This glossary is designed to help you understand common terms you may encounter when processing payments with Valpay. Terms are organized alphabetically.

An electronic network used for financial transactions in the United States, including direct deposits and bank-to-bank transfers. ACH is commonly used for settlement and fund transfers in payment processing.

The process by which a card-issuing bank approves or declines a transaction. Authorization confirms that the cardholder has sufficient funds or credit and reserves the transaction amount.

A fraud prevention tool that verifies the billing address provided by a cardholder against the address on file with their bank. Commonly used in card-not-present transactions.

The first 6 digits of a payment card number that identify the issuing bank or financial institution. BINs are used to route transactions and identify card types.

The process of setting up and activating your merchant account or payment terminal with Valpay so it is ready to accept payments. A terminal must be boarded before it can process transactions.

The process of finalizing a previously authorized payment, moving funds from the cardholder's account to the merchant's account. Some payment types capture automatically; others require a manual capture step.

A transaction where the physical card is not present at the time of payment, such as online purchases or phone orders. CNP transactions carry a higher risk of fraud compared to card-present transactions.

A transaction where the cardholder physically presents their card at the point of sale (in person). These transactions are processed via a payment terminal and carry lower fraud risk.

A forced reversal of a transaction initiated by a cardholder's bank on the cardholder's behalf. Chargebacks can result from fraud, disputes, or merchant errors. If a chargeback is filed against your account, Valpay Support can help you navigate the dispute process.

A payment method that uses NFC (Near Field Communication) technology, allowing cardholders to tap their card or mobile device (e.g., Apple Pay, Google Pay) on a terminal to complete a transaction.

A 3- or 4-digit security code printed on a payment card. It is used to verify that the person making a transaction has physical possession of the card, particularly in card-not-present scenarios.

When a card-issuing bank refuses to authorize a transaction. Declines can occur for various reasons, including insufficient funds, suspected fraud, or an expired card.

A unique identifier printed on your payment terminal. Valpay Support may ask for this number when helping you troubleshoot or manage your device.

The global standard for chip-and-PIN or chip-and-signature card transactions. EMV chips provide enhanced security over magnetic stripe cards by generating a unique transaction code for each payment.

A training or onboarding session provided by Valpay to help merchants and partners understand how to use Valpay's tools, platforms, and processes effectively.

The technical connection between your point-of-sale (POS) system or e-commerce platform and Valpay's payment processing infrastructure. Integrations allow transactions to flow between your business software and Valpay seamlessly.

A fee paid by the merchant's bank to the cardholder's bank each time a card transaction is processed. Interchange rates vary by card type, transaction type, and card network.

The financial institution that issues a payment card (credit, debit, or prepaid) to a consumer. The issuing bank authorizes transactions and is responsible for billing the cardholder.

A regulatory requirement to verify the identity of a business and its owners before activating payment processing. Valpay collects KYC documentation as part of the merchant onboarding process.

The account associated with your business in Valpay's system. It is used to manage payment processing, terminals, settlements, and reporting for your location or business.

The contract between you and Valpay that outlines the terms of service, pricing, and responsibilities for using Valpay's payment processing services.

A unique identifier assigned to your business by Valpay. It is used to route transactions, manage your account, and identify your business in payment processing systems.

A short-range wireless technology that enables contactless payments. NFC allows devices like smartphones and tap-to-pay cards to communicate with payment terminals when held close together.

The end-to-end process of setting up your business to process payments with Valpay. This includes account setup, KYC verification, terminal provisioning, and training.

The full card number on a payment card, typically 16 digits. The PAN is used to identify the cardholder's account during transaction processing.

A technology service that securely transmits payment data between your POS system or website and the payment processor. The gateway encrypts sensitive card information to ensure secure transmission.

A physical device used to accept card payments in person. Valpay-provisioned terminals allow you to process chip, swipe, and contactless transactions at your location.

A set of security standards established by major card networks to protect cardholder data. All businesses that store, process, or transmit card data are required to be PCI DSS compliant.

A set of security standards that payment terminals must meet. Terminals with expired PCI PTS certifications must be replaced, as they are no longer approved for processing card-present transactions.

The physical or digital location where a transaction takes place. A POS system includes the hardware (terminal, register) and software used to process payments and manage sales.

A company that facilitates payment transactions between merchants and financial institutions. Valpay works with a PSP to process and route payments on your behalf.

A unique identifier assigned to each transaction by the payment service provider. Valpay Support may ask for this number when helping you look up or dispute a specific transaction.

A reversal of a completed transaction where funds are returned to the cardholder. Refunds are initiated by the merchant and processed back to the original payment method.

The process of transferring funds from completed transactions into your bank account. Settlement typically occurs on a regular schedule (e.g., daily or weekly) after transactions are batched and processed.

A record of your request for help or issue resolution, tracked through Valpay's support platform. Each ticket is managed from submission through to resolution by the Valpay Support team.

An additional fee added to a transaction when a customer pays with a credit card. Surcharging rules vary by card network and state law, and specific disclosure requirements must be followed.

A diagnostic file generated by your payment terminal that records transaction data and system events. Valpay Support may request a terminal log to help troubleshoot device issues.

The process of preparing and configuring a payment terminal with the correct settings for your business before it is activated or shipped to your location.

A security process where sensitive card data (e.g., a card number) is replaced with a unique, non-sensitive identifier called a token. Tokenization allows transactions to be processed without exposing actual card details, reducing security risk.

Any payment event processed through Valpay, including sales, refunds, and voids. Each transaction is assigned a unique reference number that can be used to look it up or reference it with support.

The cancellation of a transaction before it has been settled. A void prevents the transaction from being completed and releases the authorization hold on the cardholder's account.

An automated notification sent to your system when a payment event occurs (e.g., payment authorized, refund processed). Webhooks allow your software to stay in sync with Valpay's platform in real time.

Have a term you'd like us to add? Contact Valpay Support and we'll keep this glossary up to date.