The Most Important Keywords in the Payment Industry
Part 4
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:
- Payment Reconciliation: The process of matching and comparing payment transactions, typically between a merchant’s records and financial statements, to ensure accuracy and identify any discrepancies.
- Alternative Payment Methods: Non-traditional payment methods that offer alternatives to credit cards, such as mobile wallets, digital currencies, bank transfers, or buy now, pay later options.
- Subscription Billing: A payment model where customers are billed on a recurring basis for access to goods or services, typically used for subscription-based businesses.
- Omnichannel Payments: Providing customers with a seamless payment experience across multiple channels, such as online, in-store, mobile, and more, allowing them to complete transactions using their preferred method.
- Instant Payments: Real-time payment transactions that enable immediate transfer of funds between bank accounts, providing fast and convenient payment experiences.
- Payment Service Provider (PSP): A company that offers payment processing services to merchants, enabling them to accept various payment methods and manage transactions.
- Interchange Fees: Fees charged by the card-issuing bank to the merchant’s acquiring bank for processing card transactions. Interchange fees are typically a percentage of the transaction value.
- P2P Payments: Peer-to-peer payments enable individuals to send and receive money directly between their bank accounts or mobile wallets.
- EMV: 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.
- Fraud Prevention: Measures and techniques implemented to identify and prevent fraudulent activities in payment transactions.