Glossary of Payment Terms From A - H

Glossary terms I - O
Glossary terms P - Z

A Glossary and Definition of Finance and Payment TermsACH -
Automated Clearing House. An electronic payment network used most often with direct deposit of payroll checks and recurring payments. The Automated Clearing House can also be used to clear electronic checks as well as Demand Deposit Account (DDA) transactions.

Bitcoin
- a decentralized, digital currency not controlled by any company or government.

BOC - Back Office Conversion. Check conversion transactions that occur  in the merchant's back office instead of in front of the consumer. Notice to the consumer that BOC will occur must be posted at the point of sale or other check receiving locations.

BYOD
- Bring Your Own Device, usually in reference to a growing trend of employees that bring their own smartphones, laptops or tablets to the office to facilitate work. There is some concern over the security issues present with the use of outside (personal) devices.

CEBP - Council for Electronic Billing and Payment.  Part of NACHA, the Electronic Payment Association.  CEPB promotes the adoption and use of consumer, business and government billing and payment programs.

CFPB - Consumer Financial Protection Bureau. The CFPB is a Federal government agency that supervises banks, credit unions and other financial companies in the enforcement of Federal consumer financial laws.

Chargeback - A disputed credit or offline debit  card sale that is returned to the merchant bank for reimbursement of the cardholder's account. Chargebacks can be initiated by customers or by cardholders' banks.

Check 21 - Check 21, also known as the Check Clearing for the 21st Century Act, became federal law in 2005 to enable banks to handle checks electronically for faster and more efficient processing. Instead of physically moving paper checks from one bank to another, Check 21 allows banks to clear a printed copy of the original check as a "substitute" check, or IRD. (see definition.)

CPP -
Certified Payment Professional. The Certified Payments Professional (CPP) program sets the standard for professional performance in the payments industry and is a symbol of excellence. It signifies that an individual has demonstrated the knowledge and skills required to perform competently in today's complex electronic payments environment.

Cryptocurrency
- digital currency such as Bitcoin that relies on codes and cryptography to create and distribute the currency.

DDA - Demand Deposit Account. A Demand Deposit Account refers to a checking, savings or money market account where the customer has easy access to the funds in the account.

Digital Currency - alternate, electronic currency.  Digital currency usually involves the Internet or other computer network.

Digital Wallet  - Digital wallets are applications that store a virtual copy of wallet content for use in online or offline payment transactions. PayPal and Google Wallet are examples of digital wallets.

Direct Deposit - a payment method in which funds are automatically transferred from the account that owes the funds to the account of the payee. Direct deposit is often used in payroll situations, where a "paycheck" is directly deposited into an employee's account.

DMB - Direct Mobile Billing.  DMB is a method of paying by charging the purchase to the user's cell phone account.

ECA - Electronic Check Acceptance. The process of electronically submitting and processing a paper check.

ECC -
Electronic Check Conversion. Also known as ECP for Electronic Check Processing. ECC converts paper checks into an electronic payment for deposit. This can be used directly at the point of sale (POS) at a merchant's cash register or by a business that receives mailed-in checks. Electronic check conversion is a fast and easy way to batch checks and process payments.

EFT - Electronic Funds Transfer. EFTs are a transfer of funds initiated electronically by computer, phone, terminal, ATM or magnetic tape. EFTs transfer money from one bank account directly to another without any paper money changing. Payroll direct deposits are examples of EFT transactions.

EMV -
Europay Mastercard Visa. An almost global standard for chip and PIN cards (also known as smart cards) developed and backed by four of the major card brands. Europay Mastercard Visa has not yet achieved acceptance in the United States.

ETA -
Electronic Transaction Association. The ETA is a trade organization representing Independent Sales Organizations (ISO) and merchant service providers involved in electronic transaction processing products and services.

FDIC - Federal Deposit Insurance Corporation. The FDIC is a United States Government corporation operating as an independent agency created by the Glass-Steagall Act of 1933 during the Great Depression. It provides deposit insurance which guarantees the security of deposits in member banks, up to $250,000 per deposit or per bank as of January 2012.

FI -
Financial Institution. Includes banks, savings and loans, credit unions or other institution, compliant with national and state banking laws and capable of accepting deposits and extending credit.

Funding -
Payment to a merchant for submitted deposits.

General Purpose Card - A charge or credit card such as American Express, MasterCard and Visa.

 

Glossary terms I - O
Glossary terms P - Z