Real-Time Payments

Term	Definition
Accessibility	The ability to enable any entity to send and receive payments or payment related information to/from any other entity.
Account	A balance (deposit or credit) of funds recorded on an independent ledger that can be used by its owner to send or receive funds.
Authentication	The process that verifies the identity or veracity of a user, device, payment or message connected to a payment system.
Authorization	The explicit instructions, 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.
Authorized Participant	A user that has legal access to a payment solution, payment network or payment service.
Cancellation of a Payment	The act of causing a payment to no longer be processed as valid in the payment system (e.g., payment is stopped or reversed).
Confidentiality	The set of rules and processes that appropriately limit access to and restrict the sharing of payment and/or other sensitive information (e.g. personally identifiable information).
Credential	A verifiable set of data presented by a user to the payment system as evidence of identity.
Credit Push	See “Push Payment.”
Criteria	The principles or standards by which something must (or will) be compared, judged or evaluated.
Debit Pull	See “Pull Payment”.
Electronic check and electronic returned check.	(1) Electronic check means an electronic image of a check or electronic information related to a check that– (i) A bank or a nonbank depositor sends to a receiving bank pursuant to an agreement with the receiving bank; and (ii) Conforms with ANS X9.100–187, unless the Board by rule or order determines that a different standard applies or the parties otherwise agree. (2) Electronic returned check means an electronic image of a returned check or electronic information related to a returned check that— (i) A bank sends to a receiving bank pursuant to an agreement with the receiving bank; and (ii) Conforms with ANS X9.100–187, unless the Board by rule or order determines that a different standard applies or the parties otherwise agree.
Entity	A person, business, government agency, financial institution or other service provider. Users of the payments system may also be referred to as an entity.
Error Resolution	Process of investigating by a user and/or provider to determine whether or not an erroneous, unauthorized or fraudulent transaction has occurred and if so, the corrective measures to be taken by the user and/or provider.
FI	A financial institution, including depository institutions, credit unions, thrifts, savings and loans, etc.
Finality	See “Irrevocability.”
Good Funds	Funds in an account that are unconditionally available and usable immediately by the owner of the account.
Interoperability	Ability to process payment instructions across payment systems or platforms. Requires the use of common standards and technical compatibility between systems. ¹
Irrevocability	The legal inability of the payer’s financial institution or agent to revoke a transfer of funds that is authorized by the payer.
Magnetic ink character recognition line and MICR line	The numbers, which may include the routing number, account number, check number, check amount, and other information, that are printed near the bottom of a check in magnetic ink in accordance with American National Standard Specifications for Placement and Location of MICR Printing, X9.13 (hereinafter ANS X9.13) for an original check and American National Standard Specifications for an Image Replacement Document—IRD, X9.100–140 (hereinafter ANS X9.100–140) for a substitute check, or, for purposes of subpart C and subpart D, contained in the electronic image of and electronic information related to the check in accordance with American National Standard Specifications for Electronic Exchange of Check Image Data— Domestic, X9.100–187 (hereinafter ANS X9.100–187) for an electronic image of and electronic information related to a check, unless the Board by rule or order determines that different standards apply.
Multi-Factor Authentication	The use and validation of two or more factors for authentication. Authentication examples: Something the user knows (e.g., a personal identification number) Something the user has (e.g., a card or mobile device) Something that is an attribute of the user (e.g., a fingerprint) Note: examples above are not intended to exhaustive.
Near Real-Time	Occurs close in time to the act of initiating a payment order or authorizing payment but not necessarily immediately thereafter.
Notification	Real-time messages to all the parties involved throughout all levels of the transaction(s), including Authentication, Authorization, Verification, etc.
Participant	See “User.”
Payee	The intended recipient of a payment.
Payment Order or Payment Instruction	The verifiable, signed collection of information created by the payer and sent to the provider authorizing the transfer of funds from the payer to payee.
Payment System	The set of technologies, rules, practices and standards necessary for the functioning of the payment system and its services.
Payer	The entity that initiates a payment transaction.
Posting	Immediate Posting (recordation / reporting) by both the sending and receiving financial institution.
Proposal	The written document that provides a detailed description of a faster payments solution, and demonstrates how it meets the Effectiveness Criteria for a faster payments solution.
Proposal Work Group	A group formed to develop and revise a proposal. It will be the responsibility of the workgroup to guide the proposal through the Effectiveness Criteria review process.
Provider	Defined to include three categories of institutions/organizations: Depository institutions (any institution eligible for a Federal Reserve account) Non-bank account providers that are classified as money services businesses or money transmitters subject to state regulation Third-party service providers (e.g., non-account holding providers of technology, software, network services, processing services, mobile wallets, equipment, security services, program managers, etc.)
PSP	Payment Service Provider (See Provider).
Pull Payment	A 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.
Push Payment	A payment made when the payer sends the payment instruction to the payer’s account to transfer the payer’s funds to the payee.
Real-Time	Immediate/without delay.
Routing Number	(1) The number printed on the face of a check in fractional form or in nine digit form; (2) The number in a bank’s indorsement in fractional or nine-digit the bank-identification (3) number contained in an electronic image of or electronic information related to a check.
Settlement	An act that discharges obligations in respect of funds between two or more parties. ²
Solution	The collection of components and supporting parties that enable the end-to-end payment process. A faster payments solution might include new components, the adaptation of existing components, and/or a combination of the two. Components include any of the following: Rules, standards/protocols, and procedures Physical or technical infrastructure, networks, systems and other resources needed by all parties to use or enable the rules, standards/protocols and procedures Centralized or shared services, if any Legal framework and enforcement mechanisms Parties include any of the following: Governing bodies, operators, depository institutions, non-bank account providers and third-party service providers
Task Force Work Group	A group formed to undertake specific topics or assignments that are deemed to be of importance by the task force. Task Force Work Groups will generally be accountable for specific outputs or deliverable(s) to advance task force objectives.
Tokenization	The process of replacing sensitive data (e.g., account information) with unique identifiers (i.e., tokens) that either replaces or masks attributes associated with the original data set.
Ubiquitous	A payment system that can reach all accounts to ensure that a payer has the ability to pay any entity.
User	An entity that is a part of or interacts with the payment system.
Verification	Providing a real time verification of what the current balance in checking/savings account of the individual or business and the current account status.

