--- a/latest/common/terms.html Tue Jul 14 22:35:00 2015 -0400
+++ b/latest/common/terms.html Wed Jul 15 00:58:47 2015 -0400
@@ -1,141 +1,249 @@
-<p>The following terms are used throughout this document.</p>
+<p>
+This document attempts to communicate the concepts outlined in the Web
+Payments space by using specific terms to discuss particular concepts. This
+terminology is included below and linked to throughout the document to aid
+the reader:
+</p>
<dl class="termlist">
- <dt><dfn>Account</dfn></dt>
- <dd>[PSD2] an account held in the name of one or more payment service users
- which is used for the execution of payment transactions</dd>
- <dd>[Capabilities] An account is a store of value with a balance and a history
- of debits and credits that affect that balance</dd>
-
- <dt><dfn>Account Provider</dfn></dt>
- <dd>[PSD2] account servicing payment service provider: a payment service provider
- providing and maintaining the payment account from which the payer wants the
- specific payment transaction to be made</dd>
-
- <dt><dfn>Authentication</dfn></dt>
- <dd>[PSD2] procedures which allow the payment service provider to verify the
- identity of a payment service user or the validity of the use of a specific
- payment instrument, including the use of its personalized security credentials</dd>
- <dd>[ECB] a security mechanism for verifying: 1) the identity of an individual
- or other entity (including verification by means of a computer or computer
- application); and 2) the level of authority of that person or entity (i.e.
- the ability of that person or entity to perform specific tasks or activities).</dd>
-
- <dt><dfn>Authorization</dfn></dt>
- <dd>[Proposed text – Evert] Requesting acceptance of a payment from a payer to a payee
- at the account serving payment service provider or other actor
- according to payment rules defined by the relevant payment scheme</dd>
- <dd>[ECB] the consent given by a participant (or a third party acting on behalf of
- that participant) in order to transfer funds or securities.</dd>
-
- <dt><dfn>Clearing</dfn></dt>
- <dd>[ECB] the process of transmitting, reconciling and, in some cases,
- confirming transfer orders prior to settlement, potentially including the
- netting of orders and the establishment of final positions for settlement</dd>
-
- <dt><dfn>Customer</dfn></dt>
- <dd>An entity paying to receive goods, services, or other things of value; abstractly known as a payer.</dd>
-
- <dt><dfn>Identity</dfn></dt>
- <dd>A set of information that can be used to identify a particular entity
- such as a person, software agent, or organization.
- An entity may have multiple identities associated with it.</dd>
-
- <dt><dfn>Ledger</dfn></dt>
- <dd>[Merriam-Webster] a book containing accounts to which debits and credits
- are posted from books of original entry</dd>
-
- <dt><dfn>Merchant</dfn></dt>
- <dd>An entity receiving payment for goods, services, or other things of value;
- abstractly known as a payee.</dd>
-
- <dt><dfn>Payer</dfn></dt>
- <dd>An entity that provides a source of funds as required by a transaction.</dd>
-
- <dt><dfn>Payee</dfn></dt>
- <dd>An entity that receives funds as required by a transaction.</dd>
+ <dt><dfn>account</dfn></dt>
- <dt><dfn>Payment</dfn></dt>
- <dd>[ECB] in a strict sense, a payment is a transfer of funds which discharges
- an obligation on the part of a payer vis-à-vis a payee.
