This payment glossary has all the terms related to payments that you as a merchant would continue to hear in the payments.

TickleCharge has put more than 150+ terms to help you understand payments better.

ACH OperatorAn entity that processes all ACH transaction flows between financial foundations and serves as the central clearing facility for the network participants.1
AcquirerA financial services organization that processes payments for merchants and billers.
Address Verification System (AVS)A security system requiring merchants to supply address information for a cardholder to the institution that issues the credit card in card-not-present transactions, including online purchases.
AddressingAn automated means to route/direct a transaction using a set of data that may employ a directory service.
AdjustmentsA transaction that corrects or modifies the amount or details of a payment entry.
Anti-money launderingA set of laws, regulations, and procedures set to prevent illegally obtained funds from being treated as
legitimate income.
Application Program InterfaceA set of specifications, standards, routines, and protocols providing the capability of building software applications which can be used as building blocks and provide the ability to exchange information
Association for Payment Clearing ServicesAn organization that manages the main clearing networks which allow UK banks and building societies to exchange payments.
AuthenticationThe process that verifies the identity or veracity of a participant, device, payment, or message connected to a payment system.
AuthorizationThe explicit instructions/permission, including timing, amount, Payee, source of funds, and other conditions, given by the Payer to the Payee to transfer funds on a one-time or recurring basis.
ParticipantSomeone who has legal access to a payment Solution, payment network, or payment service.
Automatic Teller Machine (ATM)An electronic physical banking option that allows customers to complete basic transactions without the aid of a branch representative or teller.
Available BalanceThe amount that includes the total funds available for use right now.
Bank CardA physical card that is typically a plastic card issued by a card-issuing entity, which is often a bank or credit union, providing access to funds either by drawing on a bank or a credit account. ATM cards, debit cards, and credit cards are all examples of bank cards.
Bank Identification Code aka SWIFT CodeA bank code made up of a series of numbers used to identify worldwide banks. The bank BIC codes are made up of specific characters: 1—4 company name, 5—6 country, 7—8 city/town, and 9—11 (optional)
department code (e.g., JPMorgan Chase = CHASGB2L).
Bank Routing NumberAll Financial Institutions (FIs) are identified by a nine (9) digit routing transit number (RTN) that is often found at the bottom of a check.
BanksFinancial Institutions (FIs) chartered to hold deposits, provide loans, and provide financial and other
Basis point (bp)A one-hundredth of a percent. As interchange and buy rates tend to be fractions of a percent, it’s common to refer to them in bps for clarity (e.g. not 0.43% but 43 bps). Usually pronounced as “bips” in its plural form.
BatchMultiple transactions that are processed together.
Batch ProcessingMethod used to process multiple transactions submitted together.
Batch settlementThe settlement of groups of payments.
BreachAn intentional or unintentional incident of compromised payment-related information.
Business DayAn official business day open to substantially carry out all business functions. A Banking Business Day may be different from a Payments Network Business Day.
Business to BusinessA payment transaction between two businesses.
Business to ConsumerA payment transaction between a business and a consumer.
Business to GovernmentA payment transaction between a business or private sector entity and public organization.
California Consumer Privacy ActThe CCPA requires businesses of certain sizes to have a data tracking system(s) in place that gives consumers the right to request all the data a company has collected on them over the previous 12-months, as well as data protection and deletion rights.
CapsQuantitative limits on the funds transfer activity of individual participants in a system; limits may be set by each individual participant or may be imposed by the body managing the system; limits can be placed on the net debit position or net credit position of participants in the system.
Card AssociationAn organization owned by a financial institution that licenses bank credit card programs and performs operational functions for its members such as transaction processing, authorizations, and interchange
Card IssuerA financial institution, such as a bank or a credit union, that offers a payment card (credit or debit cards) directly to consumers (or organizations) and is liable for the use of the card. The issuer is also responsible for the billing and collecting of funds for purchases that were made using that card. In the payments value chain, the card issuer pays the acquiring bank for purchases of goods and services that the cardholder makes. The cardholder then repays the issuing bank based on terms of the agreement
Card Verification Values, version 2A three or four-digit code on a credit card that enhances fraud protection, also known as CVN, CVV, CSC, Card Security Code, or Card Verification Number.
