3D-Secure is a card payment protection technology for online payments. The technology was developed by Visa. Soon, it was taken over by all financial institutions.
3D-Secure technology is an XML protocol and that is empowered for secure payments. To confirm the identity, the client receives an SMS with a verification code on the phone. But this is just the tip of the iceberg. There are not many ways for payment systems and banks, as they can check who uses the card to pay. The term “3D-Secure” itself translates to three domain protection. 3D = 3 Domains. In this case, 3 domains are involved:

  1. Issuing bank;
  2. Bank Acquirer;
  3. Payment system.

If 3D-Secure technology is enabled on the card, another step appears between entering the card data and the actual payment. The cardholder must enter a secret code. This code can be either permanent or one-time. The permanent code is less reliable, since it can also be lost, for example, when paying on a computer that is infected with a virus. But usually comes a one-time digital password.

The bank sends the code only to the phone number indicated in the agreement between the cardholder and the issuing bank. It helps to identify that the transaction is made by the cardholder to avoid fraud. If a cardholder has a required sum the transaction is succesfully made.


A high-converting sales page or landing page is a page on your website that has only one purpose: to force potential customers to buy something. The main reason when creating a landing page is to make an offer visitors can’t refuse. If not, at least, to make people want your product. These could be order, callback request, or leaving contact data.

The main steps to create a sales-page are:

  • Create a unique sales proposition.

Try to formulate a proposition in such a way that the user cannot refuse the offer. The uniqueness of the offer, advantages, solution of problematic issues of a potential client. Based on these data, a unique trading offer is formed.

  • Advantages

A more detailed description of the benefits and features of your offer.
It is very important to find a balance in this question and try to not go deep into so deep that your high-converting sales page will seem to be oversaturated with text. Write a short summary of one paragraph and 3-5 key points that clarify the main aspects.

  • Buttons

The better CTA buttons – the better they attract customers to click them.

  • Create a high-quality headings

Create such headings, that motivate visitors to make a useful action, and this motivation should be based on the needs of a particular user.

People do not like to spend a lot of time searching for information. Therefore, it is better to present the information as briefly and clearly as possible to the user.

An Acquiring Bank is a banking institution that organizes automated points for receiving plastic bank cards. But the functionality of such a bank includes not only the installation of terminals.

  1. Acquiring Bank processes requests for authorization of bank cards.
  2. Transferring payment means received from cardholders to the account of the organization.
  3. Maintaining paper and electronic document circulation with participants in transactions within the framework of the provided service (customers, legal entities, issuing banks, etc.).
  4. Fulfillment of other obligations undertaken upon connection to a particular payment system


For their services, bank acquirers receive a reward. On the other hand, a financial institution gets a percentage of each card payment. In some cases, combined tariffs are applied that contains a fixed component of payment and a certain percentage of the amounts transferred.

An acquirer bank is an authorized bank that organizes plastic card collection points. It also offers a full range of services, including servicing settlements, payments by bank cards at established terminals, ATMs. 

What payment systems does the acquirer bank work with? 

A payment processing center, settlement bank, issuing bank, and acquirer in the aggregate provide customers with the opportunity to make payments through bank cards. It comes following applicable standards, rules, and technological schemes that determine and regulate the procedure for servicing cards.



The Address Verification Service (AVS) is a system, that could help companies to prevent frauds and decrease the number of chargebacks.

It helps to ensure that the customer enters a real address data associated with a credit card account. AVS is a widespread solution but its origin belongs to MasterCard.

The issuing bank compares the entered address with the address it has in a database while the checkout process.

Online transactions are commonly related to online fraud. AVS systems assist in preventing undesirable influence that could cause, data losses, chargebacks.

What happens next, after the client enters payment data on the webpage:

When the customer completes the transaction, the store automatically sends a request for user confirmation to the payment provider. The client provides the address in advance. The processor compares the entered address and the address that is in the issuing bank. The transaction will be rejected if the addresses are different. If the addresses match, the bank approves the transaction and sends the response code.

This process takes only a few seconds and is invisible to your customers.

Too intrusive use of Address Verification Service can cause decreasing the number of transactions. It could affect customer loyalty and the company’s profits. At the same time, loosening the audit increases the risk of fraud.



A user interface, usually a collection of graphic reports, where workers of a company can customize, view, or collaborate on shared business data such as overall sales, volume, approval ratios, Conversion per User (CPU) rates, and traffic.

BIN (Bank Identification Number) is a number that gives full information about the bank. Besides, it is part of the card number. Specialized institutions can quickly identify the bank within the card payment system during authorization, processing, and clearing.

The part of the credit or debit card number that works to identify the bank or financial institution that will process the transaction; the first six figures are assigned by VISA and MasterCard for this purpose.

The Bank Identification Number (BIN) of the card consists of 6 numbers. Every plastic card contains this number at its beginning.

What does each Bank Identification Number number mean?

  1. The first digit of the BIN is a number that indicates the type of payment system that serves the issued card.
  2. Form the second to the fourth are the number of the payment system bank.
  3. The fifth and sixth digit BIN is an additional product identifier, according to the banking product category.

BIN is used for transfers between cards – for bank identification within the framework of a card payment system during authorization, processing, and clearing.

Wire Transfer - bank money transfers of non-cash funds.

The wire transfer is one of the very first types of money senders. The process involves the sender, the recipient and the third party – the intermediary. Agent banks, postal organizations or various payment systems can serve as an intermediary.

Both individuals and legal entities can conduct financial transactions through Wire Transfer. Wires Transfers are carried out not only within one country but also beyond its borders. The sender pays a fee for money transfer, the recipient of the transfer does not need to pay for the receipt.

How to send money through a wire transfer?

In order to transfer Wire, the intermediary-agent may require the opening of a current account. However, many agents for individuals do not consider this stage of the transaction necessary.

The sender simply fills out a form in which he indicates his data, the recipient’s data, the amount and purpose of the transfer Then, he deposits the indicated amount and the commission charged by the intermediary to the cashier. The recipient contacts the nearest bank or post office with an identity document and receives cash.

Is wire transfer safe?

A distinctive feature of the Wire transfer system of wire transfers is a high degree of security of financial transactions and information protection. International statistics indicate that Wires are much less likely to reach the recipient than the amounts sent using other transfer systems.

A list of countries specified by the Merchant that should be excluded from the business transactions. These can be specific to address of billing, shipping, or BIN.

Billing and Settlement Plan (BSP) is the universal system of mutual exchanges that replaces individual schemes of agents and carrier cooperation. The system serves for effective collaboration of IATA parties with the help of consolidation information and financial flows. One of the main advantages of BSP is the possibility to operate with e-ticket normal.

Billing and Settlement Plan deals with the sale and settlement of passenger traffic. BSP emits own, neutral airline tickets forms and sends them to agents – members of BSP. An agent is able to sell airline tickets of any airline which is a member of a current BSP.

The principle of BSP work

An agent sells shipping using BSP ticket forms and affixing a 3-digit carrier code on behalf of which he issues a ticket. The agent reports to BSP four times a month, that is, it presents control coupons and coupons accepted for return. Then, in accordance with this transfers BSP money for the sold transportations, leaving itself a commission. BSP processes this data, groups it by agents and airlines and makes up two reports (for the agent and for the carrier), sends them and transfers the money.

The advantages for BSP agents

  • A single reporting center -BSP;
  • Unified reporting forms.
  • The ability to sell on flights of all BSP member airlines in a local country.
  • The absence of the necessity to set agreements with each airline.

The advantages for airlines

  1. Simplification of the system of monetary settlements.
  2. Hassle-free receipt of money.
  3. Obtaining the completed infrastructure of the bank, a unified agent network, which allows you to cover the entire market by attracting agents. These BSPs members represented on the entire territory of BSP to sell flights on their flights.


The processing period between two billing statements, normally consisting of seven (7) days.

A set of data elements collected from previously known deceitful transactions–IP addresses, for example–that can be used by the Merchant or a processing bank to create filters that flag or block an incoming sales event.

Blockchain is a public database of all transactions ever committed in the Bitcoin system. Using this database, each user has the opportunity to find out how much Bitcoin belonged to a particular address in a certain period. The distributed efforts of many miners support the base.

The advantages of blockchain technology:

  1. Decentralization. The central storage server is missing. Each participant in the system stores all entries.
  2. Transparency. Any participant can track all the transactions that took place in the system.
  3. Security. Data encryption prevents online fraud. The user can track all transactions, but cannot identify the recipient or sender of information if he does not know the wallet number. For operations, all parties have a unique access key.
  4. Reliability. Any attempt to make unauthorized changes will be rejected due to inconsistency with previous copies. When a user wants to make a change, he receives an individual unique code.
  5. Compromise. Other participants verify data. In other words, they recalculate the hash.

Bitcoin was the original digital currency to use the technology, but the technical community is currently looking for other potential uses for this technology.

Thanks to the technology of blockchain, Bitcoin has become the first digital currency that solves the problem of double expenses without the use of any authoritative body or central server.


The bounce rate is the percentage of visits (or sessions) with only a one-page view. It shows the number of visits during which the user left the site immediately after viewing the landing page. Google Analytics calculates the bounce rate for the page and site.

The bounce rate is not always a negative factor.

If you are faced with the task of attracting users who view more than one page, then a high bounce rate is terrible. For example, if there are links to various sections on the main page of a site, such as application pages, and you need site visitors to go to them, it is not crucially that the bounce rate is low.

If you have a one-page site – for example, a business card site – then sessions with viewing one page are entirely normal, and a high bounce rate cannot negatively impact.

How to minimize the bounce rate:

  • Make a landing page that is visually appealing and loads quickly.
  • Stop advertising for keywords and sites that do not drive valuable traffic.
    If users who do not need a product/service come to the site, they immediately leave it.
  • Create landing pages that meet users’ needs.
    If you get good traffic, but the landing page does not satisfy the user’s request, then he will quickly leave the site.
  • Highlight a call to action.
    If the call to action (CTA) is not enough on the landing page or it is poorly visible, then it will be difficult for you to keep users on the site. Headings, subheadings, and tips are a great way to make CTA noticeable.
  • Write a CTA relevant to the landing page
    CTA can cause both entry to and exit from the site. A call to action can be issued in the form of a button, banner, video, or link to a page of your or an external site.
  • Place easy-to-understand content on the landing page.
    You need to create content that can be taken quickly and easily: use short abstracts, images, and infographics.
  • Encourage the user to go to other pages.
    It is the main reason why even the best landing pages have a high bounce rate. It doesn’t matter if the landing page has satisfied the user’s needs or not. You should always provide several options to continue browsing the site.

Business Identifier Code (BIC) or S.W.I.F.T. code is a unique identification code of a bank or any other participant in financial settlements, which is used when transferring funds from one country to another between banks participating in the BIC / SWIFT system, according to the ISO 9362 standard.
A BIC code is a unique identification code of a bank or any other participant in financial calculations that are assigned to a participant in joining the Society of World Interbank Financial Telecommunications, which is used for international money transfers between banks.

What does BIC code mean?

According to the standard, a Business Identifier Code code is a digital combination of 8 or 11 characters. It consists of letters or a combination of letters and numbers, and looks like:
Each letter group of the code means the following:

  1. BBBB is a unique letter code of a bank or financial institution. It always consists of four characters and identifies the participant in the calculations.
  2. CC is a two-character alphabetic country code according to the ISO 3166.
  3. LL – an alphanumeric code for the location of the bank in the country, consisting of two characters.
  4. DDD – bank branch code

SWIFT is an electronic payment providing system that operates between banks in more than 200 countries of the world.
The following currencies are available:

  • US dollars
  • Russian rubles;
  • Swiss francs
  • British pounds;
  • Euro.

Capture is a process that defines the process of funds fixation after payment authorization. When one uses a credit or debit card, to finish the payment process, a payment institution must authorize the card first.

This authorization step takes only several seconds. It also allows a merchant to be aware of the necessary amount for purchase presence.

The money will not leave an account instantly. However, they will be reserved only for the completed payment.

After the funds’ withdrawal, the sum which has been fixed for purchasing as a pending credit/debit operation will be indicated in your application. At the same time, a bank blocks this amount for other purposes.


Card authorization is a procedure of issuing a carrying out bank card operations permission. An issuing bank is the one that emits such permission. Some of the most common areas of usage are ATMs in a retail store or online.

At the moment of an authorization a technical device, which works with a card, sends a request in a bank processing center and in the case of success, receives an alphanumeric authorization code that allows to withdraw or deposit money.

The procedure of identification and checking a cardholders’ rights may vary in different bank terminals. An ATM always requests a PIN of a user while POS-terminals request PIN only for cards with a chip. Again, online payment gateways require a security code.

Nowadays, each bank card authorization is provided online, but earlier, at the age of imprinters, voice authorization has taken place. The purpose was to increase the permissible limit for banking operations. In this case, a call from the store to the bank confirmed the charge off.

Every authorization made leaves a trace – a code that is stored in the terminal memory is printed on a sales receipt or a receipt from an ATM. This code is unique and helps you track every authorization — where, by whom, and when it was authorized — to have an opportunity to solve disputes.


Card Not Present (CNP) transactions is a type of bank cards payment when a cardholder hasn’t to be present at the place of making transaction.

Card Not Present operations include:

  • Any kind of online transactions.
  • MO/TO transactions (mail order/telephone order)
  • Recurring payments.

When a customer performs a purchase, if a card is not present, a merchant has to rely on data that a cardholder provided indirectly. There may be via phone, email, or Internet.

The shipping carriers companies can guarantee the delivery of goods. But, they usually do not require verification of the identification of the buyer and do not participate in the processing of payments to the seller.
Transactions in small amounts, typically, are less subject to verification and are less likely to be precisely examined by the card issuer or a trading company.
Therefore, outlets through CNP operations must implement additional security standards against the impact of fraudsters and related losses. It is reflected in a higher payment to the acquiring bank for the right to accept payments without the card presence.
With the growth of Internet payments, cases of fraud with online transactions are also growing. Consequently, Visa created an authentication standard for online payments called 3 Domain Secure. 3D Secure provides three-level protection for additional consumer security.

How to secure CNP transactions:

The security of online transactions is one of the most significant moments every merchant should pay attention to. However, not only a merchant should be aware of the security but also the customer is:
  1. Set a limit for online transactions.
  2. Avoid unverified internet access points.
  3. Do not give card to third parties.
  4. You should always have a bank emergency number so that you can instantly block the card.
  5. Connect mobile banking to monitor your account

Pre-authorization is one of the ways to process bank cards.

The pre-authorization of a bank card is a temporary deduction of funds and reserve them for a subsequent transaction. Depending on your seller, this may take up to 5 days.
During this period, funds are not available for the client. The client will not be able to use this amount anywhere else. However, the money from the client’s card was not debited but simply reserved.

Customers often encounter this type when booking something, such as hotels. The hotel sends a request to the bank for pre-authorization to confirm the solvency of the client at the time of booking. In this case, the money is not debited from the client’s card but simply frozen for a certain period, for example, until the end of the settlement. During this period, the client cannot use this money on the card, while they remain in his account.

Depending on the further situation, the money may be debited from the card or thawed. Typically, the payment processing process is highly dependent on the company that provides the reservation services themselves.

Advantages of a pre-authorization

  1. Pre-authorization is an effective way to prevent chargebacks.
  2. Increasing customer loyalty. There are times when it is necessary to cancel an order. In this case, if the client made a payment, you will encounter a chargeback. With pre-authorization, you can avoid chargebacks and the client will be satisfied.
  3. You don’t need to pay MDR fees beforehand.


Card-Present transactions are those that are done with the physical presence of a cardholder and a bank card.

If a bank card has a chip, you can place it into the terminal. It other cases, a customer can swipe the card with its magnetic stripe on the reverse.

Ways to provide a card-present transaction:

  • Magnetic stripe.

Having a majority of cards with chip authorization, there are still a lot of cards that have only magnetic stripe authorization. The usage of any international cards without a chip is similar.  To process this type of transaction, you need to swipe a card in the terminal and follow further instructions. To process a transaction, a cardholder has to approve it with their signature. A fraudulent transaction or falsification of a signature can also happen. In this case, a client has the opportunity to dispute the payment.

