring payment that takes place according to a set schedule.

A merchant may store card information on their own if they are Level 1/Level 2 PCI-Compliant.

Card Present (CP)

The cardholder or card is present at the point of sale throughout the transaction. Example: A grocery store card swipe was performed. Since the risk is lower in CP transactions than CNP (rates are adjusted for risks), TDR/MDR is typically lower in CP cases than CNP.

Card Vaulting

Method of storing card information (card number and CVV) and displaying that information during subsequent transactions A PCI DSS-certified entity (acquiring bank, aggregator, or merchant) may store a card.

Card Verification Value (CVV), Card Verification Code (CVC), Card Security Code (CSC)

To establish the identity of the cardholder and reduce the risk of fraud, credit and debit cards use card verification values (CVV), a combination of features.

Card verification code (CVC) or card security code (CSC) are other names for CVV, which consists of two parts:

1. CVV1: A magnetic stripe component
2. CVV2: a set of three or four digits on the back of the card

(Card Identification Number): 3 digits for Visa, MasterCard, Maestro, Rupay, and Amex.

Cash Back

A marketing strategy whereby retailers or banks give the cardholder a portion of the transaction amount as compensation for their business.

Cash Cards

Prepaid Cards with a predetermined amount preloaded on them for financial use.

Chargebacks

A customer dispute made to the issuing bank.

There are numerous causes for chargebacks, including the following:

• Service or product not delivered; - no refund given upon cancellation;
• transactions that might be fraudulent
• A hacked credit card

In these cases, the issuing bank sends the chargeback to the acquiring bank, which contacts the merchant either directly (if the acquiring bank has direct integration with the merchant) or through an aggregator (if the transaction is processed through an aggregator) to request proof of delivery or refund within the allotted time frame; otherwise, the chargeback will be deemed valid, and the merchant will be required to return the chargeback amount.

Chargeback Reason Code

A code that the card-issuing bank gives to the retailer and uses to identify the chargeback transaction’s cause.

Closed-loop prepaid cards/wallet

Cards/wallets that can only be used at a single retailer and that prohibit ATM or source account withdrawals.

Co-branded cards

Cards that are issued by financial institutions and have both corporate branding and a card scheme.

Collection account

The merchant’s bank account where money from the payment gateway is credited. In India, the collection account may be a current, nodal, or escrow account.

Contactless or Near Field Communication (NFC)

Your customers can make purchases using contactless technology without having to insert or swipe a card. NFC is the technology used for contactless payments in the context of POS. Since they all follow the accepted standard NFC protocol, Apple Pay, Google Pay, and Samsung Pay are all accepted. These payment options support high volume transactions because they are thought of as having strong authentication.

Credit Cards

The cards that enable borrowing funds from a financial institution to pay for goods or services Credit Cap The most the cardholder could ever owe on the card account to the issuer.

Customer Relationship Management (CRM)

The CRM software is a vast collection of tools created to assist businesses in managing customer data and customer interactions, accessing business information, automating sales, marketing, and customer support, as well as managing relationships with staff members, vendors, and partners. (like Salesforce and Zoho)

Debit Cards

The cards that make purchases by automatically deducting funds from a bank account.

Declined Payments

Declined transactions are those that have not received the card-issuing bank’s approval. If a transaction is declined, the customer must try again to complete the transaction.

Digital Customer Recognition (DCR)

DCR is used to identify clients who have previously made purchases from the merchant through various channels. can be applied to loyalty schemes.

Digital Signature

An electronic record with distinctive data that is used to confirm the reliability of a company or person. Digital Certificates are used with the Secure Sockets Layer (SSL) protocol and are issued by a Certificate Authority.

Diners

A card association that issues credit cards.

Dispute

Same as Chargeback

E-commerce Platform

Software that offers a range of features necessary to run an online store, including a website, category management, pricing management, order management, and payment management. Shopify, Magento, and other examples come to mind.

Electronic Commerce Indicator

The value returned from the Directory Server (Visa, Mastercard, and JCB) as the Electronic Commerce Indicator (ECI) displays the outcome of the 3D Secure features-assisted credit card payment made by your customer.

