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| Ever wondered what 'infrared', 'micro-payment' or 'WAP' means? Find out in this A-Z guide to online and wireless payment terminology. | |
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2G – Second Generation Wireless CommunicationsThe digital technology used by today’s mobile GSM and CDMA network.
2.5G – GSM Phase 2+ TechnologiesTo meet the demand for higher speed data services on mobile phones, vendors are developing a range of enhanced GSM Phase 2+ technologies, also known collectively as 2.5G technologies. These include HSCSD (High Speed Circuit Switched Data), GPRS (General Packet Radio Service) and EDGE (Enhanced Data in the GSM Environment).
The migration to 2.5G technologies is expected to help operators and manufacturers educate the consumer about the potential for higher speed data, video and image services. The results will help operators to forecast sustainable demand for 3G.
3-D Secure - 3-Domain SecureA protocol developed to standardize communication between services designed to improve the security of purchases made via the Internet, enabling issuers to verify a cardholder’s account ownership during an online purchase. 3-D Secure utilizes the widely supported Internet technology SSL to encrypt and protect card payment information. The 3-D Secure framework divides the authentication process according to the participants involved: the issuer domain, acquirer domain and the interoperability domain connecting the issuer and acquirer.
3G – Third Generation wireless communicationsThe next generation of cellular services, also known as IMT-2000 (International Mobile Telecommunications 2000) and in Europe as UMTS (Universal Mobile Telecommunication Service).3G is expected to overcome two of the major shortcomings of today’s cellular networks: poor data communication capabilities and the lack of a ubiquitous, harmonized technical standard.
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A - C
Acquirer A financial institution that enters into a contractual relationship with a merchant for purposes of accepting payment cards.
Acceptance mark
A mark that denotes Point-of-Transaction acceptance for payment under specific rules.
Account number
A primary Cardholder account number that is either: embossed and encoded on a Visa Card, encoded on an Electron Card, a proprietary card bearing the PLUS Symbol or a card bearing the Visa Electron symbol.
Authentication
The process by which cardholder ownership of the payment card account is validated by the card issuer in accordance with Verified by Visa service rules and processes.
Authorization
The process in which the issuer or processor approves or declines a Visa card transaction on the issuer’s behalf.
Bluetooth
A radio technology designed to link electronic devices wirelessly. Bluetooth makes wires connecting PCs, printers, monitors, mobile phones and handheld devices redundant. Unlike the infrared technology which allows devices to communicate only if they are aligned in a straight line within a short distance, Bluetooth is not subject to this limitation.
Browser
A client program that allows users to read hypertext documents on the World Wide Web and navigate between them. Examples are Netscape Navigator, Lynx and Microsoft Internet Explorer.
Cardholder
An individual to whom a payment card is issued by a financial institution.
CAD – Card Acceptance Devices
A device (usually a point-of-sale terminal) that is capable of reading and processing data from magnetic stripe and chip cards.
CDMA – Code Division Multiple Access
A digital cellular technology standard developed by Qualcomm. It is deployed primarily in the current generation of mobile phones used in North America, South Korea and Japan. CDMA is generally referred to as a 2G technology, alongside GSM. Compared with the current GSM standard, CDMA improves bandwidth utilization as a number of users can share the same radio channel. CDMA benefits mobile service operators in terms of channel efficiency and capacity.
Chip card
A payment card embedded with an integrated circuit, or chip, that communicates information to a point of transaction terminal. Chip cards offer increased functionality and security through the combination of significant computing power and substantial data storage. Also referred to as ICC or smart card.
Chip card reader
A hardware device that communicates information from a chip card to a local personal computer.
Combi/Dual interface card
A card that has a single chip and two interfaces – usually a contact interface and a contactless interface. The main advantages of having one chip with two interfaces (versus two chips with two interfaces or a hybrid card) are lower card costs and the ability to access the same application and its associated data from either the contact of the contactless interface. For example, Visa has a combi card with a VSDC application that uses the contact interface and an ePurse application that uses both the contact and contactless interfaces.
Contactless card
The use of either radio frequency of infrared technology to allow the card and the terminal to communicate or transact without physically touching. Contactless technology is popular with mass transit, road toll and physical security access applications which require fast transaction speeds. The contactless technology most applicable to Visa is based on the ISO 14443 standard.
Cryptography
The process of protecting information by transforming it into an unreadable format. The information is encrypted using a key that makes data unreadable, and then decrypted later when the information is used again.
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D - H
Digital signature
A set of electronic data used to authenticate the parties in a transaction.
e-Purse – Electronic purse
A chip application designed to mimic the use of cash. ePurse cards are sometimes referred to as eCash or Stored Value Cards (SVC), and are either reloadable or disposable. They are popular for use with mass transit and road tolling systems.
e-Commerce - Electronic commerce
The ability to buy, sell and advertise goods and services over the Internet.