  • Chip’n’signature transactions

For customers who have difficulties when using a PIN code, there are cards where a chip and a signature are used as authorization. To make a transaction, you must also insert a card into the terminal and follow the instructions. Also, the cardholder must log in. To do this, he introduces a signature that matches the one on the card.

  • Chip’n’PIN transactions

When working with a chip & PIN card, the user inserts the card into the terminal. Next, a 4-digit password is entered on the screen. When the card is authorized, the seller is protected from cases when customers claim that they did not participate in the transaction.

Card Verification Code / Card Verification Value (CVC, CVV) is a digital code located on the back of the card that confirms the authenticity of the card. It is needed to ensure security when paying by card on the Internet.

CVC/CVV – bank card security code. It is consists of three digits (American Express cards have 4 digits). The code is used for further identification of the owner when making online transactions.
The CVC code is considered the personal information of the cardholder and the bank is not entitled to transfer information about customer card codes to third parties.
The identifier on the back of the card is considered additional protection since it is impossible to make an online payment without entering it. At the same time, this is a risk factor, as the code is located on the card. If the plastic card gets up into the hands of a fraudster, then all the essential information will be available to them. Therefore, to secure your funds, never give the card to the third parties.

How to find CVC code for a virtual card

This type of card usually consists of information without a physical representation. Such payment instruments are issued by many banks and other financial organizations. They are specifically designed for payments via the Internet.

The CVC code of the virtual card is sent after it is issued to the client via SMS. Or an email to your online bank account. If for some reason you have lost the code, you need to contact the bank to restore it.

A Chargeback may be presented against the Merchant’s account by the Issuing Bank with no attempt to first settle a dispute. It then falls to the Merchant to dispute the Chargeback.

A chargeback is a general procedure for canceling a transaction by payment systems and further disputing. In other words, this is a refund to the cardholder. A chargeback could be obtained from almost any institution or organization if you transferred money to the bank account of a legal entity from a card.

When a customer can initiate a chargeback?

  1. When a customer did not receive a service/good.
  2. The product description on the company’s website does not match with an order.
  3. System error led to incorrect payment.
  4. Money is withdrawn a few times due to technical error.
  5. When a merchant changes the amount for a good unreasonably.
  6. The seller refused to accept the goods back even if all the conditions were met.
  7. A merchant did not receive funds to the account due to a technical error.
  8. A transaction was provided without the permission of the cardholder.
  9. Other serious reasons to consider a payment invalid.

Any client who wants to appeal the withdrawn amount and return the money has the right to apply to the bank with a corresponding statement, but the reason for starting the chargeback must be serious.

According to the rules of international payment systems, a protest of payment is possible in case of an unauthorized payment, a dispute between a customer and a merchant and service company, fraud and error in processing a payment.

Chargeback reason code is an alphanumeric code that helps parties to identify what was the reason for the issue.

All parties involved in the payment providing process, are incentivized in reducing the number of chargebacks. That is why there are 2 to 4 digit designations that help to identify the problem quickly.

Worldwide chargeback reason codes by credit card brands

The variety of credit card brands conditioned upon many factors. Some agencies work in some specific regions, some with unique businesses. These impediments led to different brands have different chargeback reason codes.

Discover Chargeback Reason Codes

Discover company has alphabetic, numeric, and alphanumeric codes. The alphabetic ones are usually easy to understand. The code “CA,” for instance, stands for a cash advance that was not completed.

Of course, not all of them are so recognizable. However, all financial institutions are ready to dispute your chargebacks.

Mastercard Chargeback Reason codes

Since 2016, the Mastercard has been using contracted reason codes.

Until now, the code was a long chain of characters that were difficult to identify quickly. Currently, the view has been simplified and has four symbols.

Visa Chargeback Reason Codes

Visa company categorizes chargeback reason codes into the following categories:
non-receipt of information

  1. Fraud.
  2. Authorization Error.
  3. Processing error.
  4. Canceled or returned items.
  5. non-reception of goods or services.

Each group has its action protocols.

Amex Chargeback Reason Codes

There are four categories of chargeback reason codes used by American express. In this case, the code itself includes a letter designating a category and a 2-digit code.

  1. Authorization Issue (A).
  2. Processing Error (P).
  3. Cardmember Dispute (C).
  4. Fraud (F).


Cloud storage is a service that allows you to store data by transferring it over the Internet or other networks to a storage system operated by a third party. On the web, you can find hundreds of different cloud storage systems – from personal storage to corporate ones.

In some of them, you can contain and archive email messages, videos, and other individual files of users. Others can be beneficial to corporates as a commercial solution for remote archiving. It allows you to safely transfer and store files data, and use it from different locations.

Cloud storage is usually scaled according to the storage needs of the user or organization and is accessible from any location and device without requiring the use of an application. 

There are three basic models of cloud-based storages exist:

  • A public cloud – a storage service suitable for unstructured data.
  • A private cloud – a storage service that is securely located with a corporate firewall for more control over data.
  • A hybrid cloud – a storage service that combines private and public cloud services for increased flexibility.

Benefits of Cloud-Based Storage

  1. Files are available wherever an internet connection is: you can access from your phone or PC remotely.
  2. Save space or expand memory: one can save photos and videos in the cloud to save more local space.
  3. High file transfer speed due to an extensive geographic network of servers and CDN.
  4. Reliability of storage: even if one server fails – there are copies of data on other servers.
  5. Excellent opportunities for business and remote employees: one file is available for editing to everyone who has access.




A co-branded card is a card that a seller of goods or services issues in partnership with an issuing bank. Moreover, such cards allow you to receive additional discounts for your customers, for example, in a chain of stores.

If even the client is not interested in purchasing a card of a specific bank, then the presence of bonuses or other benefits will prompt him to order a co-branded card. It allows you to expand the boundaries of your business, attracting more customers.

How do co-branded cards work?

Co-branded cards work like another type of bank card, the cardholder can pay her for purchases, withdraw cash and more. On these cards, most commonly, there is a logo of partner companies.

In order to issue a co-branding card, a merchant or organization must act as a partner of a financial organization. Usually, acquiring bank acts as a partner. In other words, a company that accepts and processes payments. This is the easiest and most convenient way.

Another option is to choose a third-party provider as a partner. For example, American Express – this company, being both a payment processor and a financial organization, provides co-branding solutions. Visa company is the other example.

Acquirer processes customer transactions that use any type of card transaction. If you use a co-branded card, then the transaction process becomes easier. When working with a third party, additional subjects are involved in the process.


The Merchant’s tool for integrating all of their products and services with Payspace payment solutions.

Conversion is the percentage of the number of users who have performed a useful action, expressed as a percentage, to the total number of site visitors over the same period. This is an indicator of the effectiveness and profitability of your resource.

The goals are expressed as follows:

  1. Ordering a good.
  2. Check-in.
  3. Email news seller subscription.
  4. Engagements.

How to increase conversion rate?

  1. Calculate the sales conversion not only for the entire department but also for each sales manager. Thanks to this, understanding will come who works better and who works the other way around. Read more about the motivation of sales staff at the link.
  2. To improve the work of sales managers, connect a CRM system in which customer information will be stored, and necessary information will be automated.
  3. In addition to employee performance data, sales conversion information helps highlight weaknesses in the business. To eliminate them, you have to test various tools. For example, offer customers promotions, bonus cards.
  4. It is also essential to know the specifics of the business, for example, the seasonality of demand. 
  5. Try to tell customers about the value of your product or service through the launch of display advertising, in which all the opportunities will be presented. 
  6. If you have a website or an online store, then work out a presentation of a product or service. Post reviews on product pages and invite customers to share their opinions. For incentives, try offering discounts or gifts for feedback.


Credit card processing is a data processing operation used in providing financial transactions. This process is an essential activity in provider centers.

The most popular for attracting processing services were two groups of financial transactions:

  1. Processing of electronic payments.
  2. Processing of plastic cards.

When processing electronic payments, the operation takes place by transferring funds from the online store to the company’s current account.

Payment processing centers

Credit card processing centers are technology systems operating on bank sites and integrated into payment system networks. They help merchants accept and provide payments on prepaid, debit and credit cards.

These organizations check the details of the transactions, the availability of funds on the cardholder’s account. They also make certain measures to eliminate or reduce the level of fraud using payment instruments.

When processing data using bank cards, money is received on payment cards for the purchase of products or services in the online store.

The process involves card companies that usually do not issue cards, but are included in the processing and supporting transactions in the interests of other players. There are processing centers that provide services to merchants and can transfer money between banks. Some banks issue debit and credit cards for consumers.

The bottom line

Accepting payment online you will always be in the trend of world financial technologies. This will allow you to get all the convenience of online processing:

  1. Terms of connecting and integrating the site into the system.
  2. Frequency of payments.
  3. Security and international license.
  4. Customer risk insurance and customer support.


Many payment support services offer plug-ins to their Control Panels such as geo-location reporting, Banned Country Lists, restrictions on payments, flags on previous transactions, duplicate charges, or other filters. As well as these customisable rule sets, Payspace additionally provides the data mining module that supports advanced marketing and traffic conversion needs for high-volume sales Merchants.


A bank deposit is a certain amount of money that an individual or legal entity transfers to a bank to make a profit based on interest accruals. Financial transactions provide interest. 

For example, a bank attracts a deposit from one client, and gives it to another, as a loan.

What are the conditions for making a deposit?

Each financial institution has its conditions for customers. Most banks offer several programs for investors at once, which imply various conditions, interest calculation principles. The main types of deposits:

Term deposit.

It can be long-term, medium-term, and short-term. Long-term deposits include deposits that are issued for a period of twelve months, but a short-term loan can be issued for a period of one to three months. As for the medium-term loan, its duration is from three to nine months. When using a fixed deposit, it is not advisable to withdraw funds earlier than the date specified in the agreement; otherwise, the profit may be less.

Demand deposit.

It is a contribution that can be made for any period, amount, or purpose.

Accounts that do not have a low percentage of income or completely zero rates are used. An advantage is the ability to withdraw at any time, as well as transfer money to the accounts of other persons, enterprises. Also, the depositor can cash out his money at the cash desks of banks or ATMs.


Information about a Transaction that appears on the cardholder’s bank card statement, including the Merchant’s name or ID, telephone number, website, or other information, up to a standard 22 characters

A file that is transmitted with an electronic attachment that allows assignment of a personalised key to open it.

A digital payment (or electronic payment) is a payment made using electronic telecommunications and electronic payment instruments. Digital telecommunications include information networks, primarily the Internet and cellular networks, ATM networks, and electronic payment terminals, POS terminals.

Electronic payment instruments include a bank transfer of money from one account to another. Providing using automated means, bank plastic cards, smart cards, electronic money in the form of online checks, and the type of virtual monetary units. There are cash and non-cash digital payments. Non-cash payments are used for remote money transfers for settlements with digital money, bank, and non-bank plastic cards. Non-cash payments include Internet payments made on the Internet.

What is an electronic payment system

An electronic payment system with the ability to accept payments for services and goods is an online service that allows a consumer, using regular Internet access and a credit card number, to purchase products, services, or lots offered to him.

The seller, in turn, has the ability to verify and accept payment from consumers safely. An integral part of the online payment system is acquiring. A component of acquiring is checking the credit card number and payer’s credit history, as well as confirmed by the bank servicing this credit card the ability to make a payment for the requested amount in the indicated direction.


Digitalization profoundly transforms and streamlines business processes. It improves company productivity and enhances customer experience.

The digitalization of a business is a comprehensive concept; it does not offer a single right recipe for each company. The power of digitalization is individuality and flexibility. Any business can partially or fully digitize its processes and increase efficiency.

The goal of digitalization is to satisfy the needs of the consumer, which are changing along with the development of technology, namely, the creation of a more comfortable and efficient interaction between the client and the company. But she may have other goals, such as:

  • Improvement of a product (or service): it’s quality, attractiveness, ease of use, delivery
  • Automation of production and other internal processes of the company.
  • Simplification of internal and external communications.

Why does my business need digitalization?

The use of modern digital technologies to one degree or another is necessary for each type of business – this is obvious. The required minimum for any company now is the presence of a website and accounts in social networks (with very few exceptions). Those brands that want to take another step closer to customers can also develop a mobile application/chatbot and use other promotion channels – and this can take them to a new level.

But if we talk about a more thorough digital transformation, it should affect not only the work with clients. Also the effect should be on such a business processes: production, personnel management, internal communications. In order to implement such a transformation, serious, energy-intensive work must be provided. It can be based on technologies such as Big data analysis, cloud and mobile services, and agile development.


Currency conversion during the execution of transactions through bank cards occurs when the currency of the transaction is different from the currency in which your card account is opened.

This feature allows the customisation of the 3D Secure secondary security layer, enabling the Merchant to decide when it should be used, for example, at what price point to ask a customer to provide the answer to an additional security question.

A feature that allows selection of individual Application Performance Management services so that clients pay for only what they need.


A method of payment wherein the Merchant verifies or pre-authorises a cardholder’s account and processes the cardholder’s funds directly into their own account with fewer processing delays.

Electronic Funds Transfer – this is the place where the old-fashioned concept of money transfers converges with the modern technology of electronic funds transfer, or EFT (Electronic funds transfer). You probably use EFT all the time – it’s just a completely automatic way to transfer money from one bank account to another bank account. Data is exchanged; there is no paper money. Using a debit card in the store transfers money from your current account to the store’s bank account. Direct deposit funds transfer money from your employer’s bank account to yours. Both of these transactions are examples of EFT, like online money transfer.

But online money transfer is markedly different from EFT – it is not a way to pay bills via the Internet. Online money transfers are the modern equivalent of money transfers: you can instantly send money to someone only by transferring money (or data representing that money) from you to another person. Usually, sending and receiving parties related to a bank account requires a little more contact information.

For example, a mobile phone number or email address – an online money transfer can be made for a small fee from a secure website, a service based on any computer with access to the Internet. And there is no need to go to a bank branch to transfer funds.

Electronic Point-of-Sale terminal (EPOS) is a hardware-software complex that allows you to carry out trading operations that can be carried out using a conventional cash register. In addition to accounting for sales, the POS terminal can also accumulate other data for subsequent analysis. POS-terminal has a convenient user interaction interface to facilitate the search for the right product and obtain data on its characteristics.

Advantages of using EPOS-terminals for enterprises:

  1. attracting new customers – owners of debit and credit plastic cards;
  2. automation and accounting of the process of receiving payments;
  3. no collection is required because cash is not used;
  4. protects the cashier from taking counterfeit money;
  5. excludes the possibility of a cashier’s error when settling with a client.

Disadvantages of using EPOS-terminals: 

  1. additional costs for merchant acquiring, constant monitoring of the card owner; 
  2. the ability for government agencies to block cardholder accounts; 

How to choose a terminal

There are some vital points one should pay attention to when choosing an electronic POS terminal:

  • Since many functions depend on the features of the program installed on the computer, you need some time to select and configure the software. Options for retail or a restaurant may differ in several variants; the same applies to other business areas.
  • You can install a monoblock or a complex system that contains several devices. Often in this situation, the choice depends on the organization of the workplace. It is not always possible to install a large amount of equipment, and a lean POS may give you a helping hand.
  • If you plan to provide traveling sales, organize a delivery service, then you should also purchase a mobile POS terminal to pay for services.



Europay-MasterCard-VISA (EMV) – an international standard that stands for bank card operations with chips.
The EMV standard defines the physical, electronic, and informational interactions between a bank card and a payment terminal for financial transactions.
Based on the ISO / IEC 7816 standards for contact cards, and the ISO / IEC 14443 standards for contactless cards.


One of the disadvantages that bank cards with EMV chips are slower in processing. The swipe cards are literally showed faster results than chip ones.

The cardholders, who use EMV technology has more security when providing card-present transactions. However, they provide a lack of protection for online transactions. This vulnerability is the most vital in the growing sphere of e-commerce.

Studies show that such a technology has proven itself in the processing of payments. Consequently, merchants who neglect cardholder data protection are at considerable risk.


FCA (Finance Conduct Authority) – an independent organization that serves as a Great Britain regulating financial authority.

