Payments Explained

The Payments Explained is a complete glossary that defines the main terms and concepts commonly used in the payment industry. In just a click you can access great articles and easily learn more about the payments world.

• 3d secure

  3D secure is preventive measure to protect your e-commerce business and your customers from payment fraud. If you are looking for ways to reduce the risk of unauthorized charges to your online business, keep 3D Secure on your radar.

• Account takeover

  Account takeover or ATO, is a kind of identity fraud. The goal is to take advantage of the stolen account.

• Acquiring bank

  An institution that has the authorization to process a transaction and manage communication between credit associations and businesses.

• Alternative payments

  Discover the most popular online alternative payments in Latin America.

• B2b payments

  The buying and selling process between businesses have their own inner workings. Check out how it works.

• Card testing

  A kind of fraudulent activity where a fraudster tries to determine if stolen card information can be used to make purchases.

• Contactless payments

  An increasing trend, contactless payments are a popular way for merchants to receive money for their goods and services. See how does it work.

• Credit card

  Learn all about one of the most used payment method in Latin America and why you need to accept it in your online store.

• Credit card declines

  Credit card decline is when for different reasons, a credit card payment cannot be processed and the transaction is declined.

• Cross-border payments

  Cross-border payments defined as funds paid to or taken in from different countries, so the location where the merchant is registered is different from the country where the customer's card was issued.

• Credit card schemes

  With card schemes, your customers can make purchases and pay bills, online or in-store, without the need for cash or cheques. Learn about card schemes.

• Chargeback

  A chargeback is the act of a customer filing for the return of their funds directly with the bank, that can happen for different reasons.

• Debit card

  Learn all about one of the most used payment method in Latin America and why you need to accept it in your online store.

• Deflation

  In this article we discuss what causes deflation in the economy, types of deflation, and If deflation is good or bad.

• E-wallets

  Payments become more efficient and convenient for buyers using online platforms. Learn more about e-wallets and digital wallets.

• Electronic draft capture (edc)

  Sometimes also referred to as remote deposit capture, EDC is essential to every commerce-based business.

• Electronic funds transfer

  Digital payment is the way of today, and tomorrow, and that means any business, large or small, needs to take advantage of electronic transactions.

• Fintech

  Fintech is one of the fastest growing sectors in the digital world, and in fact, it could be the most influential. Learn more about fintech.

• Foreign exchange

  Currency transactions happen at all hours all over the globe, and their values are in constant flux. See how Foreign Exchange works.

• Fraud prevention

  Are strategies focused on preventing the transactions from fraudsters and provide business protection.

• Hosted payment page

  It is a third-party checkout web form that handles electronic transactions (payments made with credit and debit cards).

• Identity theft

  Is the crime of obtaining personal or financial information, such as identity data or driver's license.

• Inflation

  Inflation means that the prices are rising and there can be various factors that could be the reason for this.

• Installments

  A popular payment method that splits up the total amount due to monthly payments, allowing customers to make higher prices purchases.

• Intelligent payment routing

  Everything you need to know about Intelligent Payment Routing and how it can affect your business.

• Merchant service provider

  What is the meaning of Merchant Services Provider? Keep reading to find out all about merchant providers and how to choose the best one for you.

• Oxxo

  OXXO invoice is a payment method which is widely used by Mexicans to pay for their utility bills and even online purchases, in cash.

• Payment gateway

  A payment gateway is a mechanism that assures security and facility sending credit card information from the merchant's website to the payment processor.

• Payment authentication

  In this article, we’ll take a closer look at different payment authentication methods.

• Payment processing

  Is the entire process of an online payment transaction which involves different players such as the payment processor, the acquirer and issuer bank.

• Payment reconciliation

  The best way to ensure good financial standing is to establish a payment reconciliation protocol. See how Payment Reconciliation works.

• Psd2

  PSD2 is the new EU financial directive. It obliges banks to open up their data in a secured form so that it can be shared between Third Party Providers.

• Payment service provider

  Payment Service Providers work on the backend of the e-commerce and bring all the main parties involved in the transactions together.

• Payout

  A Payout is the solution that allows you via API or manual Batch upload to pay your LOCAL service providers, suppliers, gig workers, wallet withdrawals, remittences and partners in Latin America. The Payout is executed in the local currency of a specific country and could have FX or not depending the account configuration.

• Recall Recall is the process to recover a Payout when the wrong BENEFICIARY wire information has been submitted. We do not warranty the recovery of the funds but we will start a manual process to recover the funds. The recall process must be started by our client by email or API endpoint.

• Return Return is the flow after a payout has been completed, but since the ACH domestic network is asyncronic the beneficary bank rejects the payment t+x days later. We will credit the funds in your account plus the tax and fees.

• Payin

  A Payin is the solution that allows you via API or Web Checkout to collect from your LOCAL customers in Latin America. The Payin is collected in the local currency of a specific country and could have FX or not depending the account configuration.

• Pci dss

  PCI DSS: Payment Card Industry Data Security Standard is a set of 12 security standards designed to ensure that all the card payments are being processed safely.

• Pix

  PIX is the system created by the Brazilian Central Bank to bring instant payments to life. It is through PIX that all wallets that use QR Codes will be interoperable.

• Remittance

  Commonly used for international money transfers, remittance transactions are a popular mode of payment. Learn more about Remittance.

• Recurring payments

  Find out what is the definition of automatic recurring subscription payments and how these monthly charges and fees can help your business model.

• Refund

  When a customer buys a product our service and after asks for his money back so the merchant needs to make a reimbursement.

• Settlement

  For Payins the Settlement referes to the Wire Out Localpayment will execute in order to settle all the completed collections in your merchant account generally through a Swift wire in a hard currency cross border to your international bank account. For Payouts the Settlement referes to the Wire In Localpayment will receive generally through Swift in a hard currency in order to top up your merchant account so you have positive balance to be able to execute the local disbursements.

• Subscription payment

  For businesses with a product or service that can be offered over time, subscription payments are a quick and reliable way to retain customers.

• Swift code

  SWIFT stands for Society of Worldwide Interbank Financial Telecommunication. See how does it work.

• Tokenization

  Tokenization is the process to create tokens to protect customers’ sensitive data by replacing it with algorithmically generated numbers and letters.

• Virtual Accounts

  Virtual accounts are a collection/payin method that allows the Company to create multiple accounts and receive local ACH bank transfers with the benefit of having an easier reconciliation process by assigning the account to a specific merchant or end user.