Merchant Services Terminology: A ready reckoner of the most common term used in the payment processing industry.

Merchant services are the usage of electronic payment transactions. They're usually run through an account that a merchant sets up to assist credit card processing. To understand merchant services better, we need to look into the various merchant services terminology that is used, so that we can become familiar with the different terms used.

Merchant Services are the most basic part of the payment transaction process between a business and its consumers. It is the component of the transaction that allows the smooth and real-time secure transfer of money from a consumer account to a business account.

Your business needs a merchant account in California to process credit cards in person and online. A payment processor can set up your merchant account.

The Merchant services terminologies are discussed as below.

• Discoverer (acquirer or processor): The financial organization that processes card transactions for merchants and is defined by a payment brand as a discoverer. The Acquirer enables businesses to accept credit card payments for the purchase of goods and services. The Acquirer underwrites the merchant account, and may provide the hardware and software to enable the merchant to process transactions
• Attestation of Compliance (AOC): The Attestation of Compliance is a form for merchants and service providers to be evidence of the results of a PCI DSS assessment.
• Card Skimmer: A physical device, often attached to a valid card-reading device, designed to illegally arrest and/or stock up the information from a payment card.
• Cardholder Data: Cardholder data is any personally identifiable information associated with a person who has a credit or debit card. Cardholder data includes the primary account number along with any of the following data types: cardholder name, expiration date or service code.
• Cardholder Data Environment (CDE): The individuals, processes and skills that stock up, process or transmit cardholder data or responsive verification data.
• Chargeback: A chargeback—also called a “reversal”—is the return of credit card funds used to make a purchase to the buyer. A chargeback occurs when a consumer disputes a purchase made using their credit card, claiming that it was fraudulent or made without their knowledge or permission.
• Compromise: illegal confession or robbery, alteration or demolition of cardholder data.
• Consumer: Individual purchasing goods, services or both.
• EMV: Stands for ‘Europay, Mastercard, and Visa’ (the 3 card brands that came up with the standard). Payment cards that fulfil with the EMV standard are often called Chip and PIN or Chip and Signature cards.
• Issuer: Unit or bank or financial institution that issues the consumer’s payment cards.
• Merchant: Any workplace, entity or division that accepts payment cards as a form of payment for goods and/or services.
• Merchant Identification Number (MID): The unique account number assigned to merchants linked with dispensation credit card payments
• Payment Application: A software request that supplies, processes or transmits cardholder data.
• Payment Cards: Any credit card, debit card or prepaid card with a brand sign on it, such as VISA, MasterCard, American Express, Discover, JCB International, etc.
• Payment Card Industry Data Security Standard (PCI DSS): The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that ALL companies that accept, process, store or transmit credit card information maintain a secure environment. Every merchant needs to be PCI Compliant to ensure safety and privacy of card information is maintained. Helps in avoiding frauds.
• Payment Gateway: A payment gateway is a tool that enables businesses to accept payments online or offline from anywhere via different channels and devices. It helps in receiving payments from the customers and acts as a link between their bank account and that of the merchants. Payment gateways also authorises a merchant to conduct a payment transaction through various payment sources, like debit card, credit card, money wallets, contactless payments and more.
• Primary Account Number (PAN): Particular card number (typically for credit or debit cards) that identifies the issuer and the particular cardholder account.
• Qualified Security Assessor (QSA): Qualified Security Assessor companies are self-governing safety organisations that have been certified by the PCI Security Standards Council to assess compliance of merchant service providers to PCI DSS Standard.
• Sensitive Authentication Data: Safety related information used to validate cardholders and/or permit payments. This information can consist of card confirmation codes/values, full track data, and PINs. This data should never be stored after approval.
• Service Provider: A Merchant Services Provider functions as the intermediary between banks, your business, and your customers. This allows you to confidently accept your customers' preferred form of payment.

Merchant services is a category of financial services intended for use by businesses. Its particular use refers to merchant processing services that enables a business to accept a transaction payment through a protected (encrypted) path using the consumer's credit / debit card , NFC/RFID enabled device.

A few more phrases in merchant services terminology include:

• Credit and debit cards payment processing
• Check assurance and check exchange services
• Automated clearing house check drafting and payment services
• Gift card and loyalty programs
• Payment gateway
• Merchant cash advances
• Online transaction processing
• Point of sale (POS) systems
• Electronic benefit transfer programs, such as ration stamps

Merchant Service providers are many and to help in choosing the best one we see some the parameters listed below:

• Point-of-sale (POS) hardware and adaptors
• POS software
• Industry-specific resources
• E-commerce
• One-time and constant costs
• The level of consumer support feasible
• The speed of the payment compensation

Merchant service terminologies listed above is nothing but a glossary of terms used,we hope through this , you have a clear understanding of what merchant services are, and the various phrases used.