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\u2019ll decrypt some of the most common acronyms used by the payments industry so that you can more easily compare options without feeling like you\u2019re drowning in alphabet soup.<\/p>\n
Application Programming Interface<\/i><\/p>\n
Let\u2019s start with APIs. These are essentially pieces of code that are used to link different pieces of software or websites together. Payment APIs<\/a> 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.<\/p>\n Address Verification Service<\/i><\/p>\n 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<\/a>.<\/p>\n Credit Verification Value\/Credit Verification Code<\/i><\/p>\n 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\u2019s customary to ask for the CVV or CVC during online and phone payments for security.<\/p>\n Europay, Mastercard and Visa<\/i><\/p>\n 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<\/a> as most people have chip-enabled cards nowadays.<\/p>\n Merchant Identification Number<\/i><\/p>\n 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.<\/p>\n Payment Card Industry Data Security Standard<\/i><\/p>\n 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.<\/p>\n Personal Identification Number<\/i><\/p>\n 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\u2019s PIN is never shared with the merchant.<\/p>\n Point of Sale<\/i><\/p>\n 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<\/a>.<\/p>\n Payment Service Provider<\/i><\/p>\n 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.<\/p>\n Terminal Identification Number<\/i><\/p>\nAVS<\/h2>\n
CVV\/CVC<\/h2>\n
EMV<\/h2>\n
MID<\/h2>\n
PCI DSS<\/h2>\n
PIN<\/h2>\n
POS<\/h2>\n
PSP<\/h2>\n
TID<\/h2>\n