CHECK 21Abbreviated term for the Check Clearing for the 21st Century Act which is a federal law that took effect on October 28, 2004, providing the same legal rights for an “image replacement document” (IRD) as the original check with certain qualifications. In turn, this facilitated the ability of banks and other organizations to create electronic image copies of checks, in a process known as check truncation. The images are then sent to the relevant financial institutions to be processed, where money from a consumer’s account is
transferred to the receiving party’s account.
Chip CardsA type of credit/debit card with an embedded smart chip designed to make transactions more secure. It is now the global standard for credit and debit cards, also known as EMV® for the founding developers of the
technology: Europay, Mastercard, and Visa.
Clearing/ExchangeThe process by which the Payer’s and Payee’s Depository Institutions or Regulated Non-Bank Account Providers exchange payment information to validate transactions prior to settlement, potentially including
the netting of transactions and the establishment of final positions for settlement.
Clearing House Interbank Payments SystemAn independent bank-owned payments system for clearing large value payments. CHIPS is a real-time, final payments system for U.S. dollars that uses bi-lateral and multi-lateral netting for maximum liquidity
Commercial CardA generic term referring to payment cards issued to businesses for use by employees to cover expenses (e.g., corporate cards, purchasing cards, travel, and entertainment cards).
Compliance RiskThe danger that a party to a transaction fails to comply, either knowingly or inadvertently, with payment
system rules and policies, regulations and applicable US and state law.
ConsumerA natural person.
Consumer AlertsAn opt-in communication service offered by card issuers or account issuers where cardholders or accountholders receive alerts based on unusual or unauthorized transaction activity, or other preset
Consumer AuthenticationThis refers to tools used to verify that the cardholder making a transaction is actually the individual
authorized to make that transaction, for both in-person and card-not-present transactions.
Consumer Financial Protection
Bureau (CFPB)
A federal government agency that supervises certain banks, credit unions, and other financial companies
for compliance with federal consumer financial laws, and enforces those laws.
Consumer to BusinessPayments transaction between a consumer and a business.
Consumer to GovernmentPayments transaction between a consumer and the government (e.g., state, federal, local taxes).
Contactless PaymentsContactless payments refer to a secure method of transaction that leverages mobile devices and payment terminals equipped with radio frequency identification (RFID) or near-field communication (NFC) technologies.
Continuous Linked SettlementA means of settling foreign exchange transactions finally and irrevocably. CLS eliminates settlement risk, improves liquidity management, reduces operational banking costs, and improves operational efficiency
and effectiveness.
Corporate Credit UnionsAn organization that is chartered under Federal or state law as a credit union; receives shares from and provides payment, lending, and other services to credit unions; and is operated primarily for the purpose of serving other credit unions.
Correspondent BankA bank that provides payment and other services to another bank. Payments through correspondents are often executed through reciprocal accounts (so-called nostro and vostro accounts), to which standing credit lines may be attached.
Cover PaymentIn the serial method of funds transfer, there is a single funds transfer consisting of a series of payment orders, each of which is sent to the next party in the chain. A receiving bank gets paid by its sender when it receives final settlement through a funds-transfer system like CHIPS or Fedwire, it debits an account of the sender on its books, it receives a credit to an account it has with the sender, or the sender causes the
receiving bank’s account at another bank to be credited (i.e., the receiving bank gets cover).
CredentialA verifiable set of data presented by a participant to the payment system as evidence of identity.
Credit CardA physical or virtual card with a credit limit used to purchase goods and services and to obtain cash advances on credit for which a cardholder is subsequently billed by the issuer (the institution, such as a
bank or credit union, which offers the card to the individual) for repayment of the credit extended.
Credit limitA limit on the credit exposure a party is willing to face. For example, in the context of payment systems, a limit on the credit exposure a participant incurs vis-à-vis another participant (bilateral credit limit) or vis-à- vis all other participants (multilateral credit limit) as a result of receiving payments that have not yet been
Credit Push PaymentA payment initiated when a Payer sends a payment order with instructions to transfer funds to the Payee.
