---
title: Glossary
slug: glossary
excerpt: >-
  A list of commonly used terms related to Pine Labs Online by Pine Labs
  Payments.
hidden: false
sidebar_order: 5
metadata:
  title: "Payment Gateway Glossary — Terms & Definitions | Pine Labs Online"
  description: >-
    Comprehensive payment gateway and fintech glossary. Definitions for API terms, payment methods, authentication, security, and developer concepts used in Pine Labs.
  keywords: "payment glossary, payment terms, payment gateway dictionary, fintech terms, API glossary, developer definitions"
  robots: index
---
A comprehensive reference of payment gateway, fintech, and developer terms used across Pine Labs Online documentation and APIs. Organized alphabetically for quick lookup.

---

## A

| Term | Description |
| --- | --- |
| Acquirer | The financial institution (acquiring bank) that processes card payments on behalf of a merchant. The acquirer communicates with the card network and issuing bank to authorize and settle transactions. |
| API (Application Programming Interface) | A set of protocols and tools that allows two software systems to communicate. Pine Labs Online exposes RESTful APIs for creating orders, processing payments, managing refunds, and more. |
| API Key | A unique identifier used to authenticate API requests. Pine Labs provides separate API keys for UAT (test) and production environments. Never expose your API key in client-side code. |
| Apple Pay | A contactless payment method for Apple devices that uses biometric authentication (Face ID / Touch ID). Supported through Pine Labs Hosted Checkout and Seamless Checkout for international transactions. |
| Authentication | The process of verifying the identity of a user, system, or application before granting access. In payments, the issuing bank authenticates the cardholder (e.g., via OTP or 3D Secure) before approving the transaction. |
| Authorization | The process where the issuing bank approves or declines a payment request. During authorization, the bank verifies the cardholder's identity and checks for sufficient funds or credit. |
| Authorized (Status) | A payment status indicating the issuing bank has approved the transaction and blocked funds in the customer's account. The funds are held but not yet transferred to the merchant - capture is required to complete settlement. |



## B

| Term | Description |
| --- | --- |
| BBPS (Bharat Bill Payment System) | An RBI-mandated centralized bill payment system in India that enables interoperable bill payments across categories like utilities, insurance, and loans through a network of agents and payment channels. |
| BIN (Bank Identification Number) | The first 6-8 digits of a card number that identify the issuing bank, card brand (Visa, Mastercard, RuPay), card type (credit/debit), and country of issuance. Used for routing and offer targeting. |
| BNPL (Buy Now, Pay Later) | A payment method that allows customers to purchase products and pay in installments over time, often interest-free. Pine Labs supports BNPL through providers like ZestMoney, Simpl, and LazyPay via the Affordability Suite. |

---

## C

| Term | Description |
| --- | --- |
| Callback URL | The merchant's endpoint where Pine Labs redirects the customer's browser after payment completion. The callback includes order status and a signature for verification. Not guaranteed to fire - always use webhooks as the primary confirmation mechanism. |
| Capture | The action of finalizing an authorized payment. For pre-authorized transactions, the merchant must explicitly call the Capture Order API to transfer funds from the customer's bank to Pine Labs for settlement. |
| Card Network | Organizations (Visa, Mastercard, RuPay, American Express) that facilitate card payment transactions by connecting issuing banks and acquiring banks. They set interchange fees, security standards, and transaction rules. |
| Card Not Present (CNP) | A transaction where the physical card is not presented to the merchant - typical of all online/e-commerce payments. CNP transactions require additional fraud prevention measures like 3D Secure. |
| Card Tokenization | See **Tokenization**. |
| Cardless EMI | An EMI option where customers can avail installment plans without using a physical credit or debit card. Customers authenticate using their mobile number and PAN, and the EMI is offered by lending partners. |
| Chargeback | A reversal of a card payment initiated by the cardholder's bank, typically due to a disputed transaction, fraud, or non-delivery of goods. Merchants can contest chargebacks with evidence. |
| Checkout | The payment page or flow where a customer enters payment details and completes a transaction. Pine Labs offers Hosted Checkout (managed by Pine Labs) and Seamless Checkout (embedded in the merchant's site). |
| Convenience Fee | An additional charge applied on top of the order amount for using a specific payment method. Pine Labs provides a Calculate Convenience Fee API to compute the fee including applicable GST before creating the order. |
| Credit EMI | An installment payment option where the transaction amount is converted into monthly installments on the customer's credit card. The bank charges interest (or offers no-cost EMI) and the merchant receives the full amount upfront. |
| Cross-Border Payment | See **International Payment**. |
| Currency Code | A three-letter ISO 4217 code representing a currency. For example, `INR` for Indian Rupee, `USD` for US Dollar. Pine Labs uses currency codes in API requests for order amounts. |
| CVV (Card Verification Value) | A 3 or 4-digit security code printed on payment cards, used to verify that the customer physically possesses the card during online transactions. |
| CVV-Less Flow | A payment flow where returning customers with tokenized cards can complete transactions without re-entering their CVV, reducing checkout friction while maintaining security through network tokens. |

