---
title: "Adyen glossary"
description: "This glossary contains general terms used in the payments industry, and should help to demystify the world of payments."
url: "https://docs.adyen.com/get-started-with-adyen/adyen-glossary"
source_url: "https://docs.adyen.com/get-started-with-adyen/adyen-glossary.md"
canonical: "https://docs.adyen.com/get-started-with-adyen/adyen-glossary"
last_modified: "2025-07-24T22:06:00+02:00"
language: "en"
---

# Adyen glossary

This glossary contains general terms used in the payments industry, and should help to demystify the world of payments.

[View source](/get-started-with-adyen/adyen-glossary.md)

## Access Control Server (ACS)

A component within the [3D Secure](/online-payments/3d-secure/) infrastructure, typically operated by the card issuer. It validates the cardholder's identity during authentication, potentially initiating a challenge and returning the authentication result.

## Account Updater

A service that enables merchants to automatically update stored card details of their shoppers. Keeping this data up-to-date may be critical for accepting recurring payments.

Account Updater works by providing information to the acquirer about lost and stolen cards, non-activated cards, and closed card accounts. Visa and Mastercard provide their separate Account Updater solutions, while Adyen's Account Updater connects its customers to both Visa and Mastercard Account Updaters, without the need to formally enroll with the schemes and demonstrate compliance – which is handled by Adyen.

## Acquirer (or Acquiring bank)

An [acquirer](https://www.adyen.com/knowledge-hub/acquiring-bank) is a bank or a financial institute that receives funds for its [merchant](/get-started-with-adyen/adyen-glossary/#merchant) from a [shopper](/get-started-with-adyen/adyen-glossary/#shopper).

To accept [card payments](/get-started-with-adyen/adyen-glossary/#cards-definition), an acquirer should be licensed by corresponding [card networks](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes) and either partner with a [payment processor](/get-started-with-adyen/adyen-glossary/#payment-processor), or be a payment processor itself.

Sometimes, a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) may operate as an acquirer in certain regions (for example, Adyen is eligible to providing acquiring services to its clients in Australia, Brazil, Canada, Europe, Hong Kong, India, Japan, Malaysia, Mexico, New Zealand, Puerto Rico, Singapore, United Arab Emirates, and the United States).

## Acquirer Reference Number (ARN)

In credit card transactions, the Acquirer Reference Number (ARN) is a unique number assigned to a transaction when it goes from the merchant's bank ([acquirer](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank)) through the card scheme at the cardholder's bank ([issuer](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank)).

The ARN can be used to track a payment or [refund](/get-started-with-adyen/adyen-glossary/#refund-definition). Shoppers can contact their banks to do so and the banks can then use the ARN to track the payment or refund. Merchants can retrieve the ARN from the [Customer Area](/get-started-with-adyen/adyen-glossary/#customer-area-ca) or the shopper's bank.

## Adyen account

A [merchant](/get-started-with-adyen/adyen-glossary/#merchant) who wants to use Adyen as a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) needs to sign up for an Adyen account. After this account is approved, it gives merchants access to Adyen's payment services, which can be managed and customized using the [Customer Area](/get-started-with-adyen/adyen-glossary/#customer-area-ca) interface or the [Adyen API](/get-started-with-adyen/adyen-glossary/#application-programming-interface-api).

Adyen accounts have two levels: company and merchant. A company account determines the global settings for the company, while merchant sub-accounts detail specific settings for each merchant.

Initially an Adyen account operates in test mode, allowing merchants to run test payments and safely implement all integrations with the Adyen payments platform. After successfully passing all integration tests, the Adyen account can be switched to live mode to accept real-time [omnichannel payments](/get-started-with-adyen/adyen-glossary/#omnichannel-payment-solution).

## Adyen payments platform

Adyen's [PSP](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) service and [acquiring host](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank). Your integration connects to the Adyen payments platform to obtain [authorizations](/get-started-with-adyen/adyen-glossary/#authorization) and submit capture data. Processes like [DCR](/get-started-with-adyen/adyen-glossary/#digital-customer-recognition-dcr) as well as [DCC](/get-started-with-adyen/adyen-glossary/#dynamic-currency-conversion-dcc-or-cardholder-preferred-currency-cpc) are controlled in the Adyen payments platform. In [point of sale](/get-started-with-adyen/adyen-glossary/#point-of-sale-pos) (in-person payments), the [payment terminals](/get-started-with-adyen/adyen-glossary/#point-of-sale-terminal-or-payment-terminal-pin-entry-device-ped-process-data-quickly-pdq) connect to the Adyen payments platform to register itself and the [payment terminals](/get-started-with-adyen/adyen-glossary/#point-of-sale-terminal-or-payment-terminal-pin-entry-device-ped-process-data-quickly-pdq) in the [Customer Area (CA)](/get-started-with-adyen/adyen-glossary/#customer-area-ca). The [payment terminal](/get-started-with-adyen/adyen-glossary/#point-of-sale-terminal-or-payment-terminal-pin-entry-device-ped-process-data-quickly-pdq) and account configuration is done here.

## Adyen POS Application

In combination with a [classic library](/get-started-with-adyen/adyen-glossary/#adyen-pos-library) (Adyen POS Library), acts as a hardware driver that also facilitates [transactions](/get-started-with-adyen/adyen-glossary/#transaction-or-tx). The application can be connected to the merchant's POS app through a simple interface. The Adyen POS application and libraries are replaced by [Terminal API](/point-of-sale/design-your-integration/terminal-api).

## Adyen POS Library

A classic library integration for the point of sale provides [payment](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments) functionality to the merchant's POS app.

Adyen POS libraries are replaced by [Terminal API](/point-of-sale/design-your-integration/terminal-api).

## Aggregator merchant

Aggregator merchants are intermediaries between [merchants](#merchant) and an [acquirer](#acquirer-or-acquiring-bank). They are contracted by an acquirer to perform all or some of the following actions on behalf of the acquirer:

* Onboard merchants.
* Process transactions under an aggregated identifier.\
  In this case, the merchant interacts with the aggregator instead of the acquirer.
* Settle transactions and ensure payouts to the merchants.

The following are types of aggregators:

* Bill payment providers
* Digital Wallet operators
* Marketplaces
* Payment facilitators

## Application Programming Interface (API)

API stands for Application Programming Interface. This is a general term for programming techniques that are available for software developers when they integrate with a particular service or application. These techniques vary on the software type and may include web API, remote API, SDKs, libraries, frameworks, and much more.

In the payments industry, APIs are usually provided by any party participating in the money flow (e.g. [payment gateways](/get-started-with-adyen/adyen-glossary/#payment-gateway), [processors](/get-started-with-adyen/adyen-glossary/#payment-processor), [service providers](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp)) to facilitate the money transferring process. Adyen uses the most reliable and secure API, allowing its merchants to integrate with Adyen services using [Client-Side Encryption](/online-payments/classic-integrations/classic-api-integration/client-side-encryption), Hosted Payment Pages, and other modern techniques.

## Authentication

The process of verifying the identity of the person making the transaction, ensuring they are the legitimate account holder. Distinct from [authorization](/account/payments-lifecycle/#authorised). Methods include [3D Secure](/online-payments/3d-secure/), PIN entry, or biometric checks.

## Authentication response (ares)

The response message from the Directory Server or ACS in the [3D Secure 2](/online-payments/3d-secure/) flow. It contains the outcome of the authentication attempt such as success, failure, or challenge required.