Credit RiskThe risk that a counterparty, whether a participant or other entity, will be unable to meet fully its financial
obligations when due, or at any time in the future.
Credit TransferA payment transaction that increases an account balance.
Credit UnionFinancial institutions, like banks, except the members own the credit union. They are non-profit entities that aim to serve their members rather than seeking to earn a profit.
Credit Union Service OrganizationOperates as back-end, profit centers for credit unions to help them pool resources and reduce service costs. CUSOs must have at least one credit union owner and most CUSOs have a specialty, such as auto loans, technology resources, commercial lending and/or consulting services.
Cross BorderThe ability of a participant to settle a transaction between two different countries’ payment schemes.
Cross-Border PaymentA payment in which the financial institutions of the Payer and the Payee are located in different
Cross-Border SettlementA settlement that takes place in a country other than the country in which one trade counter party or both
are located.
Cross-Channel RiskOccurs when the movement of fraudulent or illegal payment transactions from one payments channel to another (e.g., check payments to ACH) is met with inconsistent risk management practices and lack of information sharing across payment channels about fraud.
CryptocurrencyA digital or virtual currency where encryption technology, operating independently of a central bank, is used to facilitate a generation of units of currency and verify the transfer of funds.
Data BreachAn incident when sensitive, confidential data, such as credit card or personal health information, is viewed,
stolen, or used by an unauthorized, untrusted individual.
Data EncryptionThe process of securing sensitive data, such as credit card information, by transforming that data using an
algorithm to create a key and make it unusable to anyone except those possessing special knowledge.
Data Security StandardAlso referred to as the Payment Card Industry Data Security Standard (PCI DSS), a common set of information security policies and procedures for use by entities that handle credit card data (any organization that accepts, processes, stores, or transmits credit card information) to protect that data and
prevent misuse of cardholders’ personal information.
DatabaseA large collection of data that is stored digitally and organized and designed for easy access and retrieval
(e.g., a collection of customer names and addresses).
Debit TransactionA payment transaction that decreases an account balance.
Debit CardA card issued by a financial institution allowing the holder to access funds or transfer money
Debit NetworkAn electronic system used for debit card transactions to withdraw cash from automated teller machines (ATMs), pay bills online, and make purchases.
Debit Pull PaymentA payment made after prior authorization by the Payer. The Payee sends the payment instruction to the
Payee’s account to draw on funds from the Payer.
Deferred Net SettlementA settlement option that settles on a net basis at the end of a predefined settlement cycle typically at the end of the business day, but sometimes during the business day.
Demand Deposit AccountA checking, savings, or money market account where the customer has access to the funds in the account without providing advance notice.
Deposit AccountA bank account where money can be deposited and withdrawn by the accountholder. Deposit accounts include checking, NOW, savings, share draft, and such other depository accounts as are legal under
applicable law.
Depository InstitutionsA bank, credit union, or savings association that is allowed to accept deposits.
Digital CurrencyAny currency, money, or money-like asset that is primarily issued, managed, stored, and exchanged on
computer systems.
Direct DepositA payment method in which funds are automatically transferred from the account that owes the funds to the account of the Payee. The method is often used in payroll situations where a “paycheck” is directly deposited into an employee’s account.
Direct Mobile BillingA method of paying by charging the purchase to the user’s cell phone account.
Distributed Ledger TechnologyTechnology that uses a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries or institutions with no central administrator or centralized data
Dodd-Frank ActIs a law that places strict requirements on lenders and banks in an effort to protect consumers. These requirements include Section 1031(a) which authorizes the Consumer Financial Protection Bureau (CFPB) to use its regulatory, supervisory, and enforcement authority to prevent financial service providers from committing or engaging in unfair, deceptive, or abusive acts or practices (UDAAP) in connection with consumer financial products or services. Criteria for determining whether an act or practice is unfair, deceptive, or abusive vary depending on the term.
