Payments Glossary
A complete reference of payments terms from participant types to transaction processes.
Open Banking
Open banking provides licenced third parties with API access to bank accounts for data and payment initiation.
Scheme Fee
Scheme fees are charges levied by card networks on transactions processed over their rails, separate from interchange.
Batch Processing
Batch processing groups captured transactions for daily submission to card networks for clearing and settlement.
Card Network
A card network connects acquirers and issuers to route authorisation requests and sets the rules all participants must follow.
Merchant Discount Rate
The Merchant Discount Rate is the total fee a merchant pays per card transaction, covering interchange, scheme fees, and acquirer margin.
Payment Facilitator
A Payment Facilitator (PayFac) is a master merchant enabling sub-merchants to accept payments under its acquiring agreement.
Least Cost Routing
Least Cost Routing (LCR) directs debit card transactions through the lowest-cost available network on co-badged cards to reduce interchange fees.
PCI-Compliant Hosting
PCI-compliant hosting meets the security requirements for environments that handle cardholder data.
Address Verification Service
Address Verification Service compares a cardholder's billing address against issuer records as a fraud detection check.