ACH Transfer

Automated Clearing House transfers that facilitate electronic funds transfers between financial institutions within a specific country, often used for domestic transactions.

API Sandbox

A testing environment provided by payment service providers or banks that allows developers to experiment and validate their API integrations without conducting real transactions.

ATM (Automated Teller Machine)

An electronic device provided by banks that allows users to withdraw cash, check balances, transfer funds, and perform various banking transactions independently and securely.

Account Information Service Provider (AISP)

A third-party provider that accesses and aggregates a customer’s account information from multiple banks or financial institutions. 

Account Number

A unique numerical code assigned to an individual or entity’s bank account. It serves as an identifier for the account and is used in various banking transactions, such as deposits, withdrawals, and transfers. Bank account numbers vary in length and format depending on the country and financial institution.

Account Updater

A service provided by card networks (Visa, Mastercard etc.) that automatically updates cardholder information, such as card numbers or expiration dates, for recurring payments or subscription-based transactions. This ensures seamless payment processing and reduces the risk of payment disruptions. 

Acquiring Bank (Acquirer)

A financial institution that processes and settles payment card transactions on behalf of merchants, receiving funds from the cardholder’s issuing bank and depositing them into the merchant’s account.

Alternative Payment Method (APM)

Non-traditional forms of payment that go beyond cash or major card schemes such as Visa etc. These methods encompass a range of options including prepaid cards, mobile payments, e-wallets, bank transfers, and instant financing known as Buy Now, Pay Later.

American Bankers Association (ABA)

A trade association that represents banks and financial institutions in the US. It provides advocacy, education, and industry standard-setting services to its members, contributing to the development and regulation of the banking industry. 

Anti-Money Laundering (AML)

Procedures and regulations implemented by financial institutions to detect and prevent money laundering activities, such as the illegal conversion of illicit funds into legitimate assets.

Application Programming Interface (API)

A set of rules and protocols that allows different software applications to communicate and interact with each other.


The process of granting or denying access to a transaction based on various factors, including authentication, available funds or credit, and compliance with security protocols. 


The process of verifying the identity of the cardholder or entity initiating a transaction through methods such as CVV, PIN, or biometric verification.  

Automated Clearing House (ACH)

A US-only network that facilitates electronic funds transfers and automated payments between financial institutions. 


B2B Payment (Business-to-Business)

A financial transaction conducted between two or more companies or organizations. 

B2C Payment (Business-to-Consumer)

A transaction where a consumer receives payment from a business for a product, service, or other form of compensation. 

BACS (Bankers’ Automated Clearing Services)

An electronic payment system widely used in the United Kingdom for processing various types of financial transactions. It provides a secure and efficient means of transferring funds between bank accounts and is primarily known for its role in facilitating direct debit and direct credit payments. 

BIC (Bank Identifier Code)

A unique identification code used to identify specific banks or financial institutions in international transactions. The BIC is also commonly referred to as the SWIFT code, as it is assigned by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The BIC consists of a combination of letters and numbers that provide detailed information about the bank or financial institution. It typically includes the bank’s country code, bank code, location code, and branch code. 

BIN Sponsor

A bank identification number sponsor is a financial institution that enables non-bank financial services companies to issue debit, credit, or prepaid products directly to consumers by leveraging its position as a member of one or more payment card networks.

Bank Secrecy Act (BSA)

A US law that requires financial institutions to establish and maintain procedures to detect and report potential money laundering and suspicious activities, aiming to combat financial crime, including terrorism financing and illicit transactions. 

Bank of England

The central bank of the United Kingdom, responsible for formulating and implementing monetary policy, issuing currency, regulating and supervising banks, and maintaining stability in the UK’s financial system. 

Bank of Record

A term that refers to institutions offering BaaS. Non-bank financial services companies may list their sponsor bank as the “bank of record” on legal disclosures. 

Banking-as-a-Platform (BaaP)

A model that enables banks to offer their services and infrastructure as a platform to third-party developers and businesses, allowing them to build and deploy their own financial applications. 

