E­-Commerce und E-­Payment Glossary

A

Credit card number or bank account number.

The acquirer and the acquiring bank take over the distribution and marketing of credit card acceptance locations. Online dealers receive an agreement on accepting credit cards as payment from this financial institution. The acquirer serves as merchant bank and settles the card payments for the merchant. Tips for online dealers: In order to allow credit card payment at the store, the merchant requires a certification according to PCI / DSS. This certification requires relatively high technical and administrative security standards. If an online shop operator cannot or does not want to undergo this test, he may opt for a payment service provider which is already PCI / DSS certified and has existing contracts for technical cooperation with one or more acquirers. The PSP acts as technical operator for the online shop.

Affiliate systems are internet-based sales solutions, in which a company / dealer pays his partners a commission, based on success. On the internet, such a partner program often means that a webmaster places advertising on his highly visited website. If there is a contract, website visitation or "lead”, the website operator receives the agreed commission. Keyword advertising or email marketing are also among the channels of affiliate systems.

AID

“Authorization ID”: approval number.

API

API is the short form of „Application Programming Interface”. An interface for the programming of applications.

App

An app, short form for application, is an application software for mobile devices or mobile operating systems.

Process for approval or rejection of card transaction requests to the card-issuing bank or the commissioned data center.

AVS

Acronym for "Address Verification Service". When using this feature parts of the address of the purchaser and its data are checked at the card-issuing bank. This contributes to the increase in safety, especially in online commerce

B

"Definition Bank Identifier Code", also known as SWIFT-Code, is an eight or eleven-digit international bank code for cross-border credit transfers.

BIN

“Banque Identification Number”: Bank identification number. These are the first 6 digits of a credit card number.

The blacklist includes first and last name, bank details and other information about customers / debtors whose creditworthiness or solvency stood out in a negative way.

C

Interface for control of PC internal ISDN adapter cards.

Posting. Transaction type in GICC protocol in which a previously telephonically or electronically authorized amount is recorded.

This describes a transaction in which the cardholder is not present and the card is not physically present at the contracting company. This often is used for e-commerce and mail or phone order (mail order, telephone service, etc.).

Credit card acceptance in START (today: Amadeus) system.

CGI

"Common Gateway Interface" is a common data exchange interface for exchanging data between a web server and third software, such as Perl. Perl scripts can be executed via this interface then, for example.

Chargeback of transactions by the cardholder or issuer due to, for example, abusive use of payment cards.

Describes the settlement of payments in the form of debits or credits of the payment amount. Here, the sales data is electronically exchanged between acquirer and issuer.

Cloud computing is defined as a "digital cloud": storing data (file hosting) in a remote data center, but also the execution of programs that are not installed on the local workstation computers or servers, but away in the metaphorical cloud.

CMS

"Content management system": content management system. This is a software for the collective creation, editing and organization of content.

In the online payment area this means content of web pages such as text, images and movies that are made available for a fee.

Couponing is a communication tool from advertising. The customer is thereby granted a discount against presentation of coupon.

The card verification number is written, with MasterCard and VISA, on the back of the credit card on the signature strip, and with American Express, on the front of the card. It consists of 3 to 4 digits.

D

"Dynamic Currency Conversion": Automated currency conversion at the POS. The DCC functionality enables, for example, the conversion of each franc invoice amount in other currencies such as Euro, US Dollar, British Pound, Japanese Yen, etc.

Payment card, which has a remuneration level and with which a cardholder can pay for goods or services at an electronic cash register. When paying with a debit card the customer's account is generally charged immediately. Therefore, this form of payment is often called "pay now".

A withheld service compensation by the acquirer during a credit card payment, in the form of a percentage of the transaction amount.

E

(engl.) “Electronic Business”: elektronischer Geschäftsverkehr.

Synonym for e-commerce, which is handled directly via the internet between suppliers and customers. E- Commerce is a sub-form of e-business.

Synonym for electronic payment.

“Electronic Commerce Indicator". Feature in an authorization request in GICC protocol, whether the payment is an Internet / e-commerce transaction.