EMI (Equated Monthly Instalments)

A bank provides the cardholder (customer) with the option to divide the transaction amount into a smaller sum that is payable on a monthly basis. The bank may charge a processing fee or interest for the service.

EMV

EMV is a global standard for integrated circuit cards. .

Encryption

The method of transforming information so that only those with specialised knowledge can use it is frequently referred to as a key.

Escrow Account

A temporary pass-through account held by a third party during the course of a transaction between two parties is known as an escrow account. (Identical to Nodal account).

Expiry Date

The time at which a card’s validity expires. Only cards that haven’t expired yet will have transactions approved.

Flat Fee

Transaction fees are assessed per transaction, not as a percentage of the total amount of the transaction.

Floor Limit

The Floor Limit is the highest amount of cash that the terminal will accept for a transaction when it is handled offline. A configured inclusive limit is applied to each distinct transaction.The terminal will leave the card’s decision to approve or decline the transaction to the card if the transaction amount is below the configured Floor Limit.

Fraud

The dishonest and untrustworthy act of intentionally using stolen identity, compromised credit card information, and/or compromised bank account information for personal gain, including but not limited to the submission of false information or identification or the purchase of goods.

GTV

Gross Transaction Value is the total amount of transactions that can be processed. Online GTV is the total amount of transactions that can be processed online. GTV is the total value calculated for a day, week, month, or year. Likewise referred to as Transaction Payment Volume.

Integrated Circuit Card (ICC)/Chip

An EMV credit card with an embedded chip used to store card information is referred to in the context of payments.

In-app Payments

Payment flows which are completed in the merchant app without any redirection to a third party app or window. HyperUPI is one such example.

Interchange

The method used by all parties to manage the processing, clearing, and settlement of card transactions, including the assessment, collection, and/or distribution of fees between parties.

Interchange Fees

Fees given to the issuer by the acquirer to cover transaction-related expenses. The interchange fee amounts are decided by companies like VISA, MasterCard, and others.

Internet Protocol (IP)

A set of guidelines that control how data is formatted before being sent over the Internet or another network.

Internet Protocol (IP) Address

A distinctive string of numbers, each computer, mobile device, and other device using the Internet Protocol to communicate over a network, separated by full stops.

Internet Service provider (ISP)

A business that offers both consumers and businesses Internet services and resource management. iOS is an operating system for mobile devices (for instance, Airtel).

iOS

A mobile operating system created by Apple to run its mobile devices, such as the iPhone and iPad. The three sub-divisions of iOS are Watch OS, iPad iOS, and TvOS.

Issuing Bank

A financial establishment that issues cards to customers on the card associations’ behalf. also referred to as the card issuing bank.

JCB

Japanese Credit Bureau (JCB) is a card association.

Juspay

Juspay is a Payments Platform offering end-to-end solutions for managing and Scaling Payments.

Know Your Customer (KYC)

Set of credentials-establishing documents for people or business entities.

Loyalty program

A rewards programme a business offers to clients who make purchases on a regular basis. Implement loyalty programmes, further improve the general shopping experience for your devoted customers, and increase customer retention.

Magnetic Stripe

A credit, debit, or stored-value card’s black stripe, which houses the account information for the cardholder.

Marketplace

The marketplace serves as a platform for different businesses to offer their goods and services to customers.

MasterCard SecureCode

A security initiative launched by MasterCard to protect merchant transactions and provide identity authentication for cardholders. Merchants can reduce transaction risks while enhancing customer security by signing up for MasterCard SecureCode.

Merchant

The person or company who sells products or services to clients.

Merchant Account Provider

An organisation, or bank, that offers a financial account to a business so it can receive payments from card or bank transactions made by customers.

Merchant back-end

The order is typically saved in the merchant back-end after the product selection and totaling have been completed by the POS app (cash register). The order’s storage will include the results of the payment procedure.

Merchant Category Code (MCC)

Each category (airlines, hotels, hospitals, etc.) has a unique code assigned by the scheme. A specific MCC will be given to a merchant.

While some MCCs, such as those for online medicine, alcohol, and other things, are blocked for CNPs, others have different commercials (such as those for education).

Merchant Discount Rate (MDR)

The Fee that the acquiring bank charges the retailer.

