Plain-English definitions of 100 payments, acquiring, and chargeback terms. Every acronym a merchant or finance team will encounter — searched, sorted, cross-linked.
An authentication protocol that adds a second factor — typically a one-time code, biometric, or device check — to card-not-present transactions. Successful 3DS authentication shifts liability for fraud chargebacks from the merchant to the issuer. The current version is 3DS 2.0 (EMV 3DS), which supports frictionless authentication for low-risk transactions.
Related: 3DS 2.0 · SCA · PSD2 · Liability shift
The current 3D Secure protocol (replacing 3DS 1.0). Supports rich device and behavioural data sharing with the issuer, frictionless authentication for low-risk transactions, and SCA exemptions under PSD2. Mandated for European card-not-present transactions since September 2019.
Related: 3D Secure · SCA · Frictionless flow
A scheme service that automatically updates stored card credentials when an issuer reissues a card. Visa's version is VAU (Visa Account Updater); Mastercard's is ABU (Automatic Billing Updater). Reduces failed recurring charges from expired or replaced cards — critical for subscription businesses minimising involuntary churn.
Related: Card-on-File · MIT · Continuity billing · Recurring transaction
The bank or payment institution that processes card payments on behalf of a merchant. Acquirers underwrite merchant accounts, settle funds to the merchant's bank account, and handle disputes filed against the merchant. Visa and Mastercard licence acquirers regionally; some specialise in regulated and high-risk verticals.
Related: Issuer · PSP · MID · Introducer
A model where one acquirer-licensed entity processes payments for many sub-merchants under a single master MID. Stripe, PayPal and Adyen-for-Platforms are aggregators. Faster onboarding than a dedicated MID, but with lower volume ceilings, stricter content policies, and less negotiation over pricing or reserves.
A US-based card network operating a closed-loop model — Amex both issues cards and acquires merchants directly, without intermediary issuing or acquiring banks. MDR is typically higher than Visa or Mastercard, but cardholder spend per transaction is also higher. European merchants can accept Amex via OptBlue (through their existing acquirer) or direct merchant agreements.
Related: Visa · Mastercard · Discover · JCB
The framework of regulations and procedures designed to prevent illicit funds from entering the financial system. AML obligations cover merchant onboarding, transaction monitoring, suspicious-activity reporting, and sanctions screening. Required by every regulated acquirer in every jurisdiction; failures result in fines and licence loss.
The final stage of the chargeback dispute lifecycle, where Visa or Mastercard adjudicates between the issuer and the acquirer. Arbitration filing fees range from roughly $250–$500 per case; the losing party also pays the network review fee. Most disputes are resolved at representment or pre-arbitration without escalating this far.
Related: Chargeback · Pre-arbitration · Representment
The first step of card processing — the issuer is asked to confirm the card is valid and that funds are available, and to reserve the transaction amount on the cardholder's account. Authorization is separate from settlement: the merchant must subsequently capture the authorization to receive funds.
Related: Capture · Pre-authorization · Settlement
A fraud check that compares the billing address entered at checkout against the address on file with the card issuer. Returns a match code (full match, ZIP-only match, no match, etc.) which the merchant can use as one signal in fraud scoring. Widely used in the US; less standardised across Europe.
Related: CVV · 3D Secure · Fraud rate
A group of authorized transactions submitted together for settlement, usually at the end of the merchant's processing day. Batches are typically submitted within 24 hours of authorization to avoid late-presentment chargebacks (Visa 12.1, Mastercard 4842).
Related: Authorization · Capture · Settlement
The first six (or, since 2022, eight) digits of a card's primary account number, identifying the issuing bank, card scheme, country, and product type. Merchants and fraud-screening tools use BIN data to make routing, pricing, and risk decisions before authorization.
A pricing model where the acquirer charges the merchant a single all-in rate per transaction (e.g. 2.9% + €0.30) regardless of underlying interchange and scheme costs. Simple to budget against but typically more expensive than IC++ for volumes above ~€100K/month, because the acquirer's margin is bundled in.
Related: IC++ · Interchange · Tiered pricing · MDR
The second step of card processing — converting an authorized transaction into a settlement instruction. Capture must occur within the scheme's presentment window (typically within 30 days of authorization for Visa/Mastercard) to avoid late-presentment chargebacks.