- However, in a technical or statistical sense, it is often used as a synonym for “transfer order”</dd>
-
- <dt><dfn>Payment Order</dfn></dt>
- <dd>[PSD2] any instruction by a payer or payee to his payment service provider
- requesting the execution of a payment transaction</dd>
-
- <dt><dfn>Transfer Order</dfn></dt>
- <dd>[ECB] an order or message requesting the transfer of assets
- (e.g. funds, securities, other financial instruments or commodities)
- from the debtor to the creditor</dd>
-
- <dt><dfn>Payment Instrument</dfn></dt>
- <dd>PSD2] any personalized device(s) and/or set of procedures agreed
- between the payment service user and the payment service provider
- and used in order to initiate a payment order</dd>
- <dd>[ECB] a tool or a set of procedures enabling the transfer of funds from a payer to a payee.</dd>
-
- <dt><dfn>Payment Scheme</dfn></dt>
- <dd>[ECB] a set of interbank rules, practices and standards necessary
- for the functioning of payment services.</dd>
-
- <dt><dfn>Payment Service Provider</dfn></dt>
- <dd>[PSD] A body executing payment services such as
- <ol>
- <li>credit institutions</li>
- <li>electronic money institutions</li>
- <li>post office giro institutions</li>
- <li>payment institutions</li>
- <li>central banks other than when acting in their capacity as a monetary authority
- or carrying out other functions of a public nature</li>
- <li>government departments and local authorities, other than when carrying out functions
- of a public nature</li>
- </ol></dd>
-
- <dt><dfn>Credit institution</dfn></dt>
- <dd>[ECB] a company duly authorized to carry out banking transactions on a regular basis
- (i.e. to receive deposits from the public, carry out credit transactions,
- make funds available and manage means of payment)</dd>
-
- <dt><dfn>Electronic Money Institution</dfn></dt>
- <dd>[ECB] a term used in EU legislation to designate credit institutions which
- are governed by a simplified regulatory regime because their activity is
- limited to the issuance of electronic money and the provision of financial
- and non-financial services closely related to the issuance of electronic money.</dd>
-
- <dt><dfn>Purchase</dfn></dt>
- <dd>Activities surrounding and including a transaction
- (e.g., discovery of an offer, negotiation of terms, selection of payment instrument, delivery, etc.).</dd>
-
- <dt><dfn>Settlement</dfn></dt>
- <dd>[ECB] the completion of a transaction or of processing with the aim of
- discharging participants’ obligations through the transfer of funds and/or
- securities. A settlement may be final or provisional.</dd>
-
- <dt><dfn>Transaction</dfn></dt>
- <dd>An agreement, communication, or movement carried out between a buyer and a seller
- to exchange an asset for payment</dd>
-
- <dt><dfn>Wallet</dfn></dt>
- <dd>a software service, providing similar functions in the digital world to those provided
- by a physical wallet, namely:
- <ul>
- <li>It holds payment instruments registered by the wallet owner;</li>
- <li>It supports certain payment schemes and enables the payer to use registered payment
- instruments to execute a payment in accordance with that scheme;</li>
- <li>It may hold one or more balances of some digital asset that can be used to make payments.</li>
- </ul>
- This definition of wallet may expand in the future to include other items people find in
- physical wallets such as digital receipts, coupons, and identification.</dd>
-
-
- <dt><dfn>Payment Orchestrator</dfn></dt>
- <dd>The payment orchestrator is the entity or entities (payer, payee or payment
- service provider) that are orchestrating the steps required to complete the
- payment flow.</dd>
+ <dd>[PSD2] an account held in the name of one or more payment service
+ users which is used for the execution of payment transactions.
+ [Capabilities] An account is a store of value with a balance and a
+ history of debits and credits that affect that balance</dd>
- <dt><dfn>Regulator</dfn></dt>
- <dd>The regulator is responsible for monitoring some
- payments activities and enforcing legal requirements.</dd>
+ <dt><dfn>account provider</dfn></dt>
-</dl>
+ <dd>[PSD2] account servicing payment service provider: a payment
+ service provider providing and maintaining the payment account from
+ which the payer wants the specific payment transaction to be made</dd>
