ETerms: A Comprehensive Glossary for Payment Processing and Accounting Abbreviations
This glossary defines essential terms used in payment processing and accounting. Whether you’re new to the field or well-versed in these subjects, ETerms is your key to understanding accounting and payment abbreviations. Let’s dive in and decode the language together.
An account updater service (AU Service) is a service provided by payment processors that automatically updates cardholder account information, such as expiration dates or card numbers, to ensure uninterrupted recurring payments for merchants.
Accounting (ACCT) is the process of recording, summarizing, analyzing, and reporting financial transactions of a business or organization.
Accounts payable (AP) is the outstanding bills or invoices that a business owes to its suppliers or vendors for goods and services purchased on credit.
Accounts receivable (AR) are the outstanding payments owed to a business by its customers for goods or services provided on credit.
Accrual basis (AB) is an accounting method where revenue and expenses are recognized when they are earned or incurred, regardless of when the cash is exchanged.
Accrued expense (AE) is an expense a business has incurred but has not yet paid. It is recorded in the accounting books as a liability until it is settled.
Accrued revenue (ARv) is revenue that a business has earned but has not yet received. It is recognized in the accounting books as an asset until it is collected.
An acquirer payment is a financial transaction made by the acquiring bank to the merchant for the value of goods or services sold to customers.
An acquirer processor (Acq Processor) is a payment processor that provides services to acquiring banks, facilitating the processing of payment transactions.
An acquiring bank (Acq Bank) is a financial institution that partners with merchants to enable them to accept customer electronic payments.
An address verification system (AVS) is a security measure used by payment processors to compare the billing address provided during a transaction with the address on file with the card-issuing bank, helping to reduce fraud.
An aging report (AR) is a report that categorizes accounts receivable based on the length of time they have been outstanding, helping businesses monitor and manage unpaid invoices.
Amortization (AM) is the process of spreading out the cost of an intangible asset (such as goodwill) or a long-term liability (such as a loan) over a specific period.
An application programming interface (API) is a software intermediary that delivers a user response to a system and sends the system’s response back to a user.
Asset turnover (AT) is a financial ratio that measures a company’s efficiency in using its assets to generate revenue.
An authorized transaction is a debit or credit card purchase for which the merchant has received approval from the bank that issued the customer’s payment card.
An authorization code (Auth Code) is a unique code provided by the card-issuing bank to indicate that a payment transaction has been authorized.
An automated clearing house (ACH) is a network that facilitates electronic funds transfers and automated payment processing between banks, businesses, and individuals.
In accounting, bad debt refers to the portion of accounts receivable that is unlikely to be collected from customers. It is treated as an expense on the income statement and reduces the accounts receivable on the balance sheet.
A balance sheet is a financial statement that provides a snapshot of a company’s assets, liabilities, and shareholders’ equity at a specific point in time. It showcases the financial position of a company.
Bank reconciliation is the process of comparing and matching the balance of a company’s cash account in its accounting records to the balance shown on the bank statement. The goal is to identify and rectify any discrepancies between the two records.
Bank statements are monthly records provided by a bank to an account holder, summarizing all transactions and balances for the given period.
A batch contains all the transactions that occurred since the last batch was run. Typically, businesses close out their batches at the end of each business day.
Batch processing is a method of processing multiple transactions together as a group, typically used in end-of-day settlement procedures.
Batch settlement is the process of settling multiple payment transactions as a batch, where the funds are transferred from the payment processor to the merchant’s bank account.
Capital refers to the financial resources, such as money and assets, that a company uses to fund its operations and investments.
A payment is captured when a pending payment is completed after a payment authorization to move the authorized transaction funds from the account of the issuing bank into the merchant account.
A card association is an organization that sets the rules and standards for credit card transactions. Examples include Visa, Mastercard, and American Express.
The card issuer identification number is first six digits of a credit or debit card number that identify the card’s issuing bank or financial institution.
A card load fee is a fee charged for adding funds to a prepaid card or digital wallet.
A card-not-present transaction is a payment transaction where the cardholder’s physical card is not used for authentication, such as online or phone transactions.