---

## D

| Term | Description |
| --- | --- |
| Debit EMI | An installment payment option where the transaction amount is split into EMIs debited directly from the customer's bank account linked to their debit card. Supported by select banks through Pine Labs. |
| Down Payment EMI | An EMI variant where the customer pays a portion of the amount upfront (down payment) and the remaining balance is converted into monthly installments on their card. |
| Dynamic Currency Conversion (DCC) | A service that allows international cardholders to see and pay in their home currency at the point of sale, with the exchange rate applied at the time of the transaction. |

---

## E

| Term | Description |
| --- | --- |
| e-Mandate | An electronic authorization given by a customer to allow recurring debits from their bank account or card. Used in subscription payments and recurring billing. Governed by RBI guidelines on maximum debit amounts and notification requirements. |
| EMI (Equated Monthly Installment) | A fixed monthly payment made by a borrower to a lender over a set period. In payments, EMI allows customers to split a purchase amount into smaller monthly installments on their credit card, debit card, or through cardless options. |
| Encryption | The process of converting sensitive data (like card numbers) into an unreadable format during transmission using algorithms like AES-256. All Pine Labs API communications use TLS 1.2+ encryption. |

---

## F

| Term | Description |
| --- | --- |
| Full Refund | A refund for the entire transaction amount. Initiated through the Pine Labs Refund API or Dashboard when the customer returns the product or cancels the service entirely. |

---

## G

| Term | Description |
| --- | --- |
| GST (Goods and Services Tax) | India's indirect tax applicable on goods and services. In payments, GST (currently 18%) is applied on convenience fees, MDR charges, and subscription fees. Pine Labs APIs return GST amounts separately. |

---

## H

| Term | Description |
| --- | --- |
| HMAC (Hash-based Message Authentication Code) | A cryptographic method used to verify data integrity and authenticity. Pine Labs uses HMAC-SHA256 for webhook signature verification - the merchant computes the hash using their secret key and compares it with the signature sent by Pine Labs. |
| Hosted Checkout | A secure, fully-managed payment page provided by Pine Labs where customers select their payment method and complete the transaction. The merchant redirects to or embeds this page - no PCI compliance required on the merchant side. Also called Infinity Checkout. |

---

## I

| Term | Description |
| --- | --- |
| Idempotency | A property ensuring that making the same API request multiple times produces the same result without unintended side effects (e.g., duplicate charges). Pine Labs order IDs serve as natural idempotency keys. |
| IFSC (Indian Financial System Code) | An 11-character alphanumeric code that uniquely identifies a bank branch in India. Used for NEFT, RTGS, and IMPS fund transfers, including payouts. |
| IMEI (International Mobile Equipment Identity) | A unique identifier for mobile devices. Pine Labs Affordability Suite uses IMEI validation to verify device eligibility for EMI offers on electronics purchases. |
| Integration Mode | The method by which a merchant connects the checkout experience. Pine Labs supports `REDIRECT` (full-page redirect to Pine Labs checkout) and `IFRAME` (embedded checkout within the merchant's page). |
| Interchange Fee | A fee paid by the acquiring bank to the issuing bank for each card transaction. Set by card networks (Visa, Mastercard, RuPay) and varies by card type, transaction type, and merchant category. |
| International Payment | A cross-border transaction where the customer's card is issued in a different country than the merchant's location. Pine Labs supports 100+ currencies and international card networks for cross-border payments. |
| Issuing Bank (Issuer) | The financial institution that issues credit/debit cards to consumers and is responsible for authorizing transactions, extending credit, and billing the cardholder. |

