Acquirer |
Acquirers provide legal entities with the means to accept card payments. These legal entities are called Merchants and they can use Acquirers virtual or physical POS terminals to accept payments. |
Acquiring processor |
Acquiring processors are the set of system that provide the connectivity to the networks or payment gateways to process transactions |
Adverse media |
Adverse media is a type of screening performed on individuals or businesses. To goal is to check for conviction or link to any criminal activity relating to financial crime (fraud, money-laundering, terrorism funding, etc.) |
AML |
Anti-money Laundering is a set of policies and procedures enforced by European directives and local regulations to prevent the use of financial systems for the purpose of money laundering. |
Apple Pay |
Apple Pay is a mobile payments service that utilizes Near Field Communication (NFC) to initiate secure payments between Apple devices and contactless POS terminals. |
Assessment |
Fees that are charged by networks on both acquirer and issuers for the usage of the network. This is how networks make money. |
BIN Sponsor |
BIN Sponsors are institutions members of schemes (Visa, Mastercard etc.) and are authorized to issue cards. The BIN Sponsors are often used by Fintech companies to avoid becoming members of the schemes which might be a lengthy and costly process. |
Card Distributor |
means Payhawk, being your first point of contact if you have an issue with the Card or this Agreement, the contact details of which are set out in clause 2; |
Card Personalization |
The process used by card manufacturers to encode cardholder data on the chip and magnetic stripe, and also imprint on the physical card body. |
Electronic money |
Electronic money (e-money) is a digitally stored record of monetary value held by an issuer for the purpose of making payment transactions. These are issued by EMI authorized to hold funds and issue e-money. |
Electronic Money Institution” |
Electronic Money Institutions (EMI) are financial institutions granted a license to issue e-money by a local financial regulatory body like FCA (UK), BaFIN (Germany), and BNB (Bulgaria). |
EMI agent |
EMI agents are third-party providers registered with the local regulatory body for the purpose of selling or marketing services of EMIs without the permission to hold customer funds. |
Financial Regulator |
Financial Regulators are national bodies that regulate and supervise the financial services and payment providers on the market. They are members of the European Banking Authority. |
Google Pay |
Google Pay is a mobile payments service that utilizes Near Field Communication (NFC) to initiate secure payments between Google devices and contactless POS terminals. |
IBAN |
International Bank Account Number is a standard numbering system used to facilitate cross-border bank payments. |
Issuer |
Issuers are members of networks (Visa, Mastercard etc.) and are authorized to issue cards by setting up BIN programs. Issuers are either banks, electronic money institutions or payment institutions. |
KYB Business |
Know Your Business is a process performed by an issuer to comply with anti-money laundering regulations and frauds. |
KYC Individual |
Know your Customer is a process performed by an issuer to verify the identity of individual cardholders |
Merchant |
Merchants are legal entities allowed to accept card payments using virtual or physical POS terminals provided by Acquirers. |
Merchant Bank |
The bank that manages the account of a merchant where funds from transactions are accumulated. |
Merchant Category Code |
Code identifying the type of activity performed by the merchant which is often used to identify the type of transaction being performed. |
National processors |
In countries where the schemes are not processing the market directly, there are local third-party processors that facilitate the connectivity between local banks and Mastercard and Visa. For example, Borica is the national processor for all Bulgarian banks. |
Passporting |
Payment and electronic money institutions can passportize their rights to perform services outside of their national boundaries by passporting their license across other European Economic Area member states. |
PCI Compliance |
Payment Card Industry requires certain security standards to be implemented by Issuers, Acquirers and Merchant that process credit card information. Obtaining PCI DSS Level 1 is required for any institution that stores and processes sensitive credit card data. |
Politically exposed person (PEP) |
A politically exposed person (PEP) is a person who has a public status and functions. PEPs are usually subject to stricter measures due to a higher risk of potential involvement in corruption, bribery or money-laundering. |
Processed markets |
Processed markets are one where schemes process transactions directly without the presence of a national processor. |
Processor |
A processor is a software system connected to the networks that process all transactions for the Issuer. The link between a processor and an issuer is usually a configuration setup rather than an integration effort. |
PSD2 |
Second Payment Services Directive (PSD2) is a EU Directive by the European Commission that regulates payment services and providers within the European Economic Area and the European Union. |
PSD2 AIS |
Account Information Service allows third-party providers to access existing banks and provide an aggregate view of accounts, balances and transactions. |
PSD2 PIS |
Payment Initiation Service allows initiation of payments from third-party systems connected to bank accounts after user consent. |
QSA |
Qualified Security Assessors are independent security organizations that are qualified to perform PCI Compliance audits. |
Safeguarded account |
Safeguarded or pooled accounts are used by electronic money institutions to store customer funds. |
Samsung Pay |
Samsung Pay is a mobile payments service that utilizes Near Field Communication (NFC) to initiate secure payments between devices and contactless POS terminals. |
Sanction lists |
Sanction lists are shared between governments and regulators to identify people who have been involved in financial crimes for the purpose of fraud prevention and anti-money laundering control. |
Scheme |
Scheme or Networks (US term) are Mastercard, Visa, Amex and other networks that facilitate card payments. |
Source of funds |
The term relates to the origin of the funds that is subject of movement between a Financial Institution and a customer. |
Third-party providers |
Third-party providers (TPP), service providers or often called Fintech companies that can be licensed under the PSD2 to manage electronic money, payment initiation and account information services |