We have a no acronym rule here at Finix. It’s one of many small things we do to ensure all new hires—especially those without payments backgrounds—come up to speed quickly on our immense and context-rich industry. We began developing an internal payments glossary to arm Finixians when they inevitably encounter the alphabet soup of rules, regulations, and standards one must decipher to get anything done in the payments industry.
Over the past two years, as our headcount and payments volume have grown, our employees and customers have expressed how valuable the education we provide is. We started thinking about ways we can do more to share this knowledge with a broader audience.
Today, as a small contribution toward our goal of creating access to the payments and fintech industries, we are making Finix’s Glossary of Payments Terminology public. Our payments glossary is a searchable resource of key terms everyone interested in payments (or software because increasingly SaaS companies are becoming payments companies) should know.
No more acronyms
The fintech industry is rife with three letter words and the use of acronyms. Acronyms can be useful and beneficial, however, at Finix we believe using fewer acronyms provides a better and clearer explanation of a concept or idea. This is why we have our “No Acronyms” rule. Here are some examples of how using fewer acronyms benefits communication:
“The AML and KYC regulations PayFacs must follow are part of BSA.”
“The anti-money laundering (AML) and know your customer (KYC) regulations payment facilitators must follow are part of the Bank Secrecy Act (BSA).”
“PCI DSS states that BINs can be stored and displayed in plain text but while CVVs can be collected, they cannot be stored.”
“The Payment Card Industry Data Security Standard (PCI-DSS) states that Bank Identification Numbers (BINs) can be stored and displayed in plain text but, while Card Verification Values (CVVs) can be collected, they cannot be stored.”
What to expect from the payments glossary
In addition to spelling out acronyms, our glossary is full of terms you may have seen (like those in our Payments Layer Cake) but never completely understood, such as:
A bank or financial institution that processes credit or debit card payments on behalf of a merchant. The acquirer allows merchants to accept card payments from card-issuing banks.
Fee charged for each submission of a batch file to a payment processor. Batch fee(s) are volume-based fees charged for the processing load on the system that ingests and ultimately executes the transactions specified in a given batch file.
Fee charged for a chargeback. In the instance of a chargeback, additional work may be required to remediate the issue, including but not limited to: notifications, evidence collecting, escalation, and others. Most if not all service providers involved in the transaction may charge chargeback fees to the end merchant that incurs the initial chargeback.
At Finix we believe in making payments more accessible to everyone. The first step to democratization is demystifying key payments terms.Check out the full payments glossary to see more payment terms.