Payments Glossary
A complete reference of payments terms from participant types to transaction processes.
Smart Routing
Smart routing selects the optimal acquirer for each transaction in real time to maximise approval rates and reduce processing costs.
PSD2
PSD2 is the EU directive that introduced Strong Customer Authentication and open banking obligations for payment services across the EEA.
Friendly Fraud
Friendly fraud occurs when a cardholder who received goods or services files a chargeback claiming non-receipt or unauthorised use.
PCI Level 1
PCI Level 1 is the highest PCI DSS compliance tier, requiring an annual QSA audit and formal Report on Compliance for high-volume merchants.
Authorisation
Authorisation is the issuer's approval of a card transaction request, reserving the transaction amount before capture.
Approval Rate
Approval rate measures the percentage of payment attempts that complete successfully, including recoveries after initial declines.
Frictionless Flow
EMV is the chip card standard that uses cryptographic authentication to prevent counterfeit card fraud and defines liability shift rules at point of sale.
Capture
Capture is the instruction to collect funds from an authorised payment transaction, triggering clearing and settlement.
GDPR in Payments
GDPR applies to the personal data collected and processed in payment transactions, including cardholder names, addresses, and device identifiers.