## Authentication request (AReq)

The initial message in the [3D Secure 2](/online-payments/3d-secure/) flow. It contains transaction details and device/browser data used to assess risk and determine if authentication requires a frictionless flow or a shopper challenge.

## Authorization

Authorization is the process of the [card issuer](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) (like Visa or Mastercard) verifying payment details and reserving the funds to [capture](/get-started-with-adyen/adyen-glossary/#capture-or-clearing-and-settlement) it later.

In [ecommerce](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments), [in-app](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments) and [point-of-sale](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments) payments, authorization is implemented as an [API call](/get-started-with-adyen/adyen-glossary/#application-programming-interface-api) to the [payment gateway](/get-started-with-adyen/adyen-glossary/#payment-gateway). The gateway and [payment processor](/get-started-with-adyen/adyen-glossary/#payment-processor) then perform required validation and [risk checks](/risk-management/configure-standard-risk-rules), and ask a corresponding [card network](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes) to authorize the payment from an issuer to an acquirer.

When a payment was authorized but hasn't been captured yet, a merchant can also decide to [cancel](/get-started-with-adyen/adyen-glossary/#cancel-a-payment) it for some reason (like a high risk of [fraud](/get-started-with-adyen/adyen-glossary/#fraud)).

Authorization is valid only for a limited amount of time. In case an authorized payment hasn't been captured or cancelled, it expires after the predefined deadline is missed. See [Payment lifecycle](/account/payments-lifecycle/#authorised).

Adyen API endpoints and parameters use the British spelling "authorise" and "authorisation".

## Bank Identification Number (BIN)

The first six to eight digits of the [card number](/get-started-with-adyen/adyen-glossary/#card-number-pan) are called as the Bank Identification Number (BIN) or Issuer Identification Number (IIN). There is no direct way to know if a card number contains a six or an eight-digit BIN.

If you have business logic based on BIN values, you can either:

* Use fields from the API response to get the information you need.
* Check against the BIN ranges from card networks, if you handle raw card data.

The BIN can be used to determine the:

* [Card network](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes).
* [Financial institution that issued the card](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank).

The BIN cannot be used to determine:

* The card type, for example credit or debit card.
* The country/region where the card was issued.

## Cancel a payment

An [authorized](/get-started-with-adyen/adyen-glossary/#authorization) payment can be either [captured](/get-started-with-adyen/adyen-glossary/#capture-or-clearing-and-settlement) (where funds are sent to a [merchant](/get-started-with-adyen/adyen-glossary/#merchant)'s account) or cancelled (where a merchant decides to reject the payment for some reason like a high risk of [fraud](/get-started-with-adyen/adyen-glossary/#fraud)).

Note that canceling a payment is not possible for transactions that have already been captured. In this case the merchant should initiate a [refund](/get-started-with-adyen/adyen-glossary/#refund-definition) to send funds back to a shopper. Captures, cancels, and refunds together are called [modifications](/get-started-with-adyen/adyen-glossary/#payment-modifications-definition), because they *modify* the state of an authorized payment request.

## Capability

A specific function or permission granted to an [account holder](/platforms/manage-account-holders), such as the ability to receive payments (`receivePayments`), send payouts (`sendPayouts`), or use Adyen Issuing. Capabilities are requested and managed via the Balance Platform API. See: [Account capabilities](/marketplaces/verification-overview/capabilities/)

## Capture (or Clearing and settlement)

A payment that has been [authorized](/get-started-with-adyen/adyen-glossary/#authorization) by the [payment processor](/get-started-with-adyen/adyen-glossary/#payment-processor) must be captured to be completed. Capturing is the act of transferring the reserved funds from the [shopper](/get-started-with-adyen/adyen-glossary/#shopper) to the [merchant](/get-started-with-adyen/adyen-glossary/#merchant).

By default, payments are captured automatically, immediately after authorization.

Many payment methods support separate authorization and capture. This means you can:

* Set up a capture delay.
* Capture payments manually (both in the [Customer Area](/get-started-with-adyen/adyen-glossary/#customer-area-ca) and using [API calls](/get-started-with-adyen/adyen-glossary/#application-programming-interface-api).
* Perform partial captures.
* [Cancel](/get-started-with-adyen/adyen-glossary/#cancel-a-payment) an authorization.

Captures, cancels, and [refunds](/get-started-with-adyen/adyen-glossary/#refund-definition) together are called [modifications](/get-started-with-adyen/adyen-glossary/#payment-modifications-definition), because they *modify* the state of an authorized payment request.

## Card networks (or Card schemes)

Payment networks that set rules and provide infrastructure to [issue cards](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) and process payments made with [cards](/get-started-with-adyen/adyen-glossary/#cards-definition). For a payment to be made, both an issuer and an acquirer must be members of the same network as the card. Examples of some popular card networks are Visa, Mastercard, American Express, and China UnionPay.

Card schemes charge [fees](/get-started-with-adyen/adyen-glossary/#scheme-fee) for processing payments, and also regulate the value of the [interchange fee](/get-started-with-adyen/adyen-glossary/#interchange-fee), which depends on many factors for each specific payment.

## Card Not Present (CNP)

A [payment transaction](/get-started-with-adyen/adyen-glossary/#transaction-or-tx) made with a [card](/get-started-with-adyen/adyen-glossary/#cards-definition), where the shopper cannot physically present the card to the merchant at the time of the transaction. Examples of CNP transactions include [online payments](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments), [in-app payments](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments), and [MOTO transactions](/get-started-with-adyen/adyen-glossary/#mail-ordertelephone-order-moto).

CNP transactions are a common target for [card fraud](/get-started-with-adyen/adyen-glossary/#fraud), because it is difficult for the merchant to verify that it is the actual cardholder making the purchase. To reduce the risk of card fraud arising from CNP, use [3D Secure](/online-payments/3d-secure/redirect-3ds2) and [AVS](/risk-management/configure-manual-risk/standard-risk-rules#consistency-rules) features.

## Card number (PAN)

Every [payment card](/get-started-with-adyen/adyen-glossary/#cards-definition) (be it a debit, credit, gift, or a similar card) has a unique number associated with it. This number is usually printed on the card and required to uniquely identify this card and to refer to it in every transaction.

The whole card number is called Primary Account Number (PAN), and the first six or eight digits of it are also called the [Bank Identification Number](/get-started-with-adyen/adyen-glossary/#bank-identification-number-bin) (BIN).

Also, a card may contain a [card security code](/get-started-with-adyen/adyen-glossary/#card-security-code-cvc-cvv-cid), which, along with the card number, can be used in [card-not-present](/get-started-with-adyen/adyen-glossary/#card-not-present-cnp) transactions.

## Card on File (CoF)

When [card details](/get-started-with-adyen/adyen-glossary/#cards-definition) are stored to streamline the checkout process for returning customers. This can be used for [one-click payments](/get-started-with-adyen/adyen-glossary/#one-click-payments-definition), pay-per use services, or any [recurring payment](/get-started-with-adyen/adyen-glossary/#recurring-payments-definition) that does not follow a fixed schedule.

A recurring payment that occurs on a fixed schedule is referred to as a [subscription](/get-started-with-adyen/adyen-glossary/#subscriptions).

If a merchant is [PCI-Compliant at Level 1/Level 2](/get-started-with-adyen/adyen-glossary/#pci-compliance), they can store card details by themselves. Otherwise, they must store card details using a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) like Adyen.