Banking-as-a-Service (BaaS)

A model in which financial institutions, typically banks, provide their banking infrastructure and capabilities to third-party companies or fintech firms. This enables non-bank organizations to offer banking services to their customers through APIs and third-party integration. 

Batch Processing System

A method of processing large volumes of financial transactions in groups or batches, rather than individually or in real-time. In this system, multiple transactions are collected and processed together at specific intervals, such as at the end of the business day.

Biometric Authentication

A security measure that uses unique physical or behavioral characteristics, such as fingerprints or facial recognition, to verify a user’s identity.

Blended Pricing

A pricing model where different types of card transactions, such as credit cards, debit cards, and prepaid cards, are grouped together and charged at a single flat rate. This simplifies the fee structure for merchants, who are charged the same rate regardless of the specific card type used by the customer. 

Buy Now, Pay Later (BNPL)

A financing option that allows consumers to purchase products or services immediately and delay payment for a later date. Typically, BNPL services divide the total cost into installments, often interest-free or with low fees. 


CFPB (Consumer Financial Protection Bureau)

A US government agency tasked with protecting consumers in the financial marketplace. It regulates and supervises financial institutions, enforces consumer financial laws, promotes financial education, and handles consumer complaints.  

CHAPS (Clearing House Automated Payment System)

A same-day sterling electronic payment system in the United Kingdom. It enables secure and real-time bank-to-bank transfers of high-value funds. CHAPS transfers are typically used for time-sensitive and large-value transactions, such as property purchases, interbank transfers, and settlements requiring immediate clearing. 

Cancelled Payment

An authorized transaction that was terminated or revoked before its completion, i.e. before the funds were sent to the merchant’s account. The payment is nullified, and any associated funds are not transferred from the customer’s account to the merchant’s account. 


The process of transferring authorized funds from a customer’s payment card to the merchant’s account, completing a transaction and finalizing the payment. It occurs after authorization and before settlement. 

Card Number or Primary Account Number (PAN)

A unique numeric identifier assigned to a payment card, such as a credit or debit card. It serves as the primary reference for identifying the cardholder’s account during payment transactions. 

Card Payment Network

A network or association that connects payment card issuers and acquirers, enabling transactions to be authorized and processed, such as Visa, Mastercard, American Express or Discover. 

Card Verification Value Code (CVV, CVV2, CVC, CVC2, CID)

A three- or four-digit security code found on credit and debit cards. It is used as an additional layer of authentication during card-not-present transactions, such as online or over-the-phone purchases, to verify that the cardholder has physical possession of the card. 

Card on File (CoF)

A payment card securely stored by a merchant to enable future transactions without requiring the customer to present the physical card. It streamlines subsequent payments and offers convenience to customers. 

Card-Not-Present (CNP) Transactions

Payment card transactions where the cardholder is not physically present during the transaction, such as online or over-the-phone purchases. 

Card-Present (CP) Transactions

Payment card transactions where the physical presence of a payment card, such as a credit card or debit card, is required at the time of the transaction. 

Card-Present (CP) Transactions

Payment card transactions where the physical presence of a payment card, such as a credit card or debit card, is required at the time of the transaction. 


The individual who owns and uses a payment card, such as a credit or debit card, to make purchases or access funds. 

Cards-as-a-Service (CaaS)

A model that enables businesses to leverage a third-party provider’s infrastructure to issue and manage payment cards. It allows companies to offer their customers branded cards without the need for extensive in-house card issuing capabilities. 

Central Bank

The monetary authority of a country or region responsible for controlling the money supply, implementing monetary policy, and regulating financial institutions. 

Challenger Bank

A relatively small retail bank founded on the mission to compete for business with larger, well-established banks.


The reversal of a payment transaction initiated by the cardholder, often due to a disputed or fraudulent transaction. 

Chargeback Fee

A fee imposed by a merchant’s bank or payment processor when a customer initiates a chargeback. The fee is typically charged to the merchant to cover the administrative costs associated with handling the chargeback process. 

Chargeback Management

The process of handling and resolving chargebacks, including gathering evidence, representing the merchant’s interests, and minimizing financial losses. 

