Octalas Prime FAQ
FAQ
The Octalas Pay FAQ provides clear, straightforward answers to the most common questions around merchant services, payment processing, and account setup. It’s designed to help businesses quickly understand how Octalas Pay works, from fees and settlements to security and integrations. Whether you’re new to payments or scaling your operations, the FAQ offers practical guidance to support confident decision-making.
An acquirer (or acquiring bank) is a financial institution that processes card payments for merchants. The acquirer partners with merchants to facilitate their ability to accept credit and debit card payments. They are responsible for the payment gateway, settlement of funds, and maintaining merchant accounts.
Authorization in payments is the process of confirming that the cardholder has sufficient funds or credit to complete a transaction. During this step, the issuing bank verifies the cardholder’s information and approves or declines the transaction request.
The Address Verification System (AVS) is a security measure used by payment processors to verify the billing address of a cardholder. This helps prevent fraudulent transactions by ensuring that the address on the card matches the one provided during the transaction.
Batch processing refers to the grouping of multiple transactions together for settlement. Rather than processing each transaction individually, merchants can submit batches of payments for efficient settlement at the end of the day.
The Bank Identification Number (BIN) is the first six digits of a credit or debit card number. It identifies the card issuer and helps process the transaction by determining which bank is responsible for the transaction.
A payment gateway is a technology that securely transmits payment information between a merchant’s website and the acquiring bank. It ensures that sensitive data is encrypted and processed securely, allowing for seamless online transactions.
An interchange fee is a charge paid by the merchant’s bank to the cardholder’s bank when a transaction is processed. This fee is typically set by card networks like Visa or Mastercard and helps cover the cost of processing payments.
An issuing bank is the financial institution that issues credit or debit cards to consumers. This bank is responsible for approving or denying payment authorizations and settling payments to the merchant.
A merchant account is a type of bank account that allows businesses to accept card payments. It holds funds temporarily during the payment process before they are transferred to the merchant’s business bank account.
Mobile payments refer to the use of mobile devices like smartphones to make payments. This includes apps like Google Pay, Apple Pay, and other wallet apps that enable fast, secure transactions.
SoftPOS (Software Point of Sale) is a technology that allows smartphones or tablets to accept contactless payments without the need for specialized hardware like card readers.
Tokenization replaces sensitive card information with a unique token that can be used for processing payments. This enhances security by ensuring that real card data is never exposed during the transaction.
Tap to Pay is a contactless payment method that allows customers to make quick, secure payments by tapping their NFC-enabled card or device against the payment terminal.
Underwriting is the process by which payment processors assess the risks of approving a merchant account. This includes reviewing the business’s financial stability, history, and risk profile.
A transaction fee is a charge imposed on merchants for processing each payment. This fee can vary based on transaction volume, payment method, and service provider.
A chargeback is a transaction reversal initiated by the cardholder's bank. This typically occurs when a customer disputes a transaction due to fraud, dissatisfaction, or errors. Chargebacks protect consumers but can be costly for merchants.
Contactless payments use NFC (Near Field Communication) technology to allow customers to make secure payments by simply tapping their card or smartphone near the payment terminal, without the need for inserting or swiping the card.
A cross-border fee is an additional charge applied when a transaction occurs between two different countries. This fee is often incurred when a customer makes a purchase with a card issued in a country different from that of the merchant.
A decline happens when the issuing bank rejects a payment transaction. This could be due to insufficient funds, fraud prevention measures, or an issue with the cardholder's account. A decline prevents the transaction from being completed.
A digital wallet (also known as an e-wallet) is a software application that allows users to store their payment information securely and make electronic transactions via smartphones, tablets, or computers. Examples include Apple Pay, Google Pay, and Samsung Pay.
Fraud detection involves identifying and preventing fraudulent transactions in the payment process. This can be achieved through advanced technologies such as machine learning, AVS checks, and real-time monitoring to flag suspicious activities.
A fixed fee is a constant charge applied per transaction, regardless of the transaction amount. This fee is typically added to the percentage-based processing fees charged by payment processors.
MOTO payments are transactions processed without the physical presence of a payment card. These payments are typically done via mail order or telephone orders, where card information is manually entered into a payment system.
PCI DSS is a set of security standards established by the Payment Card Industry (PCI) to ensure that merchants and service providers handle cardholder data securely and protect it from breaches or fraud.
Point of Sale (POS) refers to the system or hardware that enables businesses to complete customer transactions. This can include physical card readers, software for processing payments, and the necessary infrastructure to handle sales in person.
Pre-authorization is the process of temporarily holding a certain amount of funds in a cardholder’s account to ensure that there are sufficient funds available before finalizing a transaction.
Processing fees are the charges levied by payment processors for facilitating a transaction. These fees typically include a percentage of the transaction amount, along with a fixed fee per transaction.
Recurring payments are automatically billed on a set schedule, such as weekly, monthly, or annually. This is commonly used for subscription-based services, memberships, and automatic renewals.
Settlement is the process of transferring the funds from the cardholder’s bank to the merchant’s bank account after the payment has been authorized and processed. It typically takes one to two business days.
