Glossary

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    3-D Secure™
    Security standard developed by VISA and MasterCard for the authentication of online card payments.

    A

    Acquirer/Acquiring Bank
    Financial institution which concludes an agreement with merchants for the acceptance of credit cards as a means of payment for goods and services, and settles card payments for merchants.

    Address Verification Service (AVS)
    Checking method for VISA, MasterCard and American Express to prevent fraud for credit card payments in long distance transactions in which the numerical address data provided by the customer is compared with the address data stored at the credit card company.

    Alternative payment methods
    These mostly comprise non-card based payment methods such as payment services, wallets, vouchers and bank account based or prepaid methods.

    B

    Bank Identification Number (BIN)
    The first six figures of a credit or debit card number.

    Bank Identifier Code (BIC)
    BIC (also known as SWIFT Code) is an 8 or 11 digit international bank sorting code for international bank transfer.

    Billing and Settlement Plan (BSP)
    The Billing and Settlement Plan (BSP) is the most widespread system in the world for simple processing of airline ticket sales.

    Blacklist
    See restricted list.

    C

    Chargeback
    A process in which the card issuer can call back a transaction either in full or in part. The chargeback applies if a card holder disputes having performed a card transaction. In this case, the issuer files an objection with the acquirer and demands that the transaction amount be returned from the merchant's account.

    CNP, Card Not Present
    Card transaction in which the card is not physically presented to the merchant, e.g. for an order in long distance trading (internet or MOTO).

    Co-branded Card
    A Co-branded card is a card issued by a licensed card issuer which bears the design of a third party company.

    Contractual merchant number
    A contractual merchant number, also known as a contractual company number is used to identify a credit card acceptance agreement between a merchant and an acquirer. It is issued by the acquirer. See also Merchant Identification Number (MID).

    Creditworthiness check
    A method used by banks to check consumers' creditworthiness.

    CVC1, CVV1
    Card Verification Code 1, Card Verification Value 1. An encrypted security characteristic on a credit card's magnetic strip which is read by the card reader when purchases are made.

    CVC2, CVD, CVV2
    A 3 or 4 digit card verification number on the front or back of a credit card that is used in CNP transactions. (Card Verification Code 2 = MasterCard, Card Verification Data = American Express, Card Verification Value 2 = VISA).

    E

    Electronic direct debits
    Method in which purchasers issue the merchant with authorisation to debit funds directly from their account for a cashless transaction (in online trading by confirming the basket of goods and in POS trading with their signature or PIN). The amount is booked automatically from the consumer’s account and credited to the recipient’s account.

    Electronic Funds Transfer (EFT)
    Refers to the paperless transfer of electronically recorded payment data representing a monetary value in a specific currency which is accepted by a customer/contractual merchant or a bank instead of cash as a means of payment.

    EMV
    Abbreviation for Europay, MasterCard and VISA. Specification for payment cards that bear a chip.

    F

    Fraud Prevention Suite (FPS)
    Wirecard’s risk management system which identifies suspicious data and/or behaviour patterns in real time and effectively prevents fraud.

    I

    IBAN, International Bank Account Number
    Standardised international bank account number (comprising account number, sorting code and prefix) for international payment transactions.

    In-app Payment
    In-app payment refers to payment for goods or services via a mobile terminal in connection with a mobile application. Customers can store their desired payment type, such as credit cards or alternative payment methods, in their user account and the next time they log in they can make one-click payments.

    IP/BIN Check
    Method to check fraud patterns for credit card transactions. The IP address is used to find the customer’s current location or internet access point, while the bank identification number (BIN) identifies the card issuing bank and its country of origin. This allows specific combinations of two countries thus identified to be accepted or rejected.

    Issuer/Issuing Bank
    Financial institution which issues payment cards (credit, debit and prepaid cards) as a member bank of the card organisations and receives transactions from its cardholders from other member banks or merchants.

    L

    Loyalty and Couponing Programmes
    Serve to control specific marketing campaigns and are used in connection with mobile payments for location and/or transaction based customer loyalty programmes.

    Luhn check
    Risk testing method to verify the authenticity of a credit card number.

    M

    Merchant
    Term used for people and companies who have entered into an undertaking in a contract with the acquirer to accept credit cards (VISA, MasterCard).

    Merchant Account
    A bank account set up by a merchant for credit card revenues.

    Merchant Bank
    A bank which is licensed as a member of VISA/MasterCard to provide merchants with an account and therefore allows them to accept credit cards.

    Merchant Identification Number (MID)
    See contractual merchant number.

    Mobile Card Reader
    The card reader is a mobile add-on device which is attached to smartphones or tablets, turning the device into a payment terminal.

    Mobile Payment
    Includes, for example, the payment of digital or physical merchandise or a service on the mobile phone (payment on mobile/in-app payment) using the mobile phone (mobile at the point of sale) or the mobile phone as the payment terminal (mobile as the point of sale).

    Mobile Wallet
    A mobile wallet managed via the mobile phone. Various digital cards can be stored in a mobile wallet.

    MOTO, Mail Order/Telephone Order
    The purchase of goods or services, with the purchase order issued by phone or in writing by fax or using an order card.

    mycard2go prepaid Visa card
    mycard2go is a prepaid Visa card. It is available at petrol stations and corner shops all over Germany, it can be topped up directly at the point of sale and can then be used anywhere Visa is accepted. Alternatively, you can register online for mycard2go.

