The payment glossary

Technical standard that enhances the security of online transactions done by credit or debit card.

Financial entity responsible for handling credit and debit card transactions on behalf of card issuers.

Stands for “Application Programming Interface”, refers to a collection of programming tools that facilitates communication between programs or an operating system, empowering software developers to craft their own applications.

Refers to all forms of payment that do not rely on debit or credit cards as the primary means of transaction. These methods encompass a wide range of options, including digital wallets, bank transfers, carrier billing, cryptocurrencies, and various other non-card-based payment solutions.

Represents the average amount of money a customer spends on a single transaction.

Is the procedure for validating the authority (e.g. issuing bank for credit/debit cards, MNO for carrier billing) to complete a transaction.

Pricing model where payment processor charges overall markup that stays stable regardless of the card type, bank, card scheme and so on.

A card issuer is a financial institution, such as a bank or credit union, that provides credit or debit cards to consumers. Card issuers are responsible for managing cardholder accounts, processing transactions and providing customer support related to their issued cards.

Refer to payment networks associated with payment cards, including debit and credit cards, which banks and other qualified financial institutions can join as members.

A cardholder is an individual who conducts a transaction within the merchant’s business.

A Carrier or MNO is a telecommunication company that provides cellular network services to End Users. MNOs including MVNOs (Mobile Virtual Network Operators) partner with DIMOCO to provide payment services via mobile phone bill or direct deduction from pre-paid balance.

Paying for a service/product via mobile phone bill or direct deduction from pre-paid balance.

Is a reimbursement issued back to an End User when a customer successfully challenges an item on their account statement due to fraud.

End User is browsing on mobile device via 4G or 5G mobile data connection; confirmation of purchase is given via pressing the confirmation button on the Payment Page.

Type of content/product which is provided by Merchant (e.g. gaming, lifestyle, ticketing, m-Commerce etc.).

Is a document issued by a PSP to a Merchant that documents the total successful volume of the transactions that are being settled in a mentioned period of time.

Page where End Users are asked to wait for a pending action or result.

Doorway page is used in case there is a need for special confirmation before accessing the service. For example when visiting websites which are intended for 18+ users, there would be an age verification.

A person (consumer, customer, …) who makes use of the goods/services sold by Merchants.

Is a pricing model that consists of three components: IC represents the interchange fees assessed by the issuing bank, the first plus signifies a markup charged by the payment processor, and the second plus represents a scheme fee directly levied by card schemes like Visa and MasterCard. In this model, the payment processor’s markup remains fixed, while the other two elements vary dynamically based on factors such as card type (debit or credit), card network (Visa or MasterCard), transaction type (domestic or cross-border), and card category (business or consumer).

Identity verification is the process of confirming that an individual or entity is who they claim to be. It is a critical security and authentication measure used in various contexts, including online transactions, financial services, access control, and identity management.

An International Mobile Subscriber Identity (IMSI) is a unique number which identifies every user of a cellular network (e.g. 4G or 5G). Usually it’s a 15 digit number but it can be shorter in some special cases. First 3 digits represent mobile country code, and the rest are mobile subscription identification number with the network’s customer base.

Page where End Users initiate the payment by selecting what exactly they want to purchase (e.g. 10 golden coins within a game).

A company providing internet connectivity to End Users, which DIMOCO partners with to provide payment services.

A Merchant (business customer, service provider, client, ….) provides services/products which he either owns or has the right to publish/sell while being in a contractual relationship with DIMOCO.

An option that allows End Users to keep the same phone number when they switch to a different Carrier/MNO.

End User is browsing on mobile device via 4G or 5G mobile data connection where MSISDN is identified automatically and TAN code is sent to End User via SMS. Confirmation of purchase is given via entering TAN on the Payment Page.

Merchant Service Charge – is a document issued to a Merchant by a PSP that informs about all applicable fees which are being deducted from the total successful volume of the transactions that are being settled in a mentioned period of time.

MSISDN is a number uniquely identifying a user in the mobile network. Simply put, it is the telephone number of the SIM card in a mobile phone.

Page where End Users enter the MSISDN.

A single, non-recurring purchase of a good/service.

Open banking is a banking practice that provides third-party financial service providers open access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions through the use of application programming interfaces (APIs). 

Page where the outcome of payment is displayed and End Users can access the service.

Page where the outcome of payment is displayed.

Page where the End Users are instructed to complete the purchase via SMS-MO.