The card payment network is a network that processes and facilitates payment transactions between merchants, card issuers, and cardholders. Examples include Visa and Mastercard networks.
A card-present transaction is a payment transaction where the physical card is presented at the point of sale for authentication.
Card verification is a strong first-line defense against potentially fraudulent cards. It ensures that the credit card number provided is associated with a valid, open account and can be charged successfully. When saving a new card or running a transaction, a $0.05 card verification transaction is run to validate the card and voided immediately.
A card verification method is a method used to verify the authenticity of a cardholder during a payment transaction, such as a signature or PIN.
A cardholder authentication method is the method used to authenticate the cardholder during a payment transaction.
A cardholder information security program is a security standard developed by Visa to protect cardholder data and enhance security in payment card transactions.
A Cardholder verification is a method used to verify the identity of a cardholder, such as a signature or PIN.
Cash basis is an accounting method where revenue and expenses are recorded only when cash is received or paid, regardless of when the actual transaction occurred.
Cash flow is the movement of money in and out of a business or organization during a specific period.
Cash flow forecasting is the process of predicting future cash flows based on historical data and anticipated future transactions.
A cash flow statement is a financial statement that provides an overview of a company’s cash inflows and outflows during a specific period.
A cash receipt is the money received by a company from various sources, such as sales, loans, or investments.
A certified public accountant is a professional accountant who has met specific educational and experience requirements and has passed the CPA examination.
Chargebacks occur when a credit cardholder informs the credit card company that the charge was not authorized or that goods or services were not delivered as promised.
Chargeback prevention is strategies and measures taken by merchants to reduce the occurrence of chargebacks in their business.
Chargeback prevention services are services offered to merchants to help prevent and manage chargebacks.
A chargeback reason code is a numeric or alphanumeric code that indicates the reason for a chargeback, used by card associations to categorize disputes.
Chargeback recovery is the process of recovering funds from a chargeback dispute, usually by providing evidence to the card association.
Chargeback representment is the process of challenging a chargeback by providing evidence to the card association that the transaction was valid.
A chart of accounts is a structured list of all the accounts used in a company’s accounting system, showing the account names and numbers.
A check verification service is a service that verifies the validity of a check before accepting it as payment.
A chief financial officer is a senior executive responsible for managing a company’s financial operations and strategy.
A senior executive responsible for overseeing a company’s day-to-day operations.
Closing entries are the journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.
Cost allocation is the process of distributing or assigning costs to specific cost centers or products.
Cost of goods sold is the direct costs associated with producing or manufacturing a product, including materials, labor, and overhead.
Cost of sales is the expenses directly related to the production or purchase of goods sold by a company.
Credit is an entry on the right side of an accounting ledger that increases liabilities or equity or decreases assets.
Credit card interchange is the fee paid by the merchant’s bank to the cardholder’s bank for processing credit card transactions.
A credit card statement is a monthly statement provided by the credit card company to the cardholder, summarizing all transactions and outstanding balances.
A credit note is a document issued by a seller to a buyer, indicating that the buyer’s account has been credited with a specified amount, often due to a refund or adjustment.
A cross-border transaction is a payment transaction that involves a card issued in one country being used to make a purchase in another country.
Current assets are assets that are expected to be converted into cash or used up within one year or the normal operating cycle of a business.
Current liabilities are liabilities that are due to be settled within one year or the normal operating cycle of a business.
A current ratio is a financial ratio that measures a company’s ability to pay its short-term obligations.
A customer information manager is a feature provided by some payment gateways that securely store customer payment information for easy and secure future transactions.
Customer relationship management is a technology for managing the company’s relationships and interactions with customers to aid in growing the business.
A data breach is a security incident in which sensitive, confidential, or protected data is accessed, viewed, stolen, or used by unauthorized individuals or entities.
A debit is an entry on the left side of an accounting ledger that increases assets or decreases liabilities or equity.
A debit note is a document issued by a buyer to a seller, indicating that the buyer’s account has been debited with a specified amount, often due to a return of goods or an adjustment.