Electronic BankingA form of banking in which the funds of financial transactions are transferred through an exchange of electronic signals between financial institutions (e.g., online banking, direct deposit, pay-by-phone systems, debit/credit card transactions, electronic check conversion).
Electronic Fund Transfer ActThe Act is intended to protect individual consumers engaging in electronic fund transfers (EFTs). EFT services include transfers through automated teller machines, point-of-sale (POS) terminals, automated clearinghouse systems, telephone bill payment plans in which periodic or recurring transfers are contemplated, and remote banking programs.
Electronic Funds TransferA transfer of funds that is initiated through an electronic terminal, telephone, computer (including on-line banking), or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account. EFTs include, but are not limited to point-of-sale (POS) transfers, automated teller machine (ATM) transfers, direct deposits or withdrawals of funds, transfers initiated by telephone, and transfers resulting from debit card transactions, whether or not initiated through an electronic terminal (Reg E).
EncryptionThe technique of scrambling sensitive data automatically in the terminal or computer before data is
transmitted for security/antifraud purposes.
End UserAn entity that uses a payment solution, payment network, or payment service for the purpose of sending or receiving payments, such as a business or a consumer.
Error ResolutionThe process of an investigation to determine whether or not an erroneous, unauthorized, or fraudulent
transaction has occurred and if so, the corrective measures to be taken by the end user and/or provider.
eWalletAn electronic device, online service, or software program that allows one party to make electronic
transactions with another party from an electronic wallet of one or more cards and/or other accounts.
Expedited Funds Availability ActTo ensure that account holders have prompt access to funds deposited into their bank accounts, Congress passed the Act in 1987 to address concerns about the lengths of holds banks were placing on check deposits. The EFAA establishes maximum permissible hold periods for checks and other deposits.
eXtensible Markup Language (message standards)eXtensible markup language that defines a set of rules for encoding documents in a format that is readable by both humans and machines.
Faster PaymentsElectronic payment services that provide funds to the Payee within seconds or up to a few hours. Faster
payments include instant/immediate/real-time, push-to-card, and same day ACH.
Federal Deposit Insurance CorporationAn independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. To accomplish this mission, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.
Federal Financial Institutions Examination CouncilA formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (CFPB)
and to make recommendations to promote uniformity in the supervision of financial institutions.
FedwireA real-time gross settlement funds transfer system operated by the United States Federal Reserve Banks,
allowing financial institutions to electronically transfer funds between participants.
Financial InstitutionMeans any institution engaged in the business of providing financial services to customers who maintain a credit, deposit, trust, or other financial account or relationship with the institution.
FinCEN – Financial Crimes Enforcement NetworkA bureau of the United States Department of the Treasury, its mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection,
analysis, and dissemination of financial intelligence and strategic use of financial authorities.
Fintech / FinTechAny business that uses technology to modify, enhance, or automate financial services for businesses or
First-Party FraudFraud committed by an accountholder against another Entity. For example, a legitimate customer may dishonestly request a chargeback on a purchase after receiving the merchandise as agreed, or an individual may set up an Account (either using his or her own identity or a synthetic identity) to purchase items on
credit without intending to pay the bill in full.
FraudIn the payments industry, this refers to dishonest means used to perpetrate false or illegal transactions
including account takeovers, identity theft, card counterfeiting, and other illicit schemes.
Fraud DetectionThe process of monitoring and detecting suspicious activity for evaluation, classification, and action.
Fraud RiskThe danger that a payment transaction is initiated or altered by any party to the transaction (i.e., employees, interlopers, or organizations), or induced / authorized by a nonparty, in an attempt to misdirect
or misappropriate funds with fraudulent intent.
FraudulentAn unauthorized transaction that has occurred, or an account holder has been manipulated into
authorizing a payment to an impersonator or person who does not provide the promised benefit.
Freeze AccountAn action taken by a bank, financial institution or fintech that prevents any transaction from occurring in
the account.
Funding AgentA financial institution that maintains a prefunded account (or Federal Reserve Master Account) balance as a
third-party funding manager or funding provider.
Funds AvailabilityThe time at which funds or a portion of funds are available for use.
