PayerIndividual or entity initiating a payment transaction. Also referred to as donor, customer, or cardholder depending on context.RecipientEntity receiving funds through the platform. May be referred to as merchant, beneficiary, or payee. Subject to KYC/KYB verification.PSP (Payment Service Provider)Third-party provider that facilitates payment processing between merchants and financial institutions. Handles transaction routing and settlement.AcquirerFinancial institution or bank that processes card payments on behalf of merchants. Responsible for authorization requests and settlement with card networks.Issuer / Issuing BankFinancial institution that issued the payer's payment card. Responsible for authorization decisions, cardholder authentication, and billing.AuthorizationReal-time approval process where the issuing bank confirms the payer has sufficient funds/credit and approves the transaction. Funds are reserved but not yet transferred.SettlementActual transfer of funds from the issuer through the card network to the acquirer and subsequently to the merchant/platform. Typically occurs T+1 to T+3 after authorization.LedgerInternal accounting record maintained by the platform tracking recipient balances. Represents available and pending funds. Not necessarily a segregated bank account.HoldStatus applied to transactions or funds that are under review or restricted. Funds in hold status cannot be withdrawn until the hold is released.KYC (Know Your Customer)Identity verification process for individuals. Includes document verification, address confirmation, and identity checks to comply with regulatory requirements.KYB (Know Your Business)Business verification process including company registration, beneficial ownership identification, and business legitimacy confirmation.Transaction MonitoringOngoing surveillance of payment activity to detect suspicious patterns, fraud indicators, and compliance violations. Includes real-time and batch analysis.Velocity RulesControls that limit transaction frequency and volume within defined time periods. Used to detect unusual patterns and prevent fraud.3DS (3D Secure)Cardholder authentication protocol that adds an additional verification step during online transactions. Provides liability shift to issuer for authenticated transactions.ChargebackDispute initiated by cardholder through their issuing bank to reverse a transaction. Results in funds being returned to the payer and debited from the merchant/recipient.RefundReturn of funds to payer initiated by the merchant/recipient or platform. Processed through the original payment method.PayoutTransfer of funds from recipient's internal ledger balance to their external bank account or wallet.Sanctions ScreeningProcess of checking individuals and entities against government sanctions lists (e.g., OFAC, EU, UN) to ensure compliance with trade restrictions.PEP (Politically Exposed Person)Individual who holds or has held a prominent public position. Subject to enhanced due diligence due to higher corruption risk.EDD (Enhanced Due Diligence)Additional verification measures applied to higher-risk customers or transactions. May include source of funds verification and additional documentation.Beneficial OwnerIndividual(s) who ultimately own or control a business entity. Typically defined as holding 25% or more ownership or exercising significant control.Card NetworkOrganizations (e.g., Visa, Mastercard) that operate the infrastructure connecting issuers and acquirers and set rules for card transactions.WebhookAutomated notification sent from PSP/Acquirer to the platform when a payment event occurs (authorization, settlement, chargeback, etc.).