What does everything mean?
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Below is a list of commonly used words that you may come across when trying to set-up or understand eCommerce solutions, merchant accounts and payment gateways.

3D Secure (3 Domain Secure)

The 3-D Secure™ protocol was developed by Visa to improve the security of Internet payments. The protocol is offered with the service name Verified by Visa. MasterCard has also adapted a similar protocol called MasterCard SecureCode. Both are designed to allow authentication of cardholders by their Issuers at participating merchants.

Acquiring bank

An acquiring bank is a bank that is used by merchants to accept credit card transactions. Acquiring banks are often also referred to as merchant bank. In order for a merchant to be able to accept credit card transactions online, the acquiring bank sets up a credit card merchant account.

Chargeback

A chargeback is the result when a merchant's credit card customer successfully disputes a transaction on their bill. Disputes typically arise from the customers dissatisfaction with the merchandise or services received.

Cookie

Cookies are data files written to your hard drive by some Web sites when you view them in your browser. These files can contain information the site can use to track such things as passwords, lists of pages you've visited, browsing habits or can store information from a shopping cart.

DMA (direct merchant account)

This is a merchant account you already have direct with a bank or PSP (payment service provider)

DNS (domain name system)

When a user sends email or points a browser to an Internet domain such as web-merchant.co.uk, the DNS translates the names into Internet addresses (123.456.78.9). The term refers to two definitions: naming hosts and how domain names are handled on the Internet.

E-commerce

Electronic Commerce. Basically doing business online. Most times the site will integrate a shopping cart, SSL certificate, and a merchant account to process payments.

Encryption

An algorithm used to scramble data which makes it unreadable to everyone except the recipient. This is often used by e-commerce sites to secure credit card data. Secure sites use encryption.

FTP (file transfer protocol)

Protocol used to copy files between computers - usually a client/computer and an archive/web site.

Gateway (or payment gateway)

A gateway provides a secure connection between your online shopping cart (or other website where payments are taken) and your internet merchant account. A Gateway fee is applied by the transaction processor to cover the costs of receiving and processing the transaction.

IP (Internet protocol)

The protocol defines how information gets sent between servers or systems across the Internet.

IP Address (Internet Protocol Address)

This is a unique string of numbers that identifies a computer or server on the Internet. These numbers are normally shown in groups separated by periods. Example: 216.239.51.100 is Google’s IP address. Hosting accounts for websites can have either a shared or unique IP address.

MCC (merchant category code)

A Merchant Category Code (MCC) is a four-digit number assigned to a business by MasterCard or VISA when the business first starts accepting one of these cards as a form of payment. The MCC is used to classify the business by the type of goods or services it provides.

Merchant Account

Account opened through a bank that is a member of the Visa, MasterCard, or other credit card network which allows merchants to accept credit cards from purchasers. The funds are then transferred electronically to the merchants bank account.

MID (merchant ID number)

For a business to accept online payments they need a Merchant ID. This number identifies the merchants specific bank account of which credit card funds are transferred.

Multi-Currency Processing

The multi-currency processing system enables you to offer your products, and to receive payment, in many different currencies. Our standard merchant account sets up GBP, US Dollar and Euro as standard and for FREE.

Multi-Currency Conversion

When international customers are shopping online in a currency they are not familiar with, they are often unaware of what the final transaction amount will be. This situation may increase chargeback risks for merchants. This system is only available with our High-Risk account.

PSP or Payment Service Provider

In order to have payments from your web site processed by the credit card networks you will have to apply to an approved Payment Service Provider, known as a 'PSP' Their function is to integrate your e-commerce enabled web site with the international credit card networks so that orders generated by your chosen 'shopping cart' software can be authorised and payment collected for you. This payment will be transferred to your Merchant Account for payment into your bank account.

Retrieval

A retrieval request, also known as a Request for Information (RFI) is raised by a credit card issuer when a cardholder disputes a transaction on their statement. This usually occurs when they don't recognise the transaction and need more information to work out whether they made it, or if it was fraudulent or unauthorised. Under the Card Scheme regulations, you must provide detailed information on a transaction if you receive a retrieval request. If you don't respond in time, it may become a chargeback.

Rolling Reserve

The rolling reserve holds five percent (5%) of total approved gross transactions, over the previous six month period. Following the seventh month of operation (and every month thereafter) the reserves generated from the first month of operation (and every month thereafter) will be forwarded to the merchant of each sale for a specified period, after which time it is paid to you.

Settlement Period

The amount of time from someone paying you online via a credit or debit card to getting your money put (settled) into your chosen bank account.

SQL (Structured Query Language)

Pronounced "sequel," not "squeal." SQL is used to construct database queries and manipulate data help within relational databases. It was developed by IBM.

Supported Country

This is the country that the merchant has to be incorporated in, NOT the country they can sell too. The merchant can sell to any country they wish!

SSI (Server Side Includes)

Commands and/or code that can be integrated into HTML pages which are processed by the server when users request a file/page. It is commonly used to display content in the header or footer areas of web pages which allow you to make one page or content and share it among many and/or all pages of the website.

SSL (Secure Socket Layer)

Encryption method for transferring data between a client and server.

Third Party Processing / IPSP

A company accepting and processing credit cards on behalf of an entirely different business. Third party processing accounts are ideal for merchants that have difficulties getting or maintaining their own merchant facility. However they usually have very high transaction rates (15% plus).

Transaction Charge

Credit cards charge a percentage of the sale for use and this amount is referred to as a transaction charge.

Virtual Terminal

Similar to the terminals used in stores that “swipe” the purchasers credit card. The virtual terminal allows the merchant account holder to enter the credit card information securely for processing of debits and credits.

VPOS System (Virtual Point Of Sale)

The VPOS is a Windows-based software application that provides all the necessary features required for processing credit and debit card transactions quickly and easily in situations where cards are not present. The VPOS is a straightforward, powerful and effective tool that helps companies boost sales.