This glossary includes common terms you may encounter while using CivicPlus Payments or working with an external processor.
Payment Method & Types
ACH: A payment method, specifically a bank transfer, where a payer uses their routing and account numbers to pay electronically.
Card Present: A transaction that takes place in person or where the card is physically present at the point of sale (such as swiped, tapped, or inserted).
Card Not Present: A transaction where the card is not physically present, such as eCommerce or MOTO payments.
Contactless Payments: Payments made by tapping a card or device with NFC technology near a reader, such as Tap to Pay, Apple Pay, or Google Pay.
Check Not Present: A check payment submitted without a physical check, such as an online form or over the phone).
E-Commerce: A method of accepting payments through a website or online portal.
MOTO: A type of Card Not Present transaction, where the payment is manually entered by the merchant based on details received by mail or phone.
Recurring Payment: A scheduled, automatic payment set to occur at regular intervals.
One-Time Payment: A single, non-recurring payment made for a product or service.
Processing & Infrastructure
Authorization: A process where the customer’s bank approves a transaction.
Batch Processing (Batch Clearing): A group of transactions collected and submitted for settlement at once, often at the end of the day. Also referred to as dual message processing, where the authorization occurs at the time of the transaction, through only one message, and then the clearance is done later through another message. The clearing messages from the daily transactions are typically collected into a batch for the POS devices. At the end of the day, the batch is sent to the processor as part of the end-of-day processing. Device-capture and processor host-capture systems typically use dual message processing.
Gateway: An entity or service that receives payment requests from your software or terminal, securely directing them to a processor for transaction authorization.
Issuer: The financial institution or bank that provides a customer’s credit or debit card.
Financial Institution: A bank, credit union, or other organization that handles financial transactions.
Funding Time: The expected duration between a successful transaction and receipt of funds in your bank account.
Payment Processing: The complete cycle of capturing, authorizing, and settling transactions between merchants and their customers.
Payout: The transfer of collected funds from the processor to the merchant’s bank account.
Processor: An entity (often a third party) appointed by a merchant that handles the routing, authorization, and settlement of payments.
Real-Time Processing: Payments that are authorized and confirmed instantly upon submission. If the final amount is known at the time of the authorization request, the same online message also provides the issuer with all the data needed to clear the transaction and post it to its cardholder’s account. This convenience is why real-time processing is also referred to as single-message processing.
Settlement: The movement of funds from the customer’s bank to the merchant’s account.
Devices & Hardware
Point of Sale (POS) Device: A physical terminal used to accept in-person payments.
EMV: A global standard for chip-based credit and debit card transactions.
Encrypted Card Reader: A card reader that encrypts sensitive card data during swiping for added security.
Unencrypted Card Reader: A basic swipe device that does not encrypt data, offering minimal security.
Magnetic Stripe Reader (MSR): A device that reads data off a magnetic stripe.
Magnetic Stripe Data (MSD): Information stored on the magnetic stripe of a card, such as card number and expiration date.
Mobile Reader: A card reader that pairs with a smartphone or tablet to accept payments.
Tap to Pay: A method of making contactless payments using an NFC-enabled card or device.
Security & Compliance
AVS (Address Verification System): A security tool used to confirm the billing address provided matches the one on file with the issuer.
CVV: A 3 or 4-digit number used to help verify the identity of the cardholder during card-not-present transactions.
Chargeback: A transaction that is reversed due to a dispute, usually resulting in the funds being withdrawn from the merchant’s account.
Dispute: A formal request by a cardholder to reverse a charge they believe is unauthorized or incorrect.
Encryption: A security method of converting data into code to prevent unauthorized access.
Fraud Monitoring: Tools or services used to detect and prevent fraudulent transactions.
Payment Card Industry (PCI): A set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment.
Tokenization: A process of replacing sensitive data (like card numbers) with randomly generated tokens.
Transactions & Adjustments
ACH Return: A failed ACH transaction, often due to incorrect account info or insufficient funds.
Partial Refund: A refund of only part of the original transaction amount.
Refund: The voluntary return of funds to the end consumer from the merchant after the funds are settled.
Void: The cancellation of a transaction before the funds are settled. Also referred to as a reversal.
Merchant & Account Setup
Doing Business As (DBA) Name: An alternate name that a business may operate under, often shown on customer receipts or statements.
Merchant: An organization that accepts payment in exchange for goods or services.
Merchant Account: A special type of account that allows a business to accept and settle card transactions.
Merchant of Record: The entity legally responsible for processing and settling payments on behalf of an organization or business.
Onboarding: The setup process to start accepting payments, including document submission and account configuration.
Underwriting: A review process by the processor to evaluate the risk of an organization before enabling payment processing.
Industry Terms & Brands
Acquirer: A bank or financial institution that enables merchants to accept card payments.
Card Brands: Entities that manage card networks such as Visa, Mastercard, American Express, and Discover.
Descriptor: The label that appears on your customer’s credit card or bank statement, usually showing your organization name (DBA Name).
Interchange: Fees set by card brands, paid to issuers as part of each card transaction.
Technical & Miscellaneous
Card Data Encoding: The process of formatting and structuring cardholder data into a specific format so it can be read and processed by payment terminals or gateways.
Gateway Credentials: Secure login or API keys required to connect to a payment gateway.
Payments Portal: A secure dashboard used by merchants to view, manage, and report on transactions.
Software or Application Provider: A company that provides the software platform used to initiate, manage, or track payment transactions. This could be a standalone point-of-sale system, an integrated government management system, or an online payment portal embedded in a broader digital service.
Transaction ID: A unique identifier automatically assigned to each payment transaction.