Funds TransferThe series of transactions, beginning with the originator’s payment order, made for the purpose of making payment to the beneficiary, including any payment order issued by the originator’s bank or an intermediary bank. A funds transfer is completed by the acceptance of a payment order for the benefit of the beneficiary
by the beneficiary’s bank.
Gateway ProcessorA gateway for transactions to flow in-and-out and connects payment processor and participants.
Good FundsThe funds that are unconditionally available to the owner of the receiving account and usable immediately
by the owner of the account.
GovernanceThe process whereby organizations create policies, decisions, and authority at the highest level that are transparent, support the organization’s objectives and Public Policy Objectives, while allowing for input and
representation from diverse stakeholders and support the public interest.
Government to BusinessA payment transaction between the government and a business.
Government to ConsumerA payment transaction between the government and a consumer.
Government to GovernmentA transaction between a government and another government.
Gramm-Leach-Bliley-ActRequires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their
customers and to safeguard sensitive data.
Payment InitiationA process that is triggered when either the Payer or Payee in a payment transaction, or a third party, sends an instruction to another entity that ultimately leads to a payment. The initiation ends at the point when the Payer authorizes a payment order, or in the case of pre-authorization, when the provider confirms that
pre-authorization exists for a given payment.
Instant (AKA Immediate/Real- time) PaymentsAn electronic payment solution available 24/7/365, resulting in the immediate interbank clearing of the
transaction and crediting of the Payee’s account with confirmation to the Payer within seconds of payment initiation.
Interbank SettlementThe final settlement between banks done within seconds of an instant/immediate/real-time payment or through a deferred settlement scheme where funds are available to the receiver either before (i.e., push-
to-card) or after the bank-to-bank settlement (Same Day ACH).
Interchange RateThe base fee of card transactions. It is collected by the card schemes and passed on to the issuing bank. The fee is set by the card schemes. In some regions, it is regulated by the government. The interchange fee varies by card type (credit/debit, consumer/corporate), region, and sometimes also by MCC.
International ACH PaymentIAT is a Standard Entry Class Code for an ACH International Payment. IAT payment transactions may be ACH
debit or credit entries involving a financial agency’s office that is not located in the territorial jurisdiction of the United States
International Bank Account NumberA standard international numbering system developed to identify an overseas bank account. IBAN does not replace a bank’s own account number, as its only meant to provide additional information that helps in
identifying overseas payments.
InteroperabilityA process that enables solutions to transmit and receive payment instructions across various payment systems or platforms. It requires the use of common applied technical standards, coordinated digital
identities, alias directories, and broad access to settlement mechanisms compatible between systems.
Irrevocable PaymentA payment that is final and typically has no recourse for correction or reversal.
ISO 20022An international standard for exchanging electronic messages between financial institutions. First introduced in 2004, ISO 20022 was created to give the financial industry a common platform for developing messages using a modelling methodology, a central dictionary, and a set of XML and ASN.1 design rules.
ISO 8583An international standard for financial transaction card originated interchange messaging. It is the
International Organization for Standardization standard for systems that exchange electronic transactions initiated by cardholders using payment cards.
IssuerA bank or financial institution that issues credit and debit cards to consumers on behalf of card networks. The entities are responsible for providing financial details of each transaction, assume the responsibility for
a cardholder’s ability to pay, and are responsible for account data, card maintenance, and status.
Legal FrameworkAll legal sources that are applicable to a payment system including all public sector laws, regulations, other regulatory interpretations or rulings, court decisions, and the payment system rules applicable to the
payment system.
Liquidity RiskThe risk that a financial institution cannot settle an obligation for full value when it is due (even if it may be
able to settle at some unspecified time in the future).
Liquidity ManagementThe active maintenance of a cash position that allows a financial institution to meet its ongoing settlement
obligations without incurring the opportunity costs that arise from holding excess balances.
Master AccountThe record of financial rights and obligations of an Account Holder and the Administrative Reserve Bank (or any other Reserve Bank maintaining a Master Account identified in Operating Circular 1) with respect to
each other, where opening, intraday and closing balances are determined.
