Glossary

A

ACH

Automated Clearing House (ACH) is U.S. financial network used for electronic payments and money transfers.  Rather than going through the major card networks like Visa or Mastercard, ACH Payments are made via the ACH network (run by the National Automated Clearing House Association (NACHA)). When an ACH debit payment is made, the payee initiates an electronic withdrawal directly from the payer's account. An ACH debit transaction does not involve physical paper checks or a debit card. 

Consumers and businesses use ACH transfer predominantly for:

• Direct payments (ACH debit transactions)

• Direct deposits (ACH credit transactions)

Acquiring BIN

Acquiring Bank Identification Number (BIN) is a 6-digit Bank Identification Number assigned by Card Networks (eg Visa & MasterCard) and issued by the Merchant's Bank (Acquirer) or Processor. The Acquiring BIN is used to identify the Acquirer during the authorization/clearing & Settlement process.

ARN

An Acquirer Reference Number or ARN is a unique number created in a credit or debit card transaction when it moves from the Merchant's bank (Acquirer or Acquiring Bank) through the payment processor into the cardholder's bank (Issuer or Issuing Bank). 

B

BIN

A Bank Identification Number or BIN is the first 4 or 6 digits of a debit or credit card number. Also known as an issuer identification number (IIN).

3

3D Secure (3DS)

3D Secure (3DS) provides an additional layer of authentication for online credit card transactions that protects merchants from liability for fraudulent card payments.

3D Secure 2 (3DS2)

3D Secure 2 (3DS2) removes friction from the authentication process and improves the purchase experience compared to 3D Secure 1. It's the main card authentication method used to meet Strong Customer Authentication (SCA) requirements in Europe and is a key mechanism for businesses to request exemptions to SCA.