“Electronic Data Interchange For Administration, Commerce and Transport”. Format for electronic settlements.

E-cash is a PIN-based debit method. In the transaction, the amount will be directly charged to the cardholder's account. E-cash is one of the fastest payment systems for electronic payments.

During electronic direct debiting, the invoice amount is debited directly from the customer's account by direct debit.

“Electronic Payment Advice”. Format for electronic settlements.

Expiration date of the credit card.

F

Factoring is the sale of accounts receivable of a business. This term is used often in B2B.

The task of the firewall is to protect network connections. It prevents the unauthorized access to computers.

Amount, above which a payment must be authorized. Payments below the floor limits are guaranteed for the merchant even without authorization. The floor limit is determined individually by credit card companies, depending on the industry and acceptance point.

G

“Generell Iso Credit Card”. Authorization protocol between network operators / POS system and acquirers.

H

The term handling of payments means the transfer of money from a claim by the debtor to a beneficiary or other legal person who is recognized by the beneficiaries. The payment process is, both with everyday consumers and in the economy, of great importance, and that in the future is even likely to increase.

"Hyper Markup Language" is a page description language for illustrating static content in a web browser. With their help, links, input fields, etc. can be realized in addition to graphics.

I

With the introduction of the SEPA process, the IBAN has become a European standard. The IBAN is required for European credit transfers since 2014. It consists of a country identification (e.g. CH), a verification digit, the bank identifier code and account number of each client. The IBAN is used in all participating European countries, the SEPA area, and consists of a maximum of 34 characters.

Through the IP address, the residence or place of access to the internet of the customer is determined, while the Bank Identification Number, BIN in short, determines the card issuing bank and its origin. Here, combinations can be either approved or rejected. This method is used to test fraud patterns.

Credit card issuers (issuing bank). It is the financial institution that issues credit, debit and prepaid cards and accepts transactions of its cardholders, other member banks and merchants.

J

“Japanese Card Bureau”: Credit card.

K

KKE is the abbreviation for the term credit card transaction and refers to the payment of a booking by credit card.

L

Basically, the dealer carries the risk in e-commerce, if a cardholder disputes his payment. Through the use of MasterCard SecureCode and Verified by VISA, or American Express SafeKey, the risk of payments, which are denied by the cardholder, shifts. This risk shift is called "liability shift" (liability shift).

M

Maestro is an international debit procedure which uses the infrastructure of MasterCard.

Transaction safeguarding of the MasterCard brand for e-commerce transactions. The merchant installs MCSC (via a payment service provider or himself) and receives, for MasterCard transactions throughout Europe, a secure payment claim (for certain chargeback reasons).

Mobile Wallet (M-Wallet) is a digital wallet on a mobile device such as smart phone or tablet PC. Here, different digital payment card can be deposited.

N

“Near Filed Communication”. This technology describes the wireless transmission of data over a short distance by a smartphone or tablet PC. Thus, data can be transmitted over short distances of a few centimeters per radio technology for the purpose of cashless payment.

O

Transactions or agreements which are concluded on the internet, by fax, by mail or by phone.

P

Web-based payment page for easy and secure acceptance of various payment methods. The end customer enters his data for online payment on this secure website. The payment page enables merchants to a fast, secure and PCI compliant acceptance of credit cards and other national and international means of payment.

Payrexx is a simple online payment solution for organizations and individuals. Payrexx allows the simplest way to create your own, customizable payment forms. These can be used for all types of sales and payments. The link to your sales page can be sent via e-mail, shared on Social Media networks and/or integrated into your existing site. This will give you access to a wide range of customers. All major internet payment types such as VISA, Mastercard, PayPal, PostFinance Card, Sofort, Giropay, and the largest payment service provider are supported. Payrexx offers four pricing models: FREE, STARTER, PREMIUM and ENTERPRISE.

“Personal Identification Number”. The PIN is a personal identification number, which is known only to the cardholder and identifies him during transactions.

“Payment Card Industry Data Security Standard”. This standard of Visa and MasterCard should ensure that all those involved in card transactions store cardholder data in a safe and secure way. Depending on the card organization it could also be called AIS (Visa) and SDP (MasterCard).