Chargeback Period

A specific timeframe within which a cardholder can initiate a chargeback request with their credit card issuer or bank. It represents the window of opportunity for a cardholder to dispute a transaction and seek a refund.

Closed Loop

A payment system where a card is only accepted at specific merchants or within a limited network, often used for store-branded or prepaid cards.

Contactless Payment

Payment transaction made by waving or tapping a contactless-enabled card, smartphone, or wearable device near a contactless-enabled reader. 

Correspondent Bank

A financial institution that provides banking services on behalf of another financial institution. It acts as an intermediary, facilitating transactions and providing various banking services to the client bank. 

Credit Card

A payment card that allows the cardholder to borrow funds from a financial institution, typically a bank, to make purchases or pay for services. 

Credit Limit

The maximum amount of money a financial institution allows a credit cardholder to borrow. 

Cross-Border Payment

Payment transaction involving parties in different countries, often subject to additional regulatory and currency exchange considerations.

Currency Exchange (Foreign Exchange/Forex/FX)

The process of converting one currency into another.  

Customer Area

An online interface accessible to Zenus Bank’s commercial clients. It provides a centralized platform for managing users, integrating with the Zenus payments platform, accessing payment data, generating comprehensive reports, and performing other relevant functions to enhance payment management and analysis. 

Customer Due Diligence (CDD)

The process of gathering information about a customer to assess their risk profile, ensuring compliance with AML regulations. 



A transaction that involves the reduction of funds or assets from an account, such as withdrawing money from a bank account.

Debit Card

A payment card that allows an individual to make purchases or access funds directly from their bank account.  

Declined Payment

A transaction using a payment method, such as a debit or credit card, that is not authorized or approved by a financial institution. This can happen due to insufficient funds, a blocked or expired card, incorrect card details, or suspected fraudulent activity.  

Digital Currency

A form of currency that exists only in electronic or digital format, such as cryptocurrencies. 

Digital Customer Recognition (DCR)

A system utilized to identify customers who have previously engaged with the merchant across various channels. It facilitates the recognition of loyal customers, enabling personalized experiences and targeted marketing. 

Digital Identity

A unique identifier or representation of an individual’s identity in the digital realm, used for authentication and verification purposes. 

Digital Wallet

An electronic device or software application that allows users to make electronic transactions by securely storing their payment card information. 

Direct Debit

A payment method that allows a third party, such as a business or service provider, to collect funds directly from a customer’s bank account with their authorization. 


The act of distributing funds or making payments, often used in contexts such as payroll disbursement or loan disbursement. 


The removal of intermediaries or middlemen from the payment process, enabling direct transactions between parties. 


A disagreement or issue raised by a customer regarding a specific transaction, typically related to billing errors, product defects, or unauthorized card use. Customers contact their bank or card issuer seeking resolution. 

Dispute Resolution

The process of resolving conflicts or disputes.

Dynamic Currency Conversion (DCC) or Cardholder Preferred Currency (CPC)

A service offered by merchants or payment processors that allows international customers to make purchases in their own currency. The conversion is done at the point of sale, often with additional fees and exchange rate markups. 



The buying and selling of goods or services over the internet, often involving online payments and electronic transactions. 


An electronic wallet or digital wallet that allows users to securely store and manage payment card information, as well as make online payments and transactions. 


Short for Europay, Mastercard, and Visa, it refers to the global standard for chip-based payment cards and terminals, enhancing security and reducing fraud. 


A Europe-wide payment system designed for high-value euro transactions that need to be processed on the same day. It focuses on urgent and time-sensitive transactions, particularly those involving large amounts, both domestically and across borders. Transactions processed on the EURO1 are settled in batches.

Electronic Funds Transfer (EFT)

The transfer of funds between different financial institutions or accounts electronically, such as through wire transfers or ACH transactions.

Embedded Finance

The integration of financial services and products into non-financial platforms, allowing customers to access financial services seamlessly during their everyday activities. 

Embedded Payment

The integration of payment processing functionalities directly into non-financial platforms or applications, allowing users to make transactions seamlessly within the same integrated environment. 

