Short for ‘Payment Facilitator’, payfac is a service provider for merchants. When you want to accept payments online, you will need a merchant account from a payfac. PayFacs provide a similar service to standard merchant accounts, but don’t issue each merchant their own individual account.
An eCommerce payment service to process credit card transactions and direct payments for both online and traditional brick-and-mortar businesses.
Payment Network (also known as a Payment Scheme)
An association of member banks that facilitate the payment transaction between the merchant and issuer- Examples include American Express, Visa, Mastercard, JCB, Diners Club
Payment Orchestration Platforms (POPs), also referred to as a Payments Orchestration Layers, handle different payment service providers, acquirers, payment gateways and banks on a single, unified software layer. CellPoint Digital is a pioneer in the development of Payment Orchestration Platforms that enable our clients to make payments work for them across all their channels and markets.
Payouts are the expected financial returns or monetary disbursements from investments or annuities. It can be expressed on an overall or periodic basis, and as either a percentage of the investment's cost or in a real dollar amount.
Payments Value Chain
The Payment Value Chain refers to the complex ecosystem supporting a payment transaction that includes the consumer, merchant, acquirer, network, issuer, and processor, as well as an array of third-party servicing entities.
Visa®, Mastercard®, Discover® and AMEX® created the PCI Security Standards Council with the aim of regulating the credit card industry and managing PCI standards to improve payment security. PCI Compliance is an ongoing process that helps prevent security breaches and payment card data theft.
POS can refer to the time and place at which a retail transaction is completed, as well as the hardware or software a merchant uses to process a transaction. Traditionally this would have been a cash register, but modern POS systems are entirely digital.
Point-to-Point Encryption (P2PE)
Security standard that immediately encrypts cardholder info at the initial swipe device, then securely transfers that information to the payment processor who in turn decrypts the data used in physical Point-of-Sale environment
A third party designated by a merchant to handle credit and debit card transactions between that merchant and its customers. They are often broken down into two types: front-end processors and back-end processors. The front-end processor authorizes the card, connects to credit card companies and authorizes the network, while the back-end processor receives and forwards settlement batches to issuing banks.
Payment Service Provider (PSP)
A company that enables the connection between an online shop and other market participants, such as banks or credit card acquirers. The PSP offers various services concerning the acceptance of electronic payments and integrates different payment methods. Usually a PSP is not bound to an Acquirer or a payment network, which allows the integration of several different payment methods over just one PSP.