Glossary of Payment Terms From P - Z
PCI - Payment Card Industry. (Usually in reference to compliance standards.) PCI standards are designed to enhance payment account data security worldwide and consist of 12 requirements governing security management, policies, procedures, network architecture, software design and other areas critical to the protection of cardholder data. Members of the payment card industry (financial institutions, credit card companies and merchants) must comply with these standards and failure to do so may result in fines or restriction from processing credit cards.
Phishing - An email fraud scam conducted to gather personal, confidential or account information from an individual or business with the intent to steal personal or financial data.
PIN - Personal Identification Number. A unique numeric code chosen by a card holder to ensure the security of the transaction.
POP - Point of Purchase. Points of purchase may be in the front of a store where consumers gather to complete their purchases or virtual POP such as an electronic retailer that sells products and services over the internet. Because consumers tend to make purchasing decisions on very high-margin products or services at these strategic locations, the point of purchase for products and services has become an important focus for marketers.
POS - Point Of Sale. Quite literally, the cash register. The place where retail sales occur and payment transactions are initiated. POS systems offer more functionality than stand-alone POS terminals and can be tailored to specific business types, such as restaurants or grocery stores. May also be active in inventory control and analyzing trends and consumer behavior.
PPMS - Professional Practices Management System. PPMS is a management system for collection agencies based upon developing, implementing and adhering to a set of industry-specific professional practices and policies.
Proximity payments - Proximity payments utilize NFC to enable payments to be made by mobile device at the point of sale. Consumers hold their mobile device close to the payment terminal and the amount purchased is deducted from a pre-paid account, a mobile account, or a bank account.
PSP - Payment Service Provider.
QR code - A Quick Response code is a two-dimensional barcode-like image that can be read by software on a smartphone, usually via a downloadable app, or a QR code scanner. Once scanned, QR codes connect users to mobile-optimized web pages for online information including web sites, text, photos or videos. QR codes are a mobile-friendly way to direct people in an offline space to online resources.
QSR - Quick-Service Restaurant. Merchant category of restaurants, including fast food chains, with massive throughput and low dollar transactions.
RCK - Check Re-Presentment Service. This is used to resubmit a check that has been returned for non sufficient funds (NSF). By resubmitting the check electronically, it has a better chance of being honored by the bank the second time through because it carries a higher priority than paper checks.
RDC - Remote Deposit Capture. An electronic check processing service that uses a digital image of a paper check for clearing and settlement. Remote deposit capture can be used to process checks with a desktop PC and a check imager. This is very useful to deposit checks at the merchant's location instead of going to the bank to deposit checks.
Reseller - An agent or ISO that may sell products and an independent agent of another company.
Showrooming - Showrooming occurs when consumers research a product in a store but purchase the product online, often at a large ecommerce site such as Amazon.
Swipe fees - Swipe fees, also referred to as interchange fees, are some of the costs that merchants pay the credit card network to process the transaction. These fees compensate for transaction-related costs and for settling and receiving funds. They usually range from 1-3 percent of a transaction.
Tokenization - a process to protect sensitive data, such as credit card account numbers, by replacing them with non-sensitive, alias values or "tokens" to reduce the amount of card holder data in the environment.