Encryption at Rest

The process of encrypting and securing data when it is stored or saved in storage systems, such as databases or hard drives, to protect it from unauthorized access or breaches while at rest. 

Encryption in Transit

The practice of encrypting data during its transmission over networks or communication channels, ensuring that the information remains confidential and protected from interception or unauthorized access during transit. 

Escrow Account

A temporary holding account where funds are held by a third party until the completion of a transaction or fulfillment of specific conditions. 

European Central Bank (ECB)

The central bank of the Eurosystem, responsible for implementing monetary policy, issuing the euro currency, overseeing banking activities, and maintaining financial stability within the euro area. 


The monetary authority comprising the European Central Bank (ECB) and national central banks of euro area member states, responsible for monetary policy, currency issuance, and payment system operations in the euro area. 


FDIC (Federal Deposit Insurance Corporation)

A US government agency that provides deposit insurance to depositors in banks and savings institutions.  

Faster Payments

A real-time payment system in the United Kingdom that lets individuals and businesses make near-instantaneous electronic transfers between participating banks. It offers 24/7/365 accessibility. 


A real-time gross settlement (RTGS) system introduced by the Federal Reserve in the United States. It enables instant and secure payment transfers between banks and other financial institutions, allowing for immediate availability of funds. The system operates 24/7/365.

Federal Reserve System (the Fed)

The central banking system of the United States, consisting of the Board of Governors and 12 regional Federal Reserve Banks. It conducts monetary policy, regulates banks, and maintains financial stability in the US. 

FinCEN (Financial Crimes Enforcement Network)

A US Treasury Department bureau that combats money laundering, terrorist financing, and financial crimes. 


A combination of the words "financial" and "technology," referring to innovative technologies and startups that aim to improve and automate financial services.

Foreign Exchange Fee (FX Fee)

A charge imposed by financial institutions or payment processors when converting one currency into another. It is applicable when individuals or businesses engage in international transactions involving different currencies. 

Fractional-Reserve Banking

A banking system where banks are only required to hold a fraction of customer deposits in reserve, allowing them to lend out the remainder of the funds and generate interest income. 

Fraud Detection and Prevention

Techniques and tools employed to identify and mitigate fraudulent activities, such as transaction monitoring and risk scoring. 

Fraud Score

A method of assessing the likelihood of a transaction or activity being fraudulent based on various risk factors such as transaction patterns, customer behavior, IP address, and others.

Full-Reserve Bank

A financial institution that holds reserves equal to 100% of its deposit liabilities, ensuring that it can fully meet all customer withdrawals and obligations.

Full-Reserve Banking

A banking system where banks are required to hold 100% of customer deposits in reserve, ensuring that all funds are available for withdrawal upon request. 


Gateway or Payment Gateway

A software application or service that acts as an intermediary between an e-commerce merchant and a payment processor, facilitating the secure transmission of transaction data. 


IBAN (International Bank Account Number)

A standardized international system for identifying bank accounts, used primarily in Europe and other countries that have adopted the IBAN format. 

IRS (Internal Revenue Service)

The revenue service agency of the United States federal government. It is responsible for administering and enforcing tax laws, collecting federal taxes, and providing taxpayer assistance and education. 

ISO 20022

An international standard for financial messaging that defines a common language and syntax for the exchange of financial information between financial institutions, businesses, and other participants in the financial industry. The standard covers various types of financial transactions, including payments, securities, trade finance, and foreign exchange.

In-App Payment

The process of making a purchase or completing a transaction within a mobile application or software platform.


The general increase in prices of goods and services over time, resulting in the decreased purchasing power of a currency.

Instant Settlement

The immediate transfer of funds to a merchant’s account upon the completion of a transaction, providing quicker access to funds.

Interchange Fee (Interchange Rate)

The fee paid by an acquiring bank to the issuing bank for each payment card transaction, covering the cost of authorization, settlement, and other services. 