The FCA organization was founded in 2013, and the oversight function of banks, credit unions, insurance, and significant investment companies was entrusted to the specially created Bank of England prudential control department

The regulator pursues the following tasks: 

  1. Management is trying, by all means, to improve the financial system and the UK market, while maintaining the confidence of the client; 
  2. Creating conditions that will help protect the financial system. Sustaining investors for economic growth; 
  3. customer protection from problems related to investments or transactions; 
  4. control of participants to prevent insider trading. 

The institution provides unique requirements for brokers: 

  1. a brokerage company must maintain capital in a particular liquid state.
  2. Independent auditors should conduct audits annually.
  3. Afford financial reports of the company. 

FCA pays much attention to brokers’ clients, trying to protect their interests. Complicated standards indicate this – this contributes to the first stage of the investment activity of the trader. How? The regulator may decide to conduct an unplanned inspection of their licensed brokers to determine the quality of work.


Who is a fraud analyst?

A fraud analyst is a person who investigates suspicious activity or theft. He/she does is relatively customers’ accounts. Fraud analysts do these operations on behalf of the banks or financial institutions. Their main task is to define and track suspicious transactions. The specialists do it to protect the bank from possible losses.

How do they act?

So, the bank flags a certain transaction “red.” The reasons behind this might be different (yet, they comply with the country’s law and the bank’s inner regulations). Then the analyst starts to act. He/she will also flag the whole account “red.” It’s a necessity, that lets the analyst investigate the case.

He/she will look closer at certain parts. They include:

  • Transaction amount
  • Transaction type
  • Where transaction originates from
  • Country to which the user sends the transaction
  • Transactions that are not typical to this account, etc.

Then the specialist picks more information about the transaction. The fraud analyst finds more information about the account holder, tries to know more about the transaction’s origin. He/she will also trace the route of the transaction. That involves contacting other bank’s branches or the third parties involved. Often, fraud analysts work may help to define security weaknesses.

Also, the analyst may investigate fraud by regions. That may help to know more about the region’s specifications or learn more about fraud schemes to fight them.

What is a fraud prevention platform?

A fraud prevention platform aims at fraud prevention. In other words, its goal is to prevent losses and weaknesses merchants may face because of illegal actions.

Firms and enterprises may use it to protect themselves from internal and external fraudsters. The system reduces the time needed to serve the clients. That, in turn, leads to the customers’ loyalty increase. The better the company serves the clients the lesser the opportunity of friendly fraud. Minimizing service time also leads to lesser fines. At the final score, the company minimizes financial risks.

With the help of fraud prevention platforms, merchants can require additional authentication means for better security.

The set of the parameters, the platform may track may include:

  • the number of payments during a specific period of time,
  • the amount of transactions during a specific period of time,
  • the senders’ IP,
  • 3D-Secure,
  • previous purchases history,
  • personal data + additional, etc.

Moreover, the platform will use encryption protocols to secure all the data. That means, financial and personal data is totally safe with fraud prevention platform.

The main goal of the fraud prevention platform is to provide inclusive analytics. Thanks to the anti-fraud software the platform uses it’s possible to detect friendly fraud and suspicious activity in the early stages. That reduces merchants’ chargeback ratio. Also, that means merchants won’t lose money on disputes’ reimbursements.

What’s a fund transfer system?

The fund transfer system is the one that ensures money flow from/to business/individual accounts without cash involved. Another definition is an electronic fund transfer system because the transactions go from account to account online. It’s easy to understand the EFTS popularity. Online money is more widespread now. Users prefer them to cash because of security, convenience, and speed.

There are two types of EFTS: online transactions and PIN-debit transactions.

The system lets users pay for goods and services online. But enables other functions as well. For instance, pay for bank services, get salaries, withdraw money from payment cards. Let’s take a look at two transfer system types.

Plastic card systems (or credit card systems)

As it becomes clear from the name, the system uses credit cards to make payments. Though all actions happen virtually, interaction with traditional banks still takes place. They check and authorize the transaction. The transfer itself flows via the encrypted protocol. The system also requests customers’ authentication to make sure the transaction is legal.

E-checks or e-money systems (or debit systems)

The base of this transfer system is digital data. In this case, there’s no need to involve the bank in the process. Basically, independency from brick-and-mortar banks is the perk of this system.

Electronic fund transfer systems are becoming more popular over the years. The reason is its speed and security.


Working with geo-IP mapping technologies, this module can create customisable filters that check the data of every Transaction against lists and filters created by the Merchant.

What are the global negative lists?

To operate effectively, companies collect and use certain data as a basis. To work with this data correctly, firms create positive and negative lists. The global negative lists include various sectors. They might be financial or banking or commercial services.

Negative lists define the specific sectors that bring certain limits and restrictions. So, global negative lists serve merchants as an additional security tool. Likewise, banks’ financial security and monitoring departments, that investigate accounts to protect the bank from losses, the merchant can create their own protection mechanism.

Moreover, the payment processing company can have their negative lists as well. These lists may include restricted:

  • IP addresses,
  • locations,
  • email address,
  • mail addresses, etc.

For example, GEO negative lists may save the merchants from bank’s declines. Or people will be unable to pay from the restricted IP addresses. Another way to protect merchants is to block certain emails. Fraudsters may use them constantly for illegal actions.

When you, as a business owner, have your own negative list, handle it to your payment processor. That makes the process even more secured.

Of course, to add extra protection, you may require other information:

  • require to type in the CVV code,
  • enable address verification filter,
  • enable the filter for the country, issuing the card.

High-risk businesses are different from low-risk and middle risk for the following reasons:

  • The high rate of chargebacks. Chargeback appears when a dissatisfied client contacts his bank to get the money from a purchase back. No matter was a chargeback valid or not; it affects a business’s chargeback ratio. When the amount of chargebacks is more than 100, the merchant is banned with a $25 000 fixed fine. That is mandatory. From a merchant to a PSP to an acquiring bank, chargebacks affects all the parties involved. That’s why banks and PSPs often reject high-risk applications. 
  • The type of industry. Some industries are riskier than others as they are more prone to fraud and chargebacks — for example, porn, gambling, file-sharing, travel. 

Examples of high-risk industries

Check out some of the most common high-risk businesses:

  • Gambling;
  • Gaming;
  • NUTRA (nutraceuticals);
  • CBD;
  • Booking and travel agencies;
  • Escort;
  • Adult;
  • Telemarketing;
  • Bitcoin/Forex trading;
  • Computer software/hardware;
  • E-cigarettes;
  • Collection agencies.

What being high-risk means for you as a business owner

Forewarned is forearmed. Running a high-risk merchant account imposes the duty to pay higher fees. The possible risks are to blame. If you are a high-risk business owner, get ready to:

  1. Pay higher fees;
  2. Pay additional charges;
  3. Rolling reserve up to 6 months;
  4. Chargeback threshold that can’t be surpassed;
  5. Slower payouts.

What documents do I need to open a high-risk merchant account?

Check out the list of documents to open a high-risk merchant account:

  1. Certificate of Incorporation;
  2. Certificate of incumbency;
  3. Local documents as per company jurisdiction which displays company directors and owners; 
  4. Utility bill/Bank statement/Rental agreement under corporate names proving company location;
  5. Valid ID copies for all company directors and owners.

This is a list of key documents any merchant needs to collect. However, your business might require additional documentation. For example, merchants who sell NUTRA ought to provide the label of contents, while travel merchants are obligated to gen an indemnity. Contact the PSP of your choice to learn the details. 

The card number contains 16 digits, divided to 4 blocks for four digits each and serves as access to a bank account of a cardholder

Every credit card has a unique number. With the help of the first four or six numbers, you can find out an issuer bank identifier that payment system assigns to a particular bank for a specific type of card.

To identify whether a cardholder entered a valid number, you can use simple regular expressions.

Also, you can customize regular expressions and use them to find the necessary card or other appropriate numerical sequences.

This method also shows that you do not disclose the number of cardholders, but only identify them.

How to delete spaces?

When entering plastic card data, every four digits of the account number are separated by a space. It is used in order to reduce input errors or when reading. Thus, you can write an expression that allows us to remove excess characters to optimize the search.

First, we need to delete all characters that are not numbers (space is also a character and has a   HTML format). To solve this, let’s use the following function: [^0-9]+.

Let’s look at what each symbol means:

  • [] – square brackets indicate that the search takes place over a specific range.
  • ^ – this symbol means that the search will start from a new line.
  • 0-9 – numbers from 0 to 9
  • + – means the character that can be at the end of the expression. It is called a quantifier and determines how many times the expression can occur in the text. In this case, one or more. In this case, we can use the expression without a +, but it helps computers to save some calculation time.

If the task is to replace spaces or dashes, then you can find them in this way: [ -]+. In this case, according to the rules, the dash should be in front of the closing bracket.

Regular expressions are ideal for checks, such as finding and matching credit card numbers. Of all 16 characters, only a few are required for identification. On the one hand, this allows the issuer to identify the bank, and on the other hand, the full bank credit card number remains classified.

In practice, cards of different banks can be automatically sent to suitable payment processors, or inform the client that this type of card is not supported.

  • For Visa card: ^4[0-9]{12}(?:[0-9]{3})?$. All Visa cards start with a digit four and are either 13-digit or 16-digit ones.
  • MasterCard: ^(?:5[1-5][0-9]{2}|222[1-9]|22[3-9][0-9]|2[3-6][0-9]{2}|27[01][0-9]|2720)[0-9]{12}$. All Mastercard plastic cards contains 16 numbers and start with 5 or 2.
  • American Express: ^3[47][0-9]{13}$. AMEX cards, as well as JCB International and Diners Club, starts at 3.
  • Diners Club: ^3(?:0[0-5]|[68][0-9])[0-9]{11}$.
  • Discover: ^6(?:011|5[0-9]{2})[0-9]{12}$. Discover, the same as Maestro and China UnionPay starts at 6.
  • JCB: ^(?:2131|1800|35\d{3})\d{11}$. JCB cards also start at 2131, 1800.

To validate any of the cards mentioned above, the expressions can be combined into one using the symbol ‘|’ which denotes alternation construction.

A vertical bar ‘|’ can be used to match any set of patterns in which patterns are separated using the ‘|’ character.

^(?:4[0-9]{12}(?:[0-9]{3})? # Visa

| (?:5[1-5][0-9]{2} # MasterCard

| 222[1-9]|22[3-9][0-9]|2[3-6][0-9]{2}|27[01][0-9]|2720)[0-9]{12}

| 3[47][0-9]{13} # American Express

| 3(?:0[0-5]|[68][0-9])[0-9]{11} # Diners Club

| 6(?:011|5[0-9]{2})[0-9]{12} # Discover

| (?:2131|1800|35\d{3})\d{11} # JCB


If the client has entered the wrong number of characters or in the incorrect format, these formulas can quickly help you identify the error and point it to the client. However, here are your nuances. For example, this expression will not throw an error if the client enters an invalid credit card number. In this case, you should use special algorithms: algorithm Verhuffa, Luhn algorithm, SHA algorithm, and others. Another advantage of regular expressions is that you can combine it with any development language and instantly check for errors. It saves time for both you and your customers. In addition, some payment providers also charge for failed transactions, which can significantly affect the business as a whole.

Many financial institutions widely use the use of card verification algorithms.

How to find a bank card number among a large number of files?

If you slightly modify some of the expressions above, you can determine the bank card numbers in any document.


In the second case, if there are several of these documents, then using \b\d{13,16}\b, you can find expression with the corresponding number of numbers. Of course, the same number of characters shouldn’t be anywhere else.

And finally, \b(?:\D[-]*?){13,16}\b allows you to find the card numbers even if space or dash separates them.


What is the in-app payment?

The in-app payment is the way for a customer to purchase a service/product through the mobile application. Such apps usually require a user to link a credit card. Once the user adds and validates a credit card, he/she can pay inside an app within a click.
In-app payments pros and cons

Examples of in-app payments:

  • Someone purchases gifts for Christmas via AliExpress/Amazon app;
  • A person reads books at Amazon app and buys a subscription inside an Amazon app;
  • A consumer orders pizza and sushi delivery and pays for it inside an app;

What are the pros and cons of in-app payments?

The main pros of in-app payments are:

  1. No redirections.
  2. Native design of a payment page.
  3. Mobile payments are now gaining momentum

Merchants often face the following cons of in-app payments:

  1. Obtaining certifications is not simple.
  2. Implementing in-app payments is hard.
  3. It won’t bring in revenue right away.
  4. In-app payments require additional customer support.
  5. In-app payments might repel customers.

In-app payments pros and cons infographics

What is an Independent Sales Organization (ISO)?

ISO (also known as Independent Sales Organization and Member Service Provider) is an organization that works on behalf of the credit card company or bank to create new client relationships. It is the third-party organization that represents a bank or other financial institution that sells and promotes its services. ISO sets up partnerships with different banks to find the best solution for every merchant. It also opens and manages merchant accounts on behalf of the financial institution it represents. The ISO acts as a representative of any financial institution with which they have an agreement.

What is the main goal of ISO?

The main goal of an independent sales organization is the administration of merchant services. The key tasks of ICO include the following:

  • soliciting new customers;
  • providing excellent customer service;
  • finding or issuing functions;
  • obtaining cardholders;
  • arranging terminal purchases or leases.

Why does one need the ICO?

With the rapid growth of e-commerce, the role of ISO is more than crucial. Partnering with the right business loan provider enables one to enjoy the best commissions and offerings from top providers in the U.S. and abroad. Partnership with ICO  also allows merchants to offer more products and services to your customers and meet their needs successfully – giving you a competitive edge.

What is the interchange fee?

The interchange fee (also known as a transaction fee) is the per-transaction charge paid by the merchant to a payment processor. Simply put, every time someone buys a product/service from a merchant’s website, he gives away a fixed interchange fee to a PSP he uses. The fees are paid to the card-issuing bank to cover handling costs, fraud, and bad debt costs and the risk involved in approving the payment.

An example of an interchange fee

Imagine a merchant called Bob. He sells marketing courses online, $1000 per item. His payment processor is PaySpacelv. The interchange fee of PaySpacelv is 1.2%. Thus, every time someone buys a course from Bob’s website, he is automatically charges 1.2% out of the transaction. As a result, he gets $988, while PaySpacelv gets $12. The same process happens every time a consumer purchases a course from Bob’s website.

Why interchange fees differ?

Different PSPs have different interchange fees. The fees vary due to payment processor policies, and a business type of a merchant. Those who run high-risk business(gambling, gaming, adult, CBD, pharma, e.g.) have no choice but to pay more. The deal is, such businesses might bankrupt due to a high volume of chargebacks. The acquiring bank will have to cover the losses. That is risky. That’s why banks have higher fees for those who are involved in high-risk industries.

What is an International Bank Account Number (IBAN)?

An IBAN, also known as international bank account number, is a standard international numbering system meant to identify an overseas bank account. The number always begins with a two-digit country code. Then there are two numbers, followed by up to third-five alphanumeric symbols. However, an IBAN does not substitute a bank’s own account number. It only provides additional information that allows identifying international payments.

4 things about IBAN you need to know

Check out the main four facts about International Bank Account Number (IBAN):

  • An international bank account number (IBAN) is a standard international numbering system for individual bank accounts globally;
  • Banks in Europe created the IBAN system to smooth and simplify transactions from international bank accounts of other countries;
  • An IBAN is meant to identify an individual account that is linked to an international transaction;
  • The IBAN is also used as a way of verifying that transaction details.

Keep in mind that the U.S. and Canada are two key countries that do not use IBAN. Though, they can recognize the IBAN system and process such payments.

Some examples of the IBAN system in use

  • Albania: AL35202111090000000001234567
  • Cyprus: CY21002001950000357001234567
  • Kuwait: KW81CBKU0000000000001234560101
  • Luxembourg: LU120010001234567891
  • Norway: NO8330001234567


What is an international money transfer?

An International Money Transfer is an electronic transfer of money to a friend, relative, merchant, or company overseas. The person or company you are paying (sending money to) is a beneficiary. The bank the funds you send the beneficiary bank. The international money transfer always includes a specific amount and a specific currency.

