Understanding payment terminology helps you manage your property's finances more effectively and reduces the risk of disputes. Below are the key concepts related to Cloudbeds Payments.
- This glossary contains explanations of concepts related to Cloudbeds Payments' features.
- If you are interested in the Cloudbeds Payments feature, click here for further details and talk to our team.
Transaction & Security Basics
| Term | Simple Definition | Why It Matters |
| Authorization | A temporary "hold" on a guest's funds to confirm the card is valid and has enough money. | Ensures you can get paid before the guest checks in. |
| Capture | The process of actually taking the money from an authorized hold and sending it to your bank. | This is the step that results in real cash in your account. |
| Card-Not-Present (CNP) | A transaction where the card isn't physically swiped or tapped (e.g., online bookings or phone orders). | These have a slightly higher risk of fraud and higher processing fees. |
| CVV/CVC | The 3 or 4-digit security code on the card. | Required for CNP transactions to prove the guest actually has the card. |
| AVS (Address Verification) | A security check that compares the billing address provided by the guest with the one on file at their bank. | Helps prevent fraud in online transactions. |
| Tokenization | Replacing sensitive card numbers with a "token" (a random string of characters). | Cloudbeds uses this so you can charge a card later without actually seeing or storing the full card number. |
Hardware & On-Site Payments
POS (Point of Sale): The physical location (like your front desk) where a transaction is completed.
Card Reader / Terminal: The device used to read chip, stripe, or contactless data.
Example: The Verifone P400 is a common desktop terminal used with Cloudbeds.NFC (Near-Field Communication): Technology that allows "Tap to Pay." This includes contactless cards, Apple Pay, and Google Pay.
PIN (Personal Identification Number): A secret code entered by the guest to authorize a debit or credit transaction on a terminal.
Banking & Business Setup
DDA (Direct Deposit Account): The specific bank account where Cloudbeds sends your processed payouts.
DBA (Doing Business As): Your "Trade Name." This is the name guests see on their building signage, which may be different from your legal corporation name.
Statement Descriptor: The text that appears on a guest’s bank statement (e.g., "SUNSET RESORT MOTEL").
Tip: Keep this clear! If a guest doesn't recognize the name, they might file a Chargeback.Merchant: That's you! The business owner authorized to accept card payments.
Compliance & Disputes
PCI DSS: Global security standards that every business accepting cards must follow. Cloudbeds Payments handles the heaviest part of this compliance for you.
Refund: Sending money back to a guest's card.
Note: Processing fees from the original sale are generally not returned when you issue a refund.Chargeback / Dispute: When a guest tells their bank that a charge was fraudulent or incorrect. The bank then pulls the money back from you until you prove the charge was valid.
Unauthorized Transaction: A payment made without the cardholder's permission (fraud). This is different from a "Declined" transaction, which just means the bank said "no" to the request.
Technical Connectivity
Ethernet: A physical "hardwired" internet connection using a cable. Recommended for stationary card terminals to ensure 100% uptime.
WPA2/WPA3: The security encryption for your Wi-Fi. Your card readers require a secure, password-protected network to function.
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