End Users receive a free SMS-MT, with the request to confirm the payment via sending a SMS-MO.

End Users send a free or standard-rated SMS-MO to confirm the payment.

SMS which is sent to End Users to confirm that the purchase was successful. This message can contain additional information e.g. how to access the service, details about the costs, possible charging frequency, terms & conditions URL or helpline number, etc.

Visual presentation of all the steps which are required in order to make a mobile payment from the End User perspective, along with some additional instructions/information.

Is a technology and service that enables online businesses to accept electronic payments securely over the internet. It acts as an intermediary between a merchant’s website or mobile application and the financial institutions involved in processing the payment.

Page where End Users confirm the payment.

The payment type can either be OTP or subscription.

Payment card industry (PCI) refers to a set of security standards and guidelines designed to safeguard sensitive payment card data. It is a comprehensive framework established to Ensure the secure handling, processing, and storage of payment card information by businesses and organizations that accept credit and debit card payments.

Page that contains mandatory service information and an action button, after which End Users are redirected to the next payment step.

Revised Payment Services Directive, is a European Union (EU) regulation that aims to regulate and enhance the payment services industry within the European Economic Area (EEA). It was introduced to promote competition, innovation, and security in the payment sector while providing greater consumer protection.

Payment service provider gives Merchants a possibility to receive payments via credit and debit cards. 

Refers to the process of comparing two sets of records – data on transaction sent by Visa or MasterCard provider and data on transaction recorded in the gateway, to ensure that they are in agreement and accurate.

In case End Users connect to a network of a different MNO they go into the “roaming” mode. In case it’s the MNO from the same country we refer to national roaming, or if it’s from the other countries then it’s international roaming.

Is a financial reserve that a payment processor or acquiring bank holds from a Merchant’s funds as a risk management mechanism. It is a portion of the Merchant’s daily credit card sales that is set aside and temporarily withheld by the payment processor.

Refers to a financial arrangement in which a Merchant provides a sum of money to PSP. The purpose of the security deposit is to serve as a form of financial protection for the recipient in case the paying party fails to fulfill certain obligations or causes damage or loss.

These are 3rd party service centers which are managed by DIMOCO and process End User queries on behalf of our Merchants.

A Service number is used for sending and receiving SMS messages.

Refers to the process by which a Merchant receives funds from payment transactions made by customers.
Cards & APMs: Settlement involves the actual transfer of funds from the issuing bank to the acquiring bank. The acquiring bank, in turn, credits the merchant’s account with the settlement amount, minus relevant processing fees.
Carrier Billing: Settlement involves the actual transfer of funds from the carrier to DIMOCO. The money is then deposited into the merchant’s business account, minus relevant processing fees.

A Short Code is a 3-7 digit number used for sending and receiving SMS messages.

Mobile Originated SMS; End Users send a SMS, this SMS can be free or standard-rated.

Mobile Terminated SMS; End Users receive a SMS (free).

End Users receive a SMS (free) which confirms the successful cancellation of a Subscription.

End Users send SMS (free or standard-rated) with a command (e.g. STOP) to unsubscribe from an open Subscription.

A business model where End Users are repeatedly charged at defined intervals in order to prolong the access to the purchased service.

Page where End Users confirm the payment by entering the TAN code.

Page where End Users enter the TAN code.

End Users receive a SMS containing a TAN code.

Is a security technique that involves substituting a sensitive or private piece of data, such as a credit card number or a personal identification number (PIN), with a unique token. This process is implemented to enhance security and protect confidential information from unauthorized access or exposure to individuals who do not have permission to view it.

TPV represents the total monetary value of all transactions processed by a payment platform over a given period.

Can be used as a term for a financial transaction or a transaction in the technical sense. It is an exchange of goods and services between a buyer and a seller, in case of a financial transaction we refer to the exchange of money, while in the technical transaction certain parameters important for operation of the payment system are exchanged.

Universally unique identifier – unique number of a transaction.

End User is browsing via WIFI or mobile data connection where MSISDN has to be entered manually. End User receives SMS-MT, with the request to confirm purchase via SMS-MO.

End User is browsing via WIFI or mobile data connection where MSISDN has to be entered manually. TAN code is sent to End User via SMS. Confirmation of purchase is given via entering TAN on the Payment Page.

SMS which is sent to End Users after they’ve confirmed the purchase. It usually contains information that the payment was successful, content access information, details about the cost and possible charging frequency, also terms & conditions URL or helpline number are often included.