+
+ <dt><dfn>authentication</dfn></dt>
+
+ <dd>[PSD2] procedures which allow the payment service provider to
+ verify the identity of a payment service user or the validity of the
+ use of a specific payment instrument, including the use of its
+ personalized security credentials. [ECB] a security mechanism for
+ verifying: 1) the identity of an individual or other entity (including
+ verification by means of a computer or computer application); and 2)
+ the level of authority of that person or entity (i.e. the ability of
+ that person or entity to perform specific tasks or activities).</dd>
+
+ <dt><dfn>authorization</dfn></dt>
+
+ <dd>[Proposed text � Evert] Requesting acceptance of a payment from a
+ payer to a payee at the account serving payment service provider or
+ other actor according to payment rules defined by the relevant payment
+ scheme. [ECB] the consent given by a participant (or a third party
+ acting on behalf of that participant) in order to transfer funds or
+ securities.</dd>
+
+ <dt><dfn>clearing</dfn></dt>
+
+ <dd>[ECB] the process of transmitting, reconciling and, in some cases,
+ confirming transfer orders prior to settlement, potentially including
+ the netting of orders and the establishment of final positions for
+ settlement</dd>
+
+ <dt><dfn>credit institution</dfn></dt>
+
+ <dd>[ECB] a company duly authorized to carry out banking transactions
+ on a regular basis (i.e. to receive deposits from the public, carry
+ out credit transactions, make funds available and manage means of
+ payment)</dd>
+
+ <dt><dfn>customer</dfn></dt>
+
+ <dd>An entity paying to receive goods, services, or other things of
+ value; abstractly known as a payer.</dd>
+
+ <dt><dfn>electronic money institution</dfn></dt>
+
+ <dd>[ECB] a term used in EU legislation to designate credit
+ institutions which are governed by a simplified regulatory regime
+ because their activity is limited to the issuance of electronic money
+ and the provision of financial and non-financial services closely
+ related to the issuance of electronic money.</dd>
+
+ <dt><dfn>entity</dfn></dt>
+
+ <dd>A person, organization, or software agent that is capable of
+ interacting with the world.</dd>
+
+ <dt><dfn>four corner model</dfn></dt>
+
+ <dd>A <a>payment scheme</a> which includes the following stakeholders:
+ the <a>payer</a> (also known as the Cardholder), the Issuer (who has a
+ relationship with the Cardholder), the Acceptor and the Acquirer
+ (which has a relationship with the Acceptor). The <a>payment
+ scheme</a> defines the rules which apply to all parties; there are no
+ limitations as to who may join the scheme, as long as the requirements
+ of the scheme are met.</dd>
+
+ <dt><dfn>identity</dfn></dt>
+
+ <dd>A set of information that can be used to identify a particular
+ entity such as a person, software agent, or organization. An entity
+ may have multiple identities associated with it.</dd>
+
+ <dt><dfn>ledger</dfn></dt>
+
+ <dd>[Merriam-Webster] a book containing accounts to which debits and
+ credits are posted from books of original entry</dd>
+
+ <dt><dfn>merchant</dfn></dt>
+
+ <dd>An entity receiving payment for goods, services, or other things
+ of value; abstractly known as a payee.</dd>
+
+ <dt><dfn>payee</dfn></dt>
+
+ <dd>An entity that receives funds as required by a transaction.</dd>
+
+ <dt><dfn>payer</dfn></dt>
+
+ <dd>An entity that provides a source of funds as required by a
+ transaction.</dd>
+
+ <dt><dfn>payment</dfn></dt>
+
+ <dd>[ECB] in a strict sense, a payment is a transfer of funds which
+ discharges an obligation on the part of a payer vis-a-vis a payee.
+ However, in a technical or statistical sense, it is often used as a
+ synonym for <a>transfer order</a></dd>
+
+ <dt><dfn>payment instrument</dfn></dt>
+
+ <dd>A mechanism used to transfer value from a <a>payer</a> to a
+ <a>payee</a>. Examples: Corporate Visa card, personal Visa card, a
+ bitcoin account, a PayPal account, and an Alipay account. [PSD2] any
+ personalized device(s) and/or set of procedures agreed between the
+ payment service user and the payment service provider and used in
+ order to initiate a payment order. [ECB] a tool or a set of procedures
+ enabling the transfer of funds from a payer to a payee.</dd>
+
+ <dt><dfn>payment orchestrator</dfn></dt>
+