## Card security code (CVC, CVV, CID)

The 3- or 4-digit numeric code that is printed on a [card](/get-started-with-adyen/adyen-glossary/#cards-definition) in addition to the [card number](/get-started-with-adyen/adyen-glossary/#card-number-pan). The security code is used in [card-not-present transactions](/get-started-with-adyen/adyen-glossary/#card-not-present-cnp) to verify the identity of a [cardholder](/get-started-with-adyen/adyen-glossary/#cardholder).

This code may have different names, for instance:

* Visa: Card Verification Value (CVV, CVV2)
* Mastercard: Card Validation Code (CVC, CVC2)
* Amex and Discover: Unique Card Code (CID)

The security code is an example of [Sensitive Authentication Data](/get-started-with-adyen/adyen-glossary/#sensitive-authentication-data), and as such in scope of [PCI DSS compliance restrictions](/get-started-with-adyen/adyen-glossary/#pci-compliance)

## Cardholder

A [shopper](/get-started-with-adyen/adyen-glossary/#shopper) who uses a [card](/get-started-with-adyen/adyen-glossary/#cards-definition) issued by a [bank](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) to make cashless payments to a [merchant](/get-started-with-adyen/adyen-glossary/#merchant).

## Cardholder Verification Method (CVM)

Type of verification method used to confirm a payment instrument, such as a [credit card](/get-started-with-adyen/adyen-glossary/#cards-definition), being used in a purchase is in the possession of its [owner](/get-started-with-adyen/adyen-glossary/#cardholder).

## Cards

Plastic cards issued by [shoppers' banks](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) to enable cashless payments either [on a point of sale](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments), via an [ecommerce website](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments), or inside a [mobile application](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments). Cards may be debit, credit or prepaid, and are usually operated by [card networks](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes). Sometimes cards may be linked to ewallets or other [local payment methods](/get-started-with-adyen/adyen-glossary/#local-payment-methods-or-alternative-payment-methods), but most commonly they are used to withdraw cash or make cashless payments.

A typical card contains a [card number](/get-started-with-adyen/adyen-glossary/#card-number-pan), which uniquely identifies a card. It also contains a [security code](/get-started-with-adyen/adyen-glossary/#card-security-code-cvc-cvv-cid), used in combination with other information (a card expiry date and [cardholder](/get-started-with-adyen/adyen-glossary/#cardholder) name) to verify [card-not-present payments](/get-started-with-adyen/adyen-glossary/#card-not-present-cnp) (for example, when paying for goods or services on a [ecommerce website](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments) or inside a [mobile application](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments)).

## Challenge request (creq)

The message sent to the issuer's ACS from the cardholder's device during a [3D Secure 2](/online-payments/3d-secure/) challenge flow. It contains data necessary for the ACS to present the challenge to the cardholder.

## Challenge response (cres)

The message sent from the ACS to the cardholder's device after the shopper completes or fails a [3D Secure 2](/online-payments/3d-secure/) challenge. It contains the final status (`transStatus`) of the challenge interaction.

## Chargeback

A [shopper](/get-started-with-adyen/adyen-glossary/#shopper)'s request to their [issuer](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) to return funds paid to a [merchant](/get-started-with-adyen/adyen-glossary/#merchant). Typically, chargebacks occur after the merchant has refused a [refund](/get-started-with-adyen/adyen-glossary/#refund-definition).

After a chargeback is initiated, the merchant can [dispute](/get-started-with-adyen/adyen-glossary/#dispute) it in some cases. If a dispute is allowed, the merchant should provide all necessary documents to either the [acquiring bank](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank), or to the [payment processor](/get-started-with-adyen/adyen-glossary/#payment-processor).

When possible, Adyen helps its merchants to automatically dispute chargebacks, and also provides extensive ([risk management](/get-started-with-adyen/adyen-glossary/#risk-management)) services to analyze [fraudulent transactions](/get-started-with-adyen/adyen-glossary/#fraud) and minimize chargebacks.

## Contactless or Near Field Communication (NFC)

Contactless payments allow your [shoppers](/get-started-with-adyen/adyen-glossary/#shopper) to make payments without inserting or [swiping](/get-started-with-adyen/adyen-glossary/#magnetic-stripe-reader-msrswipe) their card. In the context of [POS](/get-started-with-adyen/adyen-glossary/#point-of-sale-pos), NFC is the technology used in contactless payments. Apple Pay, Google Pay and Samsung Pay all use the standard NFC protocol and are therefore accepted. These payment methods are considered strongly authenticated and therefore support high-volume transactions.

## ContAuth (Continuous Authorization)

A value used in the [shopperInteraction](https://docs.adyen.com/api-explorer/Checkout/latest/post/sessions#request-shopperInteraction) parameter of a payment request. **ContAuth** indicates that you initiated the payment on behalf of a shopper, using stored payment details from a previous transaction. This is also known as a **merchant-initiated transaction (MIT)**. Learn more at [Tokenization for Recurring Payments](/online-payments/tokenization/).

## Cross-border payment

When a payment method issued in one country/region is used to make a purchase from a merchant based in another country/region. This is also referred to as an "international payment".

Adyen makes it easy for you to accept and settle payments from more than 70 different countries/regions. For more information on cross-border payments, see our [Cross-border payments guide](https://www.adyen.com/knowledge-hub/cross-border-payments).

## Customer Area (CA)

A cloud-based web interface, that can be accessed by [merchants](/get-started-with-adyen/adyen-glossary/#merchant) with an active [Adyen account](/get-started-with-adyen/adyen-glossary/#adyen-account). The Customer Area allows merchants to manage users, submit and obtain data required to integrate with the Adyen payments platform, view and download comprehensive reports on all the payments, and much more.

The endpoints for accessing the Customer Area interface are different for test and live Adyen accounts.

## Digital Customer Recognition (DCR)

Used to identify [customers](/get-started-with-adyen/adyen-glossary/#shopper) who have shopped with the merchant previously across channels. Can be used for [loyalty programs](/get-started-with-adyen/adyen-glossary/#loyalty-program).

## Dispute

When a [shopper](/get-started-with-adyen/adyen-glossary/#shopper) for some reason wants funds returned from a [merchant](/get-started-with-adyen/adyen-glossary/#merchant), and a payment was already [captured](/get-started-with-adyen/adyen-glossary/#capture-or-clearing-and-settlement), the shopper can initiate a [refund](/get-started-with-adyen/adyen-glossary/#refund-definition). If the merchant refuses, the shopper may ask their [issuer](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) to make a chargeback. If a merchant disagrees, they can dispute the chargeback.

If disputing a chargeback is allowed (for more information, see [Payment methods](/payment-methods)), the merchant must provide documents confirming the delivery of a product/service, and send these documents either to the [acquiring bank](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank) or the [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp).

When possible, Adyen helps its merchants to automatically dispute chargebacks, and also provides extensive risk management services ([Risk management](/risk-management)) to analyze [fraudulent transactions](/get-started-with-adyen/adyen-glossary/#fraud) and minimize chargebacks.

## Doing Business As (DBA)

The name a company uses to conduct business, which can differ from its registered legal entity name. Providing the DBA can be necessary for [KYC verification](/platforms/verification-requirements/required-kyc-information) and ensuring an accurate descriptor displays on customer statements.

## Dual Message System (DMS)

A transaction processing model, standard for most credit card transactions, involving two distinct message stages. The first message handles the real-time [authorization](/account/payments-lifecycle/#authorised), and the second message, sent later in a batch process, handles the clearing and settlement of funds.