Real Estate Terms	Definition
"Bank"	means a financial institution, including but not limited to a national bank, state chartered bank, savings bank, or credit union that is insured by the Federal Deposit Insurance Corporation or a comparable agency of the federal or state government.
"Borrower"	means the maker of the promissory note evidencing the loan to be delivered at the closing.
"Cashier's check"	means a check that is drawn on a bank, is signed by an officer or employee of the bank on behalf of the bank as drawer, is a direct obligation of the bank, and is provided to a customer of the bank or acquired from the bank for remittance purposes.
"Certified check"	means a check with respect to which the drawee bank certifies by signature on the check of an officer or other authorized employee of the bank that (i) the signature of the drawer on the check is genuine and the bank has set aside funds that are equal to the amount of the check and will be used to pay the check or (ii) the bank will pay the check upon presentment.
"Closing"	means the time agreed upon by the purchaser, seller, and lender (if applicable), when the execution and delivery of the documents necessary to consummate the transaction contemplated by the parties to the contract occurs, and includes a loan closing.
"Closing funds"	means the gross or net proceeds of the real estate transaction, including any loan funds, to be disbursed by the settlement agent as part of the disbursement of settlement proceeds on behalf of the parties.
"Collected funds"	means funds deposited and irrevocably credited to a settlement agent's account used to fund the disbursement of settlement proceeds which account is a trust account, escrow account, or an account held by a company or its subsidiary which is licensed and supervised by the "State" Commissioner of Banks.
"Disbursement of settlement proceeds"	means the payment of all closing funds from the transaction by the settlement agent to the persons or entities entitled to that payment.
"Lender"	means any person or entity engaged in making or originating loans secured by mortgages or deeds of trust on real estate.
"Loan closing"	means the time agreed upon by the borrower and lender, as applicable, when the execution and delivery of loan documents by the borrower occurs.
"Loan documents"	means the note evidencing the debt due to the lender, the deed of trust or mortgage to secure that debt to the lender, and any other documents required by the lender to be executed by the borrower as part of the loan closing transaction.
"Loan funds"	means the gross or net proceeds of the loan to be disbursed by the settlement agent as part of the disbursement of settlement proceeds on behalf of the borrower and lender.
"Party" or "parties"	means the seller, purchaser, borrower, lender, and settlement agent, as applicable to the subject transaction.
"Settlement"	means the time when the settlement agent has received the duly executed deed, deed of trust or mortgage, and other loan documents and funds required to carry out the terms of the contracts between the parties.
"Settlement agent"	means the person or persons responsible for conducting the settlement and disbursement of the settlement proceeds, and includes any individual, corporation, partnership, or other entity conducting the settlement and disbursement of the closing funds.
"Teller's check"	means a check provided to a customer of a bank or acquired from a bank for remittance purposes, that is drawn by the bank, and drawn on another bank or payable through or at a bank.