EDGE – Enhanced Data for GSM Evolution
Edge represents the final evolution of data communications within the GSM standard. Edge uses a new modulation, enabling data throughput speeds of up to 384 kilobits per seconds using existing GSM infrastructure. GSM operators who do not purchase a 3G license may choose to deploy Edge.
EMV – Europay, Mastercard and Visa
The technical specifications developed by Europay International, Mastercard International and Visa International outlining the interaction between chip cards and terminals/CADs to ensure global interoperability.
GlobalPlatform
A cross-industry membership organization created to advance standards for multiple application smart card growth. A major growth of GlobalPlatform is the definition of specifications and infrastructure for multi-application smart cards, including cards, terminals and back-end host systems. The GlobalPlatform Specifications are based on the Open Platform Specifications, which were donated to the consortium by Visa.
GPRS – General Packet Radio Service
A cellular technology standard that uses packet switching. Instead of sending a continuous stream of data over a permanent connection, packet switching only uses the network when there is data to be sent. GPRS has been standardized by the European Telecommunication Standards Institute as part of GSM phase 2+ developments. It brings Internet Protocols (IP) capability to the GSM network. GPRS will enable a device to send and receive data at up to 115 kilobits per second. It is extremely efficient in its use of scarce resources, allowing a device to manipulate a wide range of value added services such as e-mail or Internet access. GPRS is ideal for delivering information to a device (push services), rather than information being sought (pull services).
GSM – Global System for Mobile Communications
A digital cellular technology standard developed in Europe, also called second generation cellular service. It is an open, non-proprietary system, used in more than 159 countries. One of the great strengths of this standard is the international roaming capability, providing a user the ability to make and receive calls, from one country to another, using the same contact number and the same mobile phone. The 900MHz and 1800MHz band have been assigned to support GSM.
HTML – HyperText Markup Language
A script language used to describe the text content and format of a web page. It includes tags, which indicate the style of headings, content text, and other features such as pictures or Java programs. The interpretation of the script language is dependent on the web browser used, the size of the screen and user preferences, which means that the same HTML script vary significantly in appearance on any two computers.
HSCSD – High Speed Circuit Switched Data
HSCSD is the final evolution of circuit switched data technology used within the GSM environment. HSCSD will enable the transmission of data over a GSM link at speed of up to 57.6 kilobits per second. HSCSD is part of the planned evolution of the GSM specification and is included in the GSM Phase 2 development. In using HSCSD, a permanent connection is established between the calling and receiving parties for data exchange. As it is circuit switched, HSCSD is more suited to applications such as videoconferencing and multimedia.
HTTP – HyperText Transfer Protocol
HTTP is the computer “handshaking protocol” between a web browser and a web server, and is used to request and receive a web page on the Internet.
Hybrid card
A card that utilizes more than one technology, such as chip and magnetic stripe. The term hybrid card has also been used to describe a card combining two chips and two interfaces (contact and contactless), as opposed to a card combining a single chip with two interfaces (contact and contactless), which is known as a combi card.
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I - O
ICC Card
See chip card.
i-mode – Interactive Information over Mobile Communication Network
i-mode is a mobile interactive platform developed by NTT DoCoMo to allow consumers to continuously access services from the Internet using a cellular phone. The success of i-mode in Japan is a result of NTT DoCoMo effectively managing consumer expectations, menu placement and providing services based on strong brands and consumer popularity.
i-mode uses a subset of HTML language called cHTML, i.e.: compact HTML, in which elements of a web page are adapted to the mobile environment using tags to indicate how the style of headings and content is formatted for a small screen display.
Infrared communication
Infrared communication utilizes the red spectrum of light to communicate between devices. It is designed for point-to-point communications and requires devices to be aligned in a straight line, within a short distance. This technology is found in devices such as television remote controls. New form factors leveraging this infrared technology include PDAs and mobile phones.
IrDA – Infrared Data Association
The Infrared Data Association maintains and develops industry specifications for communication between two devices over infrared. Further information can be found at www.irda.org.
Infrared payment
A method of payment using infrared technology. See infrared communication.
Internet
A network of computers that share the same protocol called the TCP/IP. Each computer runs software that provides or "serves" information to another computer. The Internet is the transport vehicle for information that is stored in files or documents on another computer. It is sometimes compared to a giant international plumbing system. The Internet itself does not contain information.
IP – Internet Protocol
A protocol used for the transmission of information, primarily between computers and over the Internet. It works by dividing the information to be transmitted into a number of smaller packets. Each packet is attached with a header containing the destination address. The packet is sent into the Internet where it is routed to its destination. Each packet is treated as a separate entity, although it might be part of a long message. This protocol is designed for networks where packets might get lost or delayed. IP is also referred to as a connectionless packet switched protocol.
