Who handles an online card payment
- Acquirer: the financial institution that supports card acceptance for the merchant.
- Issuer: the financial institution that issued the shopper’s card.
- Gateway: the service that connects the checkout to payment processing systems.
- Merchant identification number (MID): an identifier used in a merchant processing relationship.
What the transaction and funding states mean
- Authorization: the card payment request is approved, which can create a hold for an amount.
- Capture: submission of a previously authorized payment for processing and settlement.
- Settlement: the processing stage that accounts for captured card transactions. A payout is the resulting funding movement to the merchant.
- Reserve: proceeds or other amounts held under the account terms against possible future obligations.
What appears in customer and support records
- Descriptor: the text that identifies the charge on a customer’s card statement.
- Refund: a credit against a prior payment. A void cancels an eligible transaction before it settles.
- Dispute: a claim raised through the customer’s bank. A chargeback is the reversal associated with the dispute process.
Sources and further reading
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