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A plain-English payment glossary

The terms merchants hear most often, explained before the sales call.

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Twin Horn payment services illustration

Ask which company performs each role for your actual account. A familiar logo or terminal does not identify the underwriter or the bank moving the funds.

01

Acquirer, processor, and sponsor bank

An acquirer or acquiring program contracts for card acceptance; processors provide transaction technology; a sponsor bank supplies regulated banking participation where required. The exact relationships are set in provider agreements.

02

MID, TPN, gateway, and POS

A merchant ID identifies an account within a provider setup. A terminal profile identifies device configuration. A gateway sends authorized payment messages. A POS manages the sale and may connect to the payment system.

03

ACH, returns, reserves, and settlement

ACH refers to bank-account transfers. A return is a bank payment sent back under applicable rules. A reserve holds funds under contract terms. Settlement is the provider-controlled movement of proceeds according to the merchant agreement.

QUESTIONS THAT MATTER

Good answers make
better decisions.

Is a QR bank payment a debit-card transaction?

No. The customer-facing experience may look similar, but the payment rails and applicable rules differ.

Does Twin Horn hold merchant funds?

No. The approved provider and its banking partners handle processing and merchant settlement.