Original Source: IBAN

IBAN	International Bank Account Number The International Bank Account Number is a unique identifier helping banks process payments from person to person automatically. The IBAN contains all necessary information for the owner if a bank account such as the account number, bank and branch information and country code. Although no uniform length has been established for SEPA countries, the IBAN cannot exceed 34 characters. Most countries however, have different fixed lengths. Our validator automatically detects the country and length of the IBAN in order to make an accurate validation.
BBAN	Basic Bank Account Number BBAN is short for Basic Bank Account Number. It represents a country-specific bank account number. The BBAN is the last part of the IBAN when used for international funds transfers. Every country has it’s specific BBAN format and length depending on it’s own standards. Currently there is no common EU or other standard unifying the BBAN. This is where the IBAN was introduced to help standardise international bank transfers.
BIC	Bank Identifier Code The Bank Identifier Code is an international code that banks use for financial transactions. Each bank has its own BIC. This way, European and international payment orders automatically arrive at the correct bank and branch. The BIC is also called a SWIFT address or SWIFT code. The BIC can be 8 or 11 characters long depending if it supplies branch information.
SEPA	Single Euro Payment Area This unique euro payment area establishes an integrated European market for payment instruments. The aim of SEPA is to ensure that payments within Europe take place as simply and effectively as those within a single country.
ECB	European Central Bank The European Central Bank is the central banking entity for the Eurozone. It is responsible for the euro currency in the European union. The main task of the ECB consists of maintaining the purchasing capacity of the euro, and so price stability, in the euro zone. The euro zone includes the 17 countries of the European Union that have used the euro since 1999.
SWIFT	Society for Worldwide Interbank Financial Telecommunication see BIC
SCT	SEPA Credit Transfer The SEPA Credit Transfer has been introduced by the European Payment Council (see EPC) in the beginning of 2008. It is also referred to as a payment scheme or a set of rules for transferring funds between banks in the EU. The SCT (called "European transfer" in Belgium) is to replace the complete range of local euro-denominated payment systems in Europe, both domestic and cross-border.
SDD	SEPA Direct Debit The SEPA Direct Debit (called "European direct debit" in Belgium) is a payment protocol defining a set of rules for specific payments between banks in the Eurozone. The SDD Core, like any other direct debit scheme, is based on the following concept: "I request money from someone else, with their prior approval, and credit it to myself". The payer and the biller must each hold an account with a payment service provider (PSP) located within SEPA.
PSD	Payment Services Directive The Payment Services Directive has been introduced in 2007 as a set of legal regulations which are aimed to define payment services and payment service providers in the European Union. It’s main purpose is to facilitate the development of the Single Euro Payments Area (SEPA), regulate payments institutions, provide payment transparency and increase competition.
ACH	Automated Clearing House The ACH is a type of electronic funds transfer network used in the United States. Similar to the SWIFT in Europe, the ACH provides inter-bank clearing of credit and debit transactions. The ACH electronic network helps banks and financial institutions exchange information in between.
CSM	Clearing and Settlement Mechanism The Clearing and Settlement Mechanism is a set of rules regulating how trade is being conducted. Such directives constitute how money and messages are sent in a standardised manner between payment service providers.
PEACH	Pan-European ACH A Pan-European Automated Clearing House (PE-ACH) is an ACH that is able to settle SEPA compliant credit transfers and direct debits across the Eurozone. PEACH is also a business platform for the provision of euro retail payment instruments and basic related services, made up of governance rules and payment practices and supported by the necessary technical platform(s).
EBA	Euro Banking Association Founded in Paris in 1985 by 18 commercial banks and the European Investment Bank, EBA is an industry forum for the European payment entities with over 200 banks and organisations as members. The Euro Banking Association is one of the main contributors to the creation and development of SEPA.