Related: Authorization · Batch · Settlement
The brand or network that operates the card-processing rails — Visa, Mastercard, American Express, Discover, JCB, UnionPay, and others. Each scheme sets its own interchange rates, dispute rules, and merchant-monitoring programs. The scheme is identified by the BIN of the card.
Related: Visa · Mastercard · BIN
Any transaction where the card is not physically present at the point of sale — e-commerce, MoTo, recurring billing. CNP transactions carry higher interchange, higher chargeback rates, and stricter authentication requirements (3DS, SCA) than card-present.
Related: Card-Present · MoTo · 3D Secure · Interchange
A stored card credential the merchant retains for future merchant- or customer-initiated transactions. COF transactions must include explicit cardholder consent at the initial save, and Visa/Mastercard impose specific transaction-type indicators on subsequent charges. Underpins subscriptions, marketplaces, and one-click checkout.
Related: MIT · CIT · Recurring transaction · Tokenization
Any transaction where the card is physically presented at the point of sale — chip read, contactless tap, or magnetic stripe. CP transactions carry lower interchange and lower chargeback exposure than CNP, and benefit from EMV liability shift when chip is read.
Related: Card-Not-Present · EMV · Chip and PIN
A reversal of a card transaction initiated by the cardholder's issuer, typically because the cardholder disputes the charge. The merchant loses the transaction value plus a chargeback fee (€15–€50 typical) and absorbs reputational impact. Excessive chargebacks trigger scheme monitoring programs and can lead to acquirer termination.
Related: Dispute · Reason code · Representment · MATCH · VAMP · ECP
Total chargebacks in the calendar month divided by total settled card transactions in that month. The count-based ratio used by Visa VAMP and Mastercard ECP/HECM to determine merchant-monitoring program status. Visa Above-Standard at 0.9%; Mastercard ECM at 1.5%.
Related: Chargeback · VAMP · ECP · Fraud rate
A card-present authentication method requiring the cardholder to enter a PIN against the chip on the card. Chip-and-PIN authentication shifts liability for lost-and-stolen card fraud to the issuer when correctly performed. The European default for in-person transactions; less common in the US (where chip-and-signature was historically more typical).
Related: EMV · Liability shift · Card-Present
A transaction initiated by the cardholder — they actively complete checkout or authorise a charge. The default transaction type at first purchase. Must be properly flagged when stored for later use, so that follow-up charges can be classified as MIT.
Related: MIT · Card-on-File · Recurring transaction
The documentation a merchant submits during representment to prove the cardholder authorised the transaction or that the goods or services were delivered as described. Accepted evidence varies by reason code — AVS/CVV match plus 3DS for fraud disputes, signed delivery confirmation for non-receipt disputes, etc.
Related: Chargeback · Representment · Reason code
Any business model where the merchant charges the cardholder on a repeating schedule — subscriptions, memberships, clubs, free-trial-to-paid flows. Visa and Mastercard impose specific continuity-billing rules around consent, cancellation UX, and recurring transaction flagging. Continuity verticals carry elevated dispute exposure.
Related: MIT · Card-on-File · Account Updater · Recurring transaction
The interchange rate that applies when the card is issued in a different country than the merchant's acquirer. Cross-border interchange is typically 2–3× domestic interchange (post-EU regulation). Most merchants face it on a meaningful share of volume; routing and local-acquiring strategies can reduce it.
Related: Interchange · Regulated interchange · IC++
Regulatory framework that requires financial institutions to detect and prevent funds being moved to terrorist organisations. Implemented alongside AML; the two are usually treated as a single compliance discipline (AML/CTF). Includes sanctions screening, PEP (Politically Exposed Person) screening, and suspicious-activity reporting.
The 3- or 4-digit security code printed on the back (front for Amex) of a card. Required for most card-not-present transactions. Match on CVV is one of the strongest fraud-screening signals because the CVV is not encoded on the magnetic stripe and is not stored by PCI-compliant merchants.
The financial regulator of Cyprus, supervising investment firms, forex brokers, and CFD providers. CySEC licensing is the most common regulatory profile for European retail forex and CFD operators, and is a baseline expectation for acquirers underwriting forex merchants.
