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Collection services terminology

Pay requests​

TermDescription
Payment ItemA payment item refers to an item to be paid. This can be goods or services but also bills, invoices, fines, premiums, etc..
Checkout URLA checkout URL refers to an URL that is created for each payment item. The merchant can use this link to request the debtor to pay.
Checkout PageA checkout page refers to a page where the checkout URL brings the payers to select a payment method to pay with.
Only when the payer attempts to pay the payment item, a transaction is created.
Collect TransactionA collect transaction is an attempt to pay a certain payment item.
Depending on the payment method used, it can be a card transaction or a credit transfer.
Payment MethodThe payment method refers to the general type of payment used by a payer to complete a transaction.

Examples include card payments and account-to-account payments.
Payment ProductA payment product refers to a specific payment solution offered to consumers and businesses for making payments.

Examples: Mastercard and Visa are payment products that facilitate card payments.

Note: The terms payment scheme and payment product are related but they refer to different aspects of the payment process:        
  • Payment scheme - refers to the set of rules, procedures, and standards that govern how payments are made and processed.
  • Payment product - focuses on the specific solution or service.
Payment InstrumentA payment instrument refers to an actual tool or method used to initiate and authorize a transaction.

Example: in the case of Mastercard or Visa, this would be the actual card used for the payment.
POSThe Point of Sale (POS) is the place where a retail transaction is completed.
A POS can be:
  • A physical location in a store, like a cash register or a checkout counter
  • A virtual cart on a website, in the context of e-commerce

Recurring payments​


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Recurring payments
Recurring payments


TermDescription
Recurring PaymentsRecurring payments refers to a payment model where the payer authorizes the merchant to pull funds from their credit card or payment account on a predefined schedule.

There are two main categories of recurring payments:
In theory all payment methods can support both categories, though not all use cases are equally common.
For example, card payments are commonly used for both categories while SEPA Direct Debit (SDD) is usually only used for pre-authorized debits.
Recurring Payment MethodA recurring payment method is a payment method that can be used for recurring payments.
SEPA Direct Debit (SDD) is the most well known but not the only payment method in this context. Card payments support this model as well.
Pre-Authorized DebitA pre-authorized debit is a category of recurring payments where amounts (fixed or variable) are collected on a periodic basis without intervention from the payer. This is a payer-not-present payment.

As it is the merchant (or the Payment Service Provider (PSP) on behalf of the merchant) who triggers the payment, it is also called a merchant initiated payment.

Examples:
  • Have monthly electricity bills paid with SEPA Direct Debit (SDD).
  • Have Banqup subscription paid with the customer’s Mastercard.
One-Click PaymentA one-click payment is a category of recurring payments. This is a payer-present payment: the payment can be confirmed with a single click, using the previously stored payment details.

Example: The buyer confirms the payment of purchases in a webshop with Mastercard without having to go through the whole authentication process.
ConsentA consent refers to an explicit permission from the payer to store the details of the payment instrument and (re)use it in the future to debit the account.

A consent is always linked to:
  • One merchant/beneficiary
  • One payer
  • One payment instrument
Consent CaptureThe consent capture refers to the process of obtaining a consent.

The consent can be given by the means of:
  • A regular payment transaction: the consent is captured when the payment is authorized.
  • A standalone consent capture: only a consent is captured, without any money being transferred. A consent transaction will be registered.
Consent ItemA consent item refers to a request from the merchant to initiate a consent capture.
Merchant Payer WalletA merchant payer wallet is a place where all consents for one merchant and one payer are stored in.
A wallet can contain the data of multiple payment instruments. When initiating a payment from a wallet, the system will define which payment instrument will be used.

Other glossaries​