## Dynamic Currency Conversion (DCC) or Cardholder Preferred Currency (CPC)

Allows shoppers to convert the [transaction](/get-started-with-adyen/adyen-glossary/#transaction-or-tx) amount to their card's default currency when making a payment abroad.

The shopper is presented with the choice to convert the [transaction](/get-started-with-adyen/adyen-glossary/#transaction-or-tx) amount, when the [transaction](/get-started-with-adyen/adyen-glossary/#transaction-or-tx) is in a currency other than the default configured on the card and the terminal has been configured to allow DCC.

Full details on the exchange rate are provided to the shopper on the terminal to allow an informed decision, and simultaneously to the [POS app](/get-started-with-adyen/adyen-glossary/#pos-app) for merchant information.

The shopper either accepts or rejects the DCC offer and proceeds with the selected amount and currency. If the shopper chooses DCC, related information is shown on the receipt.

Shoppers can immediately understand the full amount charged for the [transaction](/get-started-with-adyen/adyen-glossary/#transaction-or-tx) in a familiar currency.

## Ecommerce payments (or Online payments)

Payments made by [shoppers](/get-started-with-adyen/adyen-glossary/#shopper) via electronic commerce (like websites, webshops, social networks) for either goods or services provided by [merchants](/get-started-with-adyen/adyen-glossary/#merchant). These payments are usually made using [cards](/get-started-with-adyen/adyen-glossary/#cards-definition) or [local payment methods](/get-started-with-adyen/adyen-glossary/#local-payment-methods-or-alternative-payment-methods) that have been optimized for ecommerce.

Other types of electronic payments are [in-app payments](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments) and [point-of-sale payments](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments). Merchants usually require a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) to process these payments. Adyen allows its merchants to accept [omnichannel payments](/get-started-with-adyen/adyen-glossary/#omnichannel-payment-solution) (ecommerce, in app, and in store).

## Europay, Mastercard, Visa (EMV)

A global standard for [integrated circuit cards](/get-started-with-adyen/adyen-glossary/#integrated-circuit-card-iccchip) (ICC).

## Floor Limit

Floor Limit is the maximum cash value the terminal allows for a transaction when processed offline. An inclusive limit is configured which applies to each individual transaction. If the amount of the transaction is below the configured Floor Limit and the terminal can not connect to the Adyen host for authorization the terminal will leave the decision up to the card to approve or decline the transaction. Debit cards will typically decline a transaction while most credit cards are configured to approve a relatively small amount offline.

## Fraud

In payments, this means that there was an attempted transaction made by a criminal. The target of a fraud can either be a [merchant](/get-started-with-adyen/adyen-glossary/#merchant) or a [shopper](/get-started-with-adyen/adyen-glossary/#shopper) (depending on the approach of the fraudster).

Fraud defense is an important part of the payment process and is a service that can be provided by the [payment provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) – as Adyen does with [risk management](/risk-management).

## Gross Payment Volume (GPV)

The total value of all payments successfully processed across the Adyen platform for a merchant or platform within a defined period. This metric is calculated before deducting interchange fees, scheme fees, chargebacks, or refunds and is a key indicator used tax reporting such as 1099-K forms.

## Hosted Onboarding

A user interface, provided by Adyen, designed to securely collect required Know Your Customer (KYC) information directly from users. It simplifies data gathering for platforms and guides users through their onboarding journey. See: [Hosted Onboarding](/platforms/onboard-users/#hosted-onboarding)

## In-app payments (or Mobile payments)

Electronic payments made by [shoppers](/get-started-with-adyen/adyen-glossary/#shopper) via mobile apps. These payments are usually made with [cards](/get-started-with-adyen/adyen-glossary/#cards-definition) or [local payment methods](/get-started-with-adyen/adyen-glossary/#local-payment-methods-or-alternative-payment-methods), and utilize either native mobile [APIs](/get-started-with-adyen/adyen-glossary/#application-programming-interface-api) or web pages optimized for mobile (also called as *mobile web*).

Other types of electronic payments include [ecommerce payments](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments) and [point-of-sale payments](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments), which are based on similar infrastructure and usually require a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) for merchants to automate and maintain these payments. Adyen allows its merchants to accept [omnichannel payments](/get-started-with-adyen/adyen-glossary/#omnichannel-payment-solution) (ecommerce, in app and in store).

## Integrated Circuit Card (ICC)/Chip

In the context of payments, an [EMV credit card](/get-started-with-adyen/adyen-glossary/#europay-mastercard-visa-emv) with an embedded chip which is used to hold card information.

## Interchange fee

A fee that is paid to the [issuer](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) by the [acquirer](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank) for each payment transaction made via a [card network](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes). The interchange fee amount is determined by the corresponding card network, as well as the [scheme fee](/get-started-with-adyen/adyen-glossary/#scheme-fee).

A further fee is then deducted from the total by the acquirer before paying into the [merchant](/get-started-with-adyen/adyen-glossary/#merchant)'s account.

## Issuer (or Issuing bank)

A bank that *issued* a card for a [shopper](/get-started-with-adyen/adyen-glossary/#shopper) to make cashless payments via an [ecommerce website](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments), [inside a mobile app](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments), or [in a physical store](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments). To be able to issue a card, an issuer must be a member of one or several [card networks](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes), or subscribe to one of the card services (for instance, [ICS](https://www.icscards.nl)).

Sometimes a shopper's bank is referred to as an *issuer* even if there is no card issued. This is to distinguish between a shopper's bank, which sends funds, and a merchant's bank, which [acquires funds](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank).

## Know Your Customer (KYC)

Know Your Customer (KYC) is the process of identifying and verifying the identity of your [customers](/get-started-with-adyen/adyen-glossary/#shopper). This is required by the payment industry regulations as a prerequisite to allow individuals or business entities being [paid out](/get-started-with-adyen/adyen-glossary/#payout).

With [Adyen for Platforms](/platforms) and [Issuing](/issuing), you do not need to manually perform KYC checks for your customers. Instead, you send the collected KYC data to Adyen, and we automatically conduct required verification.

## Legal entity

An API resource that describes an individual or an organization on your Balance Platform. It contains information about your user, for example, the legal name, address, and tax information of the individual or organization. Adyen uses this information to perform verification checks as required by payment industry regulations.

## Local payment methods (or Alternative payment methods)

Payment methods that allow [merchants](/get-started-with-adyen/adyen-glossary/#merchant) to accept [ecommerce](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments) and [in-app payments](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments) without use of [cards](/get-started-with-adyen/adyen-glossary/#cards-definition). These methods include bank transfers, direct debit, e-wallets, mobile payments and so on.

For merchants that want to sell goods and services globally to [shoppers](/get-started-with-adyen/adyen-glossary/#shopper) from all over the world, it is important to support local payment methods that are popular in each specific region.

With Adyen, merchants have access to [all the key local payment methods](https://www.adyen.com/payment-methods) already via Adyen's unified payments platform. For a list of these payment methods, see [Payment Methods](/payment-methods).

## Loyalty program

A rewards program offered by a company to customers who frequently make purchases. Use Adyen's shopper recognition features to implement loyalty programs and further enhance the overall shopping experience of your loyal shoppers, while improving customer retention.

## Magnetic Stripe Reader (MSR)/Swipe

Device that reads card data from the magnetic stripe on the reverse of the card.

