FinTech, the new-age portmanteau, comes with a whole selection of finance and technology jargons. If you are confused or clueless about all the acronyms that seem to take up a lot of your team meetings, you are not alone. Here is a cheat sheet for the newbies in the FinTech industry.

Does it sound like a part of some math equation? Well, it is not. It is Two-factor Authentication – a security system requires two separate, distinct forms of identification to make a digital payment. The first factor is a password and the second includes a text with a code sent to your smartphone (like OTP), or biometrics using your fingerprint.

3D - Three Domains is an enhanced security feature that offers a 3-layer protection for online card transactions. The first is the card issuer; second, the retailer receiving the payment; and third is the 3DS infrastructure platform that acts as a secure go-between for the consumer and the retailer.

In simple terms, the acquiring bank is the business bank, and the issuing bank is the customer bank. The acquiring bank retrieves or accepts the customer's money from their issuing bank.

Application Programming Interface – is a software tool that acts as an intermediary, sharing information and data between applications. It allows third-party applications such as e-commerce sites, FinTech service providers, etc. to communicate with Bank’s application to enable payment, verification, and such customer-oriented services.

An Acquirer Reference Number is a unique number created in credit or debit card transactions. A unique number is allotted to a specific transaction, as it goes through a payment flow. ARNs are used to find transaction status and are important to shops, customers, issuers, and merchants for refund, fraud, and dispute.

Authentication is the process of verifying a user's identity and their ability to access a requested account. For instance, entering online banking credentials (username/password/PIN) authenticates a user by identifying the individual and verifying that he/she is who they claim to be.

Authorization is the process of requesting/receiving permission access to data. It allows a user to allow an application to access his/her bank data. The user may choose to authorize financial tools to access bank data for budgeting, investing, etc.

Address Verification Service is a fraud prevention service provided to businesses. It authenticates the ownership of a credit card or debit card used by a customer, verifying the cardholder’s billing address.

A banking license is a legal prerequisite for a financial institution that wants to operate as a banking business. RBI has authorized 12 public sector banks and 21 private sector banks in India.

Bank Identification Number (BIN) refers to the first 4-6 numbers on a payment card (Credit/Debit/Charge Cards). The BIN system helps prevent identity theft by verifying the legitimacy of the account and whether funds are available in the account.

The BIN number is used fraudulently by scammers to gain your trust by impersonating a bank official. They try asking you to confirm the rest of the numbers on your card and any other information about the location of your home branch. So, beware of such scams and never disclose any banking or card details.

Biometric refers to more than a fingerprint or an iris scan. It is an umbrella term for digital security methods that rely on biological or psychological attributes, and it is used to prevent data breaches. The criteria for biometric is simple- unique element that can prove an individual’s identity such as fingerprint, voice pattern, password, PIN code, etc.

The payment options, currently disrupting the lending business sector of finance. Buy Now Pay Later (BNPL) is a payment option that enables you to make a purchase and the lender pays on your behalf. You are allowed to repay the amount within the stipulated time, in installments or as a lumpsum settlement. The difference between BNPL and credit cards/personal loans is no interest is levied on the payment within the stipulated time.

Cash Back is a benefit offered by apps, websites, and credit cards to refund a small percentage of the money spent on a purchase.

The cash card is a prepaid card with a stipulated amount stored in it. These cards are issued by organizations, for employees to use for official purposes.

Chargeback is a dispute raised by a cardholder against a specific transaction. It is a provision allowed by banks and card networks such as MasterCard & Visa to protect buyers from unauthorized or fraudulent payments.

Corporate Identification Number (CIN) is a unique 21-digit identification number assigned to companies registered in India. The Registrar of Companies (ROC) issues the CIN and enables the Ministry of Corporate Affairs to track all activities related to the company.

Cloud computing is storing and accessing data and programs over the internet instead of your computer hard drive.

Cloud Service Provider refers to a company/organization that offers a cloud-based platform, infrastructure, application, or storage devices that your company can use over the internet.

A credit card is provided by banks to enable customers to borrow funds or make purchases within a pre-approved credit limit.

Customer Relationship Management (CRM) is a system or software designed to aid in collecting and managing an organization’s interaction with the customers or potential customers. It helps streamline sales, marketing, customer service, accounting, and management.

Card Verification Value (CVV) / Card Verification Value 2nd generation (CVV2) / Card Security Code (CSC) / Card Verification Code (CVC) is a security feature available on Credit and Debit Cards. It is the 3-digit number printed on the back of the credit/debit card. Even if someone has your credit card or debit card number, they cannot perform any transactions or purchases without the CVV number. Never share your CVV number.

That’s all for this section. Keep following to know more and become a FinTech Pro with acronyms and jargons that keeps you up to date with the new-gen vocabulary. Keep reading.