Your Pocket Guide to 40 Payment, Dispute, and Chargeback Puzzle Pieces — Part 2
Hold your bookmarks!
From the first part of our blog, you must have saved the 20 crucial terms.
The adventure isn’t finished yet!
Brace yourself for another round of bookmarking as we unveil another set of 20 must-remember terms.
Cardholder Activated Terminal (CAT)
Cardholder-activated terminals (CATs) are payment terminals that operate without the presence of a human attendant.
Eg: Self-service kiosks like gas pumps, ticket vending machines, etc
Card Present
Card present transaction = Cardholder’s in-store purchase
Card Not Present
Card not present transaction is purchasing without being physically present. These transactions are digital by nature and only require card details to complete a payment.
Match List
Match List is the database of merchants whose payment processing privileges are revoked by the acquirer.
EMV Liability Shift
EMV liability refers to the responsibility in fraudulent transactions shifting to the liable party (either the cardholder or merchant) in EMV card-present transactions.
False Positive
A false positive is a transaction that is incorrectly identified as fraudulent.
Address Verification Service (AVS)
AVS is a security measure that checks whether the billing address provided by a cardholder matches the one on file with the card issuer, helping to reduce the risk of fraudulent transactions.
Authorization
Authorization verifies fund availability and ensures a transaction’s authenticity. Done by the issuer, it verifies whether the cardholder who is making a purchase has enough funds/credit to complete it.
Point of Sale (PoS)
A PoS terminal is a hardware and software system that processes and accepts card-present payments.
Subscription Billing
Subscription billing is a recurring payment model where customers are charged at regular intervals (such as monthly or annually) for continued access to a service or product.
Eg: Electric bills, phone bills, streaming platform subscriptions, etc
Presentment
Presentment refers to the formal submission of a payment request to a bank.
Late Presentment
Late Presentment happens when the transaction is completed post-settlement cycle.
Compelling Evidence
Compelling evidence encompasses any data or records that can substantiate the validity, authorization, and satisfactory fulfillment of a transaction. It is presented by the merchant when faced with a chargeback.
Chargeback Monitoring Program (CMP)
The Chargeback Monitoring Program monitors a merchant’s monthly chargeback activity.
Eg: Visa’s Chargeback Monitoring Program
Chargeback to Transaction Ratio (CTR)
This ratio indicates the percentage of chargebacks incurred by a merchant every month. The CTR is derived by dividing the number of chargebacks by the total number of transactions processed.
Online Dispute Resolution (ODR)
ODR is a system for resolving customer disputes and grievances pertaining to digital payments using a system-driven and rule-based mechanism with zero or minimal manual intervention.
No Authorization
No Authorization indicates the transaction was processed without the cardholder’s approval. It refers to a situation where a transaction is processed without obtaining approval/verification from the bank, potentially leading to issues like fraud or insufficient funds checks.
Processing Error
A processing error is a technical glitch or mistake that prevents a transaction from completing successfully.
Credit Not Processed
Credit Not Processed happens when a cardholder claims non-receipt of credit. It means the cardholder expected a refund/credit, but it never appeared, potentially due to technical issues or merchant delays.
Counterfeit Merchandise
Counterfeit Merchandise indicates that the received product was forged.
Conclusion:
Well, folks that’s our time!
We’ve unraveled 40 puzzle pieces of the payment, dispute, and chargeback saga.
Now, as the confetti of 2023 descends, let’s raise a toast to the year 2024 where there will be smooth transactions, swift resolutions, and minimal chargebacks!
P.S: What topic do you think we should explore next? Let us know in the comments.