Interchange Plus Plus Pricing (IC++)

An enhanced version of interchange plus. It includes additional fees, such as assessments, network fees, and other charges, on top of the interchange and processor markup. It provides a more detailed breakdown of the various costs associated with card transactions. 

Interchange Plus Pricing (IC+)

A pricing model in the card payments industry where merchants are charged the actual interchange fee set by the card networks plus a fixed markup or percentage fee by the payment processor. 

Invoice Financing

A financial service where businesses use their unpaid invoices as collateral to access immediate cash flow, often provided by a third-party financier.

Issuing Bank (Issuer)

A bank or financial institution that provides payment cards (such as credit or debit cards) to customers, allowing them to make purchases and access funds. 


Knowledge-Based Authentication (KBA)

A security measure used to verify the identity of an individual by asking them specific questions that only they should know the answers to. KBA has faced criticism in recent years due to the widespread availability of personal information through data breaches and social engineering techniques. As a result, some organizations have started exploring alternative authentication methods, such as two-factor authentication (2FA) or biometric authentication, to enhance security. 

Know Your Business (KYB)

The process through which financial institutions and organizations verify and assess the identity, ownership, and legitimacy of their business customers.  

Know Your Customer (KYC)

A process that financial institutions must follow to verify the identity of their customers and assess the risks associated with their business relationships. 


Local Clearing

Payments processing carried out through the platforms or networks native to the recipient’s country. For example, if the recipient is based in the US, payments can be made in US dollars via ACH. Also called local payment rails.

Loyalty Program

An incentive scheme offered by a business to reward and encourage customer loyalty through various mechanisms including points, discounts, or exclusive offers. 



A global payment network and technology company that enables secure and convenient electronic transactions between merchants, financial institutions, and cardholders, facilitating the exchange of funds through credit and debit cards worldwide. 

Mastercard Send

A payment service provided by Mastercard that enables fast and secure money transfers in real-time. It allows individuals, businesses, and financial institutions to send funds quickly to eligible Mastercard debit, prepaid, or credit card accounts globally. 


A business or individual that sells goods or services and accepts payments from customers, often through payment card transactions. 

Merchant Account

A bank account that enables businesses to accept and process electronic payments from customers. 

Merchant Agreement

A legally binding contract between a business (merchant) and a payment processor or acquirer that outlines the terms and conditions for accepting and processing card transactions.

Merchant Category Code (MCC)

A four-digit code assigned to merchants by payment card networks to classify the type of goods or services they offer. 


Small-value payment transactions typically conducted online for digital goods or services, such as in-app purchases or pay-per-download content. 

Mobile Banking

Banking services accessed through a mobile device, such as smartphones or tablets, enabling customers to perform transactions, check balances, and manage accounts more conveniently.

Mobile Payment

A payment transaction made through mobile devices, such as smartphones or tablets, using technologies like Near Field Communication (NFC) or mobile wallets. 

Multi-Currency Support

The capability to process payments in various currencies, allowing businesses to accept international transactions. 

Multi-Factor Authentication (MFA)

A security measure that requires users to provide multiple forms of identification or verification, such as a password, fingerprint, or one-time code, to access their accounts. Two-Factor Authentication (2FA) is a subset of MFA. 



A digital-only (or branchless) bank that operates solely online, offering banking services and financial products through mobile apps or websites. 

NFC (Near Field Communication)

A short-range wireless technology that enables communication and data exchange between compatible devices in close proximity, typically used for contactless payments, data transfer, and device pairing.


OFAC (Office of Foreign Assets Control)

A division of the US Treasury Department responsible for enforcing economic and trade sanctions against individuals, entities, and countries that pose a threat to US national security or engage in illicit activities. 

OCIF (Oficina del Comisionado de Instituciones Financieras)

An office of the Department of Treasury of Puerto Rico that regulates and supervises financial institutions, ensuring their safety, consumer protection, and integrity within Puerto Rico’s financial system. Also known as The Office of the Commissioner of Financial Institutions of Puerto Rico. 

Omnichannel Payments

A seamless payment experience across multiple channels, including in-store, online, mobile, and more. 

