Supports

Glossary


  • in the field of transfer systems, it refers to the inclusion of a transfer order for funds or securities in a system’s operations for further processing, potentially following various checks (e.g. regarding technical standards or the availability of funds), as specified in the rules of the system;
  • in the field of cards, it refers to the process whereby a particular brand of card is accepted by a terminal, merchant or other entity.
a merchant or other entity that accepts a payment instrument presented by a client in order to transfer funds to that merchant or other entity
in point-of-sale (POS) transactions, the entity (usually a credit institution) to which the acceptor (usually a merchant) transmits the information necessary in order to process the card payment. In automated teller machine (ATM) transactions, the entity (usually a credit institution) which makes banknotes available to the cardholder (whether directly or via the use of third-party providers).
the methods used to verify the origin of a message or to verify the identity of a participant connected to a system and to confirm that a message has not been modified or replaced in transit.
the consent given by a participant (or a third party acting on behalf of that participant) in order to transfer funds or securities.
the risk of changes in the basis, that is, the difference between the price of a futures or forward contract and the price of the underlying asset.
a group of orders (payment orders and/or securities transfer orders) to be processed together.
a process preventing the transfer of a specified amount of funds or a specified quantity of a security.
see cash card, cheque guarantee card, chip card, credit card, debit card, delayed debit card, prepaid card, retailer card, travel and entertainment card.
electronic money products which provide the customer with a portable, specialized computer device, typically an IC card containing a microprocessor chip.
a person to whom a payment card is issued and who is authorized to use that card.
a financial institution that makes payment cards available to cardholders, authorizes transactions at point-of-sale (POS) terminals or automated teller machines (ATMs) and guarantees payment to the acquirer for transactions that are in conformity with the rules of the relevant scheme.
a technical and commercial arrangement set up to serve one or more brands of card which provides the organizational, legal and operational framework necessary for the functioning of the services marketed by those brands.
a written order from one party (the drawer) to another (the drawee; normally a credit institution) requiring the drawee to pay a specified sum on demand to the drawer or a third party specified by the drawer.
commercial bank liabilities that take the form of deposits held at a commercial bank which can be used for settlement purposes.
a process whereby the terms of a trade are verified either by directly involved market participants or by a central entity.
cards that require physical contact through an electronic connection surface between the card and the card reader or terminal device.
cards that do not require physical contact between the card and the card reader or terminal.
a card that enables cardholders to make purchases and/or withdraw cash up to a prearranged credit limit. The credit granted may be either settled in full by the end of a specified period, or settled in part, with the balance taken as extended credit (on which interest is usually charged).
a payment where the financial institutions of the payer and the payee are located in different countries.
settlement that takes place in a country (or currency area) in which one or both parties to the transaction are not located.
the complete cycle of processing tasks which need to be completed in a typical business day, from start-of-day procedures to end-of-day procedures. This sometimes includes the backing-up of data.
completion of settlement on the day of value of all payments accepted for settlement.
a card enabling its holders to make purchases and/or withdraw cash and have these transactions directly and immediately charged to their accounts, whether these are held with the card issuer or not.
an event stipulated in an agreement as constituting a default. Generally, such events relate to a failure to complete a transfer of funds or securities in accordance with the terms and rules of the system in question. A failure to pay or deliver on the due date, a breach of agreement and the opening of insolvency proceedings all constitute such events.
the transfer of financial instruments or commodities by means of book entry or physical exchange.
services which enable the electronic transmission, browsing and payment of invoices.
a string of data, generated by a cryptographic method, which is attached to an electronic message in order to guarantee its authenticity, identify the signatory and link the content to that signatory (thereby protecting the recipient against repudiation by the sender).
the use of cryptographic algorithms to encode clear text data (plaintext) into cipher text to prevent unauthorized observation.
a transaction that does not settle on the contractual settlement date. Such a transaction may be retained and may settle thereafter.
the risk that a party to a foreign exchange transaction will transfer the currency it has sold, but not receive the currency it has bought. This is a form of principal risk.
