An acquirer is typically a financial institution, such as a bank, payment processor or credit card company, that offers merchants services and tools that a business might need to process different forms of credit and debit payments.
In a payment transaction, a capture or completion happens when the issuer (a financial institution that issues credit and debit cards) takes the correct amount of money from a customer’s bank account that will eventually be given to the merchant. An authorized transaction is not considered complete until it is captured (also known as clearing).
In a payment transaction, card authorization is the process of verifying and approving that a credit or debit card can be used. This verification process confirms that the customer has enough money available to make a purchase, that the card is not stolen, lost, or frozen, and the cardholder’s information matches what is on file with a merchant.
Also known as a Payment Card Network Operator (PCNO), a card network (or card brand) is responsible for creating and enforcing rules surrounding card use and acceptance. Each card brand has its own set of rules, and all payment processing systems must follow these rules when accepting credit cards. Examples of card brands include as Interac®, Visa®, Mastercard® or American Express®, Discover®, and UnionPay.
Individuals who are legally issued a credit or debit card from a financial institution.
A transaction type in which a cardholder/customer does not present a physical credit or debit card to a merchant when making a purchase. Card-not-present transactions often take place online, over the phone, or through mail order.
A transaction type where a cardholder/customer presents a physical credit or debit card to a merchant when making a purchase. Card-present transactions take place in-person where a customer will insert, swipe, or tap their card, on a payment device.
A chargeback is a credit or debit card charge that is disputed by an issuer (a financial institution that issues debit and credit cards) on behalf of their cardholder. Funds from the disputed transaction may be returned directly to a cardholder’s bank account if the dispute is valid. Reasons a customer may dispute transactions include fraud, missing merchandise, unauthorized transactions, or unrecognized charges.
Digital wallets are online payment tools, usually in the form of an app in a smartphone, that securely stores virtual versions of debit and credit cards. Examples of digital wallets include Visa Checkout, Apple Pay, Google Pay, Click to Pay, etc.
An independent software vendor (ISV) is a third-party business that creates, advertises, and sells software applications and solutions that can be easily integrated into a merchant's existing payment processing system, diversifying their ability to take payments.
An independent software vendor (ISV) is a third-party business that creates, advertises, and sells software applications and solutions that can be easily integrated into a merchant's existing payment processing system, diversifying their ability to take payments.
Interac serves as the Canadian debit card system. It is also Canada’s primary money transfer network through the Interac e-Transfer® service.
Interchange is a fee that every acquirer, like Moneris, is required to pay card issuers (a bank or financial institution) for each credit or debit card transaction that a merchant will complete.
Issuers are financial institutions, such as banks or credit unions, that are authorized to issue credit or debit cards to consumers and businesses. Issuers are also known as issuing banks or card issuers. Examples of issuers in Canada include RBC and BMO.
A merchant is an individual or a company that sells goods or services. They lead customers through the buying journey from start to finish.
A PayFac is a payment service provider that uses its own platform to support merchants. This entity is sponsored by an acquirer, like Moneris, to enable payments and to fully service its portfolio of merchants. The relationship with the merchant is owned and managed by the PayFac.
A payment gateway is a technology that merchants can use to accept different payment methods, such as debit or credit cards, or digital wallets. Through a payment gateway, customer and card information is securely stored, and that information is later used to collect payment from the customer. Payment gateways are often used for online stores.
A payment processor is responsible for securely transferring data between various stakeholders and entities involved in a payment transaction. When a customer makes a purchase on a payment device, the payment processor securely passes information from the cardholder and merchant to the card network to complete the transaction; this takes place before the merchant can receive payment from their customers.
A point-of-sale (POS) system is used by merchants to accept payments from customers, track sales data, and manage their day-to-day operations.
A point-of-sale (POS) terminal (also known as a payment device, card reader or payment terminal) is an electronic device that merchants use to process credit and debit card payments. POS terminals may work on their own or as part of a larger POS system, and they are built with the ability to accept card payments through chip and PIN, tap, swipe or manual entry.
A pre-authorization charge is a temporary hold placed on a cardholder’s credit or debit card. It is used to verify that their account is valid, and they have enough money to cover a pending transaction. A pre-authorization charge is also known as a pre-auth or authorization hold.
A purchase or sale involves the transaction of goods or services in exchange for a payment in cash or card (debit, credit, gift cards, etc.).
A refund is any amount of money that is given back to a customer who has returned a product they are not satisfied with.
In a payment transaction, a settlement happens when a cardholder’s information has been approved and verified for use, the transaction is captured (cleared) and money can be moved from their account to a merchant’s account.
A surcharge is an additional fee that a merchant may add to a payment transaction when a customer pays with a credit or debit card. Surcharges allow businesses to indirectly pass payments/processing costs on to customers by adding a charge separately from the cost of the goods or services. It is important to note that there are very specific requirements that a business must follow if they intend to implement a surcharge.
A void or payment reversal happens when a debit or credit card transaction is cancelled by the merchant before it is cleared, and money is not moved from the cardholder’s bank account.