This is the second part of the payment gateway definition dictionary. You must check out the first part through the below link before you continue with the below payment gateway and payment processing terms.
Payment Gateway Terms ( Continued…)
Here are some of the other words used in relation to the payment gateway:
20. Maintenance Cost
These are the payment gateway fees charged for the service cost, upgrades, maintenance, etc. Maintenance cost is mostly periodic such as quarterly or yearly. However, not all payment gateways charge this.
21. Merchant Dashboard
This is a tool for the merchant and a one-stop place for them for various payment gateway-related functions, analysis of transactions, testing, settings, registration, etc. It is an account and is activated for real-time records after the registered merchant account approval.
A merchant is the one who is selling the product or the services. He would get the payment gateway merchant account (refer 24) to accept the online payments. For example the eCommerce website seller.
23. Merchant Category Code
A code that helps with the classification of the merchant as per the types of services or goods that the merchant sells is called the merchant category code. It is 4 digit code with the help of which the card companies classify the merchant.
24. Merchant Account/Nodal account
This type of account helps the merchant to accept online payments. It is a payment gateway account over which the acquiring bank (refer 2) has control. Its sole purpose is to accept the payments on behalf of the merchant and settle the funds to that merchant. IT includes other functions such as processing the refunds.
Thus, the funds paid by the customer are first collected in the merchant account, and then as per the settlement cycle, it would be automatically settled to the merchant’s business bank account.
Read more: Nodal Account (Merchant Account)
The identification number that the payment processors allocate to the merchants for processing the payments is called the Merchant Identification Number (MID)
Read more: Merchant Identification Number (MID)
26. Onboarding Process
This is the process for the activation of the registered merchant account. The KYC, risk analysis, fraud detection, coordination, and communication takes place in the onboarding process.
Like an offline purchase is called an Order, when the customer makes an online selection of the product or services, moves it to the checkout, and proceeds with the payment, an order is created at the side of the merchant and the payment gateway.
A secure code sent to the registered mobile number for authentication of the transaction is called the One time Password (OTP).
29. Payment Gateway/Aggregator
The aggregator integrates different payment modes and makes the technical tie-ups for the same to facilitate the merchant and the customer with multiple payment methods.
Must read here the basic Points of Difference between the Payment Gateway and Payment Aggregator
30. Payment Method
Various options through which the customer can pay are known as the payment methods such as debit card, net banking credit card, UPI, Wallets, EMI, etc.
31. PCI DSS Compliance
Payment Card Industry Data Security PCI-DSS compliance is the maximum level of the security measure for card payment processing. PCI DSS is a set of security standards designed by Visa, MasterCard, Discover Financial Services, JCB International, and American Express to ensure that all companies that accept, process, store or transmit credit card information maintain a secure environment. It protects the cardholder from data leaking and online payment frauds.
When the customer’s payment is returned to the customer due to any reason then it is known as the Refund. The code for the identification of the refund is known as the Refund ID.
This is the stage in the payment processing wherein the payment made by the customer is processed from the merchant account (refer 24) to the merchant’s business bank account.
Settlement is done as per the settlement cycle meaning to the say the predetermined settlement duration for example t+3 working days (refer 7 – Business Days).
34. Smart Routing
The transaction will be automatically routed through different channels to enable a high success rate based on the payment mode, card issuer, card scheme, or card bin.
The various encryptions and the cryptographic functions including the public key and the private key used to secure the connection between the server and the website is known as the Secure Socket Layer (SSL).
It provides security in the online business when the data is transmitted from the customer’s side to the merchant website through the payment gateway.
Transaction Discount Rate (TDR) is the percentage fee that the acquiring bank charges for online transactions. The fee is distributed among various parties involved in the transaction such as the payment processors, card networks, issuing bank, etc.
37. Tokenization/Encryption Standards
For the safe processing of the transactions, following the encryption standards is of utmost importance. It enables the transmission of the data in a coded manner and prevents security breaches.
The payment process initiated at the payment gateway checkout is known as the transaction. The unique code assigned to the transaction is known as the Transaction ID.
Get in touch to get to know more about any payment processing-related terms. Complete your Onboarding Process with PayKun now!