The Most Important Keywords in the Payment Industry
A comprehensive guide to understanding the essential terminology that shapes the dynamic world of payments. Dive into the key concepts and definitions that form the foundation of modern payment systems and stay informed in this rapidly evolving industry:
- Point of Sale (POS): The physical location or system where a customer makes a payment for goods or services, typically using a payment card or mobile device.
- E-wallet: An electronic wallet that stores multiple payment methods, such as credit cards, debit cards, and bank account information, allowing users to make secure online transactions.
- EMV: EMV stands for Europay, Mastercard, and Visa, the three organizations that developed the global standard for chip-based payment cards. EMV technology provides enhanced security by using chip cards that generate unique transaction codes for each payment.
- ACH: ACH, or Automated Clearing House, is an electronic network that facilitates the transfer of funds between bank accounts in the United States. It is commonly used for direct deposits, bill payments, and other types of electronic funds transfers.
- Digital Currency: Digital currency refers to any form of currency that exists solely in electronic or digital form. It is decentralized and typically operates on blockchain technology, enabling secure and transparent transactions.
- Mobile Point of Sale (mPOS): A mobile point of sale system allows businesses to accept payments on mobile devices, such as smartphones or tablets. It usually involves a portable card reader that connects to the mobile device to process payments.
- Prepaid Card: A prepaid card is a payment card that is loaded with a specific amount of money in advance. It can be used to make purchases or withdrawals until the loaded amount is depleted.
- E-commerce Platform: An e-commerce platform is a software or online service that enables businesses to sell products or services online. It typically includes features for product listings, shopping carts, and payment processing.
- Recurring Payment: A recurring payment is an automated payment that is set up to occur regularly, typically on a predetermined schedule. It is commonly used for subscription services or recurring bills.
- Cross-Border Payments: Cross-border payments refer to financial transactions that involve sending or receiving money between different countries or currencies. It often involves additional complexities and fees due to currency conversion and international banking systems.