Do you feel like you need to learn a new language to understand the various terms that are discussed in the payment processing industry? If you don’t know much about payment processing, then it can be confusing to sort through the information.
Even though credit card processing can be complex, you can find a good provider who will explain your options in terms that are easy to understand. Our team is working hard to ensure that you choose the best payment processing services for your company. So, we are breaking down a few common acronyms today:
- ACH: Automated Clearing House. This payment processing network makes it possible to accept electronic payments from a checking account using the account number and routing number.
- AVS: Address Verification System. This step is important to ensure that the address matches the information that is on file with the bank that issued the card.
- CVV: Card Verification Value. This number is usually three digits and located on the back of the card. American Express has a four-digit number on the front of the card. The number is used to verify that the person has the card in possession.
- P2PE: Point-to-Point Encryption: Ensures that the data is encrypted at the point of sale. The encryption is used for security and is used as the data is in transit and authorized.
- PCI: Payment Card Industry. An association and guidelines that are used to maintain security standards. Businesses need to comply with the standards that are in place.
- POS: Point of Sale. When restaurants or retail locations use software systems, they have a place where the card-present transactions can be processed.
- TPSP: Third Party Service Provider. Another company that works with the merchant to help with credit card data. Often, the third party assists with storing, processing, or transmitting the payment information.
It is essential that you understand the industry to protect the transactions that are processed through your business. If you are interested in more information, then we are here to answer your questions. Our team is dedicated to offering the best payment processing services based on the needs of your company. Call today for more information.