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life to reflect its declining value or wear and tear.
A digital payment solution is a technology-based platform that enables electronic payment transactions, offering various methods such as credit cards, mobile payments, and online wallets.
A digital wallet is a virtual wallet or application that securely stores payment information, allowing users to make electronic transactions, such as mobile payments or online purchases.
Direct cost is a cost that can be directly attributed to the production or provision of specific goods or services.
Dispute management is the process of handling and resolving disputes or chargebacks arising from payment transactions between merchants, cardholders, and card issuers.
Dividends are payments made by a corporation to its shareholders, usually from its profits as a distribution of earnings.
Double-entry booking is an accounting system that records each financial transaction in at least two accounts to ensure accuracy and maintain the accounting equation (Assets = Liabilities + Equity).
Dynamic currency conversion is a service provided at the point of sale that allows international travelers to choose to pay in their home currency instead of the local currency, with the exchange rate applied at the time of the transaction.
Dynamic transaction routing is a payment processing feature that dynamically routes transactions to the most cost-effective or efficient payment network based on various factors, such as card type, transaction amount, or location.
Electronic check conversion is a payment processing method that converts a paper check into an electronic transaction, allowing funds to be electronically debited from the payer’s account.
Electronic funds transfer is the electronic transfer of funds between bank accounts, enabling electronic payments and money transfers.
End-to-end encryption is a security measure that encrypts data at the source and keeps it encrypted throughout its entire transmission to the recipient, ensuring secure data transfer.
An enrolled agent is a tax professional who is authorized by the IRS to represent taxpayers in tax-related matters.
Enterprise Resource Planning is a form of business process management that streamlines systems and software.
Equity is the ownership interest or residual value in assets that remains after deducting liabilities.
Europay, Mastercard, and Visa (EMV) is a global standard for credit and debit card payments based on chip card technology, designed to enhance security and reduce fraud.
Expense is the costs incurred by a business or individual to generate revenue or run operations.
Financial accounting is the process of recording, summarizing, and reporting financial transactions of a business or organization for external users, such as investors, creditors, and regulatory authorities.
Financial analysis is the process of evaluating financial data, statements, and ratios to assess the financial performance and health of a business.
A financial ratio is a quantitative relationship between different financial variables used to analyze a company’s financial performance and make comparisons with industry benchmarks.
A financial statement is a formal record of the financial activities and position of a business, including the income statement, balance sheet, and cash flow statement.
A fiscal year is a 12-month accounting period used by a company or organization for financial reporting and tax purposes, not necessarily coinciding with the calendar year.
Fixed assets are long-term tangible assets, such as land, buildings, machinery, and equipment, that are not intended for sale and are used in the production or operation of a business.
Fixed expenses are recurring costs that remain constant over time and do not change based on business activity. Examples include rent, insurance, and salaries.
A general journal is the chronological record of all financial transactions of a business, where entries are initially recorded before they are transferred to the general ledger.
A general ledger is the central repository of a company’s financial accounts, containing individual accounts for assets, liabilities, equity, revenue, and expenses.
The generally accepted accounting principles are a set of accounting standards, principles, and procedures used to prepare and present financial statements in a consistent and standardized manner.
Gross income is the total revenue or income generated by a business before deducting any expenses or taxes.
Gross loss is the negative difference between total revenue and total cost of goods sold when total expenses exceed revenue.
Gross profit is the positive difference between total revenue and the total cost of goods sold.
Gross profit margin is the percentage that represents gross profit as a proportion of total revenue used to measure a company’s profitability and cost efficiency.
An income statement is a financial statement that summarizes a company’s revenue, expenses, and profits or losses over a specific period, typically a quarter or a year.
An indirect cost is a cost that cannot be directly traced to a specific product, project, or department and is allocated or distributed across various activities or cost centers.
An individual retirement account is a tax-advantaged investment account designed to help individuals save for retirement. Contributions to traditional IRAs may be tax-deductible, and earnings grow tax-deferred until withdrawal, while Roth IRAs offer tax-free withdrawals in retirement.
