Access Over Ownership
A sharing business model based on "collaborative consumption" where the access of goods or services is preferred over ownership; businesses that uphold this business model include Airbnb, ZipCar, Netflix.
Anti-Money Laundering (AML)
A set of procedures, laws and regulations designed to prevent the generation of income through illegal practices, specifically in regards to money laundering, profiteering and illegal gambling.
Automated Clearing House (ACH)
A U.S. electronic based clearing and settlement facility built for the batch-processing of transactions between participating depository institutions.
The disbursement of funds between business entities, typically in exchange for services, goods or shared assets.
The disbursement of funds from a business entity to individual persons, typically in exchange for services or goods.
Real-time banking reports commonly used by corporations to track and monitor their overall transactional activity; reports often include transaction-specific details on all forms of payment activity, including deposits, checks, wire transfers in and out, ACH debits and credits, and investment activity.
Bank Regulatory Compliance Services
The department or unit within a brokerage firm, bank or financial institution that ensures compliance with all applicable laws, rules and regulations.
The process used by a financial institution to verify a bank account; banks have various validation methods across different regions and national borders.
The first decentralized digital currency that enables P2P payments to be sent without an intermediary; transactions are verified by network nodes through a public distributed ledger called the block chain.
A distributed database based on the bitcoin protocol that maintains a continuously growing list of records through timestamp servers that batch incoming transactions into "blocks."
The disbursement of cash funds through a money transfer or remittance service that enables beneficiaries to retrieve funds from a local cash pickup location. Commonly used for paying out to emerging markets.
A set of procedures whereby financial institutions present and exchange data and/or documents relating to funds or securities transfers to other financial institutions at a single location (clearing house). The procedures often also include a mechanism for the calculation of participants’ bilateral and/or multilateral net positions with a view to facilitating the settlement of their obligations on a net or net net basis
The process of obtaining and evaluating a direct communication from a third party in response to a request for information about a particular item affecting financial statement assertions.
A financial institution that provides services on behalf of another, equal or unequal, financial institution. A correspondent bank can conduct business transactions, accept deposits and gather documents on behalf of the other financial institution.
A financial transaction between that crosses national borders; common transfer methods include bank wires, international ACH, eWallets, and global money transfers.
Funds carried through in exchange for services or goods purchased from a crowdsourcing service.
A medium of exchange using cryptography to secure the transactions and to control the creation of new units; most commonly used with bitcoins.
The quotation of the relative value of one currency unit against another in the foreign exchange market. The first currency is referred to as the “base currency” and the second currency is referred to as the “quote currency.”
The process of transforming processing information to make it unusable to anyone except those possessing special knowledge, usually referred to as a key.
Debit Transfer System
A funds transfer system in which debit collection orders made or authorised by the payer move from (the bank of) the payee to (the bank of) the payer and result in a charge (debit) to the account of the payer; for example, cheque-based systems are typical debit transfer systems. Also called debit collection system.
An institution which distributes (as an agent) or sells (as the issuer or an underwriter) the electronic money to the customer.
Electronic Funds Transfer
A country that has some characteristics of a developed market, but does not meet standards to be a developed market. This includes countries that may be developed markets in the future or were in the past.
A theory that embraces the philosophy that eliminating as many middle layers or steps as possible will optimize performance and efficiency in any process.
An online prefunded account that can be used to collect and disburse funds. Purchases or transactions made from eWallets can only be made online from accepted ecommerce stores. The most well-known eWallet service to-date is Paypal.
A portmanteau of the words “finance” and “technology" referring to financial services focused on digital solutions.
Foreign Exchange Settlement Risk
The risk that one party to a foreign exchange transaction will pay the currency it sold but not receive the currency it bought. This is also called cross-currency settlement risk or principal risk; it is also referred to as Herstatt risk, although this is an inappropriate term given the differing circumstances in which this risk has materialized.
Payouts to resellers, freelancers, affiliates or to individuals for services or goods purchased from a global marketplace through a merchant account.
Funds Transfer System
A formal arrangement, based on private contract or statute law, with multiple membership, common rules and standardized arrangements, for the transmission and settlement of money obligations arising between the members. See also interbank funds transfer system.
The rate at which one currency will be exchanged for another as dictated by the mid-market rate.
FX rates offered by financial institutions that are calculated as the mid-market rate plus a spread/markup. The exact value of the spread/marketup depends on the currency pairs and size of the transaction.
