Definitions
Definition of the different components
of electronic and digital payment
Issuer
The entity that issues the card, which in most cases are banks but also card processors, exchange houses, etc. It can be a physical card or a virtual card.
Acquirer
the entity who accepts the card via POS, Internet, etc. and in most cases are the banks but also exchange houses, card processors, etc. The merchant contracts with banks, payment facilitators, and processors to accept cards and wallets on the POS device and electronic commerce website, etc., as a means of payment.
Cardholder
The entity that holds and owns the card. This entity can be a person or a company.
Merchant
This can be a small retailer, a supermarket, an electronic commerce company, etc. They accept the payment of goods and services by card and wallet on POS and Payment Gateway.
Card
a means used to complete payment on POS and websites and withdraw cash from ATM machines. There are three types of cards used for payment: debit cards, credit cards, and prepaid cards.
Debit card
the transaction amount will be deducted directly from the customer account.
Credit card
The bank provides the customer with a credit amount stored in a shadow account linked to a card. On a monthly basis, the bank will deduct the total transaction amount (in full or percentage) plus interest. There are two types of credit cards: the charge credit card and the revolving credit card.
- Charge credit card: The bank collects the full amount used during the month. For example, if the cardholder has a charge card of 1000 USD and uses 600 USD during the month, the bank will collect (debit his account) 600 USD.
- Revolving credit card: The bank collects a percentage of the full amount used during the month. For example, if the cardholder has a revolving card of 1000 USD and uses 600 USD during the month, the bank will collect 10% (debit his account), which is 60 USD.
Prepaid card
the cardholder purchases the card and reloads it with funds.
POS
A point of sale that accepts chip and magnetic stripe physical cards as well as contactless cards and mobile payment wallets (Apple Pay, Samsung Pay, etc.) via Tap & Pay.
Payment Gateway
an interface between the e-commerce website and the schema (VISA, MASTERCARD, etc.) to process the electronic payment on the internet. It allows customers to complete the purchase of goods and services on the Internet using bank cards and wallets (Apple Pay, Samsung Pay, etc.).
ATM
Automated teller machine with multiple functions. The main function is to dispense cash but also print mini statements, check balances, and more.
CDM
Cash deposit machine with multiple functions. It allows customers to deposit cash into their accounts, pay the dues of credit cards using cash, reload prepaid cards using cash, etc.
CP
Card Present. Complete payment with the physical card (contact and contactless) means that the cardholder was present with the card.
CNP
Card Not Present. In electronic commerce transactions, the cardholder uses the card details to complete the transaction.