    N

    Near Field Communication (NFC) technology
    NFC technology is the wireless transfer of data over a short distance (near field). Conditions for payments using mobile phone and NFC are: an NFC-enabled acceptance point and an NFC-enabled mobile phone with an NFC-enabled SIM card or an NFC sticker.

    NFC sticker
    Bridge technology to equip smartphones with contactless technology. NFC stickers can be attached to the rear of the mobile terminal and used to initiate payments in connection with a mobile wallet.

    P

    Payment authorisation
    Confirmation of a payment using a PIN at the POS.

    Payment page
    A Web-based payment page for simple and secure acceptance of various payment methods. End customers input their data into a website hosted by Wirecard to make online payments. The Payment Page enables merchants to accept credit cards and other national and international means of payment such as direct debits, giropay, iDEAL, eps, paybox, paysafecard and others in a fast, secure manner with PCI compliance.

    PCI DSS
    PCI DSS (Payment Card Industry Data Security Standard) is a security standard initiated by VISA and Mastercard for merchants and payment service providers who process credit card payments using their systems which store or transfer card data.

    Personal Identification Number (PIN)
    Secret number which is only allocated to one single card, and which enables the card holder to confirm a POS payment or to access their account using a cashpoint.

    Phishing
    Phishing (password harvesting fishing) refers to criminal activities to obtain passwords from customers using fake websites. The attackers mostly pose as persons who can be trusted, and as such try to induce customers input sensitive information (user name, password, credit card data).

    PoS, Point of Sale
    A terminal (card reader) in retail operations where the customer pays using a bank card and authorises the transaction using their PIN.

    Prepaid card
    Has all of the features of a standard credit card and mostly licensed by VISA or MasterCard on a prepaid basis.

    Provisioning
    Storing card data in NFC-enabled smartphones in order to be able to make payments using the  mobile phone. The card data is stored on the SIM card or in a secure area of the smartphone.

    PSP, Payment Service Provider
    A company which receives electronic payment transactions for merchants etc., authenticates these, processes them and in this regard also provides the merchant with the corresponding software if required.

    R

    Restricted list
    A list of negative data which are automatically recognised and not accepted when a transaction is processed. For example, if a merchant has a negative payment experience with a credit card, he can place this on a restricted list in order to avoid further payments with this card in future.

    Risk management
    Recording and analysing transaction data to minimise the risk of fraud and to protect the merchant against payment default.

    S

    SaaS, Software-as-a-Service
    Demand-orientated provision of software applications (download)

    Scoring
    A method to forecast customer behaviour. Using data for a specific person, other people with the same characteristics are bundled to form a group. This is then used to calculate the group’s payment practices and risk.

    SCP, Supplier and Commission Payments
    SCP is an automated solution for global payments to companies which receive payments via their credit card acceptance agreement. The virtual prepaid cards are available in 27 currencies. Bookings and settlements can be integrated automatically into the customer’s ERP system.

    SEPA, Single Euro Payments Area
    Refers to the euro payment area, which currently comprises 32 countries including the 27 EU member states as well as Iceland, Norway, Lichtenstein, Monaco and Switzerland. Wirecard Bank AG has been SEPA-enabled since it was introduced at the start of 2008.

    Settlement
    Processing transactions and depositing the processed transaction with the merchant’s contractual bank (acquirer).

    Settlement Currency
    The currency in which settlement is performed in a bank account.

    SP-TSM, Service Provider Trusted Service Manager
    SP-TSMs ensure secure, smooth connections between the card issuer and an NFC smartphone. Services include adding virtual card data to NFC-enabled SIM cards, and also managing cards in the smartphone (blocking, deleting the card, etc.).

    SWIFT code
    An 8 or 11 digit international bank sorting code issued by SWIFT (Society for Worldwide Interbank Financial Telecommunication) to identify a bank in international payment transactions. Wirecard Bank’s BIC (SWIFT) Code WIREDEMM means that international payments using foreign currency accounts in standardised forms are possible.

    T

    Tokenization
    This is a method in which sensitive data, such as credit card numbers, are replaced by reference values or tokens. A token can be used without restriction by systems and applications, whereas the original data is saved in a secure, PCI compliant data-safe.

    Transaction currency
    Currency in which a transaction is performed.

    Transaction number (TAN)
    A unique password issued by the card-issuing bank, which is used in addition to the PIN as extra security to confirm a transaction in internet banking.

    V

    Velocity check
    A frequency check, in which payment transactions are reviewed for repeating patterns within a defined (short) period. The check can be performed based on various data for a payment transaction (e.g., if a certain pattern repeats during a period, or even appears in clusters).

    Virtual account number
    A ten digit, purpose linked account number with Wirecard Bank AG, comprising a three digit constant part and a seven digit variable part, which can be freely selected by the company, and which clearly identifies the designated purpose and the sender.

    Virtual card
    A payment card that only comprises a card number, a validity period and a security code, and which can only be used in distance transactions (internet, MOTO payments) due to the missing physical features (such as a magnetic strip, EMV chip).

    Virtual terminal
    Internet assisted user interface for payment acceptance (including via MOTO), which is used, for example, in call centres. Allows direct payment acceptance without signature by the paying party. Risk management checks are performed in the same way as for online payments.

    W

    WEP, Wirecard Enterprise Portal
    Wirecard AG’s web-based management and reporting application which provides merchants with all of the functions needed to manage payment transactions, adding risk strategies, managing card portfolios and creating reports and statistics.

    White label solution
    Wirecard solutions which companies create with their own corporate design and offer under their own name.