A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term Definition
ABA Transit Routing Number, also Route Transit Number (RTN)

An ABA Transit Routing Number (sometimes referred to as a Route Transit Number or RTN) is a nine-digit bank code identifying the financial institution from which an instrument draws on.

Acquirer

Acquirers (sometimes referred to as merchant acquirer or acquiring bank) are financial institutions processing credit and debit card transactions for Issuers.

Acquiring Processor

Acquiring Processors are credit card processing providers. Third-party merchant services companies or Independent Sales Organizations (ISO) working with acquiring banks to accurately process merchant transactions.

Address Verification System (AVS)

The Address Verification System (AVS) is a fraud prevention tool used to verify numeric elements within cardholder's billing addresses at the moment of transaction.

Alternative payment methods

Alternative payment methods refer to non-card payment instruments e.g.: cryptocurrency, loyalty points, Google Pay or Apple Pay.

Application Program Interface (API) Electronic or digital communication of information between two separate computer applications or software that permits information to be transferred and exchanged between the two systems.
Authentication The process merchants and processors use to verify that the purchaser’s payment device, e.g. card or check, is being used by the authorized account holder. Authentication applies to in-person, phone, and online purchases. A cardholder may need to present additional information such as a digital password, the card security code, or a personal ID.
Authorization The process used to approve, reject or refer a non-cash sale Merchants request approval from the cardholder’s issuing bank. The approval process includes verifying the customer’s available balance against the amount of the purchase.
Authorization Amount The transaction amount submitted to the cardholder’s issuing bank for approval The issuing bank verifies that the cardholder has an available balance for the purchase and issues a reserve equal to the amount of the transaction. The reserve is in place until the transaction is captured, a void transaction is submitted, or the 30-day authorization period has expired.
Authorization Capture The process to complete a credit card purchase by authorizing and capturing or settling the funds for the transaction The capture request is submitted by the payment gateway to the card issuing bank. If the issuing bank authorizes the request, the transaction is automatically submitted for settlement.
Authorization Code The approval code transmitted by the issuing bank The Authorization Code is usually printed on the sales receipt.
Authorization Only The total amount of the transaction that is approved The payment gateway requests the authorized total amount from the card-issuing bank.
Authorization Request The process used to verify the customer’s available funds to make the purchase The outcome of a request is an Authorization Request or Authorization Capture.
Automated Teller Machine (ATM) A standalone terminal that dispenses cash, accepts deposits, receives payments, and allows customers to find out the status of their card accounts ATMs are available 24/7 and located in shopping areas, gas stations, hospitals, and in many businesses. ATMs read magnetic stripes and EMV chips.
Automatic Clearing House (ACH)

A funds transfer network that permits the electronic settlement of debit and credit transactions between bank accounts and is available nationwide to participating financial institutions.