Message StandardsThe standards that provide consistent messaging for interoperability.
Mobile Payments ServiceA service that enables transactions through a portable device.
Mobile WalletA mobile device and its software program that allows one party to make electronic transactions with
another party from an electronic wallet of one or more cards and/or other accounts.
Multi-CurrencyThe ability of a transaction to be processed in more than one currency.
Nacha File FormatA text file with ASCII text lines, where each line is 94 characters long and serves as a record to execute ACH
transactions through ACH.
Nacha RulesThe rules adopted by the National Automated Clearing House Association that apply to all entries
transmitted through one or more ACH operators.
National Automated Clearing
House Association
The entity which manages the development, administration, and governance of the ACH Network.
Near Real-TimeA timeframe that occurs close to the act of initiating a payment order or authorizing a payment, but not
necessarily immediately thereafter.
Non-BankAn entity that provides some financial services but does not offer a full array of retail banking services and
does not have the legal status of a bank.
OFAC ScreeningChecking entities against the denied party lists maintained by the United States Treasury Department’s
Office of Foreign Assets Control (OFAC). Additionally, OFAC compliance can also include identifying
sanctions and embargoes placed on nations and political jurisdictions.
Office of Foreign Assets ControlAn organization that administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. OFAC acts under Presidential wartime and national emergency powers as well as authority granted by specific
legislation to impose controls on transactions and freeze foreign assets under US jurisdiction.
Office of the Comptroller of the CurrencyA federal agency that oversees the execution of laws relating to national banks, and federal branches and agencies of foreign banks. The OCC supervises national banks and federal branches of foreign banking
organizations for capital adequacy and other compliance issues.
Original Credit TransactionA payment method for fast fund transfers. OCT credits (pushes) funds to a recipient’s account.
Originating Depository Financial InstitutionThe financial institution which delivers Automated Clearing House (ACH) entries directly or indirectly through a third party to its ACH operator.
Overlay ServiceA tailored, value adding payment service or payment-related service owned and operated by a third party, which can be deployed on the basic infrastructure to deliver value to a specific group of subscribers and
end users.
PayeeThe intended recipient of a payment.
PayerThe sender of funds in a payment transaction; particularly the Entity that, prior to Settlement, owns the
funds to be sent to the Payee.
Payment AmountThe total amount of a transaction submitted for authorization for payment.
Payment Card Industry ComplianceThe Payment Card Industry Data Security Standard (PCI DSS) applies to companies of any size that accept card payments. If a company intends to accept card payment, and store, process, and transmit cardholder
data, it needs to store customer data securely in a manner with is PCI compliant.
Payment MessageA communication that typically contains information related to the payment, such as the identities of the
parties involved, relevant account information, and the payment amount.
Payment OrdersAn instruction from a sender transmitted orally, electronically, or in writing, to pay, or to pay a fixed and
determinable amount of money to a beneficiary.
Payment Service ProviderAn entity that enables transactions between parties in a payment network.
Payment Rail Network
The owner/operator of a platform that facilitates clearing and settlement of payment transactions.
Payment System RulesThe rules, standards/protocols, and procedures specific to various payment systems.
Payment-Related InformationInformation that flows directly with a payment to describe its purpose and/or instruct the receiving party
how to apply the funds.
Personally Identifiable
The personal information used to distinguish or trace an individual associated with a transaction (e.g.,
social security, fingerprints, biometrics).
Person-to-PersonA peer-to-peer or person-to-person transaction such as payments by individuals to friends, family
members, and other individuals for goods and services.
Point-of-SaleAn electronic device where a customer makes a payment to settle on the purchase of goods or services.
PostingThe act of transferring and/or recording an entry or item to the proper account or ledger.
Debit Pull PaymentA payment made after prior authorization by the Payer. The Payee sends the payment instruction to the
Payee’s account to draw on funds from the Payer.
Credit Push PaymentA payment initiated when a Payer sends a payment order with instructions to transfer funds to the Payee.
Push-to-CardA process whereby money is sent to a debit or prepaid card belonging to an individual or business.
