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Understand what you need to!

We´ve made this page to make it very clear what things means and what are some of the most common questions and answers in your business.


The cost of an merchant account can vary significantly based on several factors including the provider, your business’s risk profile, the volume of your transactions, and the types of services you require.

Fees that PayFasto will charge on Adult Credit Card Processing depends on factors like Processing history, method of sales, Countries, Volume of sales, and products. All merchant accounts are unique but included terms stays the same for most:

Acquiring fees:
Merchant discount rate
Auth fees
Monthly statement fee
Monthly fee
Zero – Six-month rolling reserve (Depending on risk profile and history)
Chargeback fee
Refund fee
Wire fee
PCI fees

An approval takes anywhere from 24 hours up to 3 weeks and more. It all comes down to responsiveness of the merchant and the risk profile. If low risk, then 24 hours, if high risk, it is usually best case 2-3 weeks.

There are many ways to stop chargebacks, but there is no one solution which can stop it. But there are things to be done, which can be anything from delayed payments, or offering phone support or even refunding with complaints.

Therefore we offer multiple solutions as:
Our Fraud Prevention Tool

The more solutions you add, the better. Then you can stop your worries and just focus on your business.

High risk is a term defined by the acquirers i.e. Visa and Mastercard and they have specific rules for those industries or MCC´s they deem to be high risk due to reputation, risk or monetary.

We can in most cases step in with several solutions, and help merchants save their mids and not only decrease their fraud levels, but also their overall chargeback levels.





Which is called 3D Secure in long. It is an additional security layer from credit card associations which covers credit and debit card online transactions. 3DS adds an authentication step for customers making online purchases. This is mandatory in Europe.


The bank or financial institution that provides a merchant account and processes credit or debit card transactions on behalf of a merchant, which allows the merchant to accept card payments.


Better known as Automated Clearing House, which is an electronic financial transaction between banks in the US.


Agents are middlemen whom are working closely to either PSP´s or Acquirers as a channel to provide merchants.


Known as Alternative Payment Methods, which is built outside of credit cards. Depending on market and region, there can be many different options.


Better known as American Express, is an American card scheme, it is a smaller one which most Acquirers do now cover them.


It is a transaction number which cover the credit or debit transaction once it is enabled from merchant´s bank through the cardholder´s. It can be compared to a trace ID when you order a product online and you can trace it via DHL, so you always know where the funds are located.


Card authorization comes as you initiate a transaction which is to verify that a customer has funds in their account to cover the transaction, if funds are there the card issuing bank will verify it.

Auth fee

This fee is deducted on the acquirers gateway meaning it is a mandatory fee per transaction with all acquirers.


Better known as Address Verification System, which is an additional check that checks if the billing address matches card address.


It is as the name suggests a batch of transactions which are being sent through the gateway to the solutions, if let´s say you move gateway or wants to do mass payout.


It is the first four and last six of each card issued also known as Bank Identification Number, and when searching for this, you can find location and  card type.


CAID is a string of numbers which can be gotten from the acquiring bank and is used when wanting RDR´s and chargeback alerts.


Refers to the owner of the card, which is being used on the website or in face to face stores. Whether issued virtual or psychical cards.

Card Issuer

Card Issuers is the institution that issues the credit or debit card. Not Mastercard or Visa, but a traditional bank.


Capture is the process which happens after autorization, that finishes the transaction and deducts funds from the endusers account.


Refers to Visa´s Cardholder Dispute Resolution Network program, which is to prevent chargebacks and provides a chance for merchants to refund prior to getting a chargeback.


A chargeback is the enduser initiating an “refund” from the merchant via their card issuing bank. Funds will be taken directly from the merchants acquiring funds and will from there, be able to dispute and fight this.

Cross-border Payments

This means sending/transferring/processing across borders between regions. This will always mean higher pricing from your own region to another in regards to interchange fees.



It is the three or four numeric code on the backside of the credit or debit card. It is now mandatory to use in Europe and can be a way to prevent fraud inter-Europe if enabled.


Declined transactions can be of many reasons, most commonly is do not honour. This means that the transaction tried by the enduser did not get approved.


Refers to the funds going from the acquirer out to the merchant, based on their payment terms.



Process which covers when a cardholder activates a chargeback. This is also the process of which a merchant can “fight” to win it, just like in a courtroom.


