Use this document as a reference for aligning terminology related to business processes and payments, ensuring clarity and consistency.
| Term | Definition |
|---|---|
| American Bankers Association (ABA) | ABA routing number is a 9-digit code assigned by the American Bankers Association to identify financial institutions in the United States. It is used to route electronic payments, including ACH transfers, wire transfers, and direct deposits, to the correct bank or credit union. Also known as a routing and transit number. |
| Automated Clearing House (ACH) | Automated Clearing House (ACH) is a secure electronic payment network in the United States that facilitates financial transactions between banks and businesses. It allows for direct deposits, bill payments, and other transfers to be processed efficiently and reliably. ACH transactions are commonly used for payroll deposits, vendor payments, consumer bills, and person-to-person transfers, offering a cost-effective alternative to paper checks and credit card transactions. The system operates under the governance of the National Automated Clearing House Association (NACHA) and plays a crucial role in the modern banking and payment infrastructure, ensuring seamless movement of funds across different financial institution • ACH Network: A central distribution and settlement platform where financial institutions exchange electronic payment items. It processes high volumes of transactions in batches. • ACH Operator: A central clearing facility (Federal Reserve Bank or private sector provider) responsible for receiving, processing, and distributing ACH entries. |
| National Automated Clearinghouse Association (NACHA) | Organization that governs and manages the ACH Network (Automated Clearing House), establishing the rules, standards, and procedures for electronic payments and money transfers, such as direct deposits, bill payments, and business-to-business transactions. NACHA ensures secure, efficient, and compliant processing of ACH transactions across financial institutions. |
| The Southwestern Automated Clearing House Association (SWACHA) | A regional trade association with the mission of providing education, training, representation, and knowledge regarding electronic payments and payment system risks to their members across the US Southwest. SWACHA members are provided electronic payments training and industry resource materials, risk management programs, and representation at a national level in the development of ACH policies. |
| Account authentication | A method used to verify a merchant’s bank account by sending small micro-deposits, which the merchant must confirm to prove ownership of the account. |
| Acquirer | Financial institution or payment processor that partners with merchants to process their credit card, debit card, and other electronic payments. The acquirer facilitates the approval and settlement of payment transactions by connecting the merchant to the payment networks (Visa, MasterCard, etc.) and ensuring that the funds from customers are transferred to the merchant’s account. |
| Acquiring processor | Payment processing entity that works on behalf of an acquirer (merchant’s bank) to handle transaction authorization, clearing, and settlement. It connects merchants to the card networks, enabling them to accept card payments from customers. |
| Adjustments | Financial corrections made to a transaction or account to resolve discrepancies, such as chargebacks, refunds, or fee corrections. They are typically initiated to resolve a transaction error. |
| Address Verification Service (AVS) | Fraud prevention tool used during card-not-present transactions to compare the billing address provided by the customer with the address on file with the card issuer. A match or mismatch result helps determine whether to approve or decline the transaction. |
| Amount | Amount is the total monetary value of a transaction, charge, or payment. It represents the sum to be processed, billed, or credited in a financial operation. Different to the principal amount or payment amount (funds moved in the transaction, not summing fees, commissions, etc.) |
| Application Program Interface (API) | Application Programming Interface (API) is a set of rules that enables communication and integration between systems, facilitating operations such as payment processing and transaction management. APIs enable developers to integrate features from one system into another without needing to understand the underlying code, making it easier to connect and expand software applications. |
| Arbitration process | A process in which a third-party mediator assists in settling a financial dispute between two parties. In payments, arbitration is often used when initial dispute resolution efforts (such as chargeback responses) fail, and a final decision is needed to determine liability or settlement. |
| Batch transmission/ Processing | Refers to the process of sending multiple transactions or data entries as a group or "batch" rather than individually. This method is commonly used for large volumes of data in systems like ACH payments or file transfers, where a set of transactions (e.g., payments or records) is processed and transmitted at once via CSG Forte’s file or NACHA files. |
| Bank account | Financial account held at a bank or credit union, identified by a unique bank account number used for transactions such as eChecks. The bank account type designates whether the account is a checking or savings account, which may affect transaction processing. Transactions involving a bank account are typically processed on a banking business day, defined as any weekday when the financial institution is open, excluding weekends and federal holidays. |