Merchant Identification Number (MID)

A unique number given to each merchant who belongs to an acquiring organisation, such as a bank, processor, independent sales organisation, or merchant service provider. The merchant is identified by the MID at every stage of the payment process (transaction, settlement, refund, and chargeback).

MPI

A software module called a merchant plug-in (MPI) enables 3D-Secure verifications to aid in preventing credit card fraud. If a 3D-Secure programme enrollment is detected, the MPI uses the account number to search the servers of the card issuer (Visa, MasterCard, or JCB International) and returns the website address of the issuer access control server (ACS) if it is. It is the responsibility of merchants to use an SSL/TLS MPI on their servers.

MICR

The imprinted banking information (check number, routing/transit number, checking account number) is done using magnetic information character recognition.

National Payments Corporation of India (NPCI)

In India, NPCI is a private company that handles retail payments. It was established with the help and direction of the Indian Banks’ Association (IBA) and the Reserve Bank of India (RBI). NPCI is in charge of developing rules for various payment methods: NEFT, NACH, UPI, and RuPay Scheme.

NEFT

The National Electronic Funds Transfer (NEFT) system allows for the electronic transfer of funds between banks and bank branches. The NEFT network must be used by the banks or their branches that support such transactions.

Nodal accounts

Nodal accounts are designated for a specific purpose and are controlled by regulatory bodies. They are created to coordinate a specific kind of transaction. This is not an interest-bearing account that the business opens with the bank. As a result, the business entity’s accounting records do not reflect the funds that are parked in the nodal account. Funds belonging to third parties are kept in nodal accounts.

Offline EMIs

Conversion of an EMI occurs 5-7 days after the transaction date. The customer will pay the full amount, and the bank will divide it into monthly payments. Banks have requirements for eligibility for these cardholders.

Offline transaction

Accepting payments offline when there isn’t a network connection at the time.Most credit cards are set up to approve a relatively small amount offline, whereas debit cards typically decline a transaction.

Omnichannel Payment Solution

A merchant can accept cashless payments through a variety of channels (inside a mobile app, at the point of sale, or online) thanks to the suite of services and technical solutions offered by a payment service provider. Allow your customers to pay using any app of their choice by setting up BharatQR.

One-click payments

One-click Payments allow returning customers to make a payment without entering their entire card and address information, which streamlines the purchasing process for them. The customer’s information is saved during the initial payment by enabling one-click payments. The customer only needs to enter their card security code (CVC/CVV) once for each additional payment to complete the order.

One-click has the benefit of ensuring that the full card authorisation, including card security code checks and 3D Secure, if applicable, takes place for each payment. The potential drawback is that the customer must be present to provide their card security code for every transaction.

Open-loop prepaid cards

Cards that can be used at all retailers and at ATMs to withdraw money are available.

OTC

A customer makes a payment across the counter in a bank during an over-the-counter transaction.

OTP

Single-Use Password As part of two-factor authentication, the issuing bank sends this to the cardholder’s registered mobile number, which also needs to be entered on the acquiring bank page.

Overcapture

Capture payments for an amount greater than what is permitted.

Card schemes typically only permit overcapture for a specific percentage of certain kinds of businesses.

Changing the authorised amount prior to capture is an alternative.

Payment Gateway

A payment gateway establishes a secure channel for payments between a customer and a business. Both parties from the involved banks must be authenticated.

Payment Processor

A system that links to both the banks of the buyer and the seller in order to complete a payment transaction on the seller’s behalf. Typically, a payment gateway provides the payment information to a payment processor.

Payment Service Provider (PSP)

A business that performs the duties of both a payment processor and a payment gateway can link up with various acquiring and payment networks. Additionally, it can conduct risk analyses and offer other financial services as an acquirer.

Instead of having separate contracts with various payment gateways, processors, and acquiring banks, it is frequently more affordable and convenient for merchants to use the services of a PSP.

Payment terminal (or POS terminal, pin entry device (PED))

A point-of-sale system that can communicate with a customer’s card. At a payment terminal, a card is typically swiped, tapped, or dipped (inserted). Depending on the nation, card type, and transaction amount, the terminal then asks the user to enter a PIN or sign. A Pin Entry Device (PED) is another name for it.