A service offered at checkout where the cardholder pays in their home currency rather than the merchant's billing currency. DCC requires explicit cardholder consent (with both currency options shown) under scheme rules. Generates revenue for the merchant and acquirer but can trigger disputes if not properly disclosed.
Related: Interchange · Cross-border interchange
A US-based card network operating a similar closed-loop model to Amex, with weaker international acceptance. European merchants typically route Discover via the Diners Club network (acquired by Discover) or through their existing Visa/Mastercard acquirer's Discover partnership.
Related: Visa · Mastercard · American Express
The cardholder's claim against a transaction, raised through their issuer. The dispute lifecycle progresses through chargeback, representment, pre-arbitration, and arbitration if not resolved earlier. Disputes are categorised by reason code — fraud, authorization, processing error, or cardholder dispute.
Related: Chargeback · Reason code · Representment
The first tier of Mastercard's Excessive Chargeback Program. Triggered at 1.5% chargeback ratio and 100+ chargebacks per month. Imposes escalating monthly fees on the acquirer (usually passed to the merchant) and requires a documented remediation plan.
Related: ECP · HECM · Chargeback ratio · MATCH
Mastercard's merchant-monitoring program for excessive chargebacks, with two tiers: ECM (Excessive Chargeback Merchant) at 1.5% and HECM (High-Excessive) at 3%. Triggers fees, mandatory remediation training, and increasing acquirer-termination risk.
The global standard for chip-card authentication. EMV chip cards generate a unique cryptogram per transaction, making them counterfeit-resistant. Liability for counterfeit fraud at non-EMV-capable terminals shifts to the merchant under the EMV liability-shift framework adopted across the EU since 2005 and the US since 2015.
Related: Chip and PIN · Liability shift · Card-Present
Submitting a transaction for settlement without obtaining a valid online authorization, or after an authorization has been declined. Universally penalised by acquirers and triggers Visa 11.2 / Mastercard 4808 chargebacks. Generally only used for offline-environment exceptions with documented compliance.
Related: Authorization · Soft decline
The ratio of fraud-confirmed transactions (typically tracked via TC40 reports) to total settled transactions. Visa VAMP combines fraud rate and dispute rate into a single combined ratio. Independent fraud-rate monitoring used to be governed by VFMP, now folded into VAMP.
Related: TC40 · VAMP · VFMP · Chargeback ratio
A 3DS 2.0 authentication flow where the issuer authenticates the cardholder silently using device, behavioural, and transaction signals — without requiring the cardholder to enter a code or pass a biometric challenge. Available for low-risk transactions and SCA-exempt categories under PSD2.
The transfer of settled card funds from the acquirer to the merchant's nominated bank account, after netting any rolling reserve, refunds, chargebacks, and acquirer fees. Funding cycles are typically T+0 to T+5 depending on the acquirer, vertical, and risk profile.
Related: Settlement · T+N · Rolling reserve
The technical interface that captures card credentials at the merchant's checkout and sends them to the acquirer for processing. Gateways handle tokenization, 3DS step-up, fraud screening, and routing. Some acquirers operate their own gateway; others integrate with third-party gateways such as Cybersource, Spreedly, or Checkout.com.
Related: Acquirer · Tokenization · 3D Secure
An issuer authorization decline that should not be retried — typically signalling lost/stolen card, closed account, or active fraud block. Retrying a hard-declined transaction wastes processing fees and increases fraud-flag exposure. Must be handled distinctly from soft declines in retry logic.
Related: Soft decline · Authorization
The second tier of Mastercard's Excessive Chargeback Program. Triggered at 3% chargeback ratio and 300+ chargebacks per month. Carries severe monthly fees, near-certain acquirer termination, and high MATCH-listing risk if not stabilised in the current monitoring window.
Related: ECP · ECM · MATCH · Chargeback ratio
An informal designation for merchants in verticals where chargeback exposure, regulatory complexity, or scheme rules create narrower acquirer appetite. Common examples: iGaming, crypto, forex, dating, adult, nutraceuticals. Not a card-network official designation; each acquirer applies its own classification.
