Some figures related to bank card use in France
Among the available payment methods, bank cards clearly stand out, representing more than 60% of the total volume of cashless payments in France. This upward trend can be observed over the last decade through a 22%² increase in the number of cards issued since 2012, reaching 73.9 million in 2021. This growth is explained by the rapid adoption of new card payment methods.
Introduced in 2012 and encouraged by numerous regulatory adjustments, contactless payment has become a preferred choice for many low-value transactions. More than 6 out of 10 physical transactions are carried out this way³, demonstrating its significant integration into consumer payment habits.
The use of mobile card payments is also experiencing exponential growth, with increases of 177% in 2021 and 137% in 2022³.
Complete Card Payment Glossary
Find below the definitions of all the terms used when collecting payments by credit card.
Credit card
A payment method issued by a financial institution that allows financial transactions to be made electronically. Often linked to a bank account, these cards can be used to pay for purchases online or in-store.
There are two types of bank cards:
- Debit card: The cardholder’s bank account is debited with the amount of purchases, directly after payment.
- Credit card: A card with a credit line, allowing the cardholder to make transactions up to a maximum amount, defined in advance. These transactions constitute a debt, which the cardholder must repay in the following period.
Transaction
The act of making a payment using a bank card. This transaction involves the electronic transfer of funds from the cardholder’s account to the merchant’s account for the purchase of goods or services.
Electronic payment contract
An agreement between a bank/payment service provider and a merchant wishing to accept payments by bank card. This contract establishes the rights, responsibilities, and obligations of each party regarding the acceptance of card payments, associated fees, transaction security, etc.
Direct Debit Card
Card issued to the merchant following the signing of an electronic payment contract with a bank. Distinct from a bank card, it allows the configuration of the physical EFT, thanks to the 7 digits it contains. In everyday life, it is useful in the event of payment cancellation or customer refund procedures.
Electronic Payment Terminal (EFT)
Electronic device used by merchants to accept card payments. It reads bank card information (on the magnetic stripe or in the electronic chip) and transmits transaction data to banks for card limit verification and settlement purposes.
Contactless Payment
A bank card payment method that allows consumers to physically settle transactions by simply holding their card near an NFC-enabled EFT terminal. With this device, cardholders can pay faster and generally for limited amounts, without having to insert their card and enter their PIN.
NFC (Near Field Communication)
An electronic device that uses near-field communication technology to securely exchange payment data between a payment terminal and a bank card.
PIN (Personal Identification Number)
A 4- to 6-digit PIN used to authenticate the cardholder during electronic card transactions. It must be entered on a numeric keypad during payment.
Electronic Collection
The process by which data from bank card transactions made from an EFT is sent periodically (usually daily) to the acquiring bank. This automatic process allows for the efficient consolidation and processing of payment information.
PAN (Primary Account Number)
Unique identifier of the bank card issued by the card-issuing institution. Usually visible on the front of the card, this series of 12 to 19 digits is used to identify the card, route transactions between the relevant entities, and perform security checks.
BIN (Bank Identification Number)
The first 6 or 8 digits of the PAN, which correspond to the identification number of the bank issuing a payment card. It is used to identify the payment network to which the bank card belongs, verify its validity, and process transactions.
CVV (Card Verification Value)
A 3- or 4-digit security code, usually visible on the front of the bank card. This provides additional security to authenticate the cardholder during transactions, as the CVV is not stored on the card’s magnetic stripe or in the chip.
Remote payment
A transaction in which the cardholder makes a payment without being physically present at the point of sale. This includes online, phone, or email purchases, which generally require manual entry of card information (PAN, expiration date, and CVV).
Cardholder
A natural or legal person who owns a bank card issued by a financial institution. They are legally authorized to use the card to make purchases, withdraw cash, or any other financial transactions in accordance with the card’s Terms and Conditions.
SCA (Strong Customer Authentication)
European regulatory requirement, introduced in 2019 through PSD2 to strengthen the security of online payments and, in particular, to protect banking information. It requires the use of strong authentication mechanisms for each online transaction, to certify that it is actually carried out by the cardholder, through at least two of the three authentication factors:
- Knowledge of information (password, secret question, secret code, identification number, diagram, etc.)
- Property in possession (cell phone, connected device, token, card, badge, etc.)
- Inherent attribute that characterizes the payer (fingerprint, facial, voice or iris recognition…)
3D-Secure (3DS)
A security protocol in which the bank requires the cardholder making the payment to authenticate themselves using several methods (code received on a known device, fingerprint, etc.). It secures transactions and limits the number of card disputes for merchants.
In version 3DS 2.0, this authentication is not systematically requested, particularly when certain payment data corresponds to the cardholder’s habits (IP address, location, browser type, device type, amount, etc.). This is to maintain a frictionless card payment process.
Acceptor
Any commercial entity that accepts card payments, in its own name or that of its network, whether physical or online.
Acquirer / Acquiring Bank (Acquirer)
The merchant’s financial institution that allows the acquisition, processing, and deposit of funds received by bank card, as well as the maintenance of its accounts.
Card issuer
The financial institution, usually a bank, that manufactures and makes available debit and/or credit cards.
