The payments and point-of-sale glossary
Clear definitions of common payment processing and point-of-sale terms, for merchants in Quebec.
Acquirer (acquiring bank)
An acquiring bank is the financial institution that processes credit or debit card transactions on behalf of a merchant and settles the funds into the merchant's account. It sets up the merchant agreement, assigns the merchant a unique identifier (MID) and is responsible for routing transactions to the card networks (Visa, Mastercard, Interac). The merchant pays the acquirer the processing rate, which includes the interchange fees paid to the issuing bank.
Learn more: Our transparent processing rates
Apple Pay and Google Pay
Apple Pay and Google Pay are mobile wallets that let you pay contactlessly using an iPhone, an Apple Watch, an Android phone or a smartwatch, through NFC technology. These solutions store card information in tokenized form: neither the real card number nor the cardholder data travels during the transaction. NFC-compatible Clover terminals accept Apple Pay and Google Pay with no extra setup.
Learn more: NFC-compatible payment solutions at Direct Pay Solutions
Self-service kiosk
A self-service kiosk is a standalone interactive terminal that lets customers place and pay for their own orders, without help from a counter employee. In restaurants, it displays the menu, captures customizations, calculates the total and processes payment by card or mobile wallet. It connects to the POS system and the KDS to send orders straight to the kitchen, cutting line-ups and counter labour costs.
Learn more: The Clover Kiosk at Direct Pay Solutions
Clover
Clover is a point-of-sale brand developed by Clover Network, Inc., a Fiserv subsidiary, offering a range of smart terminals and business management apps. The platform includes several devices (Station Duo, Mini, Flex, Go) running on Android and connected to an ecosystem of more than 250 third-party apps available on the Clover App Market. Direct Pay Solutions is a certified Clover reseller in Canada.
Learn more: The Clover range at Direct Pay Solutions
PCI DSS compliance
PCI DSS compliance (Payment Card Industry Data Security Standard) means meeting a set of security standards established by the major payment card networks to protect cardholder data. These standards are set by the PCI Security Standards Council, founded by American Express, Discover, JCB, Mastercard and Visa. They include 12 core requirements covering network security, data encryption, vulnerability management and access control. Any merchant that accepts card payments is required to meet them.
Learn more: Security and compliance at Direct Pay Solutions
Next-day deposit
Next-day deposit is a settlement option where the funds from a day of card transactions are transferred to the merchant's bank account on the business day following the batch close. The deposit schedule depends on the payment processor, the acquiring bank and the daily batch close time. Fast deposits are an important factor in cash flow management for small businesses.
Learn more: Our settlement and pricing terms
DPS (Direct Pay Solutions)
DPS stands for Direct Pay Solutions, a Quebec-based payment services and point-of-sale provider specializing in Clover solutions for Canadian merchants. DPS helps restaurants, retailers and service providers choose, install and support their payment equipment, including MEV-WEB compliance for restaurants in Quebec.
Learn more: About Direct Pay Solutions
EMV (chip and PIN)
EMV is an international standard for chip-and-PIN card payments, developed jointly by Europay, Mastercard and Visa, which replaces the magnetic stripe to secure in-person transactions. The EMV chip generates a unique cryptogram for every transaction, which makes card counterfeiting far harder than copying a magnetic stripe. In Canada, nearly all terminals and cards have met the EMV standard since 2010. EMV transactions require entering the PIN or, for small amounts, a contactless approval.
Learn more: Secure payment solutions at Direct Pay Solutions
Issuer (issuing bank)
An issuing bank is the financial institution that issues a credit or debit card on behalf of a cardholder, authorizes transactions and carries the credit risk. During a card transaction, the issuing bank receives the authorization request, checks the available balance or credit limit and approves or declines the transaction within seconds. It collects the interchange fees paid by the acquiring bank on each approved transaction.
