What is a payment processor?
A company that routes transactions between the merchant, the card networks, and issuing banks. Examples include acquirers and providers with gateways and POS solutions.
How is a gateway different from a processor?
A gateway is the online connector that transmits payment data to a processor. Some processors offer their own gateways; others integrate with third‑party options.
What does PCI DSS require?
Minimize storage of card data, secure networks, restrict access, monitor systems, and regularly test. Small merchants usually complete an SAQ with quarterly scans as applicable.
Which SAQ do I need?
If using fully hosted pages: SAQ A. If your site can affect the payment page: SAQ A‑EP. For simple terminals: SAQ B/B‑IP. For software on PCs or virtual terminals: SAQ C/C‑VT. Else: SAQ D.
What is tokenization?
Replacing the primary account number (PAN) with a non‑sensitive token that can be stored for recurring or one‑click payments while keeping the real card out of scope.
What is 3‑D Secure?
An additional authentication step for online transactions. It can reduce fraud and may shift liability to the issuer when authentication succeeds.
How long do settlements take?
Commonly T+1 to T+3 business days, depending on provider and risk profile. Funding cut‑off times also matter.
What is Interchange?
A fee paid to issuing banks, varying by card type, channel, and region. It’s a core component of overall processing costs.
What is an effective rate?
Total fees divided by total processed volume. It’s a simple way to compare offers across different pricing structures.
How do chargebacks work?
A cardholder disputes a transaction. The merchant can submit evidence (representment). Timelines and reason codes depend on the network; prevention is key.
What’s AVS/CVV?
Address Verification Service (AVS) and CVV checks help screen fraud in card‑not‑present transactions. They’re not foolproof but useful signals.
What’s the difference between POS and mPOS?
POS refers to full systems (countertop/tablet with inventory). mPOS are lightweight mobile readers for on‑the‑go acceptance.
What is DCC?
Dynamic Currency Conversion lets customers see prices and pay in their home currency. It may include additional fees; evaluate carefully.
What data appears on statements?
Batches, fees, adjustments, chargebacks, and payouts. Reconciliation reports tie transactions to deposits.
What is a descriptor?
The merchant descriptor is the text that appears on the cardholder’s statement. Clear descriptors reduce chargebacks from confusion.
Do I need a merchant account?
Some providers aggregate merchants (no dedicated account), while others underwrite individual merchant accounts. Both models are common.
What about alternative payments?
Depending on region, customers may prefer wallets or local APMs. Support improves conversion in international markets.
How do I handle subscriptions?
Use tokenization with vaulted credentials, dunning logic for retries, clear cancellation policies, and predictable billing cycles.
Can I store card data myself?
Avoid it unless you must. Use provider vaults and hosted fields to reduce PCI scope and risk.
How do I choose a provider?
Compare features, fees, support, settlement speed, and integration. Run a trial with test transactions and review the reporting experience.