Card Scheme
The entity that provides the communication system used by card issuers and businesses to process banking transactions. Some of the most well-known networks include Visa, Mastercard, Cartes Bancaires, and American Express.
Interchange +
A pricing model designating the total fees charged for each merchant card payment transaction. Interchange + is composed of:
- Interchange Fees, charged by the cardholder’s bank that completes the transaction
- Card Scheme Fees, charged by the bank card networks (Cartes Bancaires, Visa, Mastercard).
Interchange ++
Modèle de tarification désignant la somme des commissions prélevées lors de chaque opération de paiement par carte du marchand. L’Interchange ++ est composé des frais d’Interchange + complétés des frais des services facturés par le prestataire de services de paiement. Avec des frais variables selon les volumes d’encaissement et les options négociées dans le contrat, ils lui permettent d’assurer le fonctionnement de sa plateforme et des services associés.
For a merchant, this calculation allows them to determine the exact cost of each transaction.
Clearing House
Centralized processing system within which financial institutions exchange payment orders, according to specific provisions (procedures, schedules, etc.). The clearing house regulates the debts and receivables of each party, paying only the difference to the creditor institution.
Pending
A pending transaction status, meaning it has been initiated but has not yet been fully processed: security verification in progress, authorization awaiting confirmation by the card issuer, etc. These transactions may ultimately be confirmed and processed, or canceled if they are not finalized within a specified timeframe.
Card imprint / pre-authorization
A verification performed by merchants, consisting of blocking a certain amount on the cardholder’s card to ensure that the necessary funds are available in their account for a future payment. This allows the capture of authorized funds on the card for up to 30 days.
Bank authorization (author)
A query from the acquirer to the cardholder’s bank regarding the transaction amount. Following the “bank return code,” the acquirer is able to determine whether the requested amount is available, and if not, why not (insufficient funds, stolen card, etc.). A valid authorization allows the merchant to capture the requested amount for up to 7 days.
Capture
Initiation of card debit based on authorization or pre-authorization. Capture means that the funds are guaranteed to the merchants, but the bank transaction will only be completed at interbank clearing.
Interbank Clearing
The process by which financial transactions between different banks or financial institutions are cleared and settled. It coordinates the movement of funds between the accounts of issuers and acquirers, thus facilitating the settlement of financial transactions.
Debit
Funds transfer between the cardholder’s bank and the acquiring bank (merchant’s account), generally completed following a validated authorization, but may be delayed for a specific transaction such as a deposit, a payment deferred for more than X days, or a payment for which the exact amount is unknown (gas pump).
Card Payment Failure
Situation in which a card transaction attempt fails, preventing the intended purchase from being completed. Failure can be due to several reasons: insufficient funds in the bank account, reaching the card limit imposed by the issuer, expired card, incorrect card information, or technical issues with the EFT or payment network.
Card Dispute
Process by which a cardholder reports a suspicious or unauthorized transaction to the issuer for a refund or chargeback. Reasons for disputes may include fraudulent transactions, billing errors, unreceived goods or services, or other issues related to card usage.
Credit Card Tokenization
A security process that replaces sensitive card information with a unique, random token. Also called a “token,” this token is used to complete transactions without revealing actual card details, reducing the risk of fraud and improving the security of online card payments.
Credit Card Fraud
Any activity involving the unauthorized or fraudulent use of a card to conduct transactions. This may include theft, counterfeiting, use of stolen card data, or any other form of fraud intended to improperly access funds or cardholder information.
Foreign currency payment
A financial transaction conducted in a foreign currency other than that used in the cardholder’s home country. This may include a purchase, a money transfer, or any other transaction involving currency exchange.
Prepaid Card
A payment card loaded with an amount in advance by the cardholder. Unlike traditional credit or debit cards, this card is not linked to a bank account and does not allow spending beyond the preloaded amount.
Payment facilities
Optional bank card payment method, providing flexibility and adaptation to the payer, according to their needs and consumption methods: split payment, payment by card subscription, deferred card payment, bank imprint, one-click, payment by wallet, etc.
Wallet / Electronic Wallet
A card payment facility that allows cardholders to store, manage, and carry out financial transactions without having to provide their bank details. Opened through an electronic wallet manager (bank or service provider), they offer numerous features in terms of security, funds management, and data retention (receipts, reporting, etc.).
Card Limit
Maximum amount authorized for card transactions, generally set by the card issuer based on the cardholder’s profile and spending habits. This limit helps limit the risk of fraud and excessive spending.
Acceptance Rules
A set of criteria and conditions defined by a financial institution to determine which transactions will be accepted, declined, or restricted for bank card transactions. Aimed at ensuring the security and legitimacy of transactions, these criteria may include transaction limits, geographic usage restrictions, credit checks, etc.
Whitelist
List of legal entities or individuals for which the financial institution selectively applies an acceptance rule, based on criteria such as bank card number or IP address, in order to be less restrictive on user populations.
Blacklist
List of legal entities or individuals for which a financial institution reserves the right to refuse bank card payments, based on criteria such as country, IP address, card numbers, telephone numbers, or email address.
¹ FEVAD – Chiffres clé du e-commerce (2023)
² Statista – Etude des cartes bancaires françaises entre 2012 et 2021 (2023)
³ Banque de France – Bulletin No. 249, article 4 (2023)