Related: Specialist vertical · iGaming · MATCH
The duration for which an acquirer retains a portion of merchant settlement (the rolling reserve) before releasing the funds. Typically 90–180 days for elevated- and high-risk verticals; longer for long-window travel. Designed to cover potential chargebacks against settled transactions.
Related: Rolling reserve · Static reserve · Settlement
A pricing model where the merchant pays interchange (set by the card scheme) plus the scheme fee plus a separately-disclosed acquirer markup. Each component is itemised on the merchant statement. More transparent than blended pricing and typically cheaper for volumes above ~€100K/month.
Related: Interchange · Blended pricing · Scheme fee · MDR
Online gambling — casino, sportsbook, poker, bingo, regulated lotteries. Requires jurisdiction-specific gaming licences (MGA, UKGC, Curaçao, Isle of Man, Gibraltar, etc.) and specialist acquirer relationships. iGaming is one of the most regulated and acquirer-restricted verticals in card payments.
Related: MGA · UKGC · High-risk merchant
The renamed (and extended) BIN. Since 2022, ISO/IEC 7812 expanded the issuer identifier from 6 to 8 digits, allowing more granular identification of issuer products and sub-portfolios. Functionally equivalent to BIN; the term is becoming standard in technical documentation.
The fee paid by the merchant's acquirer to the cardholder's issuer on every settled transaction, set by the card scheme. Typically the largest component of the merchant's effective rate. Capped in the EU at 0.2% (debit) and 0.3% (credit) for regulated consumer cards; uncapped for commercial and cross-border transactions.
Related: Regulated interchange · Cross-border interchange · IC++ · Scheme fee
An entity that connects merchants with suitable acquirers but does not process payments or hold funds. Introducers earn placement commission from the acquirer; merchants typically pay nothing. BZNpay operates as an introducer.
A third-party organisation contracted by an acquirer to sell merchant services. ISOs are common in the US market and are typically authorised to negotiate pricing and contracts on behalf of the acquirer they represent. Not to be confused with ISO 18245 (the MCC standard).
Related: Acquirer · Introducer · PSP
The international standard that defines the catalogue of Merchant Category Codes (MCCs). Maintained by the ISO/TC68 committee, it covers ~290 four-digit codes describing every category of merchant business. All card schemes use MCCs derived from ISO 18245.
Related: MCC · Card scheme
The bank or financial institution that issues a card to the cardholder. Issuers fund authorized transactions, file chargebacks on behalf of disputing cardholders, and are responsible for cardholder authentication (3DS, SCA). The issuer is identified by the card's BIN.
A Japanese card network with global acceptance, especially across Asia. European acquirers typically support JCB via partnership agreements with Discover (which has a long-standing alliance with JCB). Useful for merchants targeting Japanese and broader Asian cardholders.
Related: Visa · Mastercard · Discover
The merchant equivalent of KYC. The acquirer's process to verify a merchant's legal identity, beneficial ownership, business model, and licensing before opening a merchant account. Mandatory under AML/CTF rules; requires articles of incorporation, UBO declarations, financial statements, and licence copies.
The cardholder-side identity-verification process — typically performed by the issuer rather than the merchant or acquirer. Some merchant verticals (crypto exchanges, iGaming operators) also perform KYC on their own customers as part of their regulatory obligations.
The reallocation of fraud-loss responsibility between issuer and merchant based on authentication or terminal capability. EMV liability shift moves counterfeit-fraud loss to whichever party (merchant or issuer) failed to support chip processing. 3DS liability shift moves CNP fraud loss from merchant to issuer when authentication is successfully completed.
Related: 3D Secure · EMV · Chip and PIN
The second-largest global card network, headquartered in the US. Operates open-loop card processing with a worldwide network of issuers and acquirers. Sets interchange rates, dispute rules, and merchant-monitoring programs (ECP, HECM); maintains the MATCH database of terminated merchants.
Related: Visa · American Express · ECP · MATCH
Mastercard's database of merchants whose acquirer has terminated their relationship for cause. Acquirers in every region check MATCH before onboarding a new merchant. A listing typically remains for five years; there is no formal removal process — recovery means restructuring under a new legal entity, demonstrating remediated controls, and finding a specialist acquirer willing to underwrite a previously listed merchant.