Known as Electronic Money Institution, which is a type of license to manage and issue IBAN accounts for online merchants.


Which is the process of purchasing and selling online goods.



Failed transaction can occur due to many different reason such as incorrect field input, or timeouts etc.


The process of converting one currency into another currency before getting paid or doing it manually via your IBAN solutions. Should be noted, is that it comes with many different prices, as different solutions, use different parameters.



A gateway is the engine which runs the process of the transaction after the enduser submit an order till it is had a conclusive reason code, successful or not.


Known as International Bank Account Number is used for transfers amongst EU and outside of EU, plus it is referred to it as a virtual bank account via EMI´s.

Interchange fees

This can also be referred to as IC++ which are card scheme (Visa / Mastercard) fees that are paid from the merchant acquirer to the card issuing bank.


Contracted by one or the other card scheme as a referral agent, and can connect merchants to the schemes.



Know your customer or Know your business, refers to ongoing process of verifying the merchants identities, business and everything when onboarding with a solution.


It is the merchant category code which is the defined code of each merchant whom gets approved with an acquirer. You can read more about it here


Merchant Discount Rate which is the percentage deducted before every payout and per transaction.


The definition of someone selling online / offline. It is the person with the product to be sold via merchant acquiring.

Merchant account

The account which enables a merchant to be able to receive enduser funds, via their POS or merchant account.


Also known as Merchant Indenfication Number, and is now more known for being another word for merchant account.

Open banking

It allows an enduser to use bank transfer as a means to pay for a product directly in the store, and it is used as an alternative to credit and debit card.

Payment orchestation

The methods is for merchants whom either run big volumes or many merchant accounts, it enables them to spread it out and set filters in order to get the maximum out of their business in regards to approval rates. Can also be used as a way to spread risk and to some extent lower fraud and chargeback rates.

Payment service provider

PSP is what we´re referring to when we have another partner which has no license, but has direct solutions and they also operate as a technical partner.

Pay by link

Using this would mean you send emails, sms´s or direct pms showing a link, button or QR code.

PCI compliance

Known as Payment Card Industry Data Security Standard, is the standards which all merchants needs to adhere in order to be compliant for merchant processing. There are different levels, depending on transaction amount and whether wanting direct or hosted solutions.


Payment Services Directive Two (PSD2) is a piece of legislation designed to force providers of payment services to improve customer authentication processes and to also bring in new regulation around third-party involvement.


POS or mPOS is referring to point of sale, which is terminals which you pay with in person when you go to the restaurant
or in cabs. mPOS being the mobile version and POS being more stationary.


Known as Rapid Dispute Resolution, and is an expansion on the original pre-chargeback network at Visa, to automate refunds and optimize risk.


It is used as a way to compare financial records in order to verify truth of accounting.

Retrieval request

This is a request issued by an issuing bank when they want information on a certain credit/debit card transaction, before it turns into a chargeback.

Rolling reserve

An involuntary reserve held by the acquirer dependent on risk profile, and it is not solely for high risk. Read more here


Known as Strong Customer Authentication, is a way to ensure security for card holders and it compiles of two out of three methods to verify an transaction.


Also known as Secure Sockets Layer, which is an certificate you have to obtain with your hosting provider to keep your website safe.

Subscriptions / Recurring

Refers to the method where you have a product or products which needs to be renewed every week, month, year.


Stands for Society for Worldwide Interbank Financial Telecommunications. SWIFT is vital for the global bank transferring system and it is a network that banks uses to securely communicate with eachother. This is mainly used with transferring funds from bank to bank.


It is the process of turning a card sentitive data into a string of random numbers and use them for the future, if you run recurring products or wants to save on file.

Token Vault

This is the solution which contains all the tokens that were created via tokenization. These days there are different levels of tokens, which can be used.


Known as VISA Merchant Purchase Inquiry, it is a way of trying to stop chargebacks from happening. It sends transaction date to the issuing bank automatically when it comes to enduser disputes.


When you cancel a transaction before it was deduced, it is a void transaction over a refund.


This is a term used when you use another companies software, but your name is on it. So the endusers only sees your brand, but the backend is created with someone else.


Wire fee

According to your payment terms, this is the fee deducted once you get paid from the acquirer.

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The guide made to be understood!

PayFasto has made this guide to make it very transparent and understandable what terminology is being used and what it means.

With our guide, you will now be an payment expert and you can use this knowledge in your day to day.