Learn more: Understanding processing fees at DPS
Interchange fees
Interchange fees are fees paid by the acquiring bank to the issuing bank for each card transaction, and make up the main component of the processing rate paid by the merchant. These fees are set by the card networks (Visa, Mastercard, Interac) and vary by card type (debit, standard credit, rewards credit), business sector and entry method (chip, contactless, online). In Canada, voluntary commitments by Visa and Mastercard have capped interchange rates for small businesses.
Learn more: Our transparent processing rates
KDS (kitchen display system)
A KDS (Kitchen Display System) is a digital screen installed in the kitchen that receives and displays orders in real time, replacing paper order tickets. It connects to the POS system and automatically relays orders taken in the dining room or at the counter to the relevant prep stations. A KDS reduces miscommunication, tracks preparation times and keeps service in sync between the front of house and the kitchen.
Learn more: The Clover KDS at Direct Pay Solutions
Batch (batch settlement)
A batch is the set of card transactions accumulated over a given period (usually a day) and submitted together to the payment processor for settlement at the daily close. The batch settlement triggers the calculation of the net amounts owed to the merchant after processing fees are deducted. The close time directly affects the deposit schedule: a batch closed before the processor's cut-off is usually credited on the next business day.
Learn more: Our settlement and pricing terms
Interac machine
An Interac machine is a payment terminal configured to accept transactions on the Interac network, Canada's electronic debit payment system. The term "Interac machine" is the everyday name in Quebec for a point-of-sale terminal (POS terminal) that accepts Canadian debit. Interac is a cooperative association of the Canadian financial industry that runs the debit and transfer networks between member institutions.
Learn more: Direct Pay Solutions payment solutions
MEV-WEB
MEV-WEB (the online sales recording module) is the system required by Revenu Québec for restaurants that must record and transmit their sales electronically. It replaces the older physical SRS (sales recording systems) and works over an internet connection from the establishment's cash register software or POS system. Restaurants subject to the rules must display an MEV sticker on their terminal and provide invoices bearing a QR code certified by Revenu Québec.
Learn more: MEV-WEB compliance with Direct Pay Solutions
MSP and ISO (merchant services provider)
An MSP (Member Service Provider) or ISO (Independent Sales Organization) is a company authorized by a card network to distribute payment processing services to merchants on behalf of an acquiring bank. MSPs and ISOs recruit and support merchants, handle billing and customer service, while remaining contractually tied to a principal acquirer. Direct Pay Solutions acts as an MSP for the merchants it serves in Canada.
Learn more: About Direct Pay Solutions
PIN (personal identification number)
A PIN (personal identification number), known in French by the acronym NIP, is a secret 4- or 6-digit code entered by a cardholder to authenticate a debit or chip transaction. Entering the PIN on the terminal proves that the person using the card is its legitimate holder. For Interac debit transactions, PIN entry is mandatory regardless of the amount; for chip credit transactions, it may be required above the current contactless threshold.
Learn more: Payment security at Direct Pay Solutions
Contactless payment
Contactless payment is an electronic payment method that lets you settle a transaction by tapping a card or mobile device on a compatible terminal, without inserting or swiping the card. The technology relies mainly on near-field communication (NFC) or, for transit cards, on radio-frequency identification (RFID). Mobile wallets such as Apple Pay and Google Pay also use NFC for contactless payments.
Learn more: NFC-compatible payment solutions at Direct Pay Solutions
Payment gateway
A payment gateway is a technology service that encrypts and transmits card data between a merchant's website or app and the payment network for authorization, whether the transaction is online or in person. It acts as a secure intermediary between the merchant, the payment processor and the issuing bank. Modern gateways include tokenization, fraud detection and support for multiple payment methods (card, mobile wallet, transfer).
Learn more: Online payment solutions at Direct Pay Solutions
Point of sale (POS)
A point of sale (POS) is the computer and hardware system a merchant uses to record sales, manage inventory and take payments. A complete POS system usually brings together a payment terminal, cash register software, a barcode scanner, a receipt printer and sometimes a customer-facing screen. It centralizes sales data to make accounting and management easier.