EPC	European Payments Council European banking decision-making body in the area of payments. It coordinates all activities that should lead to the introduction of SEPA.
BACS	Bankers’ Automated Clearing System BACS is an acronym standing for Bankers’ Automated Clearing System. It is one of the UK’s inter-bank transfer facilities and is used to process electronic transactions and transfers. The majority of the things processed using the BACS system are direct debits and direct credits. A direct debit is an instruction from an account holder to their bank, authorising a company to withdraw varying amounts of money. Direct Debits are used to ensure a payment can be made regularly, safely and efficiently. They are among the most common financial transactions in the world . A direct credit is effectively the opposite of a direct debit and is commonly used to transfer wages into the bank accounts of employees. Until recently, BACS was also the system at the forefront of one off online payments and payments made through the telephone. However, it was recently introduced by the Faster Payments system. The reason for this is the efficiency of Faster Payments, which processes almost instantly. What’s more is it is able to do this at any time of day, 365 days per year. BACS payments on the other hand take a minimum of 3 banking days to process. Some accounts do not allow for the use of faster payments, therefore they still rely on BACS.
CHAPS	Clearing House Automated Payment System As you may have guessed, CHAPS is also an acronym; it stands for Clearing House Automated Payment System, although it is rarely referred to by its full name. CHAPS is another system used for processing payments in the UK. Although anybody is able to use CHAPS, it is a system usually used by businesses in transactions involving large sums of money. Using the CHAPS systems usually incurs a charge of 25 – 30. CHAPS transfers usually process within a day and is commonly used in the purchase of property, with solicitors using the system to transfer funds between the bank accounts of the parties involved. It is also used in other high value payment scenarios. As mentioned earlier CHAPS is used to move funds inter-bank; it is used for this purpose several times a day. In order to make a payment through CHAPS, one usually has to visit your bank with a form of ID to prove your identification. Before making a CHAPS payment, it is worth checking the limit of your bank’s faster payments transfers. Faster Payments can commonly be used for transfers of up to 100,000 and it is instantaneous as well as being free. This is particularly applicable for individual users (as opposed to companies and organisations).
FPS	UK Faster Payments Service As mentioned above, the Faster Payments service allows the general public to make payments with the funds being processed and transferred almost instantly. It is regularly used by the general public to make payments such as bills, standing orders and online transfers. The System has been in operation since 2008.
C&CC	UK Cheque and Credit Clearing As mentioned above, the Faster Payments service allows the general public to make payments with the funds being processed and transferred almost instantly. It is regularly used by the general public to make payments such as bills, standing orders and online transfers. The System has been in operation since 2008.
EFT	Electronic Fund Transfer Represents the way your business can receive direct deposit of all payments from the Commonwealth to your company bank account. Once you sign up, money comes to you directly and sooner than ever before. EFT is Fast, Safe, and means that your money will be confirmed in your bank account quicker than if you have to wait for the mail, deposit your check, and wait for the funds to become available.
B2B	Business to Busines
SCF	SEPA Cards Framework The SEPA Cards Framework spells out high level principles and rules which when implemented by banks, schemes, and other stakeholders, will enable European customers to use general purpose cards to make payments and cash withdrawals in euro throughout the SEPA area with the same ease and convenience as they do in their home country.
EFTA	European Free Trade Association
ECBS	European Committee for Banking Standards

Glossary

Glossary and Definitions

Common Real-Time Payment terms

UCC Article 4A - Wired Funds, Wired Funds UCC Article 4A

List of abbreviations used in bank funds transfers