---

## J-K

| Term | Description |
| --- | --- |
| JSON (JavaScript Object Notation) | A lightweight data interchange format. All Pine Labs API requests and responses use JSON. |

---

## L

| Term | Description |
| --- | --- |
| Late Authorization | A delayed authorization response from the issuing bank during a payment. The payment system has sent the authorization request, but the bank's response is delayed, creating uncertainty about the payment status. Pine Labs handles this via webhook events. |

---

## M

| Term | Description |
| --- | --- |
| MCP Server (Model Context Protocol) | A Pine Labs AI-native developer tool that enables AI assistants like Claude, Cursor, and VS Code Copilot to directly access Pine Labs APIs via natural language. Developers can generate integration code, create orders, and test payments using conversational prompts. |
| MDR (Merchant Discount Rate) | The fee charged by the payment processor (acquirer) to the merchant for processing card transactions. Typically expressed as a percentage of the transaction amount. In India, MDR on UPI and RuPay debit cards is zero per RBI mandate. |
| Merchant | A business entity that sells goods or services and accepts online payments through a payment gateway like Pine Labs. Each merchant has a unique Merchant ID (MID) for identification. |
| Merchant ID (MID) | A unique identifier assigned to a merchant by Pine Labs upon account creation. Used in all API calls and dashboard access to identify the merchant's account. |

---

## N

| Term | Description |
| --- | --- |
| NACH (National Automated Clearing House) | An electronic clearing system operated by NPCI for bulk and recurring transactions such as EMI payments, insurance premiums, and subscription billing in India. |
| Native OTP | A payment flow where the OTP (One-Time Password) input screen is rendered natively within the merchant's app or website instead of redirecting to the bank's page, providing a seamless checkout experience. |
| Net Banking | An online payment method where customers log into their bank's internet banking portal to authorize a payment. Pine Labs supports net banking from major Indian banks including SBI, HDFC, ICICI, and more. |
| Network Token | A token issued by a card network (Visa, Mastercard, RuPay) that replaces the actual card number for secure storage and transaction processing. See **Tokenization**. |
| NPCI (National Payments Corporation of India) | The umbrella organization for all retail payment systems in India, operating UPI, IMPS, NACH, RuPay, BBPS, and other payment infrastructure. |

---

## O

| Term | Description |
| --- | --- |
| OAuth 2.0 | An authorization framework that allows third-party applications to access resources on behalf of a user without exposing credentials. Used by Pine Labs n8n Node for secure API authentication. |
| Order | A record representing a customer's intent to purchase. In Pine Labs, an order is created via API with an amount and currency, and one or more payment attempts are made against it. An order can have statuses like CREATED, AUTHORIZED, PROCESSED, or CANCELLED. |
| Order ID | A unique identifier assigned by Pine Labs when an order is created. Used to track the order through its lifecycle - payment, capture, refund, and settlement. |