in the context of data, the quality of being protected against accidental or fraudulent alteration in transmission or in storage. Alternatively, the quality of indicating whether or not such alteration has occurred.
settlement that is effected through transfers of securities and/or funds on the books of a bank or investment firm, as opposed to settlement via an interbank funds transfer system or a central securities depository (CSD).
any entity whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis.
in a stored value or similar prepaid electronic money system, the entity which receives payment in exchange for value distributed in the system and which is obligated to pay or redeem transactions or balances presented to it.
large-value payments are generally for very large amounts, are exchanged mainly between banks or between participants in financial markets, and usually require urgent and timely settlement.
the process used for comparing the trade or settlement details provided by parties in order to ensure that they agree on the terms of the transaction
the attempt to conceal or disguise the ownership or source of the proceeds of criminal activity and to integrate them into the legitimate financial systems in such a way that they cannot be distinguished from assets acquired by legitimate means. Typically this involves the conversion of cash-based proceeds into account-based forms of money.
a card transaction which is authorized without contacting the issuer at the time of the transaction.
a card transaction which is authorized following explicit approval by the issuer at the time of the transaction.
the party to a payment transaction which issues the payment order or agrees to the transfer of funds to the payee.
in a strict sense, a payment is a transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. However, in a technical or statistical sense, it is often used as a synonym for “transfer order”.
a tool or a set of procedures enabling the transfer of funds from a payer to a payee. The payer and the payee can be one and the same person.
the time lag between the initiation of the payment order and its final settlement.
an instruction sent by a payer or a payee to a payment service provider requesting the execution of a payment transaction.
a set of interbank rules, practices and standards necessary for the functioning of payment services.
a device allowing the use of payment cards at a physical (not virtual) point of sale. The payment information is captured either manually on paper vouchers or by electronic means.
a card on which a monetary value can be loaded in advance and stored either on the card itself or on a dedicated account on a computer. Those funds can then be used by the holder to make purchases.
the performance of all of the actions required in accordance with the rules of a system for the handling of a transfer order from the point of acceptance by the system to the point of discharge from the system. Processing may include clearing, sorting, netting, matching and/or settlement.
the processing of instructions on an individual basis at the time they are received rather than at some later time.
a procedure to verify that two sets of records issued by two different entities match.
in the field of direct debits, a claim made by a debtor for the reimbursement of debits effected from its account (with or without a specific reason being indicated by that debtor)
the documenting of the ownership of securities in the records of the issuer, in a registry or in a central securities depository (CSD).
in the field of payments, a payment transaction whose normal execution is prevented by the payment service provider of either the payer or the payee prior to settlement.
the completion of a transaction or of processing with the aim of discharging participants’ obligations through the transfer of funds and/or securities. A settlement may be final or provisional.
the requirement, as a result of the settlement process, that a participant in a settlement system effect payment or deliver assets
an integrated circuit card with a microprocessor, capable of performing calculations.
transactions with a fixed end or maturity date.
a card scheme involving the following stakeholders:
  • the card scheme itself, which acts as issuer and acquirer;
  • the cardholder; and
  • the accepting party. This contrasts with a four-party card scheme, where the issuer and the acquirer are separate entities and are separate from the card scheme itself.
a unique reference number used to identify individual payment or securities settlement instructions (e.g. SWIFT payment messages or credit card authorizations).
an order or message requesting the transfer of assets (e.g. funds, securities, other financial instruments or commodities) from the debtor to the creditor.
a set of legal, technical and procedural arrangements for the transfer of assets such as money or securities.
the date on which it is agreed to place a payment or transfer at the disposal of the receiving user. The value date is also used as a point of reference for the calculation of interest on the funds held on an account.

Bank for International Settlements - Committee on Payment and Settlement Systems, A glossary of terms used in payments and settlements system.2003. www.bis.org.

European Central Bank – Eurosystem, Glossary of terms related to payment, clearing and settlement systems.2009.