One-click Payment

A streamlined and convenient online payment method where customers can make purchases with a single click, without having to re-enter their payment and shipping information for each transaction. 

One-Time Password (OTP)

A temporary, unique code typically used for authentication purposes, providing an added layer of security by being valid for a single login session or transaction. 

Open API

Application Programming Interfaces that are made publicly available by financial institutions, allowing authorized third parties to access and integrate with their systems. 

Open Banking

A regulatory framework that requires banks to provide access to customer account information and payment services to third-party providers through secure APIs. 

Open Loop

A payment system or card network that is not limited to a specific issuer or merchant, allowing transactions to be processed across multiple financial institutions or merchants.



The Payment Card Industry Data Security Standard, a set of security standards established by the major card brands to protect cardholder data during payment card transactions. 

PIN (Personal Identification Number)

A numeric code used in banking to authenticate the identity of a cardholder during electronic transactions, providing secure access to accounts and ensuring confidentiality.

PIN Verification

The process of confirming the accuracy of a user-entered PIN (Personal Identification Number) to validate their identity and authorize access to a secured system or perform a transaction.

PSP Reference

A unique identifier assigned by a Payment Service Provider (PSP) to a specific transaction. It serves as a reference code or number that helps track and identify the transaction throughout the payment process and associated records.

Payment Aggregator

A service provider that enables businesses to accept multiple payment methods and consolidate transactions through a single interface.

Payment Card Industry (PCI)

An industry consortium that establishes and maintains security standards for organizations that handle payment card transactions.

Payment Conversion

A process whereby one currency is converted into another. Also known as foreign exchange or FX.

Payment Facilitator

An entity that simplifies the process of accepting payments for merchants by aggregating and facilitating payment transactions on their behalf. 

Payment Gateway Aggregator

A payment service provider that consolidates multiple payment gateways into a single integration, allowing merchants to accept various payment methods. 

Payment Gateway Integration

The process of connecting an e-commerce website or application to a payment gateway to facilitate secure online transactions. 

Payment Initiation Service Provider (PISP)

A third-party provider that initiates payment transactions on behalf of the customer, typically using the customer’s bank account information. 

Payment Modification

An action that alters the state or details of an authorized payment, including capturing, canceling, or refunding. These modifications can be performed manually through the Customer Area interface or automatically using Zenus’ payments platform API. Zenus communicates the result of the modification asynchronously using webhooks. 

Payment Processor

A company or service provider that handles the technical and financial aspects of payment transactions, including authorization, settlement, and fraud detection.

Payment Reconciliation

The process of comparing and matching payment transactions, invoices, and financial records to ensure accuracy and identify discrepancies. 

Payment Reversal

The cancellation or reversal of a payment transaction, typically initiated due to a dispute, error, or fraudulent activity.

Prepaid Card

A payment card that is loaded with a predetermined amount of money in advance, allowing users to make purchases or withdrawals up to the available balance without needing a bank account or credit check.

Payment Scheme (Payment System)

A structured framework that facilitates the processing of payments, encompassing both the essential technical infrastructure and a set of guidelines or rules that govern the interactions of the service users. This framework ensures smooth and secure transaction processing, providing a reliable foundation for financial exchanges between various parties involved in the payment ecosystem. 

Payment Service Directive (PSD)

A European Union directive that regulates payment services within the European Economic Area, promoting competition, consumer protection, and innovation in the payments industry.

Payment Service Directive 2 (PSD2)

A European Union directive that sets the legal framework for open banking and the provision of payment services across the European Economic Area. 

Payment System Operator (PSO)

An entity responsible for overseeing a specific payment scheme or network. They manage establishing and maintaining the infrastructure, rules, and technical specifications necessary for the operation of the payment scheme. PSOs collaborate with various stakeholders (financial institutions, merchants etc.) to ensure the smooth processing, authorization, and settlement of payments within the scheme. Some payment system operators work with merchants directly, others employ payment system providers.

Payment System Provider (PSP)

A company that offers services and solutions for accepting and processing payments on behalf of merchants (also known as merchant service provider). PSPs act as intermediaries between merchants and the various payment networks, enabling businesses to accept different payment methods such as credit cards, debit cards, e-wallets, and bank transfers.