## Mail Order/Telephone Order (MOTO)

A [card-not-present transaction](/get-started-with-adyen/adyen-glossary/#card-not-present-cnp), where the payment details are presented to a [merchant](/get-started-with-adyen/adyen-glossary/#merchant) by a [shopper](/get-started-with-adyen/adyen-glossary/#shopper) by means of mail (not email), fax, or telephone.

MOTO transactions are typically carried out offline: instead of entering payment details on an online payment form, shoppers make a call to a call center or send a coupon/voucher to communicate their credit card number.

With the Adyen MOTO features, you can integrate your webshop payments with your call center payments, and enjoy unified reporting covering both transaction flows.

## Manual Keyed Entry (MKE)/Keyed

Manual key entry involves manually typing the details from a customer's card into either the POS app or the [payment terminal](/get-started-with-adyen/adyen-glossary/#point-of-sale-terminal-or-payment-terminal-pin-entry-device-ped-process-data-quickly-pdq).

## Marketplace

An [ecommerce website](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments) or a [mobile app](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments) that enables third parties (referred to as sub-merchants) to provide their products or services to the users of a platform. Payments are processed through the platform and split between the marketplace and sub-merchant. Examples of online marketplaces are crowdfunding platforms, peer-to-peer marketplaces, ride sharing services, and so on.

Marketplaces need to implement sub-merchant onboarding, processing payments, performing [KYC verification](/get-started-with-adyen/adyen-glossary/#know-your-customer-kyc), and [making payouts](/get-started-with-adyen/adyen-glossary/#payout). With Adyen, you can benefit from using [Platforms](/platforms) – a fully compliant end-to-end payment solution that enables you to do this, and maintain control over the frontend and user experience. See: [Marketplaces](/marketplaces/)

## Merchant

The party selling goods or services to [shoppers](/get-started-with-adyen/adyen-glossary/#shopper) via an [ecommerce website](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments), a [mobile app](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments), [on a point of sale](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments), or across [all three channels](/get-started-with-adyen/adyen-glossary/#omnichannel-payment-solution). To accept payments made with [cards](/get-started-with-adyen/adyen-glossary/#cards-definition) or [local payment methods](/get-started-with-adyen/adyen-glossary/#local-payment-methods-or-alternative-payment-methods), a merchant must have an [acquiring bank](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank) account and subscribe to the services available from the [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp).

## Merchant back-end

When the [POS app](/get-started-with-adyen/adyen-glossary/#pos-app) (cash register) has performed product selection and totaled the amount, the order is typically stored in the merchant back-end. The outcome of the payment process will be stored with the order.

Refunds for existing orders are communicated from the POS app to the merchant back-end where an API call to theAdyen payments platform is made to perform the refund. The merchant back-end receives webhooks from the Adyen payments platform.

## Merchant Category Code

While the International Organization for Standardization (ISO) maintains MCCs, the card schemes may modify them. For descriptions of the different MCCs, see:

* [Visa's merchant data standards](https://usa.visa.com/content/dam/VCOM/download/merchants/visa-merchant-data-standards-manual.pdf).
* [Mastercard's reference booklet](https://www.mastercard.us/en-us/business/overview/support/rules.html).

## Merchant of Record (MoR)

Responsibilities of an MoR include:

* Managing all [transactions](#transaction-or-tx), [refunds](#refund-definition), [cancellations](#cancel-a-payment), and [disputes](#dispute).
* Providing the first line of customer support for [shoppers](#shopper).
* Acting as the final arbiter of [financial disputes](#dispute).
* Monitoring to ensure that no [illegal, prohibited, or counterfeit products or services](https://www.adyen.com/legal/list-restricted-prohibited) are sold.

## No CVM (Cardholder Verification Method)

A transaction where there is no owner verification check for a credit card. No CVM payments have a low transaction threshold.

## Offline Enciphered

A cardholder verification method [CVM](/get-started-with-adyen/adyen-glossary/#cardholder-verification-method-cvm) that verifies the cardholder's PIN by encrypting the entered PIN before sending it to the card.

Terminals that support this method must also support the less secure Offline plain-text PIN method.

## Offline PIN

A cardholder verification method (CVM) for cards that is stored on the card's chip. Sometimes, the PIN entered by the shopper is verified against data on the card's chip itself, without needing real-time connection to the bank.

## Offline processing

Adyen [payment terminals](/get-started-with-adyen/adyen-glossary/#point-of-sale-terminal-or-payment-terminal-pin-entry-device-ped-process-data-quickly-pdq) process transactions online by default. Offline processing is optional and requires configuration.

## Offline transaction

Offline acceptance of payments in situations where no network connection is currently available. Debit cards will typically decline a transaction while most credit cards are configured to approve a relatively small amount offline.

## Omnichannel payment solution

A set of services and technical solutions provided by a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp), which allow a [merchant](/get-started-with-adyen/adyen-glossary/#merchant) to accept cashless payments across all channels ([online](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments), [inside a mobile app](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments) or on a [point of sale](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments)).

Most [PSPs](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) enable merchants to accept payments via specific channels only. Adyen is the only PSP that provides a true omnichannel solution for its customers. This gives merchants a single reporting dashboard from which to view all purchases made across different channels.

## One-click payments

Simplifies the purchasing process for [returning shoppers](/get-started-with-adyen/adyen-glossary/#recurring-payments-definition) by allowing them to make a payment without entering their full card and address information. By enabling one-click payments, the shopper's details are stored during the first payment. For each successive payment the shopper only needs to enter their [card security code](/get-started-with-adyen/adyen-glossary/#card-security-code-cvc-cvv-cid) (CVC/CVV) to complete the order.

One-click has the advantage of ensuring the full card authorization takes place for each payment, including [card security code](/get-started-with-adyen/adyen-glossary/#card-security-code-cvc-cvv-cid) checks and [3D Secure](/online-payments/3d-secure/redirect-3ds2), if applicable. The potential disadvantage is that the shopper must be present for all payments to supply their card security code.

## Online PIN

A Card Verification Method (CVM) for cards that is stored at the issuing bank. During authorization, the PIN entered by the shopper is verified in real-time with the card issuing bank. The entered PIN is encrypted before it is sent.

Online PIN is used when the specific card scheme (payment method) and specific card support it.

## Out of band authorization (OOB)

An authentication method where verification happens on a separate, trusted channel. For example: confirming a transaction via a banking app notification on a registered smartphone.

## Overcapture

[Capture](/get-started-with-adyen/adyen-glossary/#capture-or-clearing-and-settlement) payments with an amount that is higher than the authorized amount.

Card schemes usually allow overcapture only for a certain percentage and only for specific types of businesses.\
An alternative is to [adjust the authorized amount before capture](/online-payments/adjust-authorisation).

## Party screening

An essential component of the Know Your Customer (KYC) process. It involves checking individuals and entities associated with an account against global sanctions lists, Politically Exposed Persons (PEP) databases, and adverse media sources to comply with anti-money laundering regulations.

## Payment conversion rate

The payment conversion rate is Adyen's key metric on payment success, capturing optimization performance across the full payments funnel. The payment conversion rate is calculated by taking the number of authorized transactions, divided by the number of initiated transactions, shown as a percentage.