Related: Chargeback · VAMP · ECP · High-risk merchant
A four-digit code (defined by ISO 18245) that classifies a merchant's primary line of business. The MCC determines interchange tier, scheme rules, monitoring-program eligibility, and acquirer underwriting appetite for the merchant. Crypto sits under 6051; gambling under 7995; fast food under 5814.
Related: ISO 18245 · Interchange · Card scheme
The headline percentage rate the merchant pays the acquirer per transaction. Under blended pricing, MDR is a single all-in number; under IC++ pricing, MDR refers only to the acquirer's markup over interchange and scheme fees.
Related: IC++ · Blended pricing · Interchange
The Maltese regulator for online gambling. MGA licences are widely held by EU-facing iGaming operators and are accepted by most specialist iGaming acquirers as a baseline regulatory profile. Categorised by class (B2C casino, B2B platform, lotteries, etc.).
The EU's regulatory framework for crypto-asset issuers and service providers, in force from December 2024. MiCA introduces licensing requirements for VASPs, stablecoin issuers, and crypto exchanges — and is rapidly becoming a baseline expectation among EU acquirers underwriting crypto merchants.
Related: VASP
The unique identifier assigned by the acquirer to a merchant for processing and settlement. Each MID corresponds to one combination of legal entity, MCC, and acquiring bank. Merchants with multiple business lines or regions often hold multiple MIDs.
A transaction initiated by the merchant against a stored card credential, with no cardholder action at the time of charge. Standard for subscriptions, recurring billing, no-show fees, and incremental authorizations. Must be flagged with specific transaction-type indicators per scheme.
Related: CIT · Card-on-File · Recurring transaction
Card-not-present transactions taken over phone, mail, or fax, where the merchant manually keys in card details. Higher interchange than card-present but lower than e-commerce. Common in travel, B2B services, and certain regulated verticals.
Related: Card-Not-Present · Card-Present
A scheme-issued token that replaces the underlying PAN for stored or in-transit use. Visa Token Service (VTS) and Mastercard Digital Enablement Service (MDES) issue tokens that automatically update when the underlying card is reissued, dramatically reducing recurring-billing failures and PCI scope.
Related: Tokenization · Card-on-File · PAN · PCI DSS
The 13- to 19-digit number printed on a card and encoded in its magnetic stripe and chip. The first 6–8 digits are the BIN/IIN; the last digit is the Luhn check digit. Storage of PAN is heavily regulated under PCI DSS — most merchants tokenize to avoid scope.
Related: BIN · IIN · Tokenization · PCI DSS
The mandatory security standard governing storage, processing, and transmission of cardholder data. Compliance level depends on annual transaction volume; at the highest level (Level 1, 6M+ Visa transactions) merchants must complete an annual on-site audit. Tokenization reduces the scope of compliance.
Related: PAN · Tokenization · CVV
The stage between representment and arbitration where the issuer challenges the merchant's representment with new evidence. The merchant has a final opportunity to respond before either party can escalate to arbitration. Both schemes require the issuer to file pre-arbitration within 30 (Visa) or 45 (Mastercard) days of the representment.
Related: Arbitration · Representment · Chargeback
An authorization placed without immediate intent to capture, used to verify a card and reserve funds (typical in hotel check-in, car rental, fuel pumps). Pre-auths are released or captured later. Scheme rules govern hold duration and the maximum spread between pre-auth and final capture amount.
Related: Authorization · Capture
The EU directive (in force since January 2018) that mandates Strong Customer Authentication for most card-not-present transactions and opens up payment-account access to authorised third parties. The basis for SCA, 3DS 2.0 enforcement, and open banking in Europe.
Related: SCA · 3DS 2.0 · Frictionless flow
A regulated entity that processes payments on behalf of merchants, typically holding funds in transit. Distinct from an acquirer (which holds the merchant agreement and licence) and from an introducer (which connects merchants to acquirers but does not process). Many PSPs are licensed as Payment Institutions (PIs) under PSD2.