| Bill presentment | A CSG Forte service that allows the merchant to present bills to their customers, typically via email. Refers to a set of instructions that directs a third party (e.g., a customer) to pay the recipient a specified amount of money. It involves generating an invoice (i.e., a bill) and sending it to the customer for payment. Presentment can be also: • Re-presentment: Re-submission of a chargeback dispute with supporting documentation. • Electronic Bill Presentment (EBP): Electronic delivery of vendor bills to consumers. |
| Billing | The process of invoicing or charging a merchant or partner for payment processing services, typically including transaction fees, monthly charges, and other applicable costs (funds deducted from a merchant’s bank account for monthly fees incurred from processing). |
| Cardholder | An authorized individual or business to use a credit or debit card issued by a financial institution. The cardholder initiates transactions and is responsible for repaying charges (in the case of credit cards) or maintaining sufficient funds (in the case of debit cards). |
| Card association | RCredit-card-granting organizations, including Visa, MasterCard, American Express, and Discover, that make the rules regarding credit card acceptance in conjunction with the government. Card associations facilitate the authorization, clearing, and settlement of card transactions between merchants, acquirers, and issuers and help ensure security and interoperability across the payment ecosystem. |
| Card networks | Financial organizations such as Visa, Mastercard, American Express, and Discover that facilitate electronic payments by routing transaction data between issuing banks (cardholders) and acquiring banks (merchants). |
| Card-not-Present (CNP) transaction | Occurs when a payment is made without the physical card being presented, typically in online, phone, or mail-order transactions. These transactions carry a higher risk of fraud and often require additional verification methods, such as AVS or CVV. |
| Credit card processing | Procedure by which a business or merchant accepts and handles credit card payments from customers. This involves the transmission of payment information from the customer’s card to the payment processor, which then communicates with the issuing bank to authorize the transaction. |
| Check 21 System | The Check Clearing for the 21st Century Act (Check 21) is a federal law that allows banks to handle more checks electronically, enabling faster and more efficient check processing. It allows for the creation of substitute checks, digital images of original checks, which can be used instead of the physical paper check for clearing and settlement. |
| Customer name | • Legal name: The official, registered name of a business entity used in legal documents and tax filings. • DBA (Doing Business As): A trade name under which the business operates publicly, which may differ from its legal name. • Merchant name: The name that appears to customers on receipts or billing statements, which may be either the DBA or legal name, depending on setup. |
| Debits & Credits | Debits refer to withdrawals made from a financial account. This term is used in banking and accounting to describe any transaction that reduces the balance of an account (amount of funds available). Debits can occur for various reasons, such as payments for goods and services, transfers to other accounts, or fees charged by the financial institution. While credits are amounts added to a financial account, increasing the account balance. In payments, credits often represent incoming funds such as refunds, reimbursements, or disbursements. |
| Digital wallet | Electronic application or software that securely stores payment information, such as credit card or bank account details, to enable users to make electronic transactions online or in-store using devices like smartphones or computers (e.g., Apple Pay, Google Pay). |
| Downtime | Period during which a system, service, or application is unavailable or non-operational, either due to scheduled maintenance, technical failures, or unexpected outages. |
| eCheck | Digital version of a traditional paper check that allows funds to be electronically withdrawn from a payer’s checking account and deposited into a payee’s account via the ACH (Automated Clearing House) network. |
| Electronic Banking -AND- Electronic Bill Payment (E-pay) -AND- Electronic Bill Presentment (EBP) | Electronic banking refers to the use of digital platforms and technologies to perform financial transactions and manage accounts without visiting a physical bank. Within this, E-pay allows consumers to pay bills online directly from their bank account or through a payment service, while EBP involves delivering billing information electronically to customers, typically through a bank or service provider portal. EBP focuses on displaying the bill, while E-pay enables the actual payment (often working together to streamline and digitize the full billing and payment process). |
| Electronic Funds Transfer (EFT) | Refers to the electronic movement of money between bank accounts without the need for paper checks or cash. EFT encompasses a range of transactions, including direct deposits, ATM withdrawals, wire transfers, and ACH payments. |
| EMV | EMV (Europay, Mastercard, Visa) is a payment technology that uses a small chip embedded in credit and debit cards to enhance security during transactions. EMV cards are smart cards that store their data on integrated circuit chips and magnetic stripes, and must be physically inserted or "dipped" into a reader, as well as contactless cards that can be read over a short distance using near-field communication technology. This chip-based technology makes it more difficult for fraudsters to counterfeit or replicate cards, reducing fraud risk. |