---

## P

| Term | Description |
| --- | --- |
| Partial Refund | A refund for less than the full transaction amount. Pine Labs allows multiple partial refunds on a single order, as long as the total refunded amount does not exceed the original payment. |
| Payment | The transfer of money from a customer to a merchant using a payment method (card, UPI, net banking, wallet, etc.) in exchange for goods or services. |
| Payment Aggregator (PA) | An entity licensed by RBI that facilitates online payments by aggregating multiple payment methods and connecting merchants to banks and payment networks. Pine Labs Online operates as a licensed Payment Aggregator. |
| Payment Gateway | Technology infrastructure that securely transmits transaction data between the merchant, acquiring bank, card network, and issuing bank to authorize and process online payments. |
| Payment Link | A URL generated via Pine Labs API or Dashboard that directs a customer to a hosted payment page. No integration required - links can be shared via SMS, email, WhatsApp, or embedded in websites. |
| Payment Method | The instrument a customer uses to pay - credit card, debit card, UPI, net banking, wallet, BNPL, EMI, or reward points. Pine Labs APIs accept a `payment_method` parameter to specify or filter methods. |
| Payout | A transfer of funds from the merchant's Pine Labs account to an external bank account, UPI ID, or wallet. Used for vendor payments, refund disbursements, salary payouts, and marketplace settlements. |
| PCI DSS (Payment Card Industry Data Security Standard) | A set of security standards mandated by card networks for any entity that stores, processes, or transmits cardholder data. By using Pine Labs Hosted Checkout, merchants offload PCI compliance to Pine Labs. |
| Pre-Authorization | A payment mode where funds are authorized (blocked) on the customer's card but not immediately captured. The merchant can later capture (settle) or cancel (void) the payment. Set `pre_auth: true` in the order creation API. |
| Processed (Status) | A payment status indicating the transaction is complete - funds have been debited from the customer and are scheduled for settlement to the merchant. |

---

## Q

| Term | Description |
| --- | --- |
| QR Code Payment | A payment method where the customer scans a QR code with their UPI app to initiate a payment. Pine Labs supports UPI QR code generation for in-app and web checkout. |

---

## R

| Term | Description |
| --- | --- |
| Redirect URL | The URL where the customer's browser is sent after payment completion. Configured in the order creation API. The redirect carries payment status parameters and a signature for verification. |
| Refund | The return of funds to a customer after a successful payment. Can be a full refund or partial refund. Pine Labs processes refunds via API or Dashboard, and the amount is credited back to the original payment method. |
| REST API | Representational State Transfer API - an architectural style for web services. All Pine Labs APIs follow REST conventions using HTTP methods (GET, POST), JSON payloads, and standard status codes. |
| Reward Points | Loyalty or reward points accumulated on a customer's credit/debit card that can be redeemed as a payment method during checkout. Pine Labs supports Pay by Points through the Seamless Checkout flow. |
| RBI (Reserve Bank of India) | India's central banking institution that regulates the payment ecosystem, issues licenses for payment aggregators, mandates security standards, and sets rules for UPI, tokenization, MDR, and recurring payments. |
| RuPay | India's domestic card payment network operated by NPCI. RuPay cards (credit and debit) are accepted through Pine Labs with zero MDR on debit card transactions per RBI regulations. |

---

## S

| Term | Description |
| --- | --- |
| Same-Day Settlement | A settlement option where the merchant receives funds on the same business day as the transaction, instead of the standard T+1 or T+2 cycle. Available as a premium feature through Pine Labs. |
| Sandbox / UAT | A test environment (`https://pluraluat.v2.pinepg.in`) where merchants can test API integrations with mock credentials before going live. Supports test card numbers, simulated bank responses, and webhook testing. |
| SDK (Software Development Kit) | A collection of tools, libraries, and documentation that simplifies integration. Pine Labs provides Web SDK, Android SDK, and iOS SDK for embedding checkout flows in web and mobile applications. |
| Seamless Checkout | A customizable checkout flow where the payment interface is embedded directly within the merchant's website. The customer stays on the merchant's domain. Requires the merchant to handle some PCI compliance aspects. |
| Secret Key | A confidential credential provided by Pine Labs for authenticating API requests and verifying webhook signatures. Must be stored securely on the server and never exposed in client-side code or version control. |
| Settlement | The process of transferring collected payment funds from Pine Labs to the merchant's bank account. Settlements follow a cycle (typically T+1 or T+2 business days) and can be tracked via the Dashboard or Settlement APIs. |
| Settlement Cycle | The time period between a payment being processed and the funds being deposited in the merchant's bank account. Standard is T+1 (next business day) or T+2, with same-day and holiday settlements available. |
| Signature Verification | The process of validating that webhook or callback data originated from Pine Labs and was not tampered with. The merchant computes an HMAC-SHA256 hash of the payload using their secret key and compares it to the signature provided. |
| Split Settlement | A marketplace feature where a single payment is automatically divided among multiple vendors/sub-merchants according to predefined split rules. Enables platforms to manage multi-party payouts from a single order. |
| Subscription | A recurring payment arrangement where the customer authorizes periodic charges (weekly, monthly, annually) for ongoing services. Pine Labs Subscription APIs manage plan creation, mandate registration, cycle billing, and lifecycle events like pause, resume, and cancel. |

