We make it easy to accept card payments from your customers, but what happens behind the scenes to process each transition is far more complex. To understand it better, it helps to learn the common terms used by the card payment industry.
- Acquiring Bank / Acquirer
A financial institution that processes card payments on a merchant’s behalf, such as Lloyds Bank Cardnet.
- Address Verification System (AVS)
A fraud-prevention tool for ‘Card Not Present’ payments (phone, mail order and online) that matches the customer’s billing address with what the issuing bank has on file before the transaction can proceed.
When the customer’s bank (aka the ‘issuing bank’) verifies that the customer has enough funds to cover the payment amount.
A short-range wireless connection between devices. In card machines, it allows you to take payments within a certain range using a portable device.
- Business Track
A free online reporting tool provided to all Lloyds Bank Cardnet merchants. It is applicable to merchants who handle GBP transactions.
- Card Scheme
Organisations that own and operate a payment transaction network, allowing members, typically banks and financial institutions, to issue cards and also to acquire card payments on behalf of merchants. Visa and MasterCard are two of the most widespread Card Schemes.
When a customer’s bank reverses a card transaction, removing the amount previously credited to the merchant and returning it to the customer who carried out the transaction with their card. This can happen in the event of fraud, processing errors and disputed transactions.
- Chip & PIN
A card payment system, also known as a ‘smart card’ or ‘integrated circuit card’ (ICC), in which cards are embedded with a computer ‘chip’ and customers are prompted to enter a PIN.
A detailed online reporting tool provided available to Lloyds Bank Cardnet merchants.
- Commercial cards
Card products designed to help businesses streamline expenses.
Card payment technology that allows customers to pay for transactions under £30 by simply holding their card above a card machine for 5 seconds.
‘Card Not Present’ transactions are those made over the phone or by mail order. You can accept these types of payments using ‘virtual card machine’ technology.
‘Dynamic Currency Conversion’ is a service that allows you to offer international customers the option to pay for a transaction in their home currency.
‘Europay, MasterCard and Visa’ or ‘EMV’ refers to a global standard for Chip & PIN cards, technology that’s been adopted by those Card Schemes primarily [for card acceptance] in the UK and Ireland.
‘General Packet Radio Service’ is technology that transfers data through cellular networks. It enables mobile SIM card machines to transmit card data remotely, without a phone line or broadband connection.
- Interchange fee
The fee an acquirer (e.g. Lloyds Bank Cardnet) pays the customer’s bank (also referred to as the ‘issuing bank’) to cover the processing costs of each card transaction. Interchange fees are set by the Card Schemes.
- Issuing bank
The bank (or financial institution) that issued a customer with their card and maintains a contract with them for repayment of card transactions.
- Magnetic Stripe / Magstripe
A card payment system in which cards feature a magnetic bar encoded with data that, when swiped in a card reader, prompts the customer to provide either a PIN or a signature.
- Merchant Identification number
This is your unique account number that is assigned to your business to help us identify you.
- Merchant services
A generic term for services that enable businesses to accept payments securely in accordance with industry standards and Card Scheme rules.
‘Over The Counter’ payments are transactions that occur face-to-face using a physical card machine.
- Payment gateway
A secure server that processes online card payments, encrypting sensitive information in order to safely transmit payment information between the customer’s Issuing bank, the Card Scheme and the Acquiring Bank.
- PCI DSS
The Payment Card Industry Data Security Standards are a set of mandatory security requirements designed to ensure that merchants process, transmit and store cardholder data securely.
- PCI DSS portal
An online service, accessible at LloydsBankCardnetPCIDSS.com, that helps Lloyds Bank Cardnet merchants to certify their PCI DSS compliance or to become and remain compliant with the Payment Card Industry Data Security Standards.
‘Point of sale’ refers to the location where face-to-face, or ‘cardholder present’, transactions are made. This is typically a shop, restaurant or other business premises.
- Payment Service Provider (PSP)
This is a company that allows you to trade when the customer is not present in your business.
- Quality Security Assessor (QSA)
A person who is certified by the Payment Card Industry Security Standards Council to formally assess businesses for PCI DSS compliance.
‘Remote Access Module’ is an online reporting tool for merchants who process card transactions in multiple currencies.
When a customer or a customer’s bank (the Issuing bank) requests a copy of a transaction receipt. This typically happens when customer has lost their copy of the receipt and is questioning or disputing the transaction.
- Self Assessment Questionnaire (SAQ)
A form that takes merchants through the steps of evaluating their PCI DSS compliance. There are different versions of the SAQ, depending on the type of business and the amount of card payments it accepts per year.
A ‘subscriber identity module’ is a small circuit board, typically found in mobile phones, that connects a device to a communications network. In card machines, it allows you to take payments on the go, without the requirement for a phone line or broadband.
A device, also known as a ‘card machine’, used to process face-to-face card transactions using Chip & PIN, Magnetic Stripe and/or contactless payment methods.
- Virtual card machine
A secure webpage that allows merchants to process ‘card not present’ transactions securely, over the phone or by mail order.