Payout

In the payments industry, this term is used to refer to a large sum of money that is paid all at once to either an individual or a business entity. For instance, a sub-merchant on an online marketplace receives payment from the marketplace’s customers for the goods or services they provide.

P2M

P2M stands for Person-to-Merchant and refers to transactions made between a customer and a merchant over the IMPS network.

P2M works when there is a relationship between the merchant and the customer and every invoice needs to be approved separately.

P2P

Person to Person Fund Transfer Choices include card to card, card to account, and account to card.

PCI DSS

A proprietary information security standard for businesses that deal with branded credit cards (Visa, MasterCard, American Express, Discover, and JCB), Payment Card Industry Data Security Standard (PCI DSS) was created. The main focus of PCI DSS is security issues related to handling and storing credit card information.

Pending Transaction

Transactions for which the aggregator does not have a real-time status update because the bank has not provided it. Post status reconciliation (T+1 day), these transactions are converted to success, failure, or user aborted.

PIN (Personal Identification Number)

PIN is a special number used to confirm who owns a payment instrument. Either static or dynamic (OTP) can apply. Debit cards or ATM PINs can be used at POS/ATMs, and cards have a second factor authentication password.

Polling the status

Checking for the status of transaction periodically.

POS (Point of Sales)

A fixed POS at a retail location or a mobile POS device are both used to process card-present transactions at the point of sale (POS).

Pre-Authorisation

Pre-authorisation is the process of delaying the release of funds from a debit or credit card transaction until the entire transaction has been recorded.

Prepaid Cards

The cards are loaded with money, and the loaded amount is the maximum that can be used. Prepaid card variants -

• Non-reloadable: Gift cards can only have one load, but they can be used multiple times before they expire.
• Reloaded: Cards (Meal Cards, Travel Cards, and Forex Cards) that can have their value added more than once and be used more than once before expiring.

Reconciliation

Reconciliation is a process in accounting that compares two sets of records to make sure the numbers are accurate and consistent. It ensures that the balance of the two is maintained at the end of the recording period and verifies that the money leaving an account matches the money that has been spent.

Recurring Payments

Periodic payments that we make could be weekly, monthly, quarterly, half-yearly, or yearly. For instance, utility bills and insurance premiums

Refund

A request made by the retailer (on behalf of the customer) to credit the transaction amount back to the customer’s original card or account. Refunds can cover the entire original transaction amount or just a portion of it.

Reserve Bank of India (RBI)

The RBI, India’s central banking organisation, manages the rupee’s monetary policy. The RBI also controls the various ways of making payments.

Risk Monitoring System

The RMS was created to assist Web merchants in identifying, managing, and preventing fraudulent transactions. It is a robust, rules-based collection of transaction filters, Internet Protocol (IP) addresses, and other frequently proprietary tools.

RTGS

Real-Time Gross Settlement is an electronic payment method that allows users to send payments of up to Rs. 2 lakh to third parties.

Schemes

Same as Card Association

SDK

An SDK (or “devkit”) is a collection of software development tools that enables the creation of applications.

Secure Socket Layer (SSL)

An Internet protocol that transmits encrypted data that is difficult to tamper with to protect electronic communications between two or more computers. An “https” in the Web address and a lock icon in the bottom right of the browser window identify websites that employ SSL technology.

Semi-closed loop prepaid card/wallet

Multiple-merchant cards/wallets that prevent withdrawals to the source account or through ATMs

Settlement

The sum that is transferred from one party to another. The wallet issuer or issuing bank for cards will pay the aggregator for a transaction that is processed successfully on their respective entities (T+1 day). - After a successful transaction, the aggregator pays the merchant (T+2 day).

Shopping Cart

A software or internet company that offers online storefront tools and payment form solutions to merchant websites.

Signature

The accepted POS Entry Modes and CVM’s can be configured to only include a subset of the aforementioned items depending on the business model of the Merchant.

Stored-value card

A credit or debit card that has money stored on it rather than in a bank account. Prepaid cards and gift cards are two examples. Some stored-value cards can be reloaded with cash to make them usable again, while others are disposable and cannot.

