Glossary
| Word | Description |
|---|---|
| Account Holder | The consumer or business who owns the bank account utilized in an ACH Payment |
| ACH | Automated Clearing House, or ACH, is a type of transaction that utilizes a Routing and account number to pull or push funds to a bank account. Also called an EFT (Electronic Funds Transfer) or eCheck (Electronic Check). |
| ACH Network | The processing network that pulls or pushes money to a bank account utilizing a batched nightly process. |
| Authorization | The process of receiving a response from an Issuing Bank regarding the status of a Card Payment or Deposit. |
| Bank Identification Number (BIN) | The first six digital of a Card which will identify the Issuing Bank |
| Capture | The process of finalizing the submission of a card payment. |
| Card | Visa, Mastercard, Discover, or American Express (or other accepted card brand) credit or debit card account. |
| Card Data | The 15 or 16 digit card number (PAN), expiration date, CVV, and billing address of the cardholder. Some elements of Card Data are required to be stored securely per PCI DSS requirements (such as the PAN), and some cannot be stored at all (CVV). |
| Cardholder | The consumer or business who owns the card utilized in a Card Payment |
| Chargeback | A Payment that has been challenged by the Cardholder or Issuing Bank. Also known as Dispute. |
| CVV | Card Verification Value, also call Card Verification Code (CVC), refers to the 3 or 4 digit number on a Card. |
| DDA | Demand Deposit Account is the checking or savings account utilized in an ACH Payment. |
| Deposits | Money movement from the Merchant Ledger to a Merchant. |
| Dispute | A Card or ACH Payment that has been challenged by the Cardholder, Account Holder, Issuing Bank, or RDFI. |
| Dues, Fees, and Assessments (DFA) | The grouping of fees collected from the Merchant or Platform and paid to the Card Brands for costs associated with managing and maintaining the card networks. |
| EMV | EuroPay, Mastercard, and Visa is a microchip based authentication method utilized for in-person Card Payments. |
| Faster Deposit | An accelerated deposit to a Merchant |
| Funding | A Payment that has been made available to the Merchant for Deposit |
| Gross Deposit | A Merchant deposit that the whole amount of the Payments processed, less Refunds and Disputes. |
| Interchange | Generally expressed as a percentage of volume and per item fee on card volume, Interchange is collected from the Merchant or Platform and paid to the Issuing Bank via the Card Brands for costs associated with servicing the Cardholder. There are 1,000+ interchange categories assessed based on Merchant type, card type, entry method, and data elements included with the transaction. |
| Issuing Bank | The financial institution who issued the card to the Cardholder |
| Ledger | The record of money movement or transfers for a particular entity or account. |
| Merchant | A business using a Platform's software to move money |
| Merchant Account | The account created for a Merchant for the purposes of processing Payments |
| Merchant Billing | The amounts charged to the Merchant for moving money through its account. |
| MID | Merchant Identification Number is the identifying number of a Merchant Account |
| Multi-Factor Authentication | Method for authenticating a user utilizing two or more factors. These factors generally include something the user has, something the user knows, or something the user is or does. |
| NACHA | National Automated Clearing House Association is the entity that oversees the ACH network. |
| Net Deposit | A Merchant Deposit that is net of Merchant Billing. |
| NOC | Notification of Change is a noticed provided by the RDFI indicating that information on the ACH Payment should be update prior to submitting additional transactions to the same DDA. |
| NSF | A Non-Sufficient Funds is a type of ACH return due to the account not having sufficient funds for a particular Payment. |
| PAN | Primary Account Number, referring to the 15 or 16 digit Card number. |
| Passthrough Fees | Used to describe the collection of fees that are charge to the Platform and directly passed to Card Brands for Interchange and Dues, Fees, and Assessments (DFA). |
| Payins | Money movement from a User to a Merchant |
| Payment | Money movement to or from a User on behalf of a Merchant, including Payins and Payouts |
| PCI DSS | Payment Card Industry Data Security Standard is a set of requirements around data security. For more information visit https://www.pcisecuritystandards.org. |
| Platform | A SaaS platform utilizing Rainforest for payment functionality |
| RDFI | Receiving Depository Financial Institution is the Account Holders bank for an ACH Payment. |
| Reason Code | Additional information regarding the nature of a Dispute or Return. |
| Residuals | The Merchant Billing amounts paid to a Platform after deducting costs. |
| Routing Number | The 9-digit number that routes transactions to a particular bank for the purposes of processing an ACH or RTP Payment or Deposit. |
| RTP | Real Time Payment is a processing network that pushes money in real-time to a bank account. |
| Sponsor Bank | The financial institution who is responsible for Payments activity initiated by, or on behalf of, the Merchant |
| Tokenization | The process of replacing sensitive information, such an a PAN or ACH Account, with a surrogate value. |
| Top-up | Money movement from a Merchant or third-party into a Merchant Ledger |
| User | A consumer or business transacting with a Merchant |
Updated 5 months ago