“Point of Sale System”. e.g. credit card terminal, authorization software etc.

“Point of Transaction”. Place of the transaction. System, through which the transaction is conducted e.g. credit card terminal, authorization software etc.).

A payment card on a balance basis with all the attributes of a conventional credit card.

A company that has been working for member banks as a service provider. Here in particular the acquiring and issuing processing are covered.

“Payment Service Provider”. The PSP is a company (payment service providers, payment providers, payment processors), which offers payment services, mostly for e-commerce companies.

Q

“Quick Response”. This refers to two-dimensional bar codes, which were developed by the Japanese company Denso Wave. These codes can measure up to half a DIN A 4 page and are particularly used in advertising. QR codes are read with a smartphone and a specially developed app. The operation is very simple: the user scans the QR code at checkout or from the printed receipt and confirms the invoice amount.

R

Rebill is the English term for forward charge. This is a term for recurrent or regular payments due. So, this Rebill method means that users of a service are debited with the amount for the beginning period again at the end of the payment period (e.g. memberships or subscriptions).

Recurring payments in fixed or flexible cycles on behalf of the cardholder. The merchant regularly performs these payments pursuant to a written agreement with the card holder.

Demand of the issuer for an authorization to request a voice authorization. As a rule, an additional identification of the cardholder is required.

A refund is a credit that is granted directly by a dealer. If a purchase is made with a credit card and reversed thereafter, the subsequent credit can be carried out directly by a refund by the dealer. The same applies to cases in which a withdrawal is processed in error. Here, the booked amount can also be reversed by means of a refund.

Transaction type in GICC protocol in which an amount is only authorized, but not yet recorded.

"Tangible Goods" are goods which are defined by their physical properties. These goods can be "touched". Content goods are the opposite: these are digital goods that are downloaded, for example on the internet.

“Radio Frequency Identification”: Identification per radio signal.

S

“Single Euro Payments Area”. With the implementation of the new EU Payment Services Directive, there is the so-called Sepa debit note, EU-wide and since November 1st, .2009. This makes it possible to draw in due invoice amounts not only in Switzerland anymore, but also throughout Europe by direct debit invoice amounts.

The technical foundation of any online store is the shop system. The selection of shop systems is almost unlimited and is divided into the broad categories of open source, purchase and rental software. Some shop systems are based on known CMS systems like Drupal, Typo3 or Joomla

“Secure Socket Layer”: Encrypted data transmission technique for data transmission in the TCP / IP protocol.

The 3D Secure technologies "Verified by Visa", "MasterCard SecureCode" and "SafeKey" by American Express protect online retailers from the misuse of credit cards. For the dealer the "chargeback" (chargeback risk) does not apply with the revocation of transactions for abuse reasons, and there is a "liability shift" (liability shift) for sales settled with VISA, Mastercard and American Express.

T

“Transport Control Protocol/Internet Protocol”: Standard protocol for data transmission during internet connections.

Unique number (8 digits) for identifying a POS system and the network operator.

Transaction costs generally refer to those charges that are incurred when titles are transferred. This is done in the context of buying, selling or renting. One assumes that in the conduct of each transaction appropriate costs are incurred.

If a payment provider conducts a transaction, he imposes a fee for each transaction. The incurred costs are therefore due per each conducted booking.

V

If a payment provider provides a dealer with a special website, which can be used as a cash register, then this is called a virtual terminal. This saves the merchant the need for his own POS system. A virtual terminal also acts as a connection to the service provider, for example, the Payment Service Provider.

With the contract-company number, a credit card acceptance contract is identified. Only this makes it possible for customers to pay for goods by credit card. The contract is closed between the merchants and the acquirer, a bank or a contracting company, which is commissioned by a credit card company.

W

With cashless payments, Wallet is an electronic wallet. This is also called E- Wallet or Digital Wallet. This virtual wallet is loaded with a balance. The saved money can be spent anonymously at a later date on several occasions and in many cases.

Z