Skip to main content
Contact Support Sign in Partner Hub

Payment Processing Acronyms 101

Jeymi Aguero
  • Updated

Purpose

The payments industry uses a large number of acronyms to describe processes, technology, and compliance requirements. Understanding these terms helps Payarc teams, agents, and partners communicate clearly and resolve issues faster.

This guide provides a quick reference to commonly used payment processing acronyms you may encounter when working with merchant accounts, terminals, gateways, underwriting, risk, and support.

Common Payment Acronyms

Printable Cheat Sheet: See HERE

Acronym Meaning Description
ACH Automated Clearing House Electronic network used for bank-to-bank transfers such as direct deposits, bill payments, and eChecks.
AML Anti-Money Laundering Regulations and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
ARN Acquirer Reference Number Unique identifier assigned to a transaction refund that allows banks to track it through the card networks.
AVS Address Verification System Fraud prevention tool that verifies the billing address provided during a card-not-present transaction.
AT Authorization Transaction The process of requesting approval from the issuing bank to confirm funds are available.
BIN Bank Identification Number The first 6–8 digits of a payment card that identify the issuing bank.
BPS Basis Points Unit used to measure percentage fees. 1 basis point = 0.01% (100 basis points = 1%).
CNP Card Not Present Transactions where the cardholder is not physically present (online, phone, or mail orders).
CP Card Present Transactions where the cardholder and payment card are physically present.
CVV Card Verification Value Security code used to confirm the cardholder has the card during online or phone transactions.
DBA Doing Business As The operating name of a business that differs from its legal registered name.
EMV Europay, Mastercard, Visa Global chip card security standard used to reduce counterfeit fraud.
ETF Early Termination Fee Fee charged when a merchant closes their processing account before the contract term ends.
KYC Know Your Customer Compliance procedures used to verify merchant identity before approval.
MCC Merchant Category Code A four-digit code that identifies a merchant’s business type.
MID Merchant Identification Number Unique number assigned to identify a merchant account in the payment network.
PCI DSS Payment Card Industry Data Security Standard Security standards designed to protect cardholder data and prevent fraud.

Why These Terms Matter

Understanding payment terminology helps teams:

  • Communicate clearly across departments
  • Troubleshoot merchant issues more efficiently
  • Support agents and partners effectively
  • Navigate underwriting, risk, and compliance processes

These acronyms are commonly referenced in merchant onboarding, support tickets, underwriting reviews, chargeback investigations, and terminal or gateway troubleshooting.

Related to:

Related articles

Comments

0 comments

Please sign in to leave a comment.

Submit support request