Section E · Reference

Domain Context — Vocabulary

The terms a Payments PM should know on sight. Scan this before a loop; the goal is recognition, not memorization. The right word at the right moment signals seriousness.

Parties & intermediaries

TermDefinition
IssuerThe bank that issued the customer's card or account. Makes the auth decision.
AcquirerThe bank that holds the merchant's side; routes auth requests through the network.
Network / schemeVisa, Mastercard, Amex, Elo, RuPay, Mada, JCB, Discover, UnionPay.
ProcessorThe technology layer in front of the acquirer; sometimes the same company.
GatewayThe API surface; functionally the entry point of the processor.
PSPPayment Service Provider — combined gateway/processor; e.g. Stripe, Adyen, Checkout.com.
MoRMerchant of Record — the entity legally selling; often a third party absorbs sales-tax / compliance burden.
CardholderThe consumer making the payment.
BeneficiaryThe receiving party (in non-card rails).

Instruments & data fields

TermDefinition
PANPrimary Account Number — full card number.
BINBank Identification Number — first 6-8 digits, identifies the issuer.
MCCMerchant Category Code — 4-digit code for merchant type (6051 = quasi-cash / crypto).
AVSAddress Verification Service — issuer checks billing address.
CVV / CVCCard Verification Value / Code — 3-4 digit security code.
Network tokenScheme-issued token replacing PAN; lifecycle-managed (VTS / MDES).
VaultPCI-tokenization layer; abstracts raw PAN out of your systems.
COFCard-on-File — stored credential for future use.
WalletApple Pay, Google Pay, Samsung Pay — abstract device-bound credentials.

Authorization & authentication

TermDefinition
AuthorizationIssuer's go/no-go decision on whether to reserve funds.
CaptureFinalizing the auth into a charge.
VoidReversing an authorization before capture.
SettlementActual movement of funds between issuer and acquirer.
3DS / 3DS23-D Secure protocol for issuer-side authentication.
SCAStrong Customer Authentication — PSD2 requirement in EU.
Frictionless 3DSIssuer-decided no-challenge path.
Step-upRequiring an extra authentication factor (OTP, biometric, push).
OTPOne-Time Password — usually SMS/app for step-up.
TRATransaction Risk Analysis exemption from SCA (acquirer-driven).
LVELow-Value Exemption from SCA.

Fees & cost stack

TermDefinition
InterchangeAcquirer-to-issuer fee on each card txn; largest single fee component.
Scheme feesVisa / MC / etc network fees.
Cross-border feeIssuer/scheme markup when countries don't match.
Acquirer markup / MSFMerchant Service Fee — what the acquirer keeps.
DCCDynamic Currency Conversion — issuer-country currency offered at checkout.
FX spreadMargin on currency conversion.
Chargeback feePer-dispute fixed fee from acquirer.

Disputes

TermDefinition
ChargebackCardholder-initiated dispute via issuer; funds reverse.
Retrieval requestPre-chargeback evidence request.
RepresentmentMerchant's defense of a chargeback.
Pre-arbitration / arbitrationEscalation steps when representment is challenged.
Reason codeScheme-defined dispute reason (e.g. 4855 service not provided).
VDMP / ECPVisa Dispute Monitoring Program / Mastercard ECP — threshold programs.
Friendly fraudReal cardholder disputes a legitimate purchase.

Metrics & KPIs

TermDefinition
AARAuthorization Approval Rate.
ConversionIntent → completed payment.
TPVTotal Payment Volume.
GTV / GMVGross Transaction / Merchandise Value.
Take rateMargin per txn after costs.
Cost per successAll-in cost ÷ successful payments.
Settlement speedTime from auth to funds usable.
Time to availabilityCustomer-perceived speed to balance update.

Emerging-market & alt-rail vocabulary

TermDefinition
VPAVirtual Payment Address (UPI, India).
UPIUnified Payments Interface, India.
UPI LiteSmall-value on-device wallet, no PIN.
UPI AutoPayRecurring-debit mandate framework on UPI.
UPI Intent / CollectPush-from-PSP vs request-from-merchant.
IMPSImmediate Payment Service, India.
NEFTNational Electronic Funds Transfer, India.
RTGSReal-Time Gross Settlement, India high-value.
NPCINational Payments Corporation of India — runs UPI, IMPS, RuPay.
PIXBrazil's instant rail, run by BACEN.
PIX KeyAlias (CPF/email/phone/UUID) for a Brazilian account.
MED / MECPIX special-return (fraud) / operational-return mechanisms.
SEPA Instant (SCT Inst)EU instant rail; ~10s settlement.
TIPSECB-operated SCT Inst settlement service.
FPSFaster Payments Service (UK).
FedNow / RTPUS instant rails (RTP via TCH; FedNow via Fed).
Open Banking / PISThird-party payment initiation via consent.
AA (India)Account Aggregator — consent-based data sharing.
PromptPay / PayNow / DuitNow / VietQRSE Asian QR rails.
M-Pesa / MoMoAfrican mobile-money rails.
RuPay / Elo / Mada / VerveLocal card schemes.
MandateUser authorisation for recurring debits.

Crypto × payments

TermDefinition
On-rampFiat in → crypto credited.
Off-rampCrypto out → fiat in user's account.
StablecoinCrypto asset pegged to a fiat currency (USDC, USDT, EURC).
USDC settlementUsing USDC as a settlement rail between counterparties.
Travel RuleFATF Rec 16 — share originator/beneficiary info on VA transfers.
VASP / CASPVirtual / Crypto Asset Service Provider — regulatory category.
Self-custody walletNon-VASP wallet; attribution challenge for Travel Rule.
MiCAMarkets in Crypto-Assets, EU regulation.
VARAVirtual Assets Regulatory Authority (Dubai).

Regulators & frameworks

TermDefinition
RBIReserve Bank of India.
BACENBanco Central do Brasil.
FCA / PSRUK regulators — conduct / payment systems.
MASMonetary Authority of Singapore.
BSPBangko Sentral ng Pilipinas.
SAMASaudi Central Bank.
CBN / NIBSSCentral Bank of Nigeria / interbank settlement.
FinCENUS Financial Crimes Enforcement Network.
FATFFinancial Action Task Force — standard setter.
PSD2 / PSD3EU Payment Services Directive.
PCI DSSPayment Card Industry Data Security Standard.
MTLMoney Transmitter License (US state-level).
EMIE-Money Institution license (UK / EU).
SAR / CTRSuspicious Activity / Currency Transaction Report.