The payments glossary
Clear definitions, worked examples, and benchmarks for the terms that decide how much you pay and how much you keep. Written by the team that builds the HL Hunt platform.
Payment gateway
The service that securely transmits payment data from a checkout to the processor and acquiring bank.
Learn moreInterchange-plus pricing
A transparent pricing model that passes through the card network interchange fee plus a fixed processor markup.
Learn moreChargeback
A forced reversal of a card payment initiated by the cardholder through their issuing bank.
Learn morePCI DSS compliance
The Payment Card Industry Data Security Standard that governs how card data must be stored, processed, and transmitted.
Learn moreAuthorization rate
The percentage of payment attempts approved by the issuing bank.
Learn moreTokenization
Replacing a card number with a non-sensitive token so the real number is never stored by the merchant.
Learn more3-D Secure (3DS)
A card network authentication protocol that verifies the cardholder during online checkout and shifts fraud liability to the issuer.
Learn moreMerchant of record
The legal entity responsible for a sale, including taxes, compliance, refunds, and chargebacks.
Learn moreACH payments
Electronic bank-to-bank transfers in the United States processed through the Automated Clearing House network.
Learn morePayment orchestration
A layer that connects multiple processors, acquirers, and payment methods behind a single integration and routes each transaction optimally.
Learn moreDunning
The process of recovering failed recurring payments through retries and customer communication.
Learn moreKYC and KYB
Know Your Customer and Know Your Business identity verification requirements for onboarding individuals and companies.
Learn moreHigh-risk merchant account
A payment processing account for businesses in industries with elevated chargeback, fraud, or regulatory exposure.
Learn moreSettlement
The transfer of funds from the card networks and acquirer to the merchant’s bank account after a transaction is captured.
Learn moreCard-present vs card-not-present
The distinction between in-person payments where the card is physically read and remote payments made online or by phone.
Learn morePayment facilitator (PayFac)
A company that onboards sub-merchants under its own master merchant account and processes payments on their behalf.
Learn more
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