Glossary - Razorpay

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The following table lists the commonly used terms in Razorpay Payments and their definitions:

Term	Description
2FA (Two Factor Authentication)	2FA is an additional security layer that helps protect your account from unauthorised access. You need to provide an additional code to sign in.
API	API (Application Programming Interface) is a software code using which two applications can talk to each other.
Arbitration	Arbitration is a chargeback that the business has won and is rechallenged for the third time by the customer, and the card networks directly get involved. These disputes are usually costly.
Authorisation	Authorisation is performed when the bank successfully authenticates customer’s payment details. The money is deducted from the customer’s account by Razorpay, but will not be settled to your account until the payment is captured, either manually or automatically.
Authorised Signatory	A person who is given the right to sign documents on behalf of the authorising organisation. Managing Director or Director or Chief Executive Officer or any other authorised signatory designated by the Board of Directors.
Beneficiary	A beneficiary is a person or an entity that you legally designate to receive the benefits from your financial product. For example, a will, an insurance policy and so on. In terms of netbanking, a beneficiary is someone to whom funds should be transferred.
Captured	When the payment status is changed to `captured` by the business, the payment is verified as complete by Razorpay. After the capture, the amount is settled to the business’s account as per the settlement schedule.
Chargeback	Chargeback is a refund claim initiated by the customers with their issuer banks. In such cases, the bank starts an official inquiry.
Checkout	Checkout is a secure, Razorpay-hosted payment form that lets the business collect payments quickly. It works across devices.
Dispute	A dispute is when a customer or the issuing bank questions the validity of payments. It may arise due to unauthorised charges, failure to deliver the promised merchandise or excessive charges levied by the business.
Fiduciary relationship	A fiduciary relationship is where one person places some type of trust, confidence, and reliance on another person.
Fraud	A fraud is a dispute raised by the bank when it suspects a transaction to be fraudulent based on the risk analysis.
Instant Refund	If an amount paid by a customer for a product is reversed, it is called a Refund. Depending on the bank’s processing time, the refunds can take 5-7 business days to reflect in the customer’s bank account or card balance. In Instant Refunds, businesses can almost instantly provide a refund to the customer.
Late Authorisation	Late authorization is a situation that arises when a payment is interrupted by external factors, such as network issues or technical errors at the customer’s or bank’s end. In such cases, funds may or may not get debited from the customer’s bank account, and Razorpay does not receive a payment status from the bank.
Merchant	An individual or business that receives payments from customers in exchange for goods or services using the Razorpay Payment Gateway.
Orders	A confirmed request by one party to another to buy, sell, deliver, or receive goods or services under specified terms and conditions.
Partner	As part of the Razorpay Partnership program, Partners offer the Razorpay product suite to their clients or customers and receive rewards. There are 3 types of Partners: Service Partners, Aggregators and Technology Partners.
Payments	A money transfer made by the customer (using any payment mode, such as a debit card, credit card, and so on) in exchange for a product or service is called a Payment.
Payment Gateway	Payment Gateway is a technology used by businesses to accept payments from customers in exchange for products and services they offer to their customers.
Payment Methods	Payment Methods are the ways in which customers pay for products or services. For example: Credit Cards, Debit Cards, Net Banking, Wallets, UPI and so on.
Payment Processor	A payment processor is a company that handles the credit card and debit card transactions for a business. It moves the funds from one account to another.
Pre-Arbitration	Pre-Arbitration is a chargeback that the business has won and is re-challenged by the customer for the second time.
Refunds	If an amount paid by a customer for a product is reversed, it is called a Refund.
Retrieval	Retrieval is a request initiated by the customer with their issuer bank for additional information about a transaction. This is essentially a “soft” chargeback.
Settlement	Settlement is when the businesses receive the money paid by their customers for a particular product or service.
Third-Party Validation (TPV)	Third-Party Validation (TPV) of bank accounts is a mandatory requirement for businesses in the BFSI (Banking, Financial Services and Insurance) sector dealing with Securities, Broking and Mutual Funds. As per Securities and Exchange Board of India (SEBI) guidelines, the customers must make transactions only from those bank accounts provided when they had registered with your business.
Tokenisation	Tokenisation is a process through which sensitive information or data is replaced with a unique set of characters that retain all the essential information without compromising the security of sensitive information. A token is a unique digital identifier in mobile and online transactions.
Transaction	A transaction is any activity on a business’s RazorpayAxis DashboardHDFC Collect Now DashboardHDFC VAS Dashboard account, including inflow of funds (payments received), payouts (payments made to employees, contractors and vendors) and refunds.
Trustee	A trustee is a person or firm that holds and administers property or assets for the benefit of a third party. Trustees are trusted to make decisions regarding bankruptcy, charity, trust fund, or certain types of retirement plans or pensions in the beneficiary’s best interests.
Trustor	An entity that creates and opens up a trust. A trustor may be an individual, a married couple, or even an organisation. They generally make contributions of property to add to the trust by donating money, gifts, and assets to other individuals.