## Payment facilitator (payfac)

A payment facilitator is an entity that is authorized to onboard merchants to an [acquirer's](#acquirer-or-acquiring-bank) platform and receive settlement funds for them on behalf of an acquirer. Payfacs are a type of [aggregator merchant](#aggregator-merchant). Payment facilitators can perform all the of the following actions:

* Onboard merchants on behalf of an acquirer.\
  Merchants onboarded by a payfac are called "[sub-merchants](#submerchant)".
* Process transactions for sub-merchants with the card schemes.
* Receive settlement funds from the acquirer and pay out sub-merchants.\
  A payfac simplifies onboarding but assumes primary liability for transactions and regulatory compliance related to its sub-merchants. See: [Payment Facilitators](/platforms/online-payments/payment-facilitators/)

## Payment gateway

A service that helps [merchants](/get-started-with-adyen/adyen-glossary/#merchant) to initiate [online](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments), [in-app](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments) and [in-person](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-store-payments) payments. It is not directly involved in the money flow; typically, it is a web server to which a merchant's website or a POS system is connected.

A payment gateway can be provided by a bank, or can exist as a separate service that connects to one or more [payment processors](/get-started-with-adyen/adyen-glossary/#payment-processor). Adyen combines the functions both of a payment gateway and a payment processor, as well as a [risk management system](/risk-management) and an [acquirer](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank). This makes Adyen a full-stack [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp).

## Payment modifications

An [authorized](/get-started-with-adyen/adyen-glossary/#authorization) payment can be either [captured](/get-started-with-adyen/adyen-glossary/#capture-or-clearing-and-settlement) or [canceled](/get-started-with-adyen/adyen-glossary/#cancel-a-payment). If a payment has been already captured, it can be also [refunded](/get-started-with-adyen/adyen-glossary/#refund-definition) later. Capture, cancel, and refund actions are called modifications, because they *modify* the state of a payment.

Modifications can be done either manually (through the [Customer Area](/get-started-with-adyen/adyen-glossary/#customer-area-ca) interface), or automatically (using the Adyen payments platform [API](/get-started-with-adyen/adyen-glossary/#application-programming-interface-api)). If an API call is made, the [merchant](/get-started-with-adyen/adyen-glossary/#merchant) receives an acknowledgement in the response. After Adyen processes the payment modification, Adyen sends the result asynchronously through [webhooks](/development-resources/webhooks).

## Payment processor

A system that connects to a [shopper's bank](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank) and a [merchant's bank](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank) in order to make a payment transaction on behalf of a [merchant](/get-started-with-adyen/adyen-glossary/#merchant). Usually, a payment processor obtains the payment information from a [payment gateway](/get-started-with-adyen/adyen-glossary/#payment-gateway).

Adyen combines the functionality of a payment gateway and payment processor, as well as risk management and acquirer. As such it is a full-stack [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp).

## Payment Service Provider (PSP)

A company, which combines the functions of both a [payment gateway](/get-started-with-adyen/adyen-glossary/#payment-gateway) and a [payment processor](/get-started-with-adyen/adyen-glossary/#payment-processor), can connect to multiple acquiring and payment networks. Additionally it can be an [acquirer](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank) and provide [risk assessments](/risk-management) and other financial services.

For merchants, it is often cheaper and more convenient to use services of a PSP, rather than have different contracts with various payment gateways, processors and acquiring banks.

Adyen not only operates as a full-stack Payment Service Provider, but also gives its customers a true [omnichannel solution](/get-started-with-adyen/adyen-glossary/#omnichannel-payment-solution) to accept payments anywhere in the world.

## Payment Services Directive Two (PSD2)

A regulation affecting payment services and providers in the European Economic Area (EEA). Key impacts include mandating [Strong Customer Authentication (SCA)](/online-payments/psd2-sca-compliance-and-implementation-guide/) for enhanced security and enabling secure third-party access to account information.

## Payment terminal (or POS terminal, pin entry device (PED))

A device that communicates with a shopper's [card](/get-started-with-adyen/adyen-glossary/#cards-definition) at the [point of sale](/get-started-with-adyen/adyen-glossary/#point-of-sale-pos). Usually, a card is tapped, dipped (inserted), or swiped at a payment terminal. The terminal then prompts the [shopper](/get-started-with-adyen/adyen-glossary/#shopper) to enter a PIN or sign (depending on the country/region, card type, and the transaction amount). It is sometimes referred to as a Pin Entry Device (PED).

Adyen refers to the payment terminal as "the terminal". The terminal accepts an API request to start a transaction. The terminal displays the amount charged to the shopper and allows printing of a receipt. It will also offer [DCC](/get-started-with-adyen/adyen-glossary/#dynamic-currency-conversion-dcc-or-cardholder-preferred-currency-cpc) if applicable. Once an authorization is obtained, the resulting data is sent to the Adyen payments platform for further processing. The receipt is sent with this data and you can see it in the [Customer Area](https://ca-live.adyen.com/).

Adyen uses various types of terminals, optimized for integration with the [Adyen payments platform](/get-started-with-adyen/adyen-glossary/#adyen-payments-platform).

## Payout

This term has multiple definitions in the payments industry and in general means a large amount of money paid at once to either an individual or a business entity. For example, an [online marketplace](/get-started-with-adyen/adyen-glossary/#marketplace) transmits a payout to their sub-merchants for the products/services they provide to the marketplace customers.

## PCI compliance

Being PCI DSS-compliant means that you meet all applicable requirements of the current [Payment Card Industry Data Security Standard (PCI DSS)](https://www.pcisecuritystandards.org/) on a continuous basis. PCI DSS was created by major [card networks](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes) to increase safety of [cardholder](/get-started-with-adyen/adyen-glossary/#cardholder) data and reduce the risk of [fraud](/get-started-with-adyen/adyen-glossary/#fraud). All organizations that deal with [payment card](/get-started-with-adyen/adyen-glossary/#cards-definition) processing must be PCI-compliant, which means fulfilling very strict requirements on securing cardholder data.

[Merchants](/get-started-with-adyen/adyen-glossary/#merchant) who find it difficult or expensive to fully comply with PCI DSS requirements may consider using encrypted methods (such as [Hosting the CSE library](/online-payments/classic-integrations/classic-api-integration/client-side-encryption/hosting-the-cse-library)) or outsourcing card processing to a PCI-compliant [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp), such as Adyen. This way their PCI DSS-compliance scope can be significantly reduced.

## PIN bypass

PIN Bypass is a feature on payment terminals that allows cardholders to skip entering their PIN during a transaction. Instead of verifying the payment with a PIN, the terminal processes the transaction using alternative verification methods, such as signature or no cardholder verification method (no CVM).

## Plain Text PIN

Verifies the cardholder's PIN by sending the unencrypted PIN to the card. This is commonly used by cards that cannot support the more secure Offline enciphered PIN. (PosEntryMode ICC only).

## Platform

A business entity using [Adyen for Platforms](/adyen-for-platforms-model/) to integrate payment processing and financial services for its users, enabling them to accept payments and receive payouts.

## Point of sale

A point-of-sale solution allows a [shopper](/get-started-with-adyen/adyen-glossary/#shopper) to make a cashless [in-person payment](/get-started-with-adyen/adyen-glossary/#point-of-sale-payments-or-in-person-payments) in a [merchant](/get-started-with-adyen/adyen-glossary/#merchant)'s shop or other physical location. This payment is made using [cards](/get-started-with-adyen/adyen-glossary/#cards-definition), NFC wallets (like Apple Pay), QR code wallets (like Alipay), or prepaid and gift cards.

Adyen provides its own point-of-sale service, including payment terminals and infrastructure. Merchants that also accept payments online or in-app can use Adyen as their [omnichannel payment solution](/get-started-with-adyen/adyen-glossary/#omnichannel-payment-solution). This gives them a single reporting dashboard, where they can view all purchases.