| Encryption -AND- Point-to-Point Encryption (P2PE) -AND- End-to-End Encryption (E2EE) | This is the process of converting information into a code (secure format) to prevent unauthorized access. It ensures that only authorized parties can decode the information with a decryption key. This process converts the original representation of the information, known as plaintext, into an alternative form known as ciphertext. For technical reasons, an encryption scheme usually uses a pseudo-random encryption key generated by an algorithm. P2PE is a security solution that immediately encrypts cardholder data at the swipe device, so sensitive data is never actually processed or stored in a point-of-sale system. As soon as a credit card is swiped, the information is encrypted, before it is sent for processing, remaining encrypted until it reaches a secure endpoint, typically the payment processor. E2EE similarly protects data from the point of entry to the final destination but may involve different systems or vendors across the transaction path. The key difference is the scope and control, P2PE is a standardized, PCI-certified solution focused on securing card data, while E2EE can apply to broader communication channels and may not always follow PCI P2PE standards. |
| Financial institution | An organization involved in moving, investing, or lending money. Examples include banks, credit unions, savings and loan associations, and brokerage firms. |
| Fixed Acquirer Network Fee (FANF) | The Visa Fixed Acquirer Network Fee (FANF) is a monthly fee assessed by Visa to businesses that accept Visa card payments. Introduced in 2012, the FANF is designed to cover the costs associated with maintaining and operating Visa's global payment network. This fee is charged per merchant taxpayer identification number (TIN) and encompasses all merchant accounts owned by that business entity. |
| Funding | The process of transferring settled transaction funds from the payment processor or acquirer to the merchant’s designated bank account. |
| Independent Sales Organization (ISO) | Third-party company or entity that works as an intermediary between merchants and payment processors, and they are not directly affiliated with the payment networks (like Visa or Mastercard), but they work with acquiring banks or processors (like CSG Forte) to offer payment services to merchants. |
| Integrated Software Vendor (ISV) | Company that develops and sells software solutions designed to work seamlessly with payment processing systems and other business operations. ISVs typically create customized software applications for various industries and often partner with payment processors (like CSG Forte) or acquirers to offer integrated payment solutions to their customers. |
| Interchange network | Infrastructure that facilitates the electronic exchange of payment data between the cardholder’s bank (issuer) and the merchant’s bank (acquirer) during a card transaction. It ensures authorization, clearing, and settlement of transactions and also determines associated fees and transaction rules. |
| Issuer Identification Number (IIN) -OR- Bank Identification Number (BIN) -AND- Primary Account Number (PAN) | Refers to the first 6 to 8 digits of a payment card number that identify the issuing bank or financial institution. These numbers help route transactions to the correct issuer for authorization. IIN and BIN are often used interchangeably, but technically, BIN originally referred to the first 6 digits only, while IIN can extend to 8 digits as card numbering standards evolve. PAN unique number embossed or printed on a payment card (credit, debit, or prepaid) that identifies the cardholder’s account. It typically consists of 13 to 19 digits and is used to process transactions and route payments through the card networks. |
| Merchant | Refers to a business or individual that accepts electronic payments from customers in exchange for goods or services, typically through credit cards, debit cards, or ACH transactions. Merchants work with (like CSG Forte) payment processors, gateways, or facilitators to authorize and settle these transactions securely and efficiently and are responsible for ensuring that their payment systems are secure. |
| Merchant Category Code (MCC) | Four-digit number assigned to a business by credit card networks (e.g., Visa, Mastercard) that identifies the type of goods or services the merchant provides. MCCs are used for transaction classification, interchange fee calculation, risk assessment, and rewards program eligibility in the payments industry. |
| Merchant reconciliation | Process of matching and verifying the transactions recorded in a merchant's payment system (e.g., payment gateway or point-of-sale) with the actual deposits and charges from their bank or payment processor. This ensures that the amounts the merchant has received for sales are accurately reflected in their bank account or payment processor's records. Merchant reconciliation helps identify discrepancies, such as missing payments, chargebacks, or errors, and is a crucial part of maintaining financial accuracy and ensuring proper cash flow management for businesses. |
