SITE STATUS: LIVEINDEPENDENT REFERENCE · NOT NMI
Reference

Payments Glossary

NMI and payment-gateway terms, in plain English.

HomeGlossary

The payments industry runs on jargon — gateway, processor, acquirer, tokenization, interchange, PayFac. This glossary defines the terms you'll meet around the NMI gateway, each in a sentence or two, so the rest of this site reads more clearly.

NMI & payment gateway terms

Acquirer
The bank or processor that holds the merchant's account and settles card transactions with the card networks. The NMI gateway routes transactions to whichever acquirer the merchant's account uses.
AVS (Address Verification Service)
A check that compares the billing address entered at checkout against the card issuer's records. A mismatch can flag or decline a transaction and is one of the gateway's built-in fraud filters.
Card-on-file
A stored, tokenized card that a merchant can charge again without re-entering it — the basis for repeat purchases and subscriptions. On NMI it lives in the Customer Vault.
CVV filtering
Verification of the three- or four-digit card-security code. Requiring and checking CVV reduces some fraud, though it does not by itself prevent chargebacks.
Customer Vault
NMI's tokenization service. It stores card data as tokens in a PCI-compliant vault so merchants can bill repeat and recurring customers without holding card numbers.
EMV
The chip-card standard (named for Europay, Mastercard, Visa). EMV chip and contactless acceptance shifts certain counterfeit-fraud liability and is the expected standard for card-present sales.
Gateway
The software layer that captures, encrypts, tokenizes, and screens a card transaction, then routes it to a processor. NMI is a gateway, not a processor.
Interchange
The fee set by the card networks and paid to the issuing bank on each transaction. "Interchange-plus" pricing passes interchange through at cost plus a transparent margin.
ISO (Independent Sales Organization)
A company that resells merchant accounts and payment services, often branding a white-label gateway like NMI as its own.
ISV (Independent Software Vendor)
A software company that embeds payments into its product, typically via a gateway's API and SDKs.
iSpyFraud
NMI's rules-based fraud-screening module, letting merchants block, hold, or review transactions by custom conditions.
Merchant Central
The NMI gateway's merchant-facing dashboard — Virtual Terminal, reporting, the Customer Vault, recurring billing, and user management.
MFA (Multi-Factor Authentication)
A second sign-in factor (an authenticator-app code or hardware key) on top of a password, used to protect gateway accounts where the reseller enables it.
P2PE (Point-to-Point Encryption)
Encryption of card data inside the terminal hardware, decrypted only at a secure endpoint, so plaintext card data never touches the merchant's network.
PayFac (Payment Facilitator)
A provider that aggregates many sub-merchants under its own master account, simplifying onboarding. NMI supports the PayFac model for partners.
PCI DSS
The Payment Card Industry Data Security Standard. Tokenization and hosted/iframe checkout reduce a merchant's PCI scope and the burden of compliance.
Processor
The entity that clears funds with Visa, Mastercard, and other networks and moves money to the merchant's bank. Distinct from the gateway, which sits in front of it.
Recurring billing
Scheduled, automatic charges against a stored token — the mechanism behind subscriptions, memberships, and installment plans.
Tokenization
Replacing a card number with a non-sensitive token that stands in for it. The token can be charged again but is useless if stolen, shrinking PCI scope.
<a href="/usaepay-login/">USAePay</a>
A payment gateway owned by NMI (acquired 2021), run as a separate brand with its own console at nmi.com/logins.
Virtual Terminal
A browser-based form for keying card transactions by hand — used for phone, mail-order, and B2B payments where the card is not present.
White-label
A product sold under a reseller's brand rather than the maker's. NMI's gateway is white-label, which is why most merchants use it under another company's name.

Read next