With dynamic currency conversion, Playspacelv makes it easy to receive and send money to email addresses and telephone numbers as well as to banks and financial institutions, depending on the integrated service.

Examples of international money transfers:

  • Chinese consumer purchases pharmaceuticals from the U.S-based company and pays online via a credit card;
  • The Australian citizen sends money within a payment app to her friend in the Russian Federation;
  • American volunteers donate money to the African charity based in Kongo by using a credit card.

One method used to flag potentially fraudulent credit card transactions, comparing the customer’s computer IP country address with the country of the card’s Issuing Bank.

The issuing bank is a bank that provides credit and debit cards to individuals. Usually, these are major commercial banks. Another name of an issuing bank is the issuer or bank eminent. Let’s take a look at the role of an issuing bank in the payment processing.

An issuing bank offers payment cards to consumers on behalf of the credit card networks — for example, Visa, MasterCard, or American Express. The issuing bank is also responsible for providing the financial backing for the transactions processed with the card. It is also accountable for cardholder’s ability to pay off their debt accumulated with the credit card. The issuing bank is also in charge of the consumer’s financial information and account data safety. Card renewal, card limit setting, suspension, blockage, and card activation are among other services of issuing banks.

Difference Between the Acquirer and Issuer

The acquiring bank (also known as a merchant bank or acquirer) is the financial institution that opens and regulates the merchant’s bank account. The contract with the acquirer allows merchants to process credit card transactions online. The merchant’s acquiring bank cooperates with the client’s issuing banks to enable the payment processing.

The issuing bank is the financial institution that issues credit cards to consumers on behalf of the card networks (Visa, MasterCard, e.g.). The issuer acts as a mediator between a consumer and the card network.


What is Know Your Customer?

The term Know Your Customer stands for the business verification process. Alternatively, the term goes as KYC or Know Your Client. So, the KYC procedure stands for clients’ identity verification and decides if the party is suitable or not. This notion is typical for financial, banking, and investment industries.

In banking, it stands for anti-laundry and bank regulations. KYC in investment defines clients’ investment knowledge and risk tolerance, plus their financial state. For companies, KYC means anti-bribery compliance for agents, clients, or distributors.

Nevertheless, the main know your customer’s goal is to prevent the business from money laundry or illegal activities. That includes both intentional and unintentional actions. This methodology also helps companies to know their clients better.

For instance, know your customer usually includes four elements:

  • client’s acceptance policy,
  • client’s identification procedures,
  • transactions’ monitorings,
  • risk management.

KYC is a vital procedure for both financial and non-financial establishments. It identifies the suspicious activity at the early stages. That helps to minimize fraudulent activity.

All in all, the KYC procedure includes the following parts:

  • Collection and analysis of the information that can be identified
  • Determination of the public exposure status according to the watch-list
  • Determination of customers’ risks
  • Creation of “Customer’s profile” according to customer’s transaction behavior
  • Monitoring of customer’s transactions compared to determined behavior

There is an enhanced Know You Customer option – Know Your Customer’s Customer.


What are the local payment methods?

Local payment methods are methods that are specific to certain regions. In order to provide a high-level service to clients, merchants should offer them a choice of local methods. The variety of payment methods ensures a better conversion and lower cart abandonment rate.

Well, the payment itself means a value shift from one party to another in return for offered goods or services. There are different types of payments. But, basically, they involve cash, payment cards, or (e)checks.

Local payment methods may also be in the form of select payment cards. As a rule, Visa and Mastercard are widely used across all the continents. On the other hand, another huge card network – Amex – is more popular across North America. Except for payment cards, customers might wish to use country-specific e-wallets or mobile checkout options.

Customers feel safer and more comfortable when they see a selection of payment methods they know. That, in its turn, helps to grow trust in your company and its reliability.

Let’s take a look at some local payment methods.

For example, German customers prefer to see the following methods: Sofort, PayPal, SEPA, Giropay, Visa, Mastercards, Klarna, etc.

Then, the Netherlands users prefer: iDEAL, Mastercard, Visa, SEPA direct debit, Klarna, etc.

And the UK shoppers are happy to see: Visa, Mastercard, Amex, Paypal, BACS direct debit, etc.

What is a loyalty program?

The loyalty program is a set of marketing strategies that encourage customers to buy products/services from a certain company. The sellers create those programs to offer to their clients. These programs are typical for most eCommerce types and travel industries. Loyalty programs use different reward schemes.

Loyalty programs expose themselves in different forms. Customers may use their loyalty number during online purchasing. Another option is a physical card. By the way, this card will be alike to the payment card. It usually has the name of the merchant, magnetic stripe, and a number (or client’s name). Customers present loyalty program cards at the reception desks or, for instance, in stores.

As we’ve mentioned, loyalty programs use different reward schemes. The most widespread is the discount option. Reward card owners are eligible for a discount that may vary depending on the card type. Another example is a bonus card. In this case, customers accumulate bonuses and may change them for goods/services.

The travel industry offers a broad selection of schemes as well. So, the users may file for a loyalty card to save flying miles, the number of nights spent in hotels, etc. Later, the client may use the card to pay lesser for a service, to make an upgrade (e.g. for the room), or get a special offer.

The example of loyalty programs are:

  • HHonors by Hilton Hotels,
  • KrisFlyer by Singapore Airlines,
  • Miles&Smiles by Turkish Airlines.

Nevertheless, customers can benefit from loyalty programs when they use certain payment cards. Moreover, many banks/card networks partner with popular stores, hotels, airlines to the customers’ extra value. There are special websites that compare credit/debit cards in terms of their loyalty/rewards programs. So, the customer can pick the card and the bank, depending on what services he/she uses the most.

The example of cards’ loyalty programs:

  • Lady’s Card by UOB,
  • Premier Mastercard reward program by HSBC.

What is a luhn check?

Luhn check is executed based on the luhn algorithm. The luhn algorithm validates credit card numbers and other identification numbers. This algorithm holds the name of its creator – IBM’s scientist Hans Luhn. Other names of the luhn algorithm are luhn formula or mod 10 (modulus 10).

Modulus 10 notion is not random. The algorithm checks the sum of the card number’s digits. The aim of the formula is to answer if the sum equals the expected sum or if there is an error in the sequence. After the algorithm does its work, the modulus 10 should equal zero. In this case, we can state that the number is valid.

The volume of credit card transactions now is increasingly high. And all the involved parties should be able to encrypt and decrypt the data. And do it fast. That is why the financial system has always sought to find a mean that can do it fast and secure. To reach the goal there should be a system that could use limited resources and cope with a big amount of data. And the luhn algorithm has become the perfect option.

Yet, it’s important to understand that luhn algorithm’s main goal is not securing the transactions. Instead, it checks the possible errors in the cards’ numbers. Luhn algorithm lets eliminating the whole verification process. It’s like a pre-verification step to make sure the card’s number is correct.


MO/TO (mail order/telephone order) – a type of payment transactions for goods and services via payment cards. MO / TO operations differ from ordinary transactions in that its holder communicates the payment card details (number, validity period) required by the holder of the payment document by mail, telephone, fax, or other communication.

By using MO/TO transactions, it can be struggling to identify the cardholder accurately. Since authenticity is impossible, MO/TO technology referred to a high-risk.

Benefits of MO/TO transactions

In modern life, every person wants to provide transactions without any struggle. At the same time, for every merchant, it is vital to provide services as much convenient as possible. With MOTO transactions, that doesn’t require to authorize the payment in person, the process of payment has reached a new level.

MOTO payments help speed up the process of paying overdue bills. Also, the merchant can use MOTO to receive payment from the customer, compiling accounting books.

Disadvantages of MOTO transactions

As we have mentioned above, transactions without cardholder’s authorization are subjects to online fraud. In this case, the bank of your merchant may demand compensation for a fraudulent transaction.
It should be mentioned that with the physical presence of the cardholder, the bank is responsible for the fraudulent transaction.
The absence of a signature or other entry is also a negative factor. It can lead to the impossibility of contesting the transaction since there is no evidence of its realization.


To handle the challenges of cross-border payments and regulatory fees and statutes, Payspace Manager Modules increase efficiency in organizing incoming and outgoing Transactions.

MasterCard SecureCode is a technology for providing additional protection when making transactions with bank cards. A payment card must support Mastercard transactions.

If the bank that issued the card supports MasterCard SecureCode technology, then in addition to the plastic card number and CVC2 code, a one-time code will be requested. Bank sends this password to a cardholder’s phone.

It helps to identify a client and eliminate possible fraudsters’ activities.

Even if a scammer finds out the card number and the CVC2 code of the cardholder, he will not be able to pay online with these data. They will not be able to receive a verification code that is unique for each operation in order to make a transaction.

Thus, the Mastercard SecureCode logo means that the website supports Secure Code technology. If your bank supports this technology, the purchasing of tickets will be subject to additional verification.

If the Mastercard Secure Code service is not activated, please contact the bank that has issued your plastic card.

Under all circumstances, do not provide your one-time password to third parties. Bank employees don’t need this information and will never ask for it.
The request, ones may sometimes receive, is always come from scammers.

A merchant is a private or legal person who provides services or goods to customers. Every merchant offers its services in accordance with laws. 

There are some types of merchant activities exist: 

  1. A wholesale.
  2. Dropshipper.
  3. Retail.

One creates a product, while others buy for the lower price and sell for a higher one. All these activities are characteristics of a merchant.

Every person who owns a business is a merchant too. 

wholesaler is an intermediary who buys in bulk from a distributor and resells at wholesale price to a retailer. Wholesalers may specialize in a particular type of product, such as women’s shoes, or have a wide range of products for retail in various industries. Wholesalers who sell only non-competitive products are distributors.

distributor is an independent agent agreeing with a manufacturer to sell its products to wholesalers or retailers. Distributors often face restrictions from manufacturers and are not allowed to trade other product lines or competing products, but this frequently depends on the type of industry and the agreement that has entered into force. As a rule, distributors own a vast amount of goods

 A Retailer is a business owner who sells products directly to consumers for consumption, not resale. To make a profit, the retailer must find a wholesaler or distributor who sells the products at the right price and in the right quantities. Typically, retailers make money by buying products from wholesalers in small amounts at a wholesale price and reselling them at a relatively high price to cover advertising costs and other expenses

Along with a real-time Merchant and Agent Accounts interface, 99% uptime, and 24/7 tech support, Payspace assigns a personal Account Manager to each Merchant who will help build the payment platform that works best for that business.

Our international teams work closely together and can answer all questions concerning risk and compliance.

Also, you can ask general questions about finance and management. Account Manager will work to keep Merchants up to date of new opportunities and solutions. As soon as new solutions emerge, clients will receive all updates. It allows they to keep in touch with the latest payment trends.

The Merchant information needed to begin processing payments should be entered on this form.

A merchant bank is a financial institution that financing foreign commerce. 

Such banks transact the following business:

  1. Accepting bills of exchange (acting like accepting houses).
  2. Offering long-term loans.
  3. Financial advisory.
  4. Fundraising activities for companies and individuals with high equity. Besides, they also do not take deposits.

Merchant banks do not provide their services for everyone.

What does the merchant bank term mean?

The name “merchant bank” usually describes investment banks. This definition is widely used in the United Kingdom. However, in the USA, this value is narrower. Merchant banks focus their efforts on corporations with branches in many countries. 

The difference between a merchant bank and investment bank

Even though these two types of institutions are similar, they have some deficiencies.

On the one hand, investment banks offer solutions in the field of initial public offering and shares activities. Investment banks also assist companies merging. 

On the other hand, merchant banks work, in most cases, with smaller enterprises that can not attract venture capitalists. Merchant banks may work in collaboration with investment banks as well.


Merchant Category Code (MCC) is a four-digit number assigned to the Merchant upon approval of the contract to accept MasterCard and Visa payments. It identifies the Merchant’s business by type and level of Interchange Fees charged.

This code allows you to correctly classify the type of business of a commercial enterprise when making payments using plastic cards of Visa, MasterCard, AmEx systems.

When installing the POS-terminal in the cash zone and setting its parameters, you receive the MCC code automatically. 

At the time of the representative’s request to the bank, checking personal information takes place. After that, the company receives a personal number.

If the company provides its activity in several areas, then when choosing a code, the main business is primary.

Why do consumers need MCC code?

When connecting to issuing bank bonus programs, cardholders also need an MCC code. For transactions of a specific type, the client receives a specific bonus or CashBack on their bank card. Sometimes bonuses for paying with a card are credited to your mobile phone account.

Frequently, you can return up to 5% of the amount of the purchase back to the card account. Bonuses are credited to user cards only at specific points of sale according to the list approved by the bank.

The information system of a banking organization holds information about all customer spending transactions. Automated systems of financial institutions regularly analyze data and select operations that match the conditions of the action.


A merchant identification number(MID) is a part of a payment processing industry. It is a unique code that identifies the merchant.
There are lots of business owners that wish to process money around the globe. The company or bank that processing your payments assigns you a unique number (MID), which allows you to identify your business among millions of other companies. This number is directly related to your current bank account.

How to receive a Merchant Identification Number?

To receive a MID you have to take some steps before. Of course, you need to open a merchant account first.

A merchant account is a special account in an acquiring bank, to which money is received from online payments of customers using a payment gateway.
For online merchants, such an account is an opportunity to accept payments from customers who pay with cards for goods or services. The money debited from the card goes to the merchant’s bank account through a processing center.

A merchant will get a merchant account after the business verification. Then, they will get a Merchant identification number.

The merchant management system (abbreviated as MMS) is a web-based solution that helps the merchants track transactions’ data in real-time. The merchants receive the information about the payment gateway-generated transactions. Moreover, the sellers can be sure that all the information is totally safe with the MMS. Besides this, merchants, as well as payment processors, can access the MMS for transactions’ history and receipts.

Usually, the merchant management systems offer extensive customization in terms of parameters. So, the merchant builds the reports using parameters he/she needs. For instance, the merchant can set a transaction date, a number of declines, and so on.

The merchant management system can have the following features:

  • An opportunity to build reports on the historical data,
  • A user-friendly management environment,
  • Different security tools to enable authorization checks for suspicious transactions,
  • An enhanced failed transactions reporting,
  • An ability to refund clients,
  • Online reports creation and an opportunity to download them in .cvs or .xls.

A well-developed MMS gives a variety of benefits for merchants. Thanks to the real-time analytics it offers merchants can always be in the know of customers’ behavior. That, accordingly, helps to detect and prevent any suspicious activity. The historical perspective can give merchants a clear picture of their progress and what customers’ customs and demands are.

Risk management is based on a targeted search and organization of work to reduce risk. It is a complex of methods of generating and increasing income (gain, profit) in online payments and other areas.

The ultimate goal of risk management is to get the most profit with an optimal, acceptable ratio of profit and risk.

Risk management is a system of risk management and economical, or rather, financial relations arising in the process of this management.

Merchant risk support in online payments

When selling goods or services online, one may face situations when the transaction doesn’t process.

The reasons may vary:

  • Not enough funds.
  • The credit card has expired.
  • The payment gateway declined a transaction.

Also, there are a lot of situations when money was withdrawn, but a customer didn’t receive a good/service.

The main task of merchant risk support is the timely identification and prevention of possible adverse events. In particular, risk managers handle and challenge chargebacks.


Merchant Service Charge is a fee that merchant pays to the Acquirer/Acquiring Bank.

Companies accept credit card payments from customers. The payment provider regularly deposits funds to the seller’s account. When debiting funds, the payment provider deducts a certain percentage of the amount. Also, he can withdraw a certain fixed amount. There are also monthly fees and commissions.
For transfers of large sums, there are commissions in the percentage equivalent. This is the most optimal and most common form.


This authorisation process used for paper checques and vouchers is based on Magnetic Ink Character Recognition technology and employs three sets of three numbers to encode payment routing information about the bank and the specific Transaction.

Required of banks in the euro area, the European Central Bank requires credit institutions to hold deposits on account in their own national central banks. These minimums must be maintained subject to the Eurosystem’s requirements.

Mining is the extraction of cryptocurrency using the capacities of special equipment such as computers. For Bitcoin and many other crypto coins, this is the only way to increase emissions. Miners receive a reward since their activity ensures the functioning and integrity of the entire system. It is the main task of mining.