| Omni Channel | The company’s ability to use multiple channels to support a customer’s shopping experience it provides a seamless and unified experience across multiple channels or touchpoints, consistent payment experience allowing customers to switch between channels effortlessly while maintaining continuity in their shopping or payment journey (for example, a customer might make an online purchase, pick it up in-store, and pay using the same payment method without any disruption). |
| Originating Depository Financial Institution (ODFI) -AND- Receiving Depository Financial Institution (RDFI) | ODFI is a bank or financial institution that initiates ACH transactions on behalf of its clients. It submits payment instructions into the ACH network, ensuring transactions are authorized and compliant with NACHA rules, and manages the processing and settlement of those payments. RDFI is the financial institution that ultimately receives the funds for an ACH transaction processed. This institution plays a crucial role in the ACH network by ensuring that the funds are securely and efficiently transferred from the sender to the recipient. |
| Payment method | Refers to the specific way a customer chooses to pay such as credit cards, debit cards, ACH transfers, eChecks, digital wallets (e.g., Apple Pay, Google Pay), wire transfers, and cash. In digital commerce and payment systems, selecting a payment method determines how the transaction is processed and settled. |
| Payment gateway | Technology platform that securely captures and transmits payment information between a merchant's system and the payment processor or acquirer. It acts as the bridge that authorizes credit card, debit card, and ACH transactions, ensuring data is encrypted and compliant with security standards like PCI DSS. Securely sends transaction information for authorization. |
| Payment processor | A financial service provider that manages the communication and transaction flow between the merchant’s acquiring bank and the cardholder’s issuing bank. It processes payment authorizations, settlements, and fund transfers across card networks like Visa and Mastercard. Handles payment approval, settlement, and fund movement. |
| Payment Facilitator (PayFac) | A business entity that acts as a master merchant by underwriting and aggregating multiple sub-merchants under its own merchant account. It simplifies the onboarding process for merchants and manages payment acceptance, assuming responsibility for compliance and risk management. Simplifies merchant onboarding and manages payment acceptance. |
| Payment/ Transaction statuses | • Initiated: The transaction has been created by the merchant or customer but not yet processed. • Authorized: The issuer has approved the transaction, and funds are reserved but not yet captured. - Authorization code: unique identifier for a successfully authorized transaction. • Captured: The merchant has requested the funds, and the transaction is now ready for settlement.• Settled: The transaction has been fully processed, and funds have been transferred to the merchant’s account. • Pending: The transaction is still being processed and awaiting further action (e.g., authorization, capture). • Declined: The transaction was rejected by the issuer (e.g., due to insufficient funds, fraud risk, or card issues). • Failed: The transaction could not be completed due to a technical or processing error. • Voided: The authorized transaction was canceled before it was captured. No funds will be transferred. • Reversed: Creates an offsetting transaction for a previously settled one. • Refunded: Funds have been returned to the customer after the transaction was captured and settled. • Chargeback: The customer disputed the transaction, and the funds have been withdrawn from the merchant pending investigation. - Period: The window (45 to 180 days) for initiating a chargeback. - Reason code: A numerical identifier for a chargeback reason. - Reference number: A 10-digit identifier used for tracking. - Dispute resolution: Process for handling chargebacks and transaction disputes. - Downgrade: Occurs when a transaction does not meet optimal interchange criteria. |
| Partner | Refers to a business closely associated with CSG Forte that resells, integrates, or rebrands Forte’s services. Partners play a crucial role in expanding CSG Forte's reach and capabilities by leveraging their own networks and expertise to offer their services to a broader audience. Refer to the ISO, ISV and gateway terms for details. |
| PCI Compliance | PCI (Payment Card Industry) refers to the collective ecosystem of entities involved in handling card payments, including merchants, processors, banks, and service providers. PCI DSS (Payment Card Industry Data Security Standard) is a set of comprehensive security requirements established by the PCI Security Standards Council to protect cardholder data, including best practices for securing payment systems (data encryption, access controls, and regular security testing). |
| Recurring payments | Automated transactions scheduled to occur at regular intervals, such as weekly, monthly, or annually, allowing businesses to collect ongoing payments from customers without requiring manual authorization each time. This payment method is commonly used for subscriptions, memberships, and installment billing. |
| Standalone mode | Terminal or system operating independently, without needing integration with external software, network, or point-of-sale (POS) systems. A standalone terminal can process transactions on its own, typically by connecting directly to a payment processor, allowing merchants to accept card payments without relying on additional hardware or software systems. |
| Webtools/Dex | Our CSG Forte customer management tool platform that supports various solutions and customer’s information such as transactions, reports, contact information, etc. |