IrFM – Infrared Financial Messaging
A standard that defines how payment and financial messaging may be securely transmitted over an infrared link.
Issuer
A financial institution that enters into a contractual relationship with a cardholder for issuance of one or more payment cards.
Java
A high level programming language used for developing applications. It allows applications to be written once and to run on any platform. Java features software development capabilities such as object-oriented design and reuse of software. Java is designed to operate on any computer and interprets the program as it runs. This gives added benefits of high security and small program size traded-off against slower speed. It has been very popular with web browsers and it is also finding its way into mainstream products such as mobile phones and smart cards. In smart cards, one of the major benefits of Java is that an application can be written once in Java and used on several chip card platforms.
m-Commerce - Mobile Commerce
The buying and selling of goods and service using hand held, wireless communication devices such as mobile phones and personal digital assistants.
Macro-payment
Payment of which large sums of money are being transferred. The security requirement is typically more rigorous compared to micro-payments.
Merchant
A business entity that contracts with an acquirer to accept payment cards and conduct payment transactions. All Visa merchants must have a contractual relationship with a Visa acquirer.
Merchant commerce server
A server hardware/software entity that handles all online transactions and facilitates communication between the merchant application and the Visa gateway.
Microbrowser
A software application used to access the web from a handheld device.
Micro-payment
Payment of which the value exchanged is very small. There is no precise definition of the amount, but it is typically below US$10.
MPI - Merchant Plug-In or Merchant Server Software
A module integrated into merchant store-front applications that are used to process Verified by Visa authentication transactions. It provides an interface with merchant’s payment processing software.
Multi-application card
The presence of multiple applications on a single chip card, such as payment, Internet access, loyalty and identification.
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P - R
Palm OS – Palm Operating System
A user interface and operating system originally developed by 3Com and licensed by Palm for the market of handheld computers.
Password hint
Along with selecting the Verified by Visa password, the cardholder may also select a password hint. The cardholder may use the hint for recalling his/her password during an Internet transaction. The hint must not contain text that is included in the password.
Payment gateway
A third party that provides an interface between the merchant/acquirer’s payment system and VisaNet.
PDA – Personal Digital Assistant
A small, portable device, capable of storing and displaying personal information such as appointments, addresses and notes. It is sometimes referred to as a personal organiser. A PDA generally offers multiple methods of recording information, such as a keyboard, handwriting recognition software and voice.
Personal message
A message selected by the cardholder during the "Verified by Visa" registration process that is unique to the cardholder, indicating that the password request is from a valid source. The personal message is between one and 30 characters, and must not contain text that is included in the password.
PTD – Personal Trusted Device
A digital device, such as a mobile phone or PDA, and is usually always with the user. Trust has been established between the user and the device to the extent that personal information (phone book, appointments, diary and payment details) may be stored on the PTD. PTD may also be used as a form of identification in that the device ID or mobile phone number is unique to the owner of the device and may be presented as a form of identification.
Pocket PC OS – Pocket PC Operating System
A user interface and operating system developed and licensed by Microsoft for handheld computers. The Pocket PC operating system is based on the Microsoft Windows and Windows-CE interface widely used by PDA developers such as HP and Compaq. The Pocket PC OS is in direct competition with the Palm OS.
Proximity payment
A transaction that takes place between a buyer’s personal device and a seller’s terminal using technology such as infrared.
Remote payment
The ability to perform payment using mobile devices across a wireless network with a merchant located elsewhere.
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S - U
SSL – Secure Sockets Layer
A protocol developed by Netscape for transmitting private documents via the Internet. SSL works by using a public key to encrypt data that is transferred over the SSL connection. Both Netscape Navigator and Internet Explorer support SSL, and many web sites use the protocol to obtain confidential user information, such as credit card numbers. By convention, URLs that require an SSL connection start with https: instead of http:.
S HTTP – Secure HTTP
A protocol for transmitting data securely over the World Wide Web. While SSL creates a secure connection between a client and a server over which any amount of data can be sent securely, S-HTTP is designed to transmit individual messages securely. SSL and S-HTTP are complementary rather than competing technologies. SSL and S-HTTP are approved standards by the Internet Engineering Task Force (IETF).
Secure online payment
A secure online payment has three characteristics associated with it. Firstly, the identity of the individual has to be authenticated in the transaction. Secondly, the technology being used has to ensure the confidentiality of payment information over the Internet. Thirdly, the integrity of the payment message has to be ensured.
SIM– Subscriber Identity Module
The current implementation of GSM technology requires a smart card called the SIM (Subscriber Identity Module) card. The SIM card is fitted in the mobile phone, providing user with the necessary authentication to access the network and ensure security. The SIM card provides storage for basic user data, billing and network information.