---

## T

| Term | Description |
| --- | --- |
| T+1 / T+2 Settlement | Settlement cycle notation. "T" is the transaction date. T+1 means funds reach the merchant's bank account one business day after the transaction. T+2 means two business days. |
| Third-Party Validation (TPV) | A regulatory requirement for businesses in the BFSI sector (securities, broking, mutual funds) mandated by SEBI. TPV ensures customers can only make payments from bank accounts registered during onboarding. Pine Labs supports TPV in both Hosted and Seamless Checkout. |
| TLS (Transport Layer Security) | A cryptographic protocol that ensures secure communication over the internet. All Pine Labs API endpoints use TLS 1.2 or higher to encrypt data in transit. |
| Tokenization | A security process where sensitive card data (PAN) is replaced with a non-sensitive, unique token issued by the card network. Pine Labs supports RBI-compliant card tokenization - customers consent once, and subsequent payments use the token instead of raw card data. |
| Transaction | Any financial activity on a Pine Labs account - payments received, refunds issued, or payouts made. Each transaction has a unique ID, status, amount, and timestamp. |
| Two-Factor Authentication (2FA) | An additional security layer requiring two forms of identification (e.g., password + OTP sent to mobile) to access the Pine Labs Dashboard or authorize sensitive operations. |

---

## U

| Term | Description |
| --- | --- |
| UAT (User Acceptance Testing) | See **Sandbox / UAT**. |
| UPI (Unified Payments Interface) | India's real-time payment system built by NPCI that enables instant money transfers between bank accounts using a Virtual Payment Address (VPA). Pine Labs supports UPI Collect, UPI Intent, and UPI QR payments. |
| UPI Collect | A UPI payment flow where the merchant sends a payment request to the customer's UPI ID. The customer approves the request in their UPI app (Google Pay, PhonePe, etc.) to complete the payment. |
| UPI Intent | A UPI payment flow where the customer is redirected to their preferred UPI app on their mobile device to approve the payment. Provides a seamless app-to-app experience without entering a VPA. |
| UTR (Unique Transaction Reference) | A unique reference number generated by the bank for each fund transfer (NEFT, RTGS, IMPS, UPI). Used to track settlement payouts and reconcile transactions. |

---

## V

| Term | Description |
| --- | --- |
| VPA (Virtual Payment Address) | A UPI identifier in the format `username@bankhandle` (e.g., `john@upi`) that maps to a bank account. Customers use their VPA to send and receive UPI payments. |

---

## W

| Term | Description |
| --- | --- |
| Wallet | A digital payment method where customers store funds (e.g., Paytm, PhonePe, Amazon Pay) and use them for online transactions. Pine Labs supports wallet payments through Hosted and Seamless Checkout. |
| Webhook | A server-to-server HTTP callback that Pine Labs sends to the merchant's configured endpoint when a specific event occurs (e.g., payment success, refund processed, settlement completed). Webhooks are the reliable mechanism for payment confirmation - unlike browser redirects, they are not dependent on the customer's browser. |
| Webhook Retry | The automatic re-delivery of a webhook notification when the merchant's endpoint fails to respond with an HTTP 2xx status. Pine Labs retries failed webhooks with exponential backoff. |

---

## Related pages

- [API Reference Guide](/api)
- [Error Codes](/docs/developer-tools-error-code)
- [Webhooks](/docs/developer-tools-webhooks)
- [Test Card Details](/docs/payments-test-card-details)