PilotOS / Guides
Payments glossary
Merchant services, explained.
A practical glossary for the people selling, onboarding and supporting merchant-services accounts. Each definition connects to the relevant PilotOS workflow.
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terms for the merchant-services conversation
ISO — independent sales organisation
An organisation that sells merchant services and works with acquirers or payment providers. Depending on its agreements, an ISO may handle sales, application support, account service and commission management.
See this in PilotOS →Merchant acquiring
The service that allows a merchant to accept card payments through an acquirer. An ISO helps manage the merchant relationship, while the acquirer sets its own application, approval and service requirements.
See this in PilotOS →MID — merchant identification number
The identifier used for a merchant’s processing relationship. A business can have more than one MID, so applications, statements and residual records need to be matched using the identifiers supplied by the relevant acquirer.
See this in PilotOS →Residual income
Recurring income earned from a merchant’s processing activity under the commercial agreement. Residual reconciliation matches that income to the merchant and reporting period, then checks for missing amounts or adjustments.
See this in PilotOS →Commission
Earnings due to a seller or partner under an agreed commission rule. The record should show the calculation, reporting period, adjustments and approval status. Commission calculated is different from commission paid.
See this in PilotOS →IC++ — interchange plus plus
Pricing that separates interchange, card-scheme fees and the acquirer’s margin or processing charge. Compare the full statement and agreement, including fixed and transaction fees, rather than the headline rate alone.
See this in PilotOS →Blended rate
A combined percentage used to quote a processing rate or summarise the effective cost. When comparing blended figures, state which fees and processing volume are included, especially if fixed or per-transaction charges apply.
See this in PilotOS →KYB — know your business
Checks on the business applying for a service and the relevant people behind it. Each provider sets its requirements. A completed check forms part of the review; it does not mean the application has been approved.
See this in PilotOS →Underwriting
Reviewing an application against a provider’s risk criteria. The case should retain the checks, documents, exceptions, decision and approver so the outcome can be explained later.
See this in PilotOS →Reconciliation
Checking one set of records against another and investigating differences. For residuals, this includes matching merchants and periods, accounting for adjustments and reviewing amounts that differ from expectations.
See this in PilotOS →White-label web environment
A browser-based environment presented with a business’s branding, such as its name, logo, colours and domain. It is distinct from a separately supplied native iOS or Android application.
See this in PilotOS →Webhook
A message sent to another system when an event occurs, such as a record update. The connection must define the data sent, how it is authenticated, what the receiving system does and how delivery problems are handled.
See this in PilotOS →Parallel run
Running a new process alongside the existing one for an agreed period, then comparing the results. Agree which records to use, what should match and who signs off any differences before switching over.
See this in PilotOS →Start with the workflow you have today.
Tell us what you use today and what you want to change. We will walk through the product, the data to move and the setup your team needs.