What does Authorization mean in payment processing?

Tokenization in payment processing is like giving your credit card a secret identity. Instead of sharing your real card number during transactions, a token—a unique random number—is used instead. This keeps your actual card details safe from hackers because its actual details are not stored or used during transactions.

In payment processing, settlement is when the money moves from a customer to a merchant after a transaction is done.

A refund in payment processing is when a business gives back money to a customer after they've already paid. This typically happens if the customer doesn't like what they bought or doesn't need it anymore.

handle the transfer of money by communicating with the merchant, the customer's bank, and the merchant's bank. They make sure the payment details are correct, check if you have enough money, and then transfer the funds securely.

An issuer in payment processing is the bank or financial institution that provides you with a credit or debit card. They're the ones responsible for approving or declining transactions and managing your account.