Payment Terminal (POS Terminal/POS/PIN Entry Device/PED)

A physical device used by merchants to process and accept various forms of payment, such as credit cards, debit cards, and contactless payments. It securely collects and transmits payment information for authorization, facilitating the completion of transactions. 

Payments-as-a-Service (PaaS)

A model where businesses outsource their payment processing operations to a third-party provider, allowing them to focus on their core activities while leveraging the provider’s expertise. 

Peer-to-Peer (P2P) Payment

Direct transfer of funds between individuals through a digital platform or mobile application, bypassing traditional intermediaries. 

Physical Card

A tangible payment card, typically made of plastic or metal, issued by a financial institution or payment provider, used for in-person or physical transactions at point-of-sale terminals or ATMs. 

Point-to-Point Encryption (P2PE)

A security measure that aims to protect sensitive cardholder data during transmission. It involves encrypting payment card data at the point of interaction (such as a card reader or terminal) and keeping it encrypted until it reaches a secure decryption environment. 

Prepaid Card

A payment card that is loaded with a predetermined amount of money in advance, allowing users to make purchases or withdrawals up to the available balance without needing a bank account or credit check.

Pull Payment

A financial transaction in which funds are initiated and pulled from a sender’s account by the recipient, often used in direct debit transactions.

Push Payment

A financial transaction in which funds are initiated and pushed directly from one bank account to another, typically initiated by the sender, providing payment details to transfer funds to the recipient’s account. 


RTGS (Real-Time Gross Settlement)

A banking system that enables instantaneous and individual settlement of high-value transactions between banks or financial institutions. In an RTGS system, transactions are settled in real-time, not in. 

Real-Time Payment

Electronic payment transfer that is processed and settled instantly or near-instantly, allowing for immediate availability of funds. 


A transaction initiated by the merchant, where funds are returned to the customer after a purchase. It is typically done to resolve customer issues, address product returns, or provide reimbursement for canceled orders. 


A transaction initiated by the merchant, where funds are returned to the customer after a purchase. It is typically done to resolve customer issues, address product returns, or provide reimbursement for canceled orders. 


A combination of the words "regulatory" and "technology," referring to technologies and solutions designed to help financial institutions comply with regulatory requirements more efficiently. 

Regulatory Compliance

Adhering to laws, regulations, and guidelines set by financial authorities to ensure the security, privacy, and fair practices of financial services. BaaS providers play a crucial role in helping businesses comply with relevant regulations. 


A transfer of money, often by an individual working abroad, to their home country or to another person, typically to support their family or for payment of goods or services.

Remittance Advice

A document or notification sent to a payee or beneficiary, providing details of a payment received or funds transferred.

Request to Pay (RtP)

A payment initiation service that enables individuals or businesses to send payment requests to their customers or counterparties. It provides a structured communication channel for requesting and receiving payments, usually through digital platforms or payment applications. 

Risk-Based Authentication

An authentication method that assesses the level of risk associated with a particular transaction or user and applies appropriate security measures accordingly. 


SEPA (Single Euro Payments Area)

An initiative that enables individuals and businesses to make cross-border euro payments within Europe as easily as domestic payments. 

SWIFT (Society for Worldwide Interbank Financial Telecommunication)

A global messaging network used by financial institutions to securely exchange information and instructions related to financial transactions. 

Secure Payment Page

A web page or platform that ensures the secure transmission of sensitive payment information during an online transaction. It typically utilizes encryption and security measures to protect user data and prevent unauthorized access or fraud.


The process of transferring funds between the acquiring bank and the issuing bank to complete a payment transaction. It involves the reconciliation of funds and the finalization of financial obligations between the parties involved. 

Split Pay

A card payment feature that makes it possible to divide a single charge made to a card into separate payouts allocated to multiple vendors. 

Stored-Value Card

A type of prepaid card that is loaded with a specific monetary value in advance. It can be used for purchases and transactions up to the preloaded amount, sometimes recharged or topped up as needed. 