Related: Acquirer · Aggregator · Introducer · PSD2
The category an issuer assigns when filing a chargeback — fraud, authorization, processing error, or cardholder dispute. Each reason code has its own time limits, evidence requirements, and defense difficulty. Visa uses codes like 10.4 and 13.1; Mastercard uses codes like 4837 and 4853.
Related: Chargeback · Compelling evidence · Representment
A merchant-initiated transaction charged on a fixed schedule against a stored card credential. Must be properly disclosed at the initial cardholder consent and flagged with the recurring transaction indicator per scheme rules. The most common driver of cancelled-recurring chargebacks (Visa 13.2, Mastercard 4841).
Related: MIT · Card-on-File · Continuity billing · Account Updater
A merchant-initiated reversal of a settled transaction, returning funds to the cardholder. Refunds are processed via the same authorization rails as the original transaction and typically settle within 3–10 business days. A successful refund preempts most cardholder dispute reasons; merchants typically issue refunds rather than fight clear-cut chargebacks.
Related: Reversal · Chargeback
The capped interchange rate applied under EU Regulation 2015/751 and the UK equivalent. Domestic consumer-card interchange is capped at 0.2% (debit) and 0.3% (credit). Commercial cards, cross-border transactions, and certain prepaid products fall outside the cap.
Related: Interchange · Cross-border interchange
The merchant's submission of compelling evidence in response to a chargeback, contesting the issuer's claim. Visa allows 30 days for representment; Mastercard allows 45 days. Missing the deadline is an automatic loss. Successful representment reverses the chargeback back to the issuer.
Related: Chargeback · Compelling evidence · Pre-arbitration
Cancellation of an authorization before it is captured — releasing the held funds back to the cardholder's available balance. Distinct from a refund, which reverses an already-settled transaction. Fast (real-time release) and lower-cost than refund processing.
Related: Authorization · Refund · Capture
A percentage of merchant settlement (typically 5–20%) that the acquirer holds for a defined period (typically 90–180 days) before releasing to the merchant. Designed to cover chargebacks filed against settled transactions. Reserve % and hold period scale with vertical risk and order-to-delivery window.
Related: Static reserve · Hold period · Settlement
Mastercard's fraud-reporting system, equivalent to Visa's TC40. Issuers file SAFE reports against transactions flagged as fraudulent by the cardholder. Used in calculating Mastercard's merchant fraud-rate metrics; can trigger Questionable Merchant Activity (4849) chargebacks.
The PSD2 requirement that European card-not-present transactions be authenticated using two of three factors: knowledge (password), possession (device), or inherence (biometric). 3DS 2.0 is the default mechanism. Specific exemptions apply (low-value, MIT, secure corporate, transaction risk analysis).
Related: PSD2 · 3DS 2.0 · Frictionless flow
The fee paid by the acquirer to the card network (Visa, Mastercard, etc.) on every transaction. Separate from interchange (which goes to the issuer) and from the acquirer markup. Itemised under IC++ pricing; bundled into the all-in rate under blended pricing.
Related: Interchange · IC++ · Card scheme
The transfer of funds between issuer and acquirer for a captured transaction. Once settled, the transaction is final unless a chargeback or refund reverses it. Settlement timeline (T+0, T+1, T+N) refers to the number of business days between transaction date and merchant funding.
Related: Funding · T+N · Capture · Chargeback
An issuer authorization decline that may succeed on retry — typically signalling a temporary issue (insufficient funds at this moment, daily-limit hit, technical error). Soft declines should be retried with a delay; hard declines must not. Retry logic that ignores the soft/hard distinction wastes processing fees and harms approval rates.
Related: Hard decline · Authorization
An informal designation for verticals where placing a merchant requires specialist acquirer relationships and a specific regulatory profile — iGaming, crypto, forex, dating, adult, nutraceuticals, CBD, long-window travel. Specialist verticals typically face narrower acquirer pools, higher reserves, and stricter underwriting than mainstream e-commerce.
Related: High-risk merchant · iGaming
A fixed percentage of expected monthly volume held by the acquirer as a one-time deposit at the start of the merchant relationship, rather than continuously withheld from settlement. Less common than rolling reserve; sometimes used for high-risk merchants without processing history.
