Your Pocket Guide to 40 Payment, Dispute, and Chargeback Puzzle Pieces — Part 2

Backspace Tech
3 min readDec 28, 2023

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!

To know more about the payment ecosystem, chargeback, and dispute nuances through delightful bytes of information, follow us on LinkedIn, Twitter, Facebook, and Threads.

P.S: What topic do you think we should explore next? Let us know in the comments.

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Backspace Tech

Backspace Tech offers Fintech-as-a-Service to automate,simplify, and disrupt the payment industry by handling chargeback requests through a plug-and-play model.