Chili peppers are actually a capsicum, as capsicum is another word for pepper and encompasses the entire genus. A genus is basically a category of similar plants or animals that can be further divided by their characteristics. The capsicum genus includes all colors of bell peppers, banana peppers, jalapenos, habanero, cayenne, and many others.
Some of these peppers are ranked highly in terms of heat, other have no heat but plenty of flavor. Although in the United States, we refer to these plants as "peppers," in other areas of the world they are simply called capsicums. Chili peppers can further be divided into mild or spicy, with many different levels of spice.