At the initial stages, the owner of almost any computer using the processor capacities could engage in mining.

In Bitcoin, where the efficiency of mining directly depends on the capabilities of the equipment, the Proof-of-Work protocol is used. It protects the network from double spending and is the basis of the mining reward system. The more the miner did the work, the higher his reward will be.

Self-mining is almost pointless nowadays because the probability of obtaining a coin is nearly zero. Consequently, miners started to gather in groups. They unite their capabilities and capacity to mine bigger. The remuneration here will be less, but, at least, it will be.

The disadvantages of mining

If we talk about the drawbacks, the main one is the inability to calculate profits due to the regularly growing complexity of the network. Another disadvantage is the unstable situation in the cryptocurrency market. Market conditions are continually changing. There is a likelihood that the virtual currency chosen for mining will bring good income today, and tomorrow its mining will be meaningless. Therefore, the miner needs to monitor market conditions systematically and respond to its changes.

A mobile card reader or mobile card cashier is a special device that can accept payments via credit/debit cards. Such devices are being installed on smartphones and turn them into POS terminals.

Mobile card readers ensure such functions as:

  1. Contactless payments.
  2. Payments through chips.
  3. Payments through swiping a card.

Such devices operate with a mobile application that provides common features including ta calculation, receipts, etc.

Frequently, the developers offer these devices for free or for a small fee.

Mobile card readers are ideal for payment with payment cards when delivering goods and services to your house, when paying for transport services – taxi, transportation of goods and so on.

The best way to install a mobile terminal is to contact a bank and conclude a merchant acquiring agreement. The merchant can also independently purchase a POS terminal from the supplier’s company. But in this case, it will be limited in the choice of a service acquiring bank. The equipment, before use, must be certified by the acquirer bank in conjunction with the processing center in international payment systems. Licensing such an instrument yourself is a difficult task.

Mobile payment is a transaction provided through a mobile device, frequently a smartphone. Consequently, one needs neither cash nor credit cards.

One of the key advantages of mobile payment is that you can make payments both offline and online:

  • A user can bring a mobile device to a contactless payment terminal.
  • A user can make purchases in applications and directly via the Internet.

With the development of mobile payments in the business areas, merchants can significantly simplify and speed up the process of online payments. 

Besides the convenience and comfort of purchasing goods on the Internet for their customers, ones receive a conversion growth. The implementation of mobile payments will allow:

  1. Increase brand loyalty. Customers will no longer have to remember their cards or answer questions related to security checks. Transactions are made literally in one touch, which simplifies and accelerates the purchase process.
  2. Improve business competitiveness. Mobile payments allow you to optimize interaction with customers: send special offers and recommendations, save loyalty cards, purchased tickets, etc.
  3. Increase online payments. Mobile payments mean a more comfortable and more convenient way to pay for goods/services.


A mobile wallet is a computer program that allows you to store electronic money, as well as pay for purchases and services on the Internet and even withdraws money to a bank account or a plastic card or receive cash. Transfers are made instantly; many systems allow you to pay and make transfers in different currencies.

The area of mobile wallet usage:

  • To protect a bank card. In order not to enter your card details on various Internet resources, you can replenish your wallet and transmit all transactions with it.
  • The convenience of payment via the Internet. To use a mobile wallet, enter its number. 
  • For available work in a global network. The remuneration via mobile wallet is the best solution for freelancers. It is much more convenient for customers to transmit money into a purse than to make a bank transfer.
  • For fast transactions. Transactions with electronic money are provided in minutes, in contrast to bank transfers.

The advantages of using a mobile wallet:

  1. Ease of registration and use
  2. Free service
  3. Unlimited period of use
  4. Ample opportunities
  5. Speed

The disadvantages of using a mobile wallet:

  1. Lack of prevalence.
  2. Mandatory Internet access.
  3. Profile recovery difficulties.
  4. The difficulties of withdrawing funds.



What is Near-Field Communication?

Near-field communication is a set of short-range wireless communication protocols. In other words, it lets establish a connection between devices. NFC technology helps in making payments, sharing contacts, media files, etc. In the payment industry, for instance, the NFC technology enables contactless communication (up to 4 cm) between payment devices and cards/smartphones, etc.

To transmit data, the technology uses electromagnetic radio fields. They are in charge of devices’ communication. To enable data exchange or make transactions, the participating devices need to have NFC chips. So, NFC uses inductive coupling between two antennas present devices.

There are three near-field communication modes available on every device that supports the technology:

  • Cards emulation. This feature enables using NFC devices as payment cards or for ticketing.
  • Reader or writer. Lets NFC-enabled devices read NFC tags on smart posters.
  • Peer-to-peer. Stands for information sharing between devices that support NFC.

NFC standards come from the field of data exchange formats and communications protocols. The standards are based on radio-frequency identification.

Near-field communication involves an initiator and a target. The initiator generates radio frequency and powers the target. Both initiator and target device communicate via generating their own fields. That rules work for active communication. In the case of passive communication, the initiator device will offer a carrier field.

There are two coding types, NFC uses to transfer data.

NFC sticker is a special tag that stores and transmits information. In the modern world, tags are rather widespread. We can notice them at stores. financial institutions, public transport, etc.

NFC sticker is a passive device. That means it can work in standalone mode. It doesn’t need its own power supply. How does it work then? The NFC tag depends on an active device that enters the range and enables the tag’s work. Simply put, the tag gets the power from the active equipment that reads it. The main goal of the NFC sticker is to transfer the data to the active device (e.g. smartphone). The way the data flows between active and passive devices is encoding. One can encode various information into the NFC tag. So, almost any NFC-enabled device can read information from the NFC sticker.

What are the NFC sticker types?

There exist four NFC tag types. Type 1 and Type 2 allow multiple recordings. That means it’s possible to record and erase data from the tag. On the other hand, Type 3 and Type 4 allow one-time recordings only. Accordingly, Type 4 has the biggest storage – 32 kB. It might be difficult to understand how much data the tag can keep. So, imagine that one tag can fit a 40-word sentence, while another one – up to 130 words. Accordingly, the tag price will depend on its type (that equals the tag’s capacity).

Non-bank financial institution (NBFI) is an institution that doesn’t hold the banking license. Also, that means a national bank (or another regulatory banking body) doesn’t supervise such an institution.

Though NBFIs don’t work under the bank license, they perform and offer bank-related activities and services. Their examples include insurance, investment, short-term loans, etc.

Non-bank financial institutions play an important role in the financial system. It creates competition for banks. Though universal banks offer a wide selection of services, they are rather standardized. NBFIs are more flexible when it comes to finding what suits the client the most. Non-bank establishments may offer the right package of services for select business types or individuals. Moreover, NBFIs can substitute some governmental services like pension funds. Non-government pension funds that refer to NBFIs help people keep their funds and invest them risk-free to make much of investment.

During a recession and shocks, non-bank institutions can help the economy to recover. Of course, as long as country’s financial regulation is efficient. While banks do act following certain rules and instruction, NBFIs have more freedom. The stricter are the regulations for banks, the more chances non-bank establishments have to win the competition.

There are various non-bank financial institution types. There are some of the types’ examples like market makers, risk-pooling establishments, financial service providers. Every country has its own regulatory authority to supervise the NBFIs activity.


Offline card transaction is a transaction that the seller processes without Internet access. A credit card processing network handles this type of payment. The networks that take part in the process are Visa, Mastercard, Amex, or Discover. It depends on what network the buyer’s bank uses. The typical offline interchange fee is 2% up to 3%. To add offline processing to the seller’s range of checkout options, the merchant needs to negotiate it with the payment service provider.

What are offline card transaction pros?

The main general advantage is the ability to process transactions without POS peg to the Internet. To be more precise, this option fits merchants who deal with the high scope of the transactions. That might be cafes in highly-crowded places, open-air festivals, etc. As OCT skips the wait time for connection and authorization, sellers can proceed with the orders faster and save the clients’ time.

Also, offline mode is a real helper for sellers who work with unstable Wi-Fi environments. If the Wi-Fi goes down, it won’t affect the merchant’s business. The seller will still be able to accept payments.

Are there any drawbacks?

Though this checkout option can help a lot, there are some disadvantages. So, the merchant is responsible for taking a risk of any declined or disputed payment. The expired cards fall for this rule as well.

The Omni-digital business model stands for using digital-only means to communicate with the clients. Customers eliminate interacting with the brick-and-mortar branches/offices to get products or services. To provide smooth customer experience, businesses need to make sure their online stores/website/applications work equally well across all digital platforms.

The main difference between the Omni-channel and Omni-digital model is that the first one prioritizes the given channels. The Omni-digital, in its turn, praises the customer experience in the first place. The interaction channel is not the most important factor.

Many companies switch to the Omni-digital approach. That statement is true for the banking and financial sectors. Assuming that many banks’ CS teams interact with the clients online, customer experience becomes the main criterion.

Moreover, thanks to the variety of tools, business owners can evaluate the quality of digital communication. And clients’ support teams or managers have the support of CRMs, statistic tools, etc.

Considering the predominance of Internet technologies, the Omni-channel business model is a real value for companies. This approach helps provide a better user experience and listen for customers needs. Business owners can create clearer communication channels, which impacts customers’ loyalty.

There are some key points that can ensure the smooth use of the Omni-digital approach, for instance:

  • make sure customers can reach your business how and whenever they want,
  • make sure this interaction is hassle-free,
  • track the full scope of interaction via different channels to analyze and develop the user experience.

Omnichannel is a business model that encourages brick-and-mortar stores to be available on mobile technologies, websites, online applications, and social media, in order to facilitate customer service, brand presence, and accessibility. The core of this model lies in the fact that all the channels (sales, content, etc.) work as a unity to provide better customer experience.

So, this business model fits various industries, starting from financial services ending with healthcare or retail. As we’ve mentioned, this approach coordinates and orchestrates different channels:

  • brick-and-mortar,
  • eCommerce,
  • online,
  • mobile application.

The variety of channels lets the customers reach the company via different entry points. Nevertheless, all the channels cooperate with each other.

Every channel can promote one- or two-way communication. Nevertheless, all the channels (display, mobile, promotion campaigns, etc.) cannot be segregated. The message and the language across all the channels should be equal.

To implement the omnichannel approach, sellers need to study and understand their customers’ behavior. So, the main factor here is understanding how the customer makes the purchase decision. Also, other vital factors are:

  • how much time the customer spends online or in the brick-and-mortar store,
  • reaction to promotions and deals,
  • devices, the customer prefers to use, etc.

After considering all these points its possible to build an efficient strategy that uses the omnichannel approach.

An online card transaction is a secure authorization process relying on Point-of-Sale approval devices and real-time EFT technologies. The technology involves interchange fees.

Payments via POS terminals are common for department stores, cafes, drug stores, etc. POS terminals use the Internet connection to process customers’ payments. POS device reads the customers’ payment card data, and after getting approval from the bank, transfers the funds from the customer’s account to the seller’s one. All of these actions happens online.

During the Electronic Funds Transfer (EFT), an electronic money transfer takes place. The funds from one bank account go to another one. And the accounts may be within one financial institution or several ones. This option refers to the online card transaction because the fund transfer happens via computer-empowered technologies. Clients do not interact with the bank staff.

There are a couple of stages the online card transaction has:

  1. The customer enters the payment card data.
  2. The seller receives the data but the payment service provider will be the one to process the payment.
  3. After going through the payment gateway, the card data gets to the acquiring bank.
  4. The acquiring bank will approve or decline the transaction.
  5. If everything is fine, the acquiring bank passes the request to the issuing bank.
  6. Should the customer has enough funds, the issuing bank approves the request and sends it back to the acquiring bank.
  7. The acquiring bank returns the confirmation to the seller.

An open-access network (OAN) is a notion that refers to the telecommunications and business.

In telecommunication, the OAN is a network architecture that is layered horizontally.

And in business, it’s a type of business model. Its main particularity is the separation of the network’s physical access from the services’ delivery. So, the network’s manager does not deliver the services to the network. Instead of it, special retail service providers will supply them. So, those limitations to the fixed number of network layers prevent all the parties from the conflict of interests. Wi-Fi access and fiber companies use this model successfully over the years.

The OAN uses two types of models. Despite the type and number of layers, the open-access network continues to operate an “organizational separation” principle. There are the following open-access network types.

  • Two-layer model. This type of OAN consists of an operator and a network owner. A variety of retail service providers will supply services to the network.
  • Three-layer model. In this model, the company owns the first – physical – layer. Another company will run the second layer, that consists of operations, maintenance, and services’ supplement. The retail service providers will operate the third layer.

Nowadays, government and municipal bodies support OANs. And that’s because of their concept. It enables access for various providers and gives freedom of choice.


P2P payment is also known as transferring money from card to card or peer to peer payment. It is a type of financial relationship between individuals on the Internet with no third party involved. Simply put, it is when a person transfers money to another person via a mobile banking app. According to the latest data, 62% of American young adults use P2P payments. They are now becoming so popular, you might hear people say “I’ll Venmo you,” or “I’ll PayPal you,” as a replacement of saying “I’ll transfer your money back”.

Let’s take a look at the example of P2P payments. Imagine the following: you and your friend headed to a restaurant. At the end of the dinner, the waiter came by and said that something went wrong with the POS terminal. As a result, you and your friend had no choice but to pay with cash. You didn’t have any so your friend paid for you. Then, you used your banking app to pay your friend back. That is the example of P2P payments.

P2P payments might imply fees. For example, if you are using the X bank and your friend uses the Y bank, you will have to pay a fee for a transfer. The fees vary according to your bank policies. However, if both you and your mate use X bank, the transactions are usually fee-free. International P2P payments always cost more than those that take place inside one country.

The pay-in is the stage at which payment for goods or services has been received by the processing agent from the cardholder’s bank.

Pay-out, in terms of payment processing, is a stage at which the merchant gets his funds from sales. These funds are transferred from his merchant bank account to his business bank. The merchant’s PSP transfers the money. The regularity of pay-outs depends on the PSP of the merchant’s choice and the payment method he uses. Let’s take a look at some examples to make it clear:

  • SEPA transfer. SEPA is a remittance system of the EU. The core principle behind the remittance system is the bank-bank-bank-bank transfer. Simply put, money is transferred directly from the client’s bank account to the merchant’s bank account. SEPA transfer takes up to three days. Once the merchant receives SEPA transfer, it will take up to fourteen more days (usually less) for a PSP to pay-out the funds to your business bank account.
  • Credit card transfer. Once the consumer pays on your website with a credit card, it will take up to three days for funds to be transferred to your merchant account. Then, you can opt for a pay-out from your PSP. 
  • ACH transfer. It takes five days for you to accept ACH transfer to your merchant account. Once again, after the funds are received, you can ask for a pay-out. The duration of pay-out depends on the PSP. 

The regularity of transfers (read pay-outs) from your merchant account to your business account varies on a PSP of your choice. It usually takes from one up to 14 days. 

Payment authorization hold (also known as a credit card authorization hold ) is the hold of funds on the client’s account until the transaction is manually approved by a merchant. The payment authorization hold is a tool merchants use to prevents chargebacks and fraud.

How does the credit card authorization work?

Let’s see how the credit card authorization works:

  1. The client enters the merchant’s website and adds a product to a shopping cart.  
  2. The client enters the payment page, enters his credit card details, and presses the BUY button. 
  3. The funds (the purchase amount) are not withdrawn. They are frozen for x days.*
  4. The merchant has x days to get in touch with the clients. It is to ensure that he/she agrees for all the purchase conditions. 
  5. If everything goes right, the amount is charged within x days. 
  6. If something goes wrong, a merchant simply declines the transaction. 

*We say x days as a merchant himself chooses the hold period. It can be for three days, five days, or even a week. 

The key benefit of credit card authorization hold is that even if a merchant declines the transaction, payment processing networks, and banks don’t see it as a chargeback. That protects the merchant’s processing history and overall business reputation.

Keep in mind the following: the client loses his access to the frozen funds. Simply put, he can’t use this money to pay for other purchases. 

