What does everything mean?

Below is a list of commonly used words that you may come across when trying to set-up or understand eCommerce solutions and payment gateways

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.

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
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 Fee
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.

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.

PSP (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.

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 credit / debit card to getting your money put (settled) into your 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.

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.