Virtual Terminal – Is a staff or customer accessed terminal which processes card payments via the internet as a card not present transaction and performs payment functions similar to a traditional EFTPOS terminal with greater design and reporting flexibility.

The payments world is full of terminology and language that can often be confusing. We have put together a short glossary of terms to help you.

Acquirer – A member of a card association, for example MasterCard and/or Visa, which maintains merchant banking relationships and receives/settles credit and charge card transactions from a merchant.

Biometric – a method of identifying the holder of a device by measuring a unique physical characteristic of the holder, e.g. by fingerprint matching, voice recognition or retinal scan

Card-Not-Present (CNP) – Transactions where neither the card nor its holder is present at the point of sale, e.g. orders by eCommerce, mail order or telephone order.

Contact cards – cards that require physical contact through an electronic connection surface between the card and the card reader or terminal device.

Contactless cards – cards that do not require physical contact between the card and the card reader or terminal.

Contactless Payments – Payment devices which use radio frequency identification (RFID) for making secure payments. The embedded chip and antenna enable consumers to wave their card or fob over a reader at the point of sale to initiate a transaction.

Electronic Point of Sale (EPoS)  Computerised equipment that performs all tasks of a store checkout counter. It allows payments by bank or credit cards, verifying transactions, providing sales reports and coordinating inventory data.

Electronic purse – a reloadable multipurpose prepaid card which may be used for small retail or other payments instead of coins.

Electronic wallet – a computer device used in some electronic money systems which  can contain an IC card or in which IC cards can be inserted and which may perform more functions than an IC card.

Independent Sales/Service Organization (ISO)  Also called a Member Service Provider (MSP), an ISO is an outside company (not a MasterCard or Visa member) that is contracted by merchants to administer merchant and/or cardholder servicing.

Integrated Circuit (IC) card – a plastic card in which one or more integrated circuits are  embedded. Also called chip card.

Interactive voice response (IVR) – a telephony technology that allows a computer to interact with humans through the use of DTMF tones input via a telephone keypad.

Mail Order / Telephone Order (MOTO)  Mail order is a term which describes the buying of goods or services by mail delivery and telephone orders purchased over the telephone.

Multi bank connectivity – allows corporate customers to connect seamlessly with multiple banking partners through a centralised point/service provider such as IP Solutions.

Payment Gateway – to be able to run an eCommerce or mail order business you need a payment gateway. Payment gateways provide the tools to authorise and settle payment transactions between customers, businesses, and banks.

Payment Service Providers (PSP)  – offers merchants online services for accepting electronic payments for a variety of payment methods.

Point of Sale / Point of Purchase (PoS/PoP) – the location where a transaction occurs. Typically refers to the terminal or computer used for a card present purchase.

Processor – a payment processor is a company (often a third party) appointed by a merchant to handle payment card transaction processing for the merchant, including managing settlement of funds to the merchant’s account with the acquiring bank.

Retail funds transfer system – a funds transfer system which handles a large volume of  payments of relatively low value in such forms as cheques, credit transfers, direct debits, ATM and EFTPOS transactions.

Retail payments – all payments which are not included in the  definition of large-value payments. Retail payments are mainly  consumer payments of relatively low value and urgency.

Retailer card – a card issued by non-banking institutions, to be used in specified  stores. The holder of the card has usually been granted a line of credit.

Secure Socket Layer (SSL)  Protocols that enhance security, including capabilities such as encryption, during communication over networks like the Internet.

Register To Events

  • This field is for validation purposes and should be left unchanged.


  • This field is for validation purposes and should be left unchanged.

Write a Reply or Comment

Your email address will not be published. Required fields are marked *