The trademark holder of a Co-branded Card, whether credit, debit, or prepaid, that processes cardholder data

Payment Card Industry Data Security Standard (PCI DSS) is a set of policies that merchants must follow to protect cardholders against misuse of their personal information. Simply put, it is the information security standard for organizations that handle branded credit cards from the major card schemes.

The main goals of PCI DSS:

  1. Build and Maintain a Secure Network and Systems
  2. Protect Cardholder Data
  3. Maintain a Vulnerability Management Program
  4. Implement Strong Access Control Measures
  5. Regularly Monitor and Test Networks
  6. Maintain an Information Security Policy

How to get a PCI DSS certificate?

Obtaining a PCI DSS certificate is crucial for any e-commerce merchant. The easiest way to get a PCI DSS certificate is to choose the right PSP. At PaySpacelv, we already have a PCI DSS certificate. As a result, all the merchants that use our payment gateway don’t worry about their customer’s financial data safety.

In order to make a deposit or payment, customers input data into an online web based payment page (checkout page), hosted by Payspace.

The payment page is a web page where the customer enters his credit card details to accomplish the purchase. HPP and API are the two types of payment pages integration. The API is when a customer pays on the merchant’s website. The HPP is when a customer is redirected to another link to accomplish the payment. At Payspacelv, we offer both types of payment page integration. 

Three steps to the successful payment page

  • Install a payment form on your website. Third-party websites raise a concern and increase the chances of cart abandonment. 
  • Build an SSL certificate into your website. This way, information that passes back and forth will be encrypted. 
  • Provide PCI DSS Certificate. You do not have to do this on your own. All the reliable PSPs offer such security standards. Make sure that the payment provider of your choice holds one.

Payspacelv offers a wide range of online payment tools, both global and local, and supports more than 250 online payment methods. With a single technical connection, you can accept most of them through your international Payment Pages. The payment page is the point where customers decide you’re trustworthy. By taking complete control over the payment page, you increase your chances of success.


The processor (the payment processor) is the bridge between the merchant and the issuing bank. It is often the 3rd party that handles the posting of transactions for authorization, the assignment of funds requests, the receipt of accounts, pay-outs, transaction reports, billing, and other services.

Front-end processors are partnering with a wide range of card associations. They provide authorization and settlement services to the merchant banks and merchants. Back-end processors accept settlements from front-end processors and transfer the money from the issuing bank to the merchant bank.

In an operation that only takes a few seconds, the payment processor checks the payment details and forwards them to the respective card’s issuing bank or card association for verification. The payment processor also maintains a series of anti-fraud measures to safeguard the transaction. Additional factors, like the card’s country of issue and its previous payment history, are also used to boost the probability of the transaction being approved.

Once the payment processor has received approval that the credit card details have been verified, the data gets back from the payment gateway to the merchant — the latter than accomplishes the transaction. If verification is declined by the card association (like Visa or MasterCard), the payment processor passes the information to the merchant, who has no choice but to decline the transaction.

The refund is a return payment to the customers after they have paid for goods/services. The refund belongs to both online commerce and brick-and-mortar stores. Often, the product return is an integral part of the refund.

To receive a refund, customers contact the store’s support team or fill in the special form and specify the reason. Hence, most stores will require to send the product back in the undamaged conditions. In the brick-and-mortar store, the customers bring the product back along with the cheque. The store refunds the product’s price either in cash or online. That depends on how the customer has made the payment.

So, there are 2 refund types:

  • A full refund,
  • A partial refund.

Nevertheless, in any case, the refund amount won’t surpass the initial products’/services’ price.

Different management systems will have different refund procedures. For example, if the merchant uses the Chrome Web Store, he proceeds to the Payment profile. After finding the needed customer, the seller picks the good(s) he has to refund. The merchant states the refund reason and adds the message to the customer (but not necessarily). To finalize the procedure, the merchant presses the Refund order button.

Every merchant needs to understand it’s highly vital to have a Refund page on the website. All refund conditions should be clear. Moreover, the refund procedure itself shouldn’t be too complicated. That’s an important rule in order to prevent chargebacks.

A payment reversal is a process of the funds’ returning back to the customer’s account. A return is a common thing in the retail ecosystem. Business owners may face it from time to time, nevertheless, the reversal reasons vary.

So, the customer has the right to ask his/her bank or the seller for the reversal. There are 3 main reversal types:

Authorization reversal. As we know, authorization is the first stage of the transaction processing. So, the acquiring bank receives information about customer’s fund sufficiency from the issuing bank. And if there are enough funds, the merchant may request an authorization hold before settlement. Hence, the client cannot reach the funds that are on hold. The merchant, in its turn, may be sure he is getting the payment. If the consumer decides not to buy the product or service, the merchant will simply reverse the hold.

Refund. On the other hand, this reversal type requires the merchant to pay the whole or partial products’ amount to the buyer. As the funds were transferred from one bank account to another, merchants may face additional charges for this operation. To get the refund, clients usually fill in the form and send the product back.

Chargeback. It’s the worst case of the payment reversal for any merchant. Another name of the chargeback is friendly fraud. So, you can get the idea of why merchants try to avoid it. Some customers file for a dispute with their issuing bank, claiming they have never received a good. Often it’s not true. Besides, high chargeback ration declines the company’s credibility in the banks’ and payment processors’ eyes.

The payment service provider (PSP) is a company that enables eCommerce merchants to accept payments on their websites. The key product of a payment service provider is a payment gateway. A payment gateway is a software that allows merchants to accept multiple payment methods from consumers across the world.

Full-service PSPs not only collect, authenticate, and process payments, they also offer risk management services, reporting, and various levels of fraud protection. PaySpacelv uses its own anti-fraud system, integrated with MaxMind and Ethoca scoring services, to minimize fraud and Chargebacks. They provide real-time support for online payments, mobile payments, and e-gift cards, and they offer the Playspacelv e-Wallet to allow customers to make flexible and one-click payments with a host of input devices.

Who needs a payment system provider?

Any merchant who wants to sell online need a payment system provider. Otherwise, he won’t be able to accept online payments on his website.

What is the price of payment service providers services?

It depends on a payment service provider of your choice. Some PSPs charge 2.8%+30 cents per transaction, while others charge 6% and more. It also depends on your business nature. For example, owners of gaming or porn businesses always pay higher fees. The possible risks are to blame.

The payment gateway (also known as a payment platform) is a software that enables online payments on the merchant’s website. It acts as a mediator between clients and a merchant. Basically, it is a key component of an electronic payment processor. The main purpose of the payment gateway is collecting payments. Thanks to a payment gateway, a merchant can accept credit cards, cryptocurrency, eWallets, bank transfers, and other types of payments.

How does the payment gateway work?

A payment gateway is a system. The payment information flows through it. The information is shared between the following parties:

  • A cardholder. The consumer.
  • An issuing bank. The bank of a cardholder (the consumer).
  • A merchant. The person who sells products/services online.
  • An acquiring bank. The bank of a merchant.

Though it only takes a few seconds to process the transaction, there are nine steps of payment processing.

What happens after a client presses “Buy Now”?

Read these nine steps to see the payment gateway in action:

  1. A consumer makes orders online and decides to pay for it with a credit card. He presses on the “Order Now” or “Buy Now” button. The website redirects him to the payment page. He enters all the credit card details. He clicks on “Submit” and moves on to the next stage.
  2. Merchant’s payment gateway accepts the credit card details along with the order amount.
  3. Then, an authorization request from a payment gateway transfers the acquiring bank and then to the IPS (MasterCard/AmEx/Visa) and issuing bank to make sure that the payment card in question is real and valid.
  4. If the card is 3D Secure, the customer has to enter his password. It is to verify that he is the cardholder. Once the issuing bank verifies the password, it sends a notification to the IPS.
  5. Then, the IPS transfers the verification to the acquiring bank.
  6. Now, the payment gateway requests the acquiring bank to charge the order amount from the credit card.
  7. The issuing bank checks whether the customer has sufficient funds on balance. If he does, the former transfers the requested amount of money and confirms the transaction to the IPS.
  8. MasterCard/AmEx/ Visa sends a confirmation to the acquiring bank and payment gateway.
  9. Within up to 15 minutes the merchant receives the information about the transaction in case it is successful. After that, the funds are withdrawn from the cardholder’s account.

A number allocated to a single individual that authorizes electronic transactions using the account. PINs are often required at POS Terminals in order to complete the Transaction.

The phishing (also known as password harvesting) is an illegal act of criminals meant to trick customers into divulging passwords or credit card information. Due to the rapid development of digital payments, phishing becomes widespread practice among fraudsters.

There are eight main types of phishing:

  • Whaling
  • Clone phishing
  • Link manipulation
  • Filter evasion
  • Website forgery
  • Covert redirect
  • Social engineering
  • Voice phishing

Example of Phishing

Let’s take a look at the example of the download malware. Like usual spam, these types of phishing emails are meant to get the victim to infect their own computer with malware. These messages are often”soft targeted”. For example, they might be sent to an HR staffer with an attachment that looks like a job seeker’s resume. These attachments are usually .zip files or Microsoft Office documents with malicious embedded code.

How can merchants secure their client’s financial information?

First and foremost, a merchant has to use a PSP that has a PCI DSS certificate. Also, it is essential to use fraud and chargeback prevention. It is a unique software that is based on machine learning. Thanks to high-end technology, it minimizes the possibility of fraud and chargebacks almost to zero. Also, make sure that you have high-quality customer support.

PIN pad is an electronic device used at the POS Terminal to allow cardholders to enter personal identification numbers (PIN codes). PIN pad is used in debit, credit, or smart card-based transactions. The PIN pad is needed so that the consumer card can be accessed, and the PIN can be securely printed down and encrypted. It looks like a small keypad. Once the customer pays with his credit/debit/smart card, he uses the PIN pad to enter his unique PIN code. That is how the typical PIN pad looks like:
PIN pad приветствие

Let’s take a look at some examples of PIN pad usage:

  • You buy macchiato at Starbucks and use the PIN pad to enter the PIN to accomplish a credit card payment.
  • Before Kathy started using PayPass for payments, she always used to enter her PIN at a PIN pad.
  • The owners of the Italian boutique bought a PIN pad to allow customers paying with credit and debit cards.

By integrating checkout services with more than 250 payment platforms, Payspace provides customers with local forms of payment that they may feel are more secure than international ones while allowing Merchants easy access to their funds, Control Panel, and quick reports.

Point of sale (POS) is the location at which the customer makes the purchase. Simply put, it is the place at a store where you take out your wallet to accomplish the purchase. Usually, a modern-day point of sale accepts credit cards, debit cards, cash, mobile banking. Take a look at the example of POS at a coffee shop:
Ассорти, витрина, вкусностиPOS consists of two key components. Software and hardware. They are essential to get your POS up and running. Let’s now take a look at hardware components of POS:
  • Monitor/tablet.  It displays the product database. It also shows employee clock-in and viewing sales reports. 
  • Barcode scanner.  It is responsible for the checkout process. 
  • Cash drawer. A secure place to keep cash for transactions.
  • Credit card reader. It allows customers to pay with a credit/debit/smart card.
  • Receipt printer. Though email and text receipts are rising to prominence, paper receipts remain essential.
  • PIN pad. That is a keypad where clients print down their PIN codes. That is how a PIN PAD looks like:


PIN pad приветствие

Now, let’s list down the software components of the POS:

  • Sales reporting. It records and analyzes your sales volumes.
  • Customer management. Allows keeping in touch with a customer thanks to marketing tools (emails, sales, e.g.)
  • Employment management. The software tracks your employees’ working hours. It also monitors their sales, which allows you to see the top performers.
  • Inventory management. It manages when and how often you need to reorder products. 

Also known as second chargeback, VISA uses this term to denote the phase immediately preceding Arbitration to determine whether the Merchant attempted negotiation with the customer and whether the Chargeback is further disputed.

A prepaid card is a type of plastic card that is meant to load money onto it. People use such cards for day-to-day shopping. Prepaid cards are not linked to a bank checking account or a credit union share draft account. That means you can’t run up to debts on the prepaid cards. You can only use the sum you have yourself loaded to a prepaid card.

How does the prepaid card work?

The prepaid card looks like a usual plastic credit card. However, it acts as an alternative to carrying money around. Prepaid cards are called everyday cards. You load a prepaid card with cash when you first buy it. Then, when you spend all the funds loaded, you top it up. The great benefit of a prepaid card is that you can’t run up debts on it. 

What is the difference between a prepaid card and a debit card?

While the debit card is linked to a bank account, a prepaid card is not. When you use a prepaid card, you are spending money that you have already loaded onto the card.

What is the difference between a prepaid card and a credit card?

Prepaid cards differ from credit cards a lot. That might seem complicated as both types of cards usually have logos on them — for example, Visa, MasterCard, American Express, or Discover. When you use a credit card, you are borrowing money. When you use a prepaid card, you are spending money you have already loaded onto the card in advance.


Real-time processing refers to information handling that takes a short period of time. This time period is the near-instantaneous data output. To achieve continuous output, the input should be continuous as well.

An immediate processing system enables the fast-changing data input with the following transformed data output. The output is instant that’s why the system can see and display the change in real-time. Another name of real-time processing is a stream processing. It goes like this because to showcase the change instantly there should be a continuous input stream.

Some examples of immediate processing in eCommerce are ticket reservations or room booking. The change needs to be immediate to eliminate double booking. Radars use the same processing type to locate the airplanes and show their path in real-time.

Real-time processing has made a huge impact on the financial and banking industry as well. The proper examples are banks’ ATM or POS terminals. Commonly, processing in real-time more preferable compared to batch processing. The reason is that instant processing help detects fraud and theft in the early stages.

There are a couple of benefits this processing type can offer.

  1. There is no distinct delay in the response.
  2. One gets up-to-date information and makes immediate actions according to it.
  3. One can make better analytics based on real-time data.

The chargeback reason code is a string of letters and numbers the issuing bank provides to describe the reason for the chargeback. The code length varies from 2 to 4 symbols. Hence, all the card brands own the chargeback code system. So, Visa or Mastercard will share their own code for the chargeback. Reason codes play an important role as they systemize the reasons, based on which the bank asks for the chargeback on the client’s behalf.

Most commonly, the bank’s employee assigns a case to a certain code if any of them fits. If there’s no fitting code, the bank’s representative may decline the claim.

If the issuing bank starts the dispute, it assigns a reason code to the case. As we have mentioned, it’s a 2 to 4-digit alphanumerical value. Merchants have 2 options: either accept the dispute or use the code and prove why the transaction was valid.

Card brands’ chargeback reason codes

Some card brands are more typical in select countries or industries. So, there are 4 most popular card brands like Mastercard, Discover, Visa, and Amex.

Visa divides the chargeback reason code system into 4 parts. Consequently, they are customers’ disputes, processing errors, fraud, and authorization errors. 2 numbers refer to each group, the specification goes with the next 2 numbers or letters.

Discover uses predominantly alphabetic symbols to mark the chargeback codes. The codes will showcase customers’ claims, fraud, and processing errors.

Mastercard uses a 4-digit code system. Commonly, the code will start with 48 followed by 2 alphanumeric symbols to specify the case.

Amex has 5 main chargeback reasons categories. The code starts with the letter that refers to the reason type followed by the number to show the particular reason.

A recurring transaction is a type of payment that the cardholder agrees to perform for goods & services the merchant sells. The merchants charge a certain amount of money from the customer’s account on the pre-arranged schedule. So, the clients give permission to the seller to make the fixed amount deduction from their accounts on a monthly or yearly bases. But the frequency may vary.

This transaction type is typical for businesses that work on the subscription-based model. For instance, e-learning, dating, gift platforms will use recurring billing. It’s pretty convenient, as the customers fill in the card’s data once and then receives the goods/serves, for example, monthly. Nevertheless, they do not need to enter the card’s details over and over again.

Despite the convenience, the merchants may face chargebacks. They appear because of the client’s misunderstanding. He/she may not fully understand the conditions or do not notice that the store will charge his/her card monthly.

Hence, to avoid chargebacks, merchants need to clearly state they work with the recurring transactions and the terms of the payments. It’s vital to have the required fields the customers have to fill in to give their permission to make automatic deductions. Moreover, the sellers should ensure they have no hidden fees or whatsoever, as this can also be a trigger.

