Payments Glossary
Acquiring Bank - the financial institution that maintains the organization’s merchant account, and enables them to process credit transactions. The acquiring bank sends transactions requests to issuing bank for authorization.
API - Application program interface (API) is a set of routines, protocols, and tools for building software applications. An API specifies how software components should interact.
Authorization - approval from an issuing bank or card network that the cardholder has sufficient funds to cover the cost of the transaction.
Authorization Fee - A fee charged when a transaction is sent to an issuing bank for authorization.
Batch Processing - Multiple transactions are held in a batch and uploaded together.
Capture - A hold placed on the cardholder's funds, by the card issuing bank or card network, after authorization.
Card Verification Code (CVV) - the 3 or 4 digit security code on the back of the payment card that is used to authenticate the consumer during a card-not-present transaction. Increases security of the transaction.
Chargeback - the reversal of a credit card charge. The cardholder receives the funds back, and the merchant is debited for the chargeback amount.
Encryption - A process of converting card data into text, which can only be unlocked with a secure access key.
Flat Rate - A bundled processing rate which promotes transparency, simplicity, and protection against hidden fees.
Credit Card Fraud - using stolen credit card information to charge purchases or withdraw funds from an account.
Friendly Fraud - a cardholder purchases good or services, then purposefully requests a chargeback from their issuing bank after receiving the goods or services in order to receive their money back.
Interchange Fees - varying fees charged by card networks and issuing banks for processing transactions.
Issuing Bank - the financial institution that issues credit/debit cards to consumers.
Payment Gateway - verifies a card's validity, and sends card information to payment processor if approved.
Payment Processor - the institution that facilitates the transfer of financial data between the merchant and the constituent's card network or issuing bank.
PCI Compliance - Any company that processes card payments must be compliant with PCI (Payment Card Industry) regulations set by the card networks.
Tokenization - A process of protecting and securing card data. NeonPay converts credit card numbers to a string of characters called tokens, which can then be processed without ever exposing the card details themselves.
NeonPay Glossary
Organization - Your company using NeonPay to process transactions.
Merchant - an organization that accepts payments from constituents.
Merchant Account - a payment processing account managed by an organization.
Payment Processor - the institution that facilitates the transfer of financial data between the merchant and the constituent's card network or issuing bank.
Application - the software product you connect to NeonPay.
Constituent - the person providing payment to the merchant.
Transaction - an account activity; either a charge, refund, payout, dispute recovery, or dispute refund.
Charge - funds that NeonPay has collected from a constituent in a given transaction.
Charge Captured - funds approved for settlement by card network or issuing bank, now marked Successful in NeonPay.
Settlement - funds successfully transferred to NeonPay.
Refund - funds taken from NeonPay and given back to constituent.
Amount - funds removed from the constituent's account for a given transaction.
Amount Paid - funds the organization can expect to receive in their bank account for a given transaction.
Net - total funds received after applicable fees.
Balance - the current total funds held in your NeonPay account.
Payout - funds collected over a period of time that were sent to your bank account.
Statement Descriptor - the description that appears on constituent's bank or card statement.
Dispute - a constituent-contested charge.
Dispute Recovery - funds debited during a dispute that have been returned to your NeonPay account.
Dispute Refund - disputed funds given back to the constituent.
User Types
Administrator - can read and pull data, initiate refunds, manage disputes, edit merchant account information, manage organization users.
Staff - can read and pull data, initiate refunds, and address disputes.
Charge Statuses
Canceled - charge was canceled before it succeeded.
Failed - charge was declined by card company or card issuing bank.
Partially Refunded - a partial amount of the original charge has been refunded.
Pending - charge is processing, funds are being held by card network or card issuing bank.
Refunded - charge refunded successfully and has left your NeonPay balance.
Succeeded - charge completed successfully and has entered your NeonPay balance.
Refund Statuses
Refund Failed - refund was declined by card network or issuing bank - funds still in NeonPay.
Refund Pending - refund is queued for processing.
Refund Processing - refund is in process.
Refunded - refund successful.
Returned - refund processed but could not complete - funds still in NeonPay.
Payout Statuses
Denied - payout was requested but did not begin processing.
Failed - payout failed during processing.
Processed - payout transferred to your bank account.
Processing - payout to bank account is in process.
Requested - payout was initiated and has not begun processing.
Returned - payout was rejected by the bank and sent back to your NeonPay account balance.
Dispute Statuses
Closed - dispute has resolved.
Lost - dispute has resolved in cardholder's favor.
Open - dispute is waiting for merchant response, or is in process.
Won - dispute has resolved in merchant's favor.
Merchant Account Statuses
Not Ready - merchant account application has not been completed.
Pending - merchant account application is processing.
Rejected - merchant account failed underwriting approval and has not been created.
Verified - merchant account created.