Sub-Merchant Transaction ID

A special ID that the retailer creates for each transaction. The transaction-id is mapped to each merchant transaction id.

Subscriptions

Payments that repeat on a predetermined schedule.Streaming services for music and television are common examples of subscription payments.

Success Rate

The measure of a payment gateway’s performance. typically, the proportion of transactions that are successful.

Surcharge

Fees for transactions that are tacked on top of the transaction sum. In this model, the merchant typically receives a full settlement while the customer typically foots the bill.

TAT

Turnaround Time (TAT): The amount of time allotted for providing a specific service (for instance, TAT for settlement is T+2 day).

Ticket Size

Amount of a transaction. The average ticket size is used in numerous pricing calculations, which aids businesses in decision-making.

Tokenisation

Sensitive data is swapped out for non-sensitive data, or a token, which can then be used to gain access to the original (tokenised) data. In the payments sector, it is used to protect card numbers and other payment information by swapping them out for a distinctive string of numbers. Later, recurring payments can be implemented using this string.

TPS

The capacity of an acquiring bank or an aggregator to process transactions measured in terms of transactions per second.

TPV

Transaction Payment Volume; same as GTV.

TPV (Third Party Validation)

Process by which the bank account being used for an online transaction is compared to the account that has been registered or authorised for the transaction. Only relevant to the brokerage and MF industries.

Transaction (or Txn)

The term “transaction” is used in the payments industry to describe the exchange of a specific amount of money from a customer for goods or services from a retailer, or for fulfilling any other obligations between the two parties.

Typically, money is moved using local payment methods like bank transfers, e-wallets, mobile payments, etc. or card payments.

A common abbreviation for a financial transaction is Txn.

Transaction Discount Rate (TDR)

The charge a payment gateway makes to a merchant for each transaction.

Transaction ID (aggregator Transaction ID)

A special identification number assigned to each processed payment. Both successful and unsuccessful transactions will each be given a transaction ID. Sub-merchant transaction id and bank transaction id are linked by transaction id. The entire payment life cycle (transaction, refunds, chargebacks, etc.) can be tracked using this id.

Transaction Status

The standing of the online payment transaction. Statuses include successful, unsuccessful, pending, user-aborted, and refunded.

Underwriting (UW)

Process of assuming responsibility under and thereby ensuring payment in the event of loss or damage.

Unified Payment Interface (UPI)

The NPCI launched UPI, a digital payment initiative, to promote interoperability and boost digital payments in India. A distinct virtual identifier is created once a customer registers for UPI with the bank and is then mapped to a mobile phone. UPI uses the beneficiary’s virtual identity to start the payment and sends the funds in real-time. It utilises 2-factor authentication with a single click. A customer will be able to use their mobile number or aadhar number as a virtual id under UPI and have access to multiple virtual ids.

UTR

For the purpose of uniquely identifying any transaction, the IMPS, NEFT, and RTGS systems generate UTRs, or Unique Transaction Reference numbers. The bank that starts the transaction generates the UTR in a predefined format.

Upfront Deduction

The transaction amount is lessened by transaction fees, and the net settlement sum is then credited to the merchant’s collection account.

Verified by Visa

A security programme developed by Visa to protect merchant transactions and provide identity authentication for cardholders. Merchants can reduce the risk of chargebacks and returns by signing up for Verified by Visa and adding more security.

Wallet

A wallet is a container for money that can be used for a variety of transactions. A wallet can be physical (such as prepaid cards) or virtual (such as a mobile wallet like PayTM or Vodafone m-pesa).

Webhooks

Webhooks are HTTP callbacks that are sent to a server endpoint. They update you on events such as authorised, captured, and modified payments. Webhooks can be used to automate business operations, like managing orders or downloading reports for accounting.

Working Days

Days that are considered “business days” by banks. In addition to the listed holidays, Sundays, the second and fourth Saturdays are banking holidays.

Zero-value auth

An authorisation request with a value of 0 (EUR, USD, etc.) is known as a zero-value auth. To look up previous purchases or other information from the merchant database, this is used to either store or obtain shopper details.

When submitting a BIN or card verification request, for instance, zero-value authentication is used.