The credit reporting agencies (CRAs), also known as credit bureaus, are special institutions that gather clients’ credit information. Then they form clients’ credit reports and re-sell to various establishments. These might be businesses or legal bodies. Basically, the credit bureau works as a huge library that stores the client’s borrowing customs and behavior.

Usually, creditors refer to CRAs to receive sufficient information about the borrowers. That’s vital in order to eliminate any misconceptions.

CRAs use the public and internal information to create the lendee profile. Public information, for instance, is the records from the court, tax liens, etc. The internal one it those the CRA receives from companies/lenders it works with. So, the companies will share how accurately the borrower pays the bills if there are any delays and so on. Moreover, if the lendee owes something to the company, it’ll report about it to the credit bureau.

Companies that deal with lending have a legal right to buy and use credit reporting agencies’ services. Nevertheless, let’s say, your employer cannot receive this information. It only becomes possible after the written permission.

Reporting agencies face some controversy. So, the main point here is information inclusion and exclusion. For example, the customer’s profile might have some inaccuracies that will lead to the wrong perception. Besides, credit bureaus set credit scores differently. Sometimes all those differences and particularities are overwhelming.

The examples of the CRAs are Equifax, Transunion, Experian, etc.

A response code is a specific message the client’s issuing bank sends to the merchant’s bank.

The procedure goes as follows. The client enters the payment card details. The payment gateway transfers it to the acquiring bank. The acquiring bank makes a request to the customer’s issuing bank. The issuing bank returns the response with the special code. Depending on the reply, it’s clear if the interaction was successful or not. The refund code consists of 2 digits.

For example, there are some main reasons they influence the positive response:

  • the client has enough funds on his/her account,
  • the actual cardholder uses the card to make a payment.

So, there are some reasons that cause a negative reply:

  • not enough funds,
  • the card is stolen and the fraud uses it.

For instance, there are the following response codes:

  • 00 – for the approved transaction,
  • 06 – for an error. That usually means it was a misprint in the card’s number,
  • 33 – for the expired card. That means the card is out of date or there was a misprint in the date (month & year).

The response code help to get a quick idea of what is wrong with the transaction. Hence, the client may re-enter the card’s data. Nevertheless, to solve some cases, clients need to make a phone call to their bank.

A risk analyst is an employee that analyses the potential risks the company may have. Risk analysts should be able to make forecasts and depict market changes. The calculation of costs involved in the process also refers to the employee’s responsibilities.

These professionals usually work with financial documentation, economic changes, and also with the company’s partners and clients. This job title is typical for banks or non-bank financial institutions. Nevertheless, large companies with a big number of clients and turnover may also use the help of the analyst.

For instance, the minimum requirements for risk analysts might include:

  • bachelor degree in economy, finance or other business-related majors,
  • an ability to use special software and MS Office tools.

Besides, risk analysts have the following responsibilities:

  • data analysis for a better understanding of the potential threats,
  • collection, and systematization of data from various sources,
  • research on future and current partners,
  • economic trends analysis to showcase the potential risks,
  • internal and external data monitoring to find the risks that may harm the company’s sustainability,
  • reports and presentation creation, to present the current and future state of the company.

So as the risk manager has a wide range of duties, it’s vital to find qualified professionals. That is an employee, who will suggest what actions to make to prevent risks and safeguard the company.

A risk management platform is software that evaluates and manages risks alongside compliance. The risk platform is an integrated system. It helps to visualize risks based on their business meaning. Risk platforms let dealing with various risk management aspects.

As modern companies face a large number of external (and internal) risks, such platforms help to systemize and analyze data, to prevent threats. The use of a risk management platform is typical for different business types. Nevertheless, banks and non-bank financial institutions widely use this software. Besides, international companies can benefit from this SaaS as they deal with quite a number of third-parties.

Also, the risk management platform has to deal with due diligence. It helps to execute due diligence effectively, to meet the regulatory requirements.

If we talk about risk platforms in the payment processing industry, it will act to fit industry-specific needs. So, the payment processor’s risk software will employ real-time analytics to analyze and predict users’ behavior. Moreover, the merchant service provider will use the merchant-set rules to prevent fraud. Besides, the payment processor can use the help of its risk analysts to provide even more protection to its clients. Merchants are free to use their own risk management software alongside the payment processor’s one. That doubles the security.

A rolling reserve has to deal with risk management. Thus, it is a strategy the aim of which is to prevent merchants’ losses, the chargebacks cause. This strategy uses the following mechanism. The payment processor saves a part of the processed funds to cover the possible chargeback-related losses. An acquiring bank is responsible for calculating the rolling reserve. For instance, it varies from 5% to 15% of the processed amount. Besides, there is a specific hold period for the reserve. After it finishes, the funds are released. Hence, rolling reserve acts as an “airbag.”

Nevertheless, it’s vital to understand, the riskier the merchant is, the higher the rolling reserve the bank requires. For example, companies referring to the high-risk industries (dating, gaming, etc.) have to “freeze” more funds. Yet, it’s an important condition, as the merchant needs to have sufficient funds to ensure enough liquidity. That helps to cover the possible losses caused by the high ratio of chargebacks. Though the funds are already on the merchant’s account, they are released to the seller as the reserve period comes to an end.

This period is usually no longer than 180 days.

If the payment processor applies the reserve to the merchant’s transactions, the PSP will send the “on-hold” funds in one of the weekly settlement after the period finishes. Merchants can reconsider the rolling reserve percentage after they’ve shown transaction history and a lower chargeback ratio.

A rules engine is a special software program that carries out one or more rules. The engine supports various functions. They might include preconditions, facts, etc. Nevertheless, there exists another definition. So, it is a string of production rules. In its turn, every rule has a condition and a rule. To understand the mechanism, let’s set the following description. For instance, there is a flow of data that flows through the system. The system picks the rules that fit the settled conditions. Therefore, the engine will evaluate the chosen actions.

There are different rules engine types. For example, business rules engines use the forward chaining principle. We can divide them into 2 classes.

The first one uses production rules. This rule covers the “if” – “then” conditions.

The second type employs the reaction condition. This rules engine interacts with the incoming processes.

Yet, there are backward chaining engines. The processing logic is reversed here. So, the engines seek the fact at first. The fact has to fit the goal. What’s interesting, some engines can switch between back- and forward chaining.

Also, there is a deterministic approach to rule engines. This kind may use both backward and forward chaining. The implementation and maintenance ease is the main advantage of this type.


Sandbox is a testing environment where merchants can see how functions will behave before they set them on the actual account servers. In other words, it’s a virtual environment that lets users test and build updates. The environment protects running servers from any errors that might occur.

It’s a vital part when it comes to upgrading. Though the developers’ primary aim is to develop some features, the errors in code may have severe consequences. The sandbox provides the minimum required features to fix up the developers with a safe testing environment.

Virtual servers are what makes possible to divide ‘live’ servers from the testing ones.

There are various sandbox types. Sandboxes’ primary aim is testing. Nevertheless, there are 3 helpful options as well.

  • Use for QA. It may become a great tool for QA teams thanks to its nature. As sandboxes stand at the forefront of testing and optimization, QA specialists may evaluate possible problems.
  • Use for customers. The environment enables sellers to give the customers sneak peeks. By offering a demo on a new product or updates to existing, sellers can enlarge & retain the customers’ base.
  • Use for internal needs. As companies usually run various projects, the sandbox can give a helping hand. It checks projects’ compatibility to predict how they will act when  going ‘live.’

Scamming is one of the most widespread fraud types. Its main purpose is to entreat money. Those sums usually end up as huge amounts the crooks steal. Cyber crooks persuade people to give them money by sending emails.

Most commonly, a person receives an email saying he/she has one in a lottery or inherited something. But to get the final award, the person needs to transfer some amount (not too high usually) to some given account. As soon as the person does it, the fraudster goes off the radar.

There are 3 most widespread scamming types:

  • Dating. In this case, the scammer plays on other people’s feelings. They connect to real users on dating websites and persuade them that they have true feelings. During this interaction or before seeing the victim eye to eye, cyber crook asks for money. The reasons for it may vary, yet the result is obvious money loss for a person.
  • Real estate. Everybody wishes to buy or rent good and not too expensive apartments. Thus, fraudsters know this and offer them at very low prices. The victim may have a fake impression of the so-called “agent” as he/she send photos of the property, schedules meetings, etc. In the end, when the victim decides to pay (and for real estate, it might be thousands of dollars), the scammer disappears.
  • Job. As the job market isn’t that stable, offers to help you find a well-paid job sounds attractive. Yet, victims only tend to lose money by paying fake job advisors or companies. Or they may get a connection with a fake employer and pay for some concurrent services or uniform. After the victim does it, the contact with the scammer fails.

The settlement is a financial operation thanks to which the merchant receives money for a transaction with a client. This term defines the final step in receiving payment for some goods or services. So as the issuing bank sends the transaction to the financial institution or a payment processor. And then the acquirer places the funds to the seller’s acquiring bank account.

Merchants can send the approved authorizations daily to the acquiring bank they use. This “settle” is made with the payment processors’ help. On the next step, the acquiring bank passes the batch settlements to the card issuer. The Issuer performs the settlement payments (usually the next day). After this, the acquiring bank can deposit funds to the merchant’s bank account.

As you can see from the procedure’s description it really is a step the finalizes the process of merchant receiving the money.

Another way of settlement’s use is to describe a payment the cause of which is selling or purchasing. Anyway, during this procedure the bank will check the payment information to authorize it and approve (or decline).

Shopping cart is a part of the web-store software that lets online buyers add and store the product(s) before the purchase. Basically, the shopper can create a list of goods and keep it for instant purchasing or for future use.

There are 3 common types of shopping cart software:

  • Open-source. In most cases, this software is free. Its benefit is that it is highly customizable.
  • Licensed. Usually, the one-time fee applies to this software type. The merchant is free to use the software on any compatible server.
  • Hosted. The hosted service provider this software type to merchants. Commonly, the store owner makes monthly or yearly payments to use the software.

As long as the shopping bag is an intermediary between the shopping itself and the purchase, it’s vital to have reliable software. Moreover, whatever software type the merchant chooses, it’s important to remember some information.

  • Make sure the shopping cart page designs correlates with the overall website design.
  • Don’t use too bright or too dark colors (whatever with “too” isn’t good).
  • Make sure to keep all on-page descriptions clear.
  • Don’t try to hide any costs. Clear show the product(s) price, any additional fees (e.g. VAT), shipping cost, etc.
  • Make sure to make the “Proceed”/”Buy now”/”Order”/etc. button visible.
  • Additionally, you can provide a field for a discount code on the shopping cart page.

SEPA is a European remittance system. It only enables euro transfers which makes it unfavorable for U.S-based companies. People use SEPA to accept and transfer funds. However, it is not controlled by American Financial Services. It gives SEPA users more flexibility and financial opportunities The per-transaction fees of SEPA are high. Even though, they are beneficial for those merchants who accept large sums (thousands of dollars and more).

Example of SEPA in use

Let’s say, a European merchant sells antique furniture online. The price of the furniture set is $20 000. If the client pays for a set via a credit card, the merchants will have to face unpleasant fees. The credit card fees usually vary from 2.8% up to 7% per transaction. Thus, even considering the lowest fee of 2.8%, the merchant will have no choice but to pay $560 to a PSP. That is just to accept the payment. SEPA, on the contrary, will cost him about $100 (the price varies according to an acquiring bank). However, if the European merchant sells products for $100 per item, using SEPA would be more than irrelevant.

What are the disadvantages of SEPA?

  • The payment transfer takes up to three days. Those merchants who need to ship their products immediately, won’t find SEPA beneficial.
  • The transaction fees are high. That might become a burden for small businesses or dropshipping companies.

Smart routing is a special payment processor’s service that ensures hassle-free shopping for users. Intelligent routing passes the transfer to the bank that is responsible for the payment processing. The next step is to ensure the system marks the transaction as a successful one. Thanks to the smart routing the payment processor establishes the connection with the bank that’s most likely to process it. That to say, the system will automatically define the passing bank that allows the transaction to lower the decline rate.

As soon as the shopper presses the “Buy” button, the intelligent routing passes the transaction to the fitting acquiring bank. The system will analyze the merchant’s industry, and currency & payment card the shopper uses to make a connection to the right bank. That increases the transaction’s approval chances. Nevertheless, if the transaction processing fails, the system redirects it to another bank automatically. In the future, it remembers the peculiarities and sends the request straight to the correct bank.

A smart routing option is what the merchants should look for as they search for a payment processor. So as the system connects the merchant to the most fitting bank it lowers the decline rate. There are other vital smart routing features:

  • flexible terms for processing of the different card types,
  • multiple re-try attempts,
  • system backups,
  • using several MIDs for traffic distribution to lower the chargeback ratio.

Software as a Service or SaaS is a specific licensing and distribution model. So, this model works on a subscription basis to deliver the software. This software is hosted centrally. SaaS is a subset of cloud computing alongside with DaaS, IaaS, and so on. A web browser is a common way to access software as a service.

Through its development history, SaaS has developed some particularities.

  • SaaS sellers develop and maintain own software,
  • Software as a Service relies on the web browser to let customers use it,
  • SaaS product multitenant architecture, that influences a specific software distribution type.

When it comes to distribution, SaaS does not require a physical form of it. Customers simply access the SaaS distributor via any browser (e.g. Chrome, Safari) to buy a subscription and install it. So, the client receives a licensed solution to his/her particular needs.

Let’s also define SaaS’s multitenancy more detailed. Thus, the multitenant architecture means all the customers use one version of the software. Moreover, SaaS will also have the only configuration. There’s one option, though, when the vendor offers another version. The seller can develop it to give some customers access to beta versions or updated (but not released) versions.

When it comes to pricing, software as a service uses a subscription-based model. The vendor charges monthly or annually. Usually, the setup and concurrent costs of SaaS are lower compared to enterprise software.

SaaS examples are accounting, visualization, management, and other kinds of software.

SWIFT code or a Society for Worldwide Interbank Financial Telecommunication is a code that identifies banks internationally. When the payer initiates the wire transfer or SEPA payment between banks (usually international) he/she will require a SWIFT code. A SWIFT is an ISO 9362 standard. Users can find the bank’s code in the statement or by searching on the web (bank name + SWIFT code).

The SWIFT code consists of 8 to 11 alphanumerical designators.

  • the first 4 letters will define the bank’s or institution’s code,
  • the next 2 letters are ISO 3166-1 standard that, basically, is a country code,
  • the following 2 digits/letter are the location code:
    • 0 is common for testing purposes;
    • 1 defines a passive participant;
    • 2 identifies a reverse billing of the Business Identification Code.
  • the last 3 digits or letters showcase the branch code and are, commonly, optional.

This combination helps to identify banks. Let’s take a closer look based on the example of Deutsche Bank branch in Frankfurt am Main. Its SWIFT is DEUTDEFF. Where:

  • DEUT goes for Deutsche Bank,
  • DE is for Germany,
  • FF is for city identifier – Frankfurt.

Also, Deutsche Bank will use an additional 3 digits to identify the specific branch as well. Most European banks will also use an 11-digit SWIFT code type to identify the bank.


The Payment Service Directive 2 is the EU directive aimed to increase competition in the market of payment services and harmonize the legislation on consumer protection and the rights and obligations of payment service providers and their users. The payment service directive 2 followed after the original Payment Services Directive (PSD) that came into effect in 2009.

What is the difference between a PSD and PSD2?

The purview of the first PSD was confined to payments in EEA (European Economic Area) currencies between Payers and Payees who had held accounts with Payments Service Providers (PSPs) located inside the EEA. Since PSD2 came into force, some changes happened. Besides the basic regulations of the PSD, PSD2 included the following;

  1. Intra-EEA Payments (payments made between PSPs located in the EEA) in any currency, not just European Unions currencies;
  2. One leg out (OLO) transactions in any kind of currency ( it is when one of the PSPs is placed inside the EEA and the other PSP is located outside the EEA).
  3. PSD2  boosted competition by creating a framework for new financial service providers (third-party providers (TPPs)) and new payment services (payment initiation and account information).
  4. PSD2 requires PSPs to use Strong Customer Authentication (SCA) when a Payment Service User accesses its payment account online or initiates a payment transaction.

