Payment, Dispute and Chargeback Roundup Terms 2024
Here we are, back with our updated Payment, Dispute, and Chargeback Glossary for 2024!
So…why the wait?
Let’s get started!
1. General Ledger (GL)
A comprehensive record of an organization’s financial transaction which is organized into accounts such as assets, liabilities, equity, revenue, and expenses.
2. Reconciliation
Process of matching internal financial records with external bank statements to ensure accuracy and identify discrepancies.
3. Reg E
Protects consumers involved in Electronic Fund Transfers (EFTs).
4. Reg Z
Mandates lenders to disclose credit terms and costs explicitly to consumers.
5. One Leg Out (OLO) Transaction
Transaction where only one of the involved financial institutions (payer’s or recipient’s bank) operates within the European Union (EU) payment regulations.
6. Two Leg Transaction
Transaction where both payer and payee banks operate within EU payment regulations.
7. AFT (Account Funding Transaction)
AFT lets the cardholder add money from their credit/debit card to other payment methods like digital wallet. In this method, the cardholder initiates the fund transfer, and the financial institution completes it.
8. OCT (Original Credit Transaction)
OCT is a direct push of funds to the recipient’s account. It is initiated by the payer to credit funds, such as salaries, refunds, or benefits, to the recipient’s account.
9. MOTO Payments
Transaction made by providing payment details via mail or phone. Here, the cardholder provides order and payment details like card number and CVC code via email, post, fax, or telephone and merchants manually input the details into a virtual or physical terminal to initiate payment, authorized by the cardholder.
10. On-Us Transaction
An ATM ON-US Transaction happens when the cardholder withdraws cash or performs other transactions at their bank-owned ATM.
11. Off-Us Transaction
An ATM-OFF US Transaction happens when the cardholder withdraws cash or performs other transactions at a third-party ATM.
12. Dynamic Linking
Security measure where a unique link/code is generated for each specific transaction. This boosts security by inhibiting the repetition of the same link or code for various transactions, thereby safeguarding against fraud and unauthorized transactions.
13. Velocity Check
Velocity check is a transaction fraud prevention mechanism. It identifies potential fraud by monitoring the speed at which a buyer initiates multiple transactions by assessing factors such as the number of transactions, transaction amount, device/IP address, merchant, etc.
14. PSD (Payment Services Directive)
EU regulation that standardizes and regulates payment services across the EEA (European Economic Area).
15. SCA (Strong Customer Authentication)
SCA strengthens the security of online and contactless offline payments. It adds extra security to payments by requiring at least two authentication factors, like a password and a fingerprint or a one-time code sent to the cardholder’s phone.
16. 3DS (3 Domain Secure)
Security protocol jointly developed by Visa and MasterCard under PSD 2 to counteract card-not-present fraud.
17. ACS (Access Control Server)
Protocol that verifies a cardholder’s identity for secure online card payments.
18. SMS (Single Messaging System)
Messaging format where transaction data is sent in a single stage.
19. DMS (Dual Messaging System)
Messaging format where the transaction data is sent over in two stages.
20. Automated Clearing House (ACH)
Financial infrastructure in the United States that enables reliable and efficient electronic payment exchange between banks and credit unions.
Well, folks, that’s a wrap!
We’ve explored 20 key payment, dispute, and chargeback terms. As we bid farewell to 2024, let’s celebrate and look forward to 2025, a year filled with seamless transactions, and quicker resolutions.
Cheers!