+ <dd>The payment orchestrator is the entity or entities (payer, payee
+ or payment service provider) that are orchestrating the steps required
+ to complete the payment flow.</dd>
+
+ <dt><dfn>payment order</dfn></dt>
+
+ <dd>[PSD2] any instruction by a payer or payee to his payment service
+ provider requesting the execution of a payment transaction</dd>
+
+ <dt><dfn>payment processor</dfn></dt>
+
+ <dd>An <a>entity</a> that submits and processes payments using a
+ particular <a>payment instrument</a> to a payment network. Examples:
+ Stripe, PayPal, Authorize.net, Atos, FedACH.</dd>
+
+ <dt><dfn>payment scheme</dfn></dt>
+
+ <dd>Sets of rules and technical standards for the execution of payment
+ <a title="transaction">transactions</a> that have to be followed by
+ adhering entities (<a title="payment processor">payment
+ processors</a>, <a title="payer">payers</a> and <a title=
+ "payee">payees</a>). Examples: Visa, MasterCard, Bitcoin, Ripple,
+ PayPal, Google Pay, Alipay, Yandex money, ACH, SEPA. [ECB] a set of
+ interbank rules, practices and standards necessary for the functioning
+ of payment services.</dd>
+
+ <dt><dfn>payment service provider</dfn></dt>
+
+ <dd>
+ [PSD] A body executing payment services such as
+
+ <ol>
+ <li>credit institutions</li>
+
+ <li>electronic money institutions</li>
+
+ <li>post office giro institutions</li>
+
+ <li>payment institutions</li>
+
+ <li>central banks other than when acting in their capacity as a
+ monetary authority or carrying out other functions of a public
+ nature</li>
+
+ <li>government departments and local authorities, other than when
+ carrying out functions of a public nature</li>
+ </ol>
+ </dd>
+
+ <dt><dfn>pull payment</dfn> or <dfn>payee-initiated payment</dfn></dt>
+
+ <dd>A type of <a>transaction</a> where the <a>payee</a> initiates the
+ funds transfer from the <a>payee</a>. A credit card payment is an
+ example of a pull payment.</dd>
+
+ <dt><dfn>purchase</dfn></dt>
+
+ <dd>Activities surrounding and including a transaction (e.g.,
+ discovery of an offer, negotiation of terms, selection of payment
+ instrument, delivery, etc.).</dd>
+
+ <dt><dfn>push payment</dfn> or <dfn>payer-initiated payment</dfn></dt>
+
+ <dd>A type of <a>transaction</a> where the <a>payer</a> initiates the
+ funds transfer to the <a>payee</a>. PayPal is an example of a push
+ payment.</dd>
+
+ <dt><dfn>regulator</dfn></dt>
+
+ <dd>The regulator is responsible for monitoring some payments
+ activities and enforcing legal requirements.</dd>
+
+ <dt><dfn>settlement</dfn></dt>
+
+ <dd>[ECB] the completion of a transaction or of processing with the
+ aim of discharging participants� obligations through the transfer of
+ funds and/or securities. A settlement may be final or
+ provisional.</dd>
+
+ <dt><dfn>three corner model</dfn></dt>
+
+ <dd>A <a>payment scheme</a> including the following stakeholders: the
+ <a>payer</a> (also known as the Card Holder), the Issuer (who has a
+ relationship with the <a>payer</a>), the Acceptor and the Acquirer
+ (who has a relationship with the Acceptor), but where the Issuer and
+ the Acquirer are the same entity.</dd>
+
+ <dt><dfn>transaction</dfn></dt>
+
+ <dd>An economic exchange between a <a>payer</a> and one or more
+ <a title="payee">payees</a>. An agreement, communication, or movement
+ carried out between a buyer and a seller to exchange an asset for
+ payment</dd>
+
+ <dt><dfn>transfer order</dfn></dt>
+
+ <dd>[ECB] an order or message requesting the transfer of assets (e.g.
+ funds, securities, other financial instruments or commodities) from
+ the debtor to the creditor</dd>
+
+ <dt><dfn>wallet</dfn></dt>
+
+ <dd>
+ a software service, providing similar functions in the digital world
+ to those provided by a physical wallet, namely:
+
+ <ul>
+ <li>It holds payment instruments registered by the wallet
+ owner;</li>
+
+ <li>It supports certain payment schemes and enables the payer to
+ use registered payment instruments to execute a payment in
+ accordance with that scheme;</li>
+
+ <li>It may hold one or more balances of some digital asset that
+ can be used to make payments.</li>
+ </ul>This definition of wallet may expand in the future to include
+ other items people find in physical wallets such as digital
+ receipts, coupons, and identification.
+ </dd>
+
+</dl>
\ No newline at end of file