Often the terms [POS app](/get-started-with-adyen/adyen-glossary/#pos-app) and *cash register* are used to denote the software collecting point-of-sale payments.

## Point-of-sale Entry Mode

The means by which the [card number (PAN)](/get-started-with-adyen/adyen-glossary/#card-number-pan) is propagated to the [payment terminal](/get-started-with-adyen/adyen-glossary/#point-of-sale-terminal-or-payment-terminal-pin-entry-device-ped-process-data-quickly-pdq). For example, Keyed, Swiped, NFC.

## Point-of-sale payments (or In-person payments)

Electronic payments made by [shoppers](/get-started-with-adyen/adyen-glossary/#shopper) via [POS systems](/get-started-with-adyen/adyen-glossary/#point-of-sale-pos) to buy products or services from [merchants](/get-started-with-adyen/adyen-glossary/#merchant) at a physical location (for example, a store or a ticketing booth). These payments are usually made with [cards](/get-started-with-adyen/adyen-glossary/#cards-definition) ([swipe](/get-started-with-adyen/adyen-glossary/#magnetic-stripe-reader-msrswipe), [ICC](/get-started-with-adyen/adyen-glossary/#integrated-circuit-card-iccchip), or [contactless](/get-started-with-adyen/adyen-glossary/#contactless-or-near-field-communication-nfc)).

Other types of electronic payments include [online payments](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments) (ecommerce) and [in-app payments](/get-started-with-adyen/adyen-glossary/#in-app-payments-or-mobile-payments), which are based on similar infrastructure and usually require a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) for [merchants](/get-started-with-adyen/adyen-glossary/#merchant) to automate and maintain these [payments](/get-started-with-adyen/adyen-glossary/#ecommerce-payments-or-online-payments). Adyen allows its merchants to accept payments [across all possible channels](/get-started-with-adyen/adyen-glossary/#omnichannel-payment-solution) (ecommerce, mobile, and point of sale).

## Point-to-Point Encryption (P2PE)

Secures card data that is being communicated from point A to point B.

## POS app

An application used at the [point of sale](/get-started-with-adyen/adyen-glossary/#point-of-sale-pos) that allows product selection and that calculates the total amount to be charged from a [cardholder](/get-started-with-adyen/adyen-glossary/#cardholder). Additional functionality can include loyalty handling, stock keeping, and so on. This term is often used interchangeably with *cash register*.

The POS app can run on a physical machine, or can be hosted in combination with an interface for the staff or customer (in kiosks). To initiate payments, the POS app communicates with the Adyen Terminal [API](/get-started-with-adyen/adyen-glossary/#application-programming-interface-api). The POS app is part of a POS system that includes hardware components like a receipt printer, barcode scanner, cash drawer, and payment terminals.

## Process Data Quickly (PDQ)

Legacy name, reading the [Primary Account Number (PAN](/get-started-with-adyen/adyen-glossary/#card-number-pan)) from the [Magnetic Stripe Reader (MSR](/get-started-with-adyen/adyen-glossary/#magnetic-stripe-reader-msrswipe)) was quick compared to [Manual Keyed Entry (MKE)](/get-started-with-adyen/adyen-glossary/#manual-keyed-entry-mke-keyed).

## PSP reference

Every payment or modification request (such as a refund or a capture request) in Adyen's system has a globally unique 16-character string called the PSP reference associated with it. This string is alphanumerical (it can contain both numbers and letters).

Merchants can get the PSP reference from the [Customer Area](/get-started-with-adyen/adyen-glossary/#customer-area-ca), webhooks, the API response, and our reporting. It is advised to quote the PSP reference when communicating with Adyen about specific transactions.

## Recurring payments

Adyen, as a [PCI-compliant](/get-started-with-adyen/adyen-glossary/#pci-compliance) [payment processor](/get-started-with-adyen/adyen-glossary/#payment-processor), can securely store payment details to enable recurring payments. For this, merchants must enable the recurring contract in the first [authorization](/get-started-with-adyen/adyen-glossary/#authorization) call to the Adyen payments platform. In response, they get a token that uniquely corresponds to a specific shopper and their payment data.

When recurring payments are enabled, a merchant can use this token in the future. For this, a merchant passes the token along with the authorization call every time a shopper should be charged for a [subscription](/get-started-with-adyen/adyen-glossary/#subscriptions), initiates a [card-on-file payment](/get-started-with-adyen/adyen-glossary/#card-on-file-cof), or initiates an [unscheduled card-on-file payment](/get-started-with-adyen/adyen-glossary/#card-on-file-ucof).

Stored [card details](/get-started-with-adyen/adyen-glossary/#cards-definition) become outdated over time as cards expire or are cancelled. To minimize this disruption, use Adyen [Account Updater](/get-started-with-adyen/adyen-glossary/#account-updater-definition) to ensure that you have the most up-to-date card information, enabling you to provide continuous subscription services.

## Refund

When a [shopper](/get-started-with-adyen/adyen-glossary/#shopper) cancels the purchase of a product or service, after they have paid. When the [merchant](/get-started-with-adyen/adyen-glossary/#merchant) makes the refund, the funds are sent back from the [acquirer](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank) to the [issuer](/get-started-with-adyen/adyen-glossary/#issuer-or-issuing-bank). If an [authorized](/get-started-with-adyen/adyen-glossary/#authorization) payment has not been [captured](/get-started-with-adyen/adyen-glossary/#capture-or-clearing-and-settlement) yet, a merchant can [cancel the payment](/get-started-with-adyen/adyen-glossary/#cancel-a-payment) instead of refunding the payment.

If a merchant refuses to make a refund, a shopper can ask their issuer to make a [chargeback](/get-started-with-adyen/adyen-glossary/#chargeback). In some cases, a merchant is allowed to [dispute](/get-started-with-adyen/adyen-glossary/#dispute) a chargeback.

Refunds are also referred to as a [modification](/get-started-with-adyen/adyen-glossary/#payment-modifications-definition), because they *modify* the state of an authorized payment request.

## Risk management

A set of services and techniques to analyze and evaluate the risk of each payment transaction. Filtering high-risk transactions allows [merchants](/get-started-with-adyen/adyen-glossary/#merchant) to minimize the number of [fraudulent payments](/get-started-with-adyen/adyen-glossary/#fraud) and therefore maximize the revenue. Performing accurate risk management is complex, and involves big data analysis.

Adyen introduced its own [risk management](/risk-management) system that allows merchants to identify and block fraudsters, while reducing friction for legitimate shoppers. To help them do this, merchants configure risk profiles for either the classic [RevenueProtect](/risk-management/create-and-use-risk-profiles/) or latest [Protect](/risk-management/create-a-risk-profile/) engine.

## Scheme fee

A fee that is paid by the [acquirer](/get-started-with-adyen/adyen-glossary/#acquirer-or-acquiring-bank) to the [card scheme](/get-started-with-adyen/adyen-glossary/#card-networks-or-card-schemes) for each payment transaction made with the card scheme.

The fee amount is determined by the corresponding card scheme, in addition to the [Interchange fee](/get-started-with-adyen/adyen-glossary/#interchange-fee).

## Secure Remote Connection (SRC)

A technical specification to enhance the security of Click to Pay transactions, maintained by [EMVCo](https://www.emvco.com/emv-technologies/secure-remote-commerce/). SRC presents a unified Click to Pay checkout experience, regardless of card scheme.

