In the world of digital payments, understanding the terminology involved is crucial for smooth transactions. Below is a glossary of terms related to payment systems, carefully compiled by PayU to help you decipher the world of payments with ease. : www.deekpay.com

**Account Takeover**

A form of online fraud in which the fraudster takes control of the legitimate owner's account and its access by stealing login information.

**Acquirer or Acquiring Bank**

A bank in a payment network that receives payments. Typically refers to a financial institution that provides merchant accounts and processes card transactions on behalf of the merchant, using POS equipment. The acquiring bank enters the data into the interchange system.

**Acquirer Reference Number (ARN)**

When a card transaction is sent from the merchant bank to the cardholder's bank, it is given a unique number. These numbers are used to track the progress of the transaction.

**Application Programming Interface (API)**

A range of documentation, software, definitions and tools that enable software developers to access software services or applications without any hassle.PayU provides the most reliable and secure API for merchants to interface with PayU services.

**Authorisation**

Authorisation is the sending of API requests to payment gateways for POS payments, in-app payments and e-commerce. After completing the necessary validation and risk assessment, the gateway and payment processor ask the relevant card network to authorise the payment from the card issuer to the acquirer.

**Bank Identification Number (BIN)**

The Bank Identification Number (BIN) or Issuing Bank Identification Number (IIN) is the first six to eight digits of the card number and is used to quickly identify the network and issuing bank of the card.

**Capture**

After card authorisation, a second block of data is passed to the transaction itself, called capture. This indicates that the transaction has occurred and the data has been transmitted to the acquiring bank for settlement.

**Cardholder**

Individuals who have been issued debit or credit cards, and others who are permitted to use the card.

**Card Issuer**

A financial institution authorised to issue cards to individuals or businesses. The card issuer is responsible for controlling the use of the card by the cardholder and is liable for that use.

**Card Not Present (CNP)**

When a consumer is unable to present a physical card to a merchant at the time of a transaction, it is called a non-face-to-face transaction. Examples include online payments, in-app payments and MOTO transactions.

**Cards**

Banks provide their customers with plastic cards for cashless payments at POS, e-commerce sites, or mobile apps. The cards are usually managed by a card network and may be debit, credit or prepaid cards.

**Card Security Code (CVV/CVC/CID)**

In addition to the card number, a 3 or 4-digit numeric code is printed on the card to authenticate the transaction.

**Chargeback**

A chargeback occurs when a debit or credit card transaction is disputed by the cardholder or the cardholder's bank. The chargeback is returned to the merchant bank for further processing.

**Cryptocurrency**

Bitcoin is a digital currency created, distributed and tracked using blockchain technology and cryptography.

**Currency Conversion**

The process of converting one currency into another. Usually involves one or more national currencies, which are bought and sold following a daily published exchange rate.

**In-app Payments**

Consumers use mobile applications to make electronic payments. Payments are usually done using native payment methods or cards, through native mobile APIs or mobile-friendly web pages.

**Omnichannel Payment Solution (OPS)**

A suite of services and technology solutions provided by payment service providers that enable merchants to accept cashless payments across multiple channels (in-app mobile, POS or online).

**Electronic Fund Transfer (EFT)**

Electronic transfer of funds between two bank accounts rather than through a paper process. This includes payroll payments, ACH, wire transfers, etc.

**Gateway**

An organisation or system responsible for initiating transactions between merchants and acquirers. Typically provides authentication, reporting capabilities, additional fraud detection and transaction processing equipment and software.

**Issuer/Issuing Bank**

A bank that provides consumers with a card that enables them to make cashless purchases on e-commerce websites, smartphone apps, or in brick-and-mortar shops. The issuing bank must be a member of a card network or subscribe to a card service.

**PayU Account (PayU Account)**

Merchants wishing to use PayU as a payment service provider are required to register for a PayU account. Once the account is approved, merchants can access PayU's payment services and manage and customise them through the PayU API.

**Payment Methods**

Enables merchants to accept cardless in-app payments and e-commerce payments. Includes bank transfers, direct debits, e-wallets, mobile payments, etc.

**Point of Sale**

Consumers use POS services to make cashless payments at merchant shops or other physical locations. Payments can be made using cards, NFC wallets (such as Apple Pay), QR code wallets, and prepaid and gift cards.