Related: Rolling reserve · Hold period
Notation for the number of business days between transaction settlement and merchant funding — T+0 means same-day funding, T+1 next business day, T+5 five business days, etc. Mainstream EU acquirers default to T+1 or T+2; specialist verticals can run T+3 to T+7 depending on risk and rolling reserve.
Related: Settlement · Funding · Rolling reserve
Visa's fraud-reporting message, filed by the issuer against transactions flagged as fraudulent. TC40 reports feed into VAMP's combined fraud + dispute ratio, even when the cardholder doesn't file a formal chargeback. Merchants can subscribe to TC40 alerts to identify fraud trends before they become disputes.
Related: VAMP · VFMP · Fraud rate · SAFE
The unique identifier assigned by the acquirer to an individual payment terminal or virtual terminal under a MID. Multiple TIDs can sit under one MID — typical for chains with multiple POS locations or merchants with multiple checkout flows.
An older pricing model where the acquirer bundles transactions into qualified, mid-qualified, and non-qualified tiers, each with a different rate. The acquirer determines tier eligibility opaquely. Generally more expensive than IC++ and less transparent than blended pricing; rare in the modern EU acquirer market.
Related: Blended pricing · IC++ · MDR
Replacing the card PAN with a non-sensitive token that maps to the original card via a secure vault. Tokens have no value if breached and cannot be reused outside the merchant or scheme that issued them. Tokenization significantly reduces PCI DSS scope and is the foundation of card-on-file billing.
Related: PAN · PCI DSS · Card-on-File · Network token
The natural person(s) who ultimately own or control a legal entity, typically defined as anyone holding 25% or more of equity or voting rights (the threshold varies by jurisdiction). UBO disclosure is required at KYB and is one of the most common reasons applications stall — most acquirers require notarised UBO declarations.
The British regulator for online and land-based gambling. UKGC licensing is required to offer gambling services to UK residents and is one of the strictest regulatory regimes globally. Operators with both MGA and UKGC licences are well-positioned for European acquirer relationships.
The Chinese card network — the largest by volume globally, primarily because of its dominance in mainland China. European acquirers support UnionPay variably; merchants targeting Chinese cardholders typically need to add UnionPay separately to their acquirer agreement.
Related: Visa · Mastercard · JCB
Visa's merchant-monitoring program for fraud and disputes, in force from April 2025 (replacing VDMP and VFMP). Combines TC40 fraud reports and disputes into a single ratio. Above-Standard kicks in at 0.9% combined ratio with 100+ disputes; Excessive at 1.5%. Triggers fees, remediation plans, and MATCH risk.
FATF-defined category covering crypto exchanges, wallets, and on-ramps. VASPs are subject to AML/CTF rules in most jurisdictions and require licensing under MiCA in the EU from December 2024. Acquirer underwriting of crypto merchants increasingly hinges on documented VASP-equivalent licensing.
Visa's legacy merchant-monitoring program for excessive disputes, replaced by VAMP in April 2025. Tracked dispute count and ratio independently from fraud reports. Still referenced in older merchant agreements and acquirer documentation; functionally subsumed under the unified VAMP framework.
A fraud-screening rule that limits the number, amount, or frequency of transactions from a single source over a time window — single card, single IP, single device. Velocity checks block card-testing attacks, account-takeover bursts, and credential-stuffing flows that would otherwise drive fraud-chargeback rates upward.
Related: Fraud rate · TC40
Visa's legacy merchant-monitoring program for excessive fraud, replaced by VAMP in April 2025. Tracked TC40 fraud-report rates independently from disputes. Now functionally subsumed under VAMP's combined ratio framework, but referenced in merchant agreements drafted before April 2025.
Related: VAMP · VDMP · TC40 · Fraud rate
The largest global card network, headquartered in the US. Operates open-loop card processing with a worldwide network of issuers and acquirers. Sets interchange rates, dispute rules, and the VAMP merchant-monitoring program. The dominant network in most European markets.
Related: Mastercard · American Express · VAMP
The base rate the acquirer pays its sponsor bank or scheme licensee — interchange + scheme fee — before adding markup to charge the merchant. Under IC++ pricing the wholesale rate is itemised on the merchant statement; under blended pricing it's bundled into the all-in rate.
Related: Interchange · Scheme fee · IC++ · MDR
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