An integration is a way of connecting software to other systems to ensure that consistent information is shared while also automating workflows.
An interchange rate is the fee paid by the merchant’s bank to the cardholder’s bank for processing credit card transactions. It is set by the card associations (e.g., Visa, Mastercard) and varies based on factors such as card type and transaction type.
An interest expense is the cost of borrowing money or servicing debt, representing the interest payments made on loans or credit facilities.
An invoice is a record of a sale or shipment made by a vendor to a customer that typically lists the customer’s name, items sold or shipped, sales price, and terms of the sale.
Issuer authorization is the process of verifying the validity of a payment transaction by the card issuer to approve or decline the transaction based on available funds and other risk factors.
An issuing bank is the bank or financial institution that provides credit or debit cards to individuals or businesses and is responsible for authorizing and processing transactions made with those cards.
A journal entry is a record of a financial transaction that includes the debit and credit amounts to maintain the accounting balance.
Know your customer is a process of verifying customer identity and assessing potential risks for compliance and security purposes.
A ledger account is a detailed record that contains all the transactions related to a specific financial account, such as an asset, liability, revenue, or expense account. Ledger accounts are part of the general ledger, and they provide a comprehensive history of financial activities for a particular account.
A limited liability company is a type of business entity that offers limited liability protection to its owners (members) while allowing for flexibility in management and taxation. LLCs are popular among small businesses and startups due to their legal simplicity and protection of personal assets.
A liquidity ratio is a financial ratio that measures a company’s ability to meet its short-term obligations using its most liquid assets, such as cash and cash equivalents. Common liquidity ratios include the current ratio and the quick ratio.
Long-term liabilities are debts and financial obligations of a company that are due for repayment beyond one year from the balance sheet date. Long-term liabilities include items like long-term loans, bonds, and deferred tax liabilities.
A low-risk merchant is a business considered to have a lower risk of financial losses and chargebacks due to factors like stable revenue streams, low return rates, and a good payment processing history.
Managerial accounting, also known as management accounting, is the process of providing financial information and analysis to managers within an organization to support decision-making, planning, and control.
A MasterCard SecureCode is a security feature provided by Mastercard that adds an extra layer of protection for online credit card transactions. It requires the cardholder to enter a unique code during online purchases to verify their identity.
A merchant is any type of business that accepts card payments in exchange for goods or services. A merchant bank establishes and maintains merchant accounts. Merchant banks allow merchants to accept deposits from credit and debit card payments.
A merchant acquirer is a financial institution or payment processor that partners with merchants to enable them to accept electronic payments from customers. The acquirer processes payment transactions on behalf of the merchant.
A merchant cash advance is a type of business financing where a lump sum of money is provided to a merchant in exchange for a percentage of future credit card sales. It is typically used by small businesses to access quick funding.
A merchant category code is a four-digit code assigned to a merchant by credit card networks to categorize the type of products or services the merchant offers. It helps in tracking and reporting transactions by industry type.
Merchant data security refers to the security measures and protocols in place to protect sensitive information and data collected during payment transactions by merchants.
A merchant identification number is a unique number assigned to a merchant by a payment processor or acquiring bank to identify and track the merchant’s transactions.
Merchant onboarding is the process of enrolling a new merchant into the payment processing system, which involves verifying the merchant’s credentials, setting up the necessary accounts, and ensuring compliance with regulations.
Merchant risk monitoring is the ongoing process of assessing and monitoring the potential risks associated with a merchant’s transactions to detect and prevent fraud or other financial risks.
A mobile point is sale is a system that allows merchants to process payment transactions using a mobile device, such as a smartphone or tablet, as a portable point-of-sale terminal.
Near-field communication is a technology that allows short-range wireless communication between devices, typically used for contactless payments and data exchange.
Net income, also known as profit or earnings, is the total revenue generated by a business minus all expenses and taxes during a specific period.
Net loss is the negative result when total expenses and taxes exceed total revenue during a specific period, indicating a loss for the business.