## Sensitive Authentication Data

Security-related information that is used to authenticate cardholders and/or authorize payment card transactions. This can include card validation codes/values, full track data from the magnetic stripe or chip, PINs, PIN blocks, and more.

See also: [Card security code (CVC, CVV, CID)](/get-started-with-adyen/adyen-glossary/#card-security-code-cvc-cvv-cid).

## Shopper

A customer who buys goods or services from a [merchant](/get-started-with-adyen/adyen-glossary/#merchant). In this glossary it is assumed that a shopper makes a cashless payment, which means that they use either [cards](/get-started-with-adyen/adyen-glossary/#cards-definition) or [local payment methods](/get-started-with-adyen/adyen-glossary/#local-payment-methods-or-alternative-payment-methods) to pay.

## Signature

Depending on the Merchant's business model the accepted POS Entry Modes and [CVM's](/get-started-with-adyen/adyen-glossary/#cardholder-verification-method-cvm) can be configured to only consist of a subset of the above.

## Single Message System (SMS)

A transaction processing model, common for PIN debit networks, where the authorization request and the financial clearing/settlement data are contained within a single message exchange. Funds are typically debited from the cardholder immediately upon successful [authorization](/account/payments-lifecycle/#authorised), and the opportunity for a future capture is not possible.

## SIRET code

A 14-digit unique identification number assigned by French authorities to businesses and their establishments operating in France. It is often [required information](/platforms/verification-requirements/required-kyc-information) during the KYC verification process for French legal entities.

## Store

A store represents the specific point of interaction (physical or online) under a merchant account. Stores can be used to organize transactions, manage payment terminals, process payments, and apply specific split configurations or [capabilities](/platforms/verification-overview/capabilities/), and more. See: [Stores](/platforms/manage-stores/)

## Stored-value card

A payment card with a monetary value that is stored on the card itself, instead of in a bank account. Examples are gift cards and prepaid cards. Some stored-value cards can be reused by transferring money to it, others are disposable cards that cannot be reloaded.

## Strong Customer Authentication (SCA)

A regulatory requirement under [PSD2](/online-payments/psd2-sca-compliance-and-implementation-guide) and the Payment Services Regulations 2017 in Europe, mandating multi-factor authentication as a way to make online payments and online banking transactions more secure.

An authentication is considered strong if a shopper is able to provide two of the following factors:

* **Possession**: something the shopper has.
* **Knowledge**: something the shopper knows.
* **Inherence**: something the shopper is.

For example, a shopper is required to supply a one-time authentication code received on their phone (*something the shopper has*), and a password that only the shopper knows (*something the shopper knows*).

See: [PSD2 SCA compliance guide](/online-payments/psd2-sca-compliance-and-implementation-guide/)

## Sub-merchant

A merchant who is onboarded to an acquirer through a [payment facilitator](#payment-facilitator). The payment facilitator processes all of the sub-merchant's transactions.

## Subscriptions

[Recurring payments](/get-started-with-adyen/adyen-glossary/#recurring-payments-definition) that occur on a fixed schedule. Popular examples of subscription payments are music and TV streaming services.

If a recurring payment does not follow a fixed schedule, it is a [Card on File (CoF)](/get-started-with-adyen/adyen-glossary/#card-on-file-cof) payment or an [Unscheduled Card on File (UCoF)](/get-started-with-adyen/adyen-glossary/#card-on-file-ucof) payment.

## Tender

In the context of [payment terminals](/get-started-with-adyen/adyen-glossary/#point-of-sale-terminal-or-payment-terminal-pin-entry-device-ped-process-data-quickly-pdq) at Adyen, the tender is the entire process for the [POS app](/get-started-with-adyen/adyen-glossary/#pos-app) to start the [transaction](/get-started-with-adyen/adyen-glossary/#transaction-or-tx), receive card information, make optional changes to the amount, await [authorization](/get-started-with-adyen/adyen-glossary/#authorization), print the receipt, and receive a final status. This entire process is accompanied by a reference for the tender: the `tenderReference`.

## Tokenization

Tokenization is the process of replacing sensitive data with non-sensitive data (known as a token), which can be later used to get access to the initial (tokenized) data. In the payments industry, it is used to safeguard a [card number](/get-started-with-adyen/adyen-glossary/#card-number-pan) and other payment data by replacing it with a unique string of numbers. This string can be used later to implement [recurring payments](/get-started-with-adyen/adyen-glossary/#recurring-payments-definition).

Together with [Client-Side Encryption](/online-payments/classic-integrations/classic-api-integration/client-side-encryption), tokenization enables merchants to securely pass their shoppers' data to a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp), like Adyen.

## Transaction (or Tx)

In the payments industry, the term "transaction" is used to indicate exchanging of a specified amount of funds from a [shopper](/get-started-with-adyen/adyen-glossary/#shopper) for purchasing products or services from a [merchant](/get-started-with-adyen/adyen-glossary/#merchant), or for fulfilling any other obligations between the two parties.

Funds are usually transferred by means of [card payments](/get-started-with-adyen/adyen-glossary/#cards-definition) or [local payment methods](/get-started-with-adyen/adyen-glossary/#local-payment-methods-or-alternative-payment-methods) (bank transfers, e-wallets, mobile payments, etc.).

**Tx** is a commonly used abbreviation to denote a financial transaction.

## Transaction rule

A specific criterion configured to evaluate transactions before authorization. Rules analyze data points such as amount, location, and merchant category, potentially triggering actions like blocking, checking for velocity, and checking a usage threshold. See: [Transaction rules](/issuing/authorisation/transaction-rules/)

## Two-factor authentication (2FA) / one-time password (OTP)

An authentication process requiring two distinct factors to verify identity. An OTP is a common second factor (possession) – a temporary code, often sent via SMS or generated by an app, used alongside a primary factor (like a password) to meet [SCA](/online-payments/psd2-sca-compliance-and-implementation-guide/) requirements.

## Unscheduled Card on File (UCoF)

An unscheduled card-on-file payment is a type of [recurring payment](/get-started-with-adyen/adyen-glossary/#recurring-payments-definition) that is used for transactions that occur on a non-fixed schedule and/or have variable amounts. For example, automatic top-ups when a cardholder's balance drops below a certain amount.

A recurring payment that occurs on a fixed schedule is referred to as a [subscription](/get-started-with-adyen/adyen-glossary/#subscriptions).

If a merchant is [PCI-Compliant at Level 1/Level 2](/get-started-with-adyen/adyen-glossary/#pci-compliance), they can store card details by themselves. Otherwise, they must store card details using a [payment service provider](/get-started-with-adyen/adyen-glossary/#payment-service-provider-psp) like Adyen.

## Webhooks

Webhooks are HTTP callbacks sent to an endpoint on your server. They inform you about [authorized](/get-started-with-adyen/adyen-glossary/#authorization), [captured](/get-started-with-adyen/adyen-glossary/#capture-or-clearing-and-settlement) and [modified](/get-started-with-adyen/adyen-glossary/#payment-modifications-definition) payments, as well as other events.

Webhooks are crucial for a successful integration with Adyen. You can use webhooks to automate business processes, for example order management or downloading reports for accounting and reconciliation.

For more information, refer to [Webhooks](/development-resources/webhooks).

## Zero-value auth

A zero-value auth is an authorization request with a value of 0 (EUR/USD/etc.). This is used to either store details or obtain shopper details to be able to look up previous purchases or other details from the merchant database.

Zero-value auth is used for example when submitting a BIN or a card verification request.
