API to TID: 10 Payment Processing Acronyms Decoded
While looking into payment processing solutions for your business, you may encounter lots of cryptic acronyms like EMV and PSP. What do they all mean? In this post, we’ll decrypt some of the most common acronyms used by the payments industry so that you can more easily compare options without feeling like you’re drowning in alphabet soup.
API
Application Programming Interface
Let’s start with APIs. These are essentially pieces of code that are used to link different pieces of software or websites together. Payment APIs help to link websites and apps to payment processors like Stripe and PayPal. They provide a secure and seamless bridge instead of having to redirect users to other sites or apps.
AVS
Address Verification Service
This is a fraud prevention tool used by credit card processors and merchants. It verifies the billing address of a customer to help prevent fraudulent payments being made. For companies, this can prevent chargebacks.
CVV/CVC
Credit Verification Value/Credit Verification Code
This is the 3 digit code found on the back of Mastercard and Visa cards (or the 4 digit code on the front of an Amex). It’s customary to ask for the CVV or CVC during online and phone payments for security.
EMV
Europay, Mastercard and Visa
EMV is a payment standard created by Europay, Mastercard and Visa during card-present transactions that involves scanning an electronic chip instead of using a magnetic strip. Having EMV-capable equipment is often essential for small business credit card processing as most people have chip-enabled cards nowadays.
MID
Merchant Identification Number
This is a 15 digit code issued to every business when opening a merchant account. Any business accepting card payments needs a MID. You will be able to find this on each of your monthly statements.
PCI DSS
Payment Card Industry Data Security Standard
PCI DSS is a global security standard required by all stores that handle customer data. It involves using security measures like encryption and firewalls to prevent customer data being breached. By using a licensed payment service provider, you can make sure that you comply with this security standard.
PIN
Personal Identification Number
Every cardholder is issued a PIN when they get a new card. While many modern credit cards are contactless, most card issuers still require cardholders to enter a PIN if a payment is over a certain limit. A customer’s PIN is never shared with the merchant.
POS
Point of Sale
The POS is the location where a payment is made. In business, POS terminals are a name used to describe the hardware used to make and receive payments. These terminals can be operated by a staff member or integrated into self-service checkouts.
PSP
Payment Service Provider
PSPs are third-party companies that handle the payment on behalf of a merchant. They include the likes of Stripe, PayPal, Square and Worldpay. A PSP handles PCI DSS on your behalf. Websites and apps are linked to PSPs using an API.
TID
Terminal Identification Number
This is a number used to identify a specific POS terminal within a store. For stores with multiple terminals, the TID of each terminal can be useful to know for tracking which payments were made through which machines. This number can also be useful to know when diagnosing faults with individual machines.