Net operating income is the income generated by a business or property from its core operations, excluding interest and taxes but including other operating revenues and expenses.
Net operating loss is a negative result when total operating expenses exceed total operating revenues during a specific period.
Net profit is the same as net income, and it is the total revenue generated by a business minus all expenses and taxes during a specific period.
Net profit margin is a financial metric that represents net profit as a percentage of total revenue, indicating the company’s profitability after all expenses and taxes.
Net sales is the total revenue, less the cost of sales returns, allowances, and discounts. This is the primary sales figure reviewed by analysts when they examine the income statement of a business. The amount of total revenues reported by a company on its income statement is usually the net sales figure, which means that all forms of sales and related deductions are aggregated into a single line item.
Non-current assets are long-term assets that are not expected to be converted into cash or used up within one year or the normal operating cycle of a business.
Non-current liabilities are debts and financial obligations of a company that are due for repayment beyond one year from the balance sheet date.
Non-operating income refers to revenues or gains that are not related to a company’s core business operations, such as interest income or gains from the sale of assets.
Non-operating loss refers to losses that are not related to a company’s core business operations, such as losses from the sale of assets.
An online payment system is a system that enables electronic payment transactions over the Internet, allowing customers to make purchases and payments online using various payment methods, such as credit cards, digital wallets, and online banking.
Operating income, also known as operating profit or operating earnings, represents the revenue generated from a company’s core business operations minus the operating expenses directly related to those operations.
Operating loss is the negative result when the operating expenses of a business exceed the revenue generated from its core business operations, indicating a loss from the business’s main activities.
Operating expenses are the costs incurred by a company in its day-to-day operations to generate revenue. Operating expenses include items such as wages, rent, utilities, and marketing expenses.
A payable turnover ratio is a financial metric used to assess the efficiency with which a company pays its suppliers by comparing the cost of goods sold to the average accounts payable during a specific period.
A payment aggregator is an entity that enables multiple merchants to accept payments through a single aggregated account, streamlining the payment process and reducing complexity for smaller businesses.
The payment card industry is an organization that sets security standards and guidelines for handling credit card data to protect against fraud and data breaches.
The payment card industry data security standard is a set of security standards and best practices designed to protect cardholder data during payment transactions and storage.
A payment card industry professional is a professional certification program provided by the PCI Security Standards Council to demonstrate expertise in PCI DSS compliance.
A payment card industry qualified security assessor is an individual or company certified by the PCI Security Standards Council to perform security assessments and compliance validations for merchants and service providers.
A payment facilitator is a company or platform that allows businesses to accept electronic payments directly without needing their own merchant account.
A payment facilitator aggregator is a company that aggregates and facilitates payments for multiple Payment Facilitators.
A payment facilitator ISO is an independent sales organization that acts as a broker or agent for Payment Facilitators, helping them sign up merchants and manage payment transactions.
Payment methods are ways in which customers pay. A customer can choose a payment method based on your company’s list of preferred payment methods.
A payment plan is an arrangement in which a customer pays for goods or services in installments over a specified period rather than making a single payment.
A payment processor integration is the process of integrating a payment processor’s services into a merchant’s website or application to enable seamless payment acceptance.
Payment reconciliation is the process of matching and verifying payment transactions with corresponding records to ensure accuracy and completeness.
Payment risk management is the process of identifying, assessing, and mitigating potential risks related to payment processing, fraud, and financial losses.
Payment tokenization is a security measure that replaces sensitive payment card data with a unique identifier or token, reducing the risk of data theft during transactions.
Payroll is the process of calculating and distributing wages or salaries to employees for their work.
Payroll expense is the total cost incurred by a company to pay its employees, including salaries, wages, benefits, and payroll taxes.
A personal identification number is a numeric code used by cardholders to authenticate themselves during debit card transactions.
Petty cash is a small amount of cash kept on hand by a business for minor expenses or emergencies.
A PIN debit network is a network that processes debit card transactions using a personal identification number (PIN) for authentication.
A point of sale (POS) transaction occurs between a merchant and a customer when a product or service is purchased, commonly using a point-of-sale system to complete the transaction.