SIM Toolkit – Subscriber Identity Module Application Toolkit (STK)
The SIM Toolkit extends the role of the SIM card, making it a key interface between the mobile terminal and the network. Using the SIM toolkit, the SIM card can be programmed to carry out new functions, including the ability to personalize the menu structure, making it user-friendly.
SMS – Short Message Service
SMS is a messaging and paging service, allowing a GSM and CDMA enabled mobile phone to receive and send short text messages. Each message can contain up to 160 alphanumeric characters in GSM and 120 alphanumeric characters in CDMA.
Smart card
See chip card.
SVC - Stored Value Card
See e-Purse.
TCP – Transmission Control Protocol
One of the main protocols used by the Internet. TCP enables two hosts to establish a connection and exchange streams of data. TCP guarantees delivery of data. Packets of data will be delivered in the same order in which they were sent.
u-Commerce - Universal commerce
The ability to conduct commerce anytime, anywhere over any device.
Unified messaging
Access to individual users through a mobile terminal to all recognised messaging formats including voice-mail, facsimile, pager, SMS and email. In today’s working environment, messages are received in a wide variety of formats from a myriad of different sources. Unified messaging brings all these different messaging formats and services under a single umbrella, giving the user the opportunity to manage data and information services.
URL - Uniform Resource Locator
The global address used for locating resources on the web.
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V - Z
VSDC – Visa Smart Debit Credit
The Visa service offerings for chip-based debit and credit programs. These services, based on EMV and VIS specifications, are supported by VisaNet processing, as well as by Visa rules and regulations. The term VSDC is also used to refer to the actual payment application that resides on the card.
VbV - Verified by Visa
A new consumer service that adds greater security to online credit and debit card payments. It is designed to improve both cardholder and merchant confidence in Internet purchases, as well as reduce disputes and fraudulent activity related to the use of Visa payment cards. Based on 3-D Secure specifications, Verified by Visa enables participating card-issuing banks to validate a cardholder’s identity through authentication methods including passwords, digital certificates or biometrics during the online checkout process.
VbVIS - Verified by Visa Issuer Service
A ready-made application offered to issuers by Visa to help accelerate market adoption and issuers’ ability to offer secure online payment services to their cardholders.
Verified by Visa merchant mark
The identity developed specifically to signify merchant participation in the Verified by Visa service. To use the mark, merchants are required to follow guidelines specified by Visa.
Verified by Visa password
Selected by the cardholder during the registration process, the Verified by Visa password is used by the issuer to authenticate the cardholder during Internet purchases. The password must be 4 and 12 characters long and may include numbers, letters and/or printable characters but not spaces.
VIS – Visa Integrated Circuit Card Specification
Visa’s implementation of the EMV specifications to aid vendors in developing VSDC cards and terminals.
VisaNet
Visa’s systems providing authentication, authorization, clearing and settlement services to its members. VisaNet supports consumer, business-to-business, and electronic commerce transactions, including credit cards, debit cards, ATM, automated clearinghouse (ACH), and electronic check presentment (ECP) transactions. VisaNet is one of the largest consumer payment networks in the world. VisaNet clears transactions in 180 currencies and performs settlement in 17 currencies.
W-CDMA – Wideband Code Division Multiple Access
W-CDMA is one of 3G transmission technologies. W-CDMA enables reliable transmission of high-volume still-image and speech data as well as high-speed Internet access and high-quality transmission of video.
WAP – Wireless Application Protocol
The Wireless Application Protocol is a global wireless Internet protocol. It is a standard for the presentation and delivery of information on wireless devices. WAP is designed to provide rapid and efficient access to the Internet, by integrating telephony services with micro-browsing capabilities.
WAP is device independent and allows interoperability. This is crucial to ensure a feasible business case when ‘a machine talks to a network’. WAP uses a subset of HTML and XML language called WML, in which selected elements of a web page are adapted to the small screen and limited functionality of a mobile phone. The WAP specification is developed and managed by the WAP Forum, now Open Mobile Alliance.
Wireless marketing
The ability to promote merchant offers to consumers via wireless networks.
WML – Wireless Mark-up Language
A subset of XML developed to support the WAP standard. It is the format in which information can be read with a WAP enabled mobile handset.
World Wide Web
When a user accesses the Internet using a browser such as Netscape Communicator or Internet Explorer, this user is actually viewing documents from the World Wide Web. The current foundation on which the World Wide Web functions is Hypertext using HTML. This provides highlighted links to other documents on the Web. It is sometimes referred as a system of Internet servers that support specially formatted documents in a language called HTML. Not all Internet servers are part of the World Wide Web.
XML – Extensible Mark-up Language
A new generation of script languages used to describe the text content and format of a Web Page. While HTML is used to visually depict the content on the web, XML is designed to communicate the meaning of the data through a self-describing mechanism. XML allows information to be presented differently depending on the device used to access it.
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