Learn more: Clover POS systems at Direct Pay Solutions
Tipping (on a payment terminal)
Tipping on a payment terminal is a feature of the terminal software that prompts the customer to enter or select a tip amount during the transaction, before the PIN entry or contactless approval. Clover terminals offer percentage-based tip options (for example 15 %, 18 %, 20 %) or a custom amount, configurable by the merchant. The tip is included in the total authorized amount and deposited with the other funds at batch close.
Learn more: Restaurant solutions at Direct Pay Solutions
Chargeback
A chargeback is the forced reversal of a card transaction, initiated by the card issuer at the request of a cardholder who disputes a charge. The process involves the cardholder, their issuing bank, the payment processor and the merchant. The merchant has a set window to contest the chargeback by providing proof of the legitimate transaction. Excessive chargebacks can lead to penalties or termination of the merchant agreement.
Learn more: Frequently asked questions about payment security
SRS (sales recording system)
An SRS (sales recording system) is the physical device or software, the predecessor of MEV-WEB, used in Quebec restaurants to record every sales transaction and transmit the data to Revenu Québec. The SRS regime was introduced in Quebec in 2011 to fight tax evasion in the restaurant sector. Since 2021, Revenu Québec has been gradually migrating establishments to MEV-WEB, a fully online solution that replaces the physical SRS boxes.
Learn more: MEV-WEB compliance with Direct Pay Solutions
Surcharge (credit card fee)
A surcharge is an extra fee that some merchants add to credit card transactions to offset all or part of the interchange fees they absorb. In Canada, surcharge rules vary by card network and by province. Merchants who want to apply a surcharge generally have to inform customers before the transaction and respect the caps set by Visa and Mastercard. Surcharges do not apply to debit transactions.
Learn more: Understanding processing fees at DPS
Processing rate (discount rate)
The processing rate, also called the discount rate, is the percentage of each transaction amount taken by the payment processor or acquiring bank in exchange for handling card payments. This rate covers the interchange fees (paid to the card's issuing bank), the card network fees and the processor's margin. It varies by card type (debit, standard credit, rewards credit), transaction type (in person, online) and the merchant's business sector.
Learn more: Our transparent processing rates
Payment terminal
A payment terminal is an electronic device that lets a merchant accept credit, debit or contactless card payments at the time of a transaction. It reads the card data (by insertion, swipe or contactless) and transmits it, encrypted, to the payment network for authorization. Modern terminals also include point-of-sale and receipt management features.
Learn more: Clover smart terminals at Direct Pay Solutions
Virtual terminal
A virtual terminal is a web or app interface that lets a merchant accept card payments without a physical terminal, by manually entering the card information in a browser or application. It is used for orders taken by phone, email or mail, or as a backup when the physical terminal is down. The data entered travels through a secure payment gateway and is subject to the same PCI DSS compliance requirements as in-person transactions.
Learn more: Virtual terminal included with Clover at DPS
Tokenization
Tokenization is a security process that replaces the sensitive data of a payment card with a unique, random identifier (the token) that has no usable value outside the authorized payment system. During an online purchase or through a mobile wallet, it is the token, not the real card number, that is sent to the merchant and stored in their systems. If an attacker intercepts this token, they cannot use it in another context. Tokenization is at the core of how Apple Pay, Google Pay and card-on-file payments work.
Learn more: Payment security at Direct Pay Solutions
POS terminal
A POS terminal (point-of-sale terminal) is the generic term for any hardware device, fixed, portable or mobile, that a merchant uses to process card payments at the time of sale. TPV is the French equivalent of POS terminal. It covers classic countertop terminals, wireless portable terminals, mobile readers connected to a smartphone and terminals built into cash register systems. In everyday speech in Quebec, the POS terminal is often called an "Interac machine" or a "payment terminal".
Learn more: Clover terminals at Direct Pay Solutions
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