Global ACH See IAT
Global Proprietary Network
The total value of a financial institution’s direct relationships and partnerships with banks, payment processors, and other financial institutions; does not include third party relationships or correspondent bank networks.
International ACH Transaction (IAT)
"A debit or credit entry that is part of a payment transaction involving a financial agency located outside of the U.S. "
International Prepaid Cards
With sponsorship from Visa or MasterCard, these prepaid debit cards are connected to a US or EU- based bank account and delivered in USD or EUR.
“Know Your Customer” (KYC) is an anti-corruption policy of collecting information from clients to ensure that their activity with a service provider is compliant with bank regulations; a due- diligence practice used by banks, financial institutions and business entities.
A beneficiary deduction charged by a bank or financial institution for accepting funds. This fee is typically charged on top of any transaction fees or FX markups that either the sending or receiving financial institution charges.
The national currency of a region or country that functions as a medium of exchange, measure of value, standard of deferred payment, and store of value.
Local Funds Transfer (LFT)
The process of directly depositing cross-border payments into a local bank account using local currency. Beneficiaries typically receive payments faster for a lower flat fee.
The process of sending multiple payouts (typically 100+) in a single session
Mass Payout API
API Platforms that enable businesses to use their own front-end to facilitate pay-ins or payouts through direct Application Programming Interface (API) integration.
The benchmark for a currency's FX rate that is derived from average “buy” and “sell” rates from global currency markets.
A financial service which allows businesses to price goods and services in a variety of foreign currencies, while continuing to receive settlement and reporting in their home currency; also called Multi-Currency Pricing.
NACHA, also known as the Electronic Payments Association, manages the development, administration, and governance of the ACH Network.
The Office of Foreign Affairs Control (OFAC) is the division of the US Department of the Treasury that enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States.
Peer-to-peer (P2P) payments represent electronic fund transfers between two persons (non-business entities).
Transpay's specialized API that enables cross-border mass payouts to be sent using recipients' email and mobile phone number.
The transfer of funds from a person to a business, organization, or another person in exchange for services, goods, or other specified purposes; pay-ins typically originate from a non-business entitity (see P2P Payments).
A device, usually an embossed plastic card, that allows its owner (the cardholder) to make an electronic payment.
The time lag between the initiation of a payment order and its final settlement.
A message delivered requesting the transfer of funds (in the form of a monetary claim on a party)
to the order of the payee. The order may relate either to a credit transfer or to a debit transfer.
A regulated financial place or location where funds can be retrieved; most common types of payment points are banks, ATMs, and cash transfer stores.
The extent to which transactional reporting details are available to the issuers and beneficiaries.
The process where funds are delivered from a business to an individual freelancer, contractor, or business entity in exchange for services or goods; unlike pay-ins, payouts typically originate from a business account.
Payout Service Types
Remittance businesses generally focus on at least one of the below payout service types: B2B Payments, B2P Payments, P2P Payments
The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that ALL companies that process, store or transmit credit card information maintain a secure environment. Essentially any merchant that has a Merchant ID (MID)
A numeric password used to authenticate a user to a system, typically associated with ATM cards or two factor validation for cash transfers.
The transfer of money across international borders.
The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.
An economic model based on the sharing, swapping, trading, or renting of products and services, enabling access over ownership.
Straight-Through Processing (STP)
A transaction process that enables digital automation of end-to-end payment processing without manual intervention; delivery speeds for STP transactions are generally expected to have “same-day” turnarounds, ideally minutes or even seconds.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a cooperative society that enables cross-border payment orders to be distributed from one financial institution to another using correspondent bank networks.
The process of substituting a sensitive data element with a non-sensitive equivalent, referred to as a token, that has no extrinsic or exploitable meaning or value.
Two Factor Authentication
"A security measure to validate a beneficiary’s identity through two verification requirements: 1. A government issued ID that shows an exact match with the beneficiary name provided by the sender; 2. A PIN number issued to the sender"
Areas, regions or markets where the majority of the adult population do not have bank accounts; unbanked regions are most commonly represented in undeveloped or emerging markets.
Virtual Credit Card
A digital credit account that associates a randomly-generated card number with an actual credit card to enable fund transfers; A common cross-border payout method used by travel brands looking to payout global suppliers and distributers, hotels, or tour guides and agents.
A method of electronic funds transfer from one person or entity to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office.