Subscription Billing

A payment model where customers are billed regularly at predetermined intervals, typically used for subscription-based services. 

Suspicious Activity Report (SAR)

A document filed by financial institutions to report suspected illegal or suspicious activities that may indicate money laundering, terrorist financing, fraud, or other illicit activities.

Swift Code

A unique identification code assigned to each financial institution that is part of the SWIFT network, used for international wire transfers and communication.

3D Secure (3DS)

An authentication protocol for online card payments developed by the major card networks. It reduces the risk of fraud by ensuring the card is used by its true holder through multi-factor authentication. The second version of the protocol is called 3DS2.



A real-time gross settlement (RTGS) system owned and operated by the Eurosystem, which allows central banks and commercial banks to submit payment orders denominated in euros. These orders are then processed and settled using central bank money, which refers to funds held in an account with a central bank.

Third-Party Provider (TPP)

An external service provider that offers banking services to customers through the BaaS platform. 


The process of replacing sensitive payment card data with a unique identifier or "token" to enhance security and reduce the risk of data breaches. 


An exchange of value between a buyer and a seller, involving the transfer of funds or goods/services. In the payments industry, it refers to the specific instance of a financial transaction being processed. 

Transaction Fee

A fee or charge imposed on a financial transaction or payment. It is the cost incurred for the processing, verification, and facilitation of a transaction by a financial institution or payment service provider. 

Transaction Limit

The maximum amount of money that can be transferred or spent in a single transaction, set by banks or payment service providers for security or regulatory reasons. 

Transaction Monitoring

The process of continuously monitoring customer transactions and activities to identify and analyze potential suspicious or fraudulent behavior. 

Two-Factor Authentication (2FA)

A security measure that adds an extra layer of protection to user accounts or systems by requiring two different types of verification before granting access. Typically, the two factors involve something the user knows (e.g. password, PIN) and something the user possesses (e.g. smartphone, physical token). All Two-Factor Authentication is Multiple-Factor Authentication, but not all MFA is 2FA. 


Ultimate Beneficial Owner (UBO)

The natural person(s) who ultimately owns, controls, or benefits from a legal entity, such as a company or trust. 


Vertical Underwriting

The practice of evaluating and underwriting merchants based on industry-specific criteria and risk factors, ensuring tailored risk assessment and compliance standards for different verticals within payments facilitation. 

Virtual Account

An online-only bank account that doesn’t have a physical presence. It facilitates digital transactions, like e-commerce and online payments.

Virtual Card

A digital payment card used for online transactions, providing a temporary card number, expiration date, and security code for secure and convenient purchases without a physical card. 

Virtual IBAN

A concept that allows businesses or individuals to generate temporary or virtual account numbers for receiving payments. It is primarily used in the context of electronic banking and facilitates the processing of transactions without the need to open multiple physical bank accounts.

Virtual Terminal

A web-based or software-based application in the payments industry that allows merchants to manually process card payments by entering card information into a secure interface, enabling remote transaction acceptance. 


A global financial technology company that facilitates electronic funds transfers and operates one of the world’s largest payment networks, enabling secure and convenient transactions for businesses and consumers. 

Visa Direct

A payment service offered by Visa that enables real-time, secure, and convenient fund transfers. It lets individuals, businesses, and financial institutions send money directly to eligible Visa debit, prepaid, or credit card accounts worldwide, facilitating instant access to funds.

Void Transaction

A cancellation or reversal of a previously authorized transaction before it is completed or settled. A voided transaction is treated as if it never occurred. 



An automated communication mechanism where real-time event notifications are sent from a payment processor to a merchant’s server, enabling immediate updates and triggering actions based on specific payment events or status changes. 

White Label Banking

A solution where a bank offers its products and services to other companies, which can then brand and market them as their own. 

Wire Transfer

An electronic transfer of funds between different financial institutions or accounts, often used for large or international transactions that require immediate settlement. 


Zero Value Authorization

A transaction verification process where no monetary amount is charged or held, serving as a means to authenticate the validity of a payment card or account without initiating an actual financial transaction.