Point-to-point encryption is a security method that encrypts payment card data at the point of entry and keeps it encrypted until it reaches the payment processor, reducing the risk of data theft during transmission.
A post-authorization, or post-auth, is a type of authorization that confirms the merchant is ready to capture payment of the existing pre- authorized transaction. When the post-auth is processed, the amount is debited from the cardholder’s account. A post-auth cannot be voided, but it can be refunded.
Posting is the process of recording financial transactions in a company’s accounting system, usually in the general ledger.
Pre-authorization places a hold on the customer’s credit card for a specified dollar amount based on a projected sale amount. This guarantees access to their credit limit for the specified amount. Also known as pre-auth, authorization, payment authorization, or auth-only.
A prepaid expense is an expense that is paid in advance and gradually recognized as an expense over time as the related benefit is consumed.
Present value is the current value of a future sum of money, adjusted for interest or discount rates.
The profit and loss statement, also known as an income statement, is a financial statement that shows a company’s revenues, expenses, and profits or losses over a specific period.
A purchase order is a formal document issued by a buyer to a seller, indicating the products or services to be purchased and the terms of the transaction.
A purchase return is the process of returning goods or products to a supplier and receiving a refund or credit for the returned items.
A quick ratio is a financial metric that measures a company’s ability to meet its short-term liabilities using its most liquid assets, excluding inventory. It assesses short-term liquidity without relying on inventory sales. Higher values indicate better liquidity.
Real-time authorization is the immediate process of approving or declining a payment transaction in real time, providing instant confirmation of whether the transaction can be authorized.
The receivables turnover ratio is a financial metric that measures how quickly a company collects its accounts receivable during a specific period. It is calculated by dividing the net credit sales by the average accounts receivable.
A reconciliation statement is a document that compares and matches the financial records of two different sources, such as bank statements and a company’s accounting records, to ensure accuracy and identify any discrepancies.
Recurring billing is a billing model where a customer is charged automatically on a regular basis, typically on a weekly, monthly, or annual cycle, for a subscription or ongoing service.
A recurring billing cycle is a time period, such as monthly or annually, in which recurring billing charges are applied to a customer’s account.
A remote deposit capture is a technology that allows users to deposit checks electronically by scanning the checks and submitting the images to the bank for processing, eliminating the need to physically visit a bank branch.
Rent expense is the cost incurred by a company for renting or leasing property or equipment for business purposes.
Also known as a refund, Return Merchandise Authorization (RMA) are transaction type that transfers funds back to the cardholder’s account. This transaction type is typically used to refund a customer’s funds for an order that was previously settled or captured, e.g., returns or overcharges.
Return on assets is a financial ratio that measures a company’s profitability relative to its total assets. It is calculated by dividing net income by average total assets.
Return on equity is a financial ratio that measures a company’s profitability relative to its shareholders’ equity. It is calculated by dividing net income by average shareholders’ equity.
Return on investment is a financial metric that assesses the profitability of an investment by comparing the return generated to the cost of the investment. It is calculated by dividing the net profit from the investment by the initial investment cost and expressing the result as a percentage.
Revenue is the total income generated by a company from its business activities, including sales of goods, provision of services, and other operating activities.
Revenue recognition is the process of recording revenue in the financial statements when it is earned and realizable, following generally accepted accounting principles (GAAP) and relevant accounting standards.
A rolling reserve is a risk management practice used by payment processors or acquirers, where a portion of a merchant’s revenue is held in reserve for a certain period to mitigate potential financial losses or liabilities.
A sales order is a document generated by the seller upon receiving a purchase order from a buyer specifying the details about the product or service along with price, quantity, and buyer details like the shipping address, billing address, mode of payment, and terms and conditions.
A sales return is a transaction where a customer returns previously purchased goods or products to the seller, resulting in a reduction of sales revenue.
A secure socket layer is a security protocol that encrypts data transmitted between a website and a user’s web browser, ensuring secure and confidential communication over the internet.