Real-Time Gross SettlementThe settlement of payments, transfer instructions, or other obligations individually on a transaction-by-
transaction basis.
Real-Time PaymentsA real-time payment includes the transmission of the payment message and the availability of final funds to the Payee, occurring in real time or near real time, and on as near to 24-hour and seven (7) days basis as possible.1 NOTE: “RTP” is a trademark for the real-time payments network owned and operated by The
Clearing House.
Receiving Depository Financial
The financial institution which receives Automated Clearing House (ACH) entries directly or indirectly
through a third party from its ACH operator.
ReconciliationA procedure to verify that multiple sets of records issued by different entities or generated by different
systems involved in transaction processing match.
Regulated Non-Bank ProviderA non-bank participant, such as a money services business, money transmitter, or broker-dealer, that sends
and receives payments on behalf of Payers and Payees and is subject to federal and/or state regulation.
Regulation EThe implementing regulation for the Electronic Fund Transfer Act. This Act (Title IX of the Consumer Credit Protection Act) establishes the rights, liabilities, and responsibilities of participants in electronic fund transfer systems. The Act requires financial institutions to adopt certain practices respecting such matters as transaction accounting, and error resolution, requires financial institutions and others to have certain procedures for preauthorized transfers, and sets liability limits for losses caused by unauthorized
RemittanceThe action of sending money in payment.
Remittance DataInformation the Payer provides to the Payee about the reason or details of a payment.
Request for Payment (AKA
Request to Pay)
A standardized network message that Payees can leverage to send electronic requests to Payers through
the network.
Same Day ACHAn ACH payment following the Nacha rules, that is sent, received, and settled the same business day.
Sender LimitA threshold limit imposed to mitigate risk on a transaction or group of transactions.
SettlementA financial transaction that has been satisfied between transacting parties and their financial institutions.
Society for Worldwide Interbank Financial
Swift is a global member-owned cooperative provider of secure financial messaging services.
Specially Designated Nationals & Blocked PersonsA list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under
programs that are not country specific. Their assets are blocked, and U.S. persons are generally prohibited from dealing with them.
Suspicious Activity ReportA document that financial institutions, and those associated with their business, must file with the Financial Crimes Enforcement Network whenever there is a suspected case of money laundering or fraud. For money
services businesses, cash transactions over state-specific limits also require SAR’s to be filed.
Technology RiskAny potential for technology failures to disrupt a business or individual such as information security
incidents or service outages.
Third-Party FraudAn unknown authorized attempt to access an account holder’s funds to conduct fraudulent transactions.
Transaction LimitsThe maximum amount that can be transferred or spent during a payment transaction determined by
network specific rules, guidelines, risk profile and/or regulations.
Travel RuleA Bank Secrecy Act (BSA) rule [31 CFR 103.33(g)]—often called the “Travel” rule—requires all financial
institutions to pass on certain information to the next financial institution, in certain funds transmittals involving more than one financial institution.
UbiquitousIn reference to payments, it is a system in which any Payer can make a payment to any Payee.
Unfair, Deceptive or Abusive Acts or PracticesSeeks to eliminate any unfair, deceptive, or abusive acts or practices. The CFPB has broad authority to enforce UDAAP to prevent any acts and practices that may cause financial injury to consumers, erode
consumer confidence, and undermine the financial marketplace.
Uniform Commercial CodeA comprehensive set of laws governing commercial transactions in the United States. It is not a federal law, but a uniformly adopted state law. The UCC makes sure all states comply with the same business laws,
although there might be some local variations.
Use CaseA specific situation in which a faster payments service could be used.
User authenticationA process that verifies the identity of a user attempting to gain access to a network or computing resource
by authorizing a transfer of credentials during interactions on a network to confirm a user’s authenticity.
Value Added ServicesAn extra or special features added by a company or producer to increase the value of a product or service.
VoidThe ability to null a transaction before it impacts the customer’s account.
WABIt is another term for online banking
Zero-Hour RuleA provision in the insolvency law of some countries whereby the transactions conducted by an insolvent institution after midnight on the date the institution is declared insolvent is automatically ineffective by
operation of law.

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