Tokenization is a process of replacing sensitive data with unique identification symbols that keep all the information about the data without putting its security at risk. Tokenization is meant to minimize the amount of data a business needs to keep on running. It has become a common wat for small and middle-size companies to strengthen the security of credit card transactions while decreasing the cost and intricacy of compliance.

Payment card industry (also known as PCI) standards prohibit credit card numbers from being stored on a retailer’s point-of-sale terminal. It also does not allow to store sensitive data in its databases after a transaction is processed. To be PCI compliant, merchants have no choice but to install expensive encryption systems. They can also use the services of a PSP that provides a “tokenization option.” The service is responsible for delivering issuance of the token value and keeping the cardholder data locked down. 

In such a case, the PSP provides the merchant with a driver for the POS system. It converts credit card numbers into tokens (randomly-generated values.) As this is not a primary account number (PAN), it can’t be used outside the transaction with that specific merchant. In credit card payment processing, for example, the token usually comprises the last four digits of the actual card number. The rest of the token consists of numbers and letters that report to cardholder information and data of the transaction.


A transaction is a money transfer from a payer to a payee. Person A gives person B an agreed amount of money for a product/service. The transaction, though, can also take place between private individuals. For example, you are sending money to a relative/friend. 

Examples of transactions in daily life:

  • You pay for lunch at a Chinese restaurant. Once you swipe a credit card at POS, the transaction happens.
  • You send money to your French tutor for her service via your mobile banking app.
  • You pay an electricity bill via your mobile banking app.
  • You purchase clothing online and enter your credit card details to accomplish the payment. 
  • An external transaction is an exchange between the company and another entity. 

Transaction fees for merchants

Merchants who sell their products/services online face the transaction fees. Per-transaction fees vary. For example, PayPal merchants pay 2.9% per transaction + a fixed fee based on currency, while PaySpacelv merchants pay 1.2% per transaction. That is to say; whenever someone buys a product/service from a merchant’s website, he is obligated to pay a fee.

Transaction fees for individuals

Individuals also face transaction fees. Usually, they appear when you send money overseas. Fees are also being implied when transferring money to a person who holds a credit card from a different bank than yours. 

Transaction currency is the currency used to perform the transaction. It might differ from the base currency. For example, an American company buys products from the U.K-based company. The U.S company gets an invoice in GBP. As a result, the base currency is in GPB, while the transaction currency is U.S. dollars.

Let’s take a look at another example. German businessman orders raw materials from a Chinese businessman. The Chinese businessman sends him an invoice in CHN (Chinese Yuan Renminbi). However, the German entrepreneur pays for it in EUR (euro). Hence, the transaction currency is Euro.

What is the transaction currency value?

The transaction currency value is always variable. That means each transaction can be processed in a different, valid defined currency. However, the currency code must be mentioned to identify the transaction currency.

Transaction currency examples with currency codes

The 10 most popular transaction currencies with currency codes are:

  1. US dollar (USD) – 840
  2. Euro (EUR) – 978
  3. Japanese yen (JPY) – 392
  4. Pound sterling (GBP) – 826
  5. Australian dollar (AUD) – 036
  6. The Canadian dollar (CAD)
  7. Swiss franc (CHF) -756
  8. Chinese renminbi (CNH) – 156
  9. Swedish krona (SEK) – 752
  10. New Zealand dollar (NZD) – 554

Do merchants need to offer different transaction currencies?

The answer is yes. The more transaction currencies a merchant accepts the easier it gets to penetrate the global market. Thus, a merchant needs a PSP (payments system provider) that allows processing a wide range of currencies. Otherwise, merchants won’t be able to reach out to international audiences. At PaySpacelv, we offer 150+ currencies. Drop a line to open a merchant account with us.

The transaction date is the date and time when the transaction was initiated. Simply put, when the buyer sent money to a merchant. Keep in mind that the transaction day is not the date when the merchant received money. It is the settlement date. The transaction might take up to one-two days.

Example of the transaction date

Imagine the following. A client from Great Britain sends money to a freelancer from Russian.

The transaction date: 21.10.19

The settlement date: 22.10.19.

These two dates differ as it takes up to 24 hours for the UK banks to transfer money to Russian banks. It might take less or more time as well. It all depends on payment methods and banks users choose.



The transaction fee is the amount of money (usually a fixed percentage/sum) charged per merchant’s transaction by the PSP. If you are a PayPal merchant you are charged 2.8%+30 cents every time someone buys at your website. That is the fixed fee for all the PayPal merchants in the U.S. Different PSPs offer different fees.

What kinds of transaction fees exist?

There are two main types of transaction fees:

  1. A fixed percentage of transactions. For example, 1.2% at PaySpacelv, 2,8% at Stripe. Imagine an entrepreneur John. He uses Stripe and sells a $1000 marketing subscriptions. Every time someone buys a marketing subscription from his website, Stripe charges $28 and John gets all the rest ( $978).
  2. A fixed sum. No matter of product’s price, the fee is a fixed sum. For example, in ACH payment processing, it is usually 60 cents per transaction.

What affects transaction fees?

There are several factors affecting transaction fees:

  • Business types ( high-risk business owners always pay higher fees)
  • GEO
  • Turnover

Some examples of the transaction fees:

Lola said that the transaction fee in that bank country is way too high and does not fit her business needs.

Transaction fees for gambling businesses are higher than for the eCommerce niche.

The merchant refused to work with PayPal due to high transaction fees for African region.

The transaction ID is a unique set of numbers that identifies each transaction. Thanks to the transaction ID, bank workers can define the customer’s purchase. The transaction ID is always unique. That means that there are no transaction IDs that are 100% similar. This transaction ID is only generated after the system defines it as a successful one. Usually, the transaction ID consists of numbers and letters (a 12-18 digit code).

If the customer wants to find a particular payment, the transaction ID is required. The ID is also crucial when the consumer wants to ask for a refund.

How can you get a transaction ID from your payment?

Enter the list of payments that you made from your credit card account. After that, open the transaction of your choice. There you will find the field “Transaction ID.” If you used other then a credit/debit card payment method, enter your personal account on the payment system you’ve used. Most commonly, all your transactions are in the activity stream or in tab “Transactions.” After pressing the required button you will reach the transactions’ list. Each of them will have a unique identification.

Here are some examples of transaction ID:

This client wants a refund, so he’s sent us the transaction ID.

That’s a transaction ID of the latest purchase from my account.


Triple DES is a definition that relates to cryptography. 3DES algorithm encodes the data to protect it from cybercriminals. Let’s see the main sides of the algorithm’s work.

The full 3DES name is a Triple Data Encryption Algorithm. 3DES uses the “same keys to encrypt/decrypt data (symmetric-key algorithm)” in combination with “fixed-length blocks (block cipher)” to encrypt data blocks. The algorithm encrypts every single block 3 times. The encryption quantity is vital. So, one-time 56-bit key encoding nowadays is not enough due to cyber crooks evolving. Accordingly, the system adopts the Triple DES to provide better protection. There are a set of documents by various authorities that define 3DES (including ISO standards).

Once, the algorithm has used a 56-bit key and developed it to the 2-time encryption, it still hasn’t provided enough strength. Consequently, now the algorithm uses an enlarged cipher key to offer more security and make encoding invulnerable to cyber-attacks. Moreover, the algorithm has become more strong, thanks for enhancing the length. There was no need to change the algorithm itself.

So, Triple DES will use the unity of 3 keys which are K1, K2, and K3. Every key is 56-bit long. To understand the plain text encryption with 3DES, let’s look at the formula.

triple des

And the mechanism is as follows. TDES encodes the plain text with the K1, then decrypts it with the K2, and encrypts it once more with K3.


Underwriting is a process of taking a financial risk and payment guaranteeing in case of damage or loss. This service is typical for large financial establishments like insurance companies, banks, etc. Underwriting takes place when a bank lends money, a firm makes an investment, and so on.

Underwriting deals with risks. So, this process consists of researching and risk degree assessment. Underwriter assumes the risks of the partner company or applicants after making the actions, we have mentioned. Thanks to this the underwriter can set the fair borrowing rate or evaluate sufficient funds to cover possible investment losses. Nevertheless, if the concurrent risks are too high, the underwriter may decline the application.

There are 3 most widespread underwriting types:

Loans. Underwriting for loans usually goes automatically. The system will check the lendee’s credit history, financial behavior, and customs, the credit score (if applicable), etc. The dedicated professionals may add another data based on the loan’s size and purpose. The procedure may take different time from a couple of hours to weeks. For instance, a week or so is enough to make a decision about the loan. Nevertheless, when it comes to refinancing the decision-making time enlarges. The reason is that refinancing holds more risks and threats to the financial establishment involved.

Insurance. Here all goes around the policyholder. In other words, the underwriter or the program will access the risks connected with a person. Underwriting, in this case, has to do with life or health insurance. Based on the number of specific questions considering health state, profession, life habits, etc. the system can estimate the insurance cost. There are no declines in health insurance. But the underwriter can reject the life insurance application.

Securities. This financial risk assessment deals mainly with IPO. The company or an underwriter makes some actions on the investment bank’s or investor’s behalf. The goal of the procedure to evaluate securities’ prices and the risk connected with their purchase.

A user profile (or simply UP) is a definition of a digital set of information about a card owner. This client’s data eases the work of both the bank (or NBFI) and the cardholder.

That is to say, the UP is a dedicated page where the customers store the data about their payment card(s). The bank or a payment processor protects this sensitive information. The protection means go along with the high-security standards. The user profile allows the client to monitor all the transfers and what they buy online avoiding a threat of data or money being stolen. The process of the funds’ management is rather distinct.

So, the profile. commonly, consists of the following parts name, user’s email, his/her phone number, and card data. Thanks to the UP, clients can pay with a one-click action. Moreover, this operation will be totally safe. The cardholder owns full control over the payment card. He/she can do it by accessing the UP and conducting different transactions. The card owner  only has to login to the profile by filling in the name and a password.

With PaySpacelv, customers can store personalized credit and debit card information securely in their online user pages, allowing one-click payments for returning customers with no risk or stolen data from the merchant’s collection or storage practices.

For example:

One cannot enter the user profile without a correct password.


Vendor is an individual or legal entity that develops or supplies goods or services. It can not only supply but also sell products on behalf of themselves.
In a commercial area, a vendor means a company that provides technical and hardware opportunities to emit bank cards.
There is also a separate type of business called vending. Such activities are related to the organization of sales through vending machines. The vendor here supplies or rents a vending machine or vending machine. Besides, it is correct to call such a company a vending operator.

Verified by Visa (3D-secure) – a secure user authorization protocol for CNP operations (when a card is not present). It is an additional level of security – another step in authenticating a user who pays for goods or services online. At the time of purchase, to confirm the online payment, the cardholder enters a unique code (as a rule, he receives it in a message to the attached phone number).
If an online retailer supports the technology, its website has the Verified by Visa and MasterCard® SecureCode ™ logos.

Verified by Visa does not guarantee absolute financial security: there is a risk that some malware can steal a one-time code.

Advantages and disadvantages of verified by Visa

Such two-factor authorization is designed to increase the protection of client funds but has both positive and negative sides.

Additional protection is always a good way to protect yourself. When one loses a card, it is almost impossible to withdraw money from an account. Even if in the hands of the attacker there are both that and another – you will also need to crack the protection of the smartphone.

3-D Secure reduces customer agility. SMS with a password does not arrive as fast as we would like. Besides, a client can completely lose the message.

Virtual card – a card developed to make transactions and other financial operations via the Internet. With POS or ATM terminals, it is impossible to use.
For a virtual card, you don’t need a PIN code. To provide online transactions, you need the following parameters: card number, its validity period, and a three-digit code for card authentication. For the MasterCard Worldwide payment system, it is CVC2 code, for Visa International – CVV2.

The use of such cards when making payments on the Internet increases the level of security of transactions since the virtual card allows you not to reveal the details of the main card.


The main advantage that a virtual payment card has is the safety of cashless payments on the World Wide Web. The fact is that it can be made for a specific transaction, and therefore, even if fraudsters receive her data, they will not be able to use it.

If the client wants to deposit a more significant amount on the account than they need at the moment, in many banks, there is an opportunity to set a specific limit. This limit precludes overspending funds. Some credit institutions additionally set a maximum monthly limit on their own.

Some financial institutions issue virtual cards physically.

Virtual terminal is such an application that allows you to process transactions without POS terminals. The merchant only needs to enter card details to identify themselves.

  1. Check the Internet connection. After that, log in to your personal account. The profile will be available after you make an agreement with a payment provider.
  2. Enter the payment details.
  3. In the end – approve the payment.

The virtual terminal’s area of usage:

  • Delivery services.
  • Process payments for remote work.
  • Booking services
  • For local payments.

Advantages of using virtual terminals

  • As a merchant, you don’t need a customer to be present. If there is a card-present transaction, you need to go through all the verification steps to avoid fraud.
  • ATMs or POS terminals are not necessary anymore. So that you can save some money that is especially essential for startups.
  • Virtual card payments bring flexibility: everyone can provide transactions from anywhere. The only need is Internet connection.

Disadvantages of using virtual terminals

  • When one makes a card-not-present transaction they may need additional security layers. Chargebacks can occur and harm your business. Not to mention chargeback fees.
  • When using POS terminals you need only to swipe the card, without entering card numbers.
  • For card-not-present transactions, fees are typically higher.

Visa risk manager (also known as aVRM) is a web-portal of VisaNet. It supplies users with a complete set of risk and fraud management tools. They all can be accessed through Visa Online 24 hours a day/7 days a week.

The Visa Risk Manager is created to allow users to optimize fraud prevention. The set of tools of VRM also increases profitability by providing clients with a transaction risk management decisioning system. The Visa Risk Manager is a new technology that examines all the transactions. Such an approach allows determining the parameters used to spot a transaction for review to set rules to decline fraudulent transactions. Visa Risk Manager enables intelligent decisioning throughout the entire transaction lifecycle.

With the help of a web portal, issuers can establish rules to decline high-risk purchases/wallet provisioning requests. It also marks and prioritizes doubtful purchases that require further investigation to determine if the cardholder made the purchase. While using the services of VRM APIs, users can automate communication between their back-office systems and Visa Risk Manager.

To understand how Visa Risk Management functions, consumers need to familiarize themselves with the following:

  1. Visa Risk Manager Features & Functionality
  2. Rule Manager
  3. Case Manager
  4. Account management
  5. Report generation
  6. Compromise Account Management System (CAMS) Dashboard

Void Transactions – transaction in which no money has yet exchanged accounts can be canceled. Most often used in batch payment processes or CP processes due to data entry errors, Void Transactions do not require refunds, only appropriate accounting.


A white-label payment gateway is a payment gateway that allows a company to offer payment processing services under its name. Simply put, in the white label payment gateway solution, the company uses its own”label” on top of the white label or blank label. 

Thanks to white-label payment gateway solutions, companies can boost their reputation in the eyes of their clients — for example, card members and merchants. Once using a white-label payment gateway, companies get permission to use their brand name on the product or service which has been delivered by a third-party. It gives a wide range of opportunities to a merchant. At least, it allows providing a product or service without wasting time on developing it from scratch.

A white-label payment gateway provides merchants with the following benefits:

  • Use a branded payment gateway;
  • Get professional training, software and product innovation and other updates;
  • Get control over various aspects of a product, including sales and marketing;

Using a white-label payment gateway service is more affordable and less time-consuming than other options. Once someone decides to build a payment gateway, he needs to spend both money and time. Then, it usually takes years to implement. With white-label services, on the contrary, a merchant needs to buy a license, integrate a payment gateway, and that’s it.

A white-label payment gateway solution is a perfect fit for:

  • Online casinos;
  • Gaming platforms;
  • eCommerce software;
  • Payment system providers.

Withdrawal is the ability to take money out of an account that has been deposited into it. If the funds were due to a sales Transaction, this cannot occur until after the Settlement. Other fees or agreements with the Acquirer or Acquiring Bank, such as Rolling Reserves, may be assessed before funds are released.