A settlement is the finalization and completion of a financial transaction, usually involving the transfer of funds or securities to fulfill an obligation or contract.
The solvency ratio is a financial ratio that measures a company’s ability to meet its long-term obligations and debt using its assets. It is calculated by dividing total assets by total liabilities.
A statement of cash flows is a financial statement that provides an overview of a company’s cash inflows and outflows during a specific period, categorizing cash flows into operating, investing, and financing activities.
A statement of changes in equity is a financial statement that shows the changes in a company’s equity accounts, including common stock, retained earnings, and other comprehensive income, over a specific period.
A statement of comprehensive income is a financial statement that presents the financial performance of a company, including both net income and other comprehensive income, for a specific period.
A statement of retained earnings is a financial statement that outlines the changes in a company’s retained earnings over a specific period, showing the amount of net income retained and dividends paid to shareholders.
A subchapter s-corporation is a type of corporation that elects to pass corporate income, losses, deductions, and credits through to its shareholders for federal tax purposes. This allows the corporation to avoid double taxation, and the shareholders report the company’s income on their individual tax returns.
Sync or synch refers to an exchange between multiple devices or programs, making the data on all devices identical. This process also involves updating any information that differs on either of the two devices. Syncing keeps the data backed up and current.
Third-party payment processing is defined as a service that enables businesses to accept electronic payments from customers without having to establish their merchant account with a bank.
A token service provider refers to an entity or service that generates and manages tokens used for secure payment transactions. Tokens are substituted for sensitive card data, adding an extra layer of security.
Tokenization is the process of replacing sensitive data with unique identification symbols that retain all the essential information about the data without compromising its security. This includes debit and credit card numbers.
A tokenization service provider is a company or service that offers tokenization services, which involves converting sensitive data, such as credit card numbers, into tokens to protect against data breaches and enhance security.
Tokenization-as-a-service is a service model where tokenization services are provided as a cloud-based service, allowing businesses to use tokenization without maintaining their tokenization infrastructure.
A transaction authorization code is a unique code or value generated during the transaction authorization process to authenticate and authorize a payment transaction.
A trial balance is a statement that lists all the accounts and their balances to verify that the total debits equal the total credits. It is used to identify errors or discrepancies in the accounting records.
Two-factor authentication is a security process that requires users to provide two different forms of identification or authentication before granting access to an account or system. This typically involves something the user knows (like a password) and something the user possesses (like a mobile device or a smart card).
Unearned revenue is money received for goods or services not yet provided, recorded as a liability until earned.
A value-added tax (VAT) is a type of consumption tax that is levied on the incremental increase in value of a good or service at each stage of the supply chain until the full tax is paid by the final consumer. Although the United States does not have a broad consumption-based tax, federal excise taxes are imposed on the purchase of several goods (gasoline, alcohol, and tobacco products, for example).
A variable expense is a cost or expense that fluctuates in direct proportion to the level of business activity or sales. Variable expenses increase or decrease based on production volume or the number of units produced or sold.
Venture capital is financing provided to startup companies or small businesses with high growth potential by investors known as venture capitalists. In return for their investment, venture capitalists typically receive equity in the company.
Verified by Visa is a security feature offered by Visa that provides an additional layer of protection for online credit card transactions. It requires the cardholder to enter a password or unique code during online purchases to authenticate their identity.
A virtual terminal (VT) is a web-based payment application that makes it possible to accept credit and debit card payments without a traditional credit card terminal.
A virtual terminal payment is a payment transaction processed through a virtual terminal, typically used for phone or mail order payments and other card-not-present transactions.
A void is a transaction type that cancels a transaction that has not yet been settled. When the batch closes/settles, the transaction can no longer be voided. It can only be refunded.
Working capital is the difference between a company’s current assets and its current liabilities. It represents the funds available to finance a company’s day-to-day operations and is an indicator of its short-term financial health.
A write-off is the process of removing an asset or debt from a company’s books when it is deemed to have no value or is no longer collectible. A write-off results in a reduction of the company’s assets or an expense recognition for uncollectible debts.
