Make the fine print readable.
Plain-language definitions, with the distinctions that matter when choosing a provider.
Merchant of Record
The contractual seller for a supported transaction, with responsibilities defined in the relevant agreement. Transaction-tax and payment handling are part of the model; your own company obligations remain separate.
↗Payment service provider
A business providing payment services to merchants. The exact regulated role, geography and contractual responsibilities depend on the product and legal entity.
↗Payment gateway
The interface or service transmitting a payment request to the processing stack. It is not automatically the acquirer or merchant of record.
↗Acquirer
The financial institution or acquiring entity that enables merchant card acceptance under the relevant scheme and agreement.
↗Payment processor
The component or provider that processes payment messages and transactions. This role is different from owning the storefront or acting as seller.
↗Rolling reserve
A portion of transaction proceeds held and released under a specified rolling schedule and conditions. It reduces immediately available cash but is not automatically a permanent fee.
↗Settlement
The transfer or final accounting of transaction funds at a particular point in the payment flow. Provider-balance settlement is not necessarily bank receipt.
↗Payout
A transfer from a provider balance to the seller’s configured bank or payout route. Creation, initiation and receipt can occur on different dates.
↗Chargeback
A payment dispute raised through the card system with evidence deadlines and possible charges. It differs from a merchant-initiated refund.
↗Refund
A repayment of a purchase through the payment workflow. The original transaction fees may be retained, depending on the agreement.
↗FX markup
A charge or margin applied when one currency is converted to another. Identify the party paying it and the conversion base.
↗Dunning
The process of retrying or following up on failed subscription payments, often including notices and payment-method updates.
↗Payment-token portability
The supported ability to migrate payment credentials or recurring-payment relationships. A customer CSV does not by itself make payment tokens transferable.
↗KYC and KYB
Checks of a person or business, including identity, ownership and eligibility. Incorporation country, residency, ID country and bank country can have separate rules.
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