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Industry Terms |
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- ABA routing number
- The nine-digit number (eight digits and a check number) that identifies a specific financial institution. Also referred to as a bank routing number or routing or transit number.
- account mask information
- Editing criteria used to verify the accuracy of a seller's account number in certain electronic payment transactions.
- activation
- The process of a customer selecting a biller account for bill presentment, agreeing to biller terms and conditions, and establishing the account within the biller's and CSP's systems.
- addenda record
- An electronic record used for the purpose of transmitting payment-related information.
- aggregator
- A service provider that brings together, in a single location, electronic bills and summaries collected from clients for viewing and possible payment by the end-user/consumer.
- ANSI X12
- Standards that regulate electronic data interchange (EDI), as governed by the American National Standards Committee.
- ANSI X9.17
- Standards for authentication and key management. The National Institute of Standards maintains these standards.
- application programming interface (API)
- A set of specifications, standards, or conventions that enable programs to exchange information.
- application service provider (ASP)
- Third-party vendor used by a seller to outsource the presentment of electronic invoices.
- ASP-hosted system
- Third-party application service provider providing front end, data center, or transaction-processing capabilities for either a buyer or a seller.
- authentication
- The process of verifying the identity of a user of a secure system. Passwords and digital signatures are forms of authentication that allow access.
- Automated Clearing House (ACH)
- A central distribution and settlement point for electronic items, including funds, exchanged between depository financial institutions. The ACH funds transfer system is governed by the Rules of the National ACH Association (NACHA).
- B2B
- Business to business.
- B2C
- Business to consumer.
- bank routing number
- The number uniquely identifying a bank for payment processing. Also referred to as an ABA routing number or routing (or transit) number.
- batch
- The transmission or processing of a group of payment orders at discrete intervals of time.
- bill (or invoice)
- An electronic or paper document sent to a customer, associated with a payment due.
- bill consolidator
- A BSP that consolidates bills from other BSPs or billers and delivers them for presentment to the CSP.
- bill detail
- Information from a biller that provides invoice line-level information to a customer. This may include specific billing event information.
- bill notification
- A process whereby a customer is notified that an electronic bill is available for review and payment.
- bill payment process
- The controlled disbursement of money from a consumer's payment account to a client's bank.
- bill summary
- The summary information from a biller that a customer must understand so that the customer knows what is owed. Typical information includes amount owed, date due, biller, biller's account number.
- biller
- A company or organization that sends a bill or statement to a customer. In some instances the biller may be referred to as a creditor.
- biller direct
- An EBPP model whereby a client presents invoices to consumers at a "branded" company website, as opposed to an "aggregator" site.
- biller payment provider (BPP)
- An agent (usually a financial institution) of the biller that originates and accepts payments on behalf of the biller.
- biller service provider (BSP)
- An institution that acts as an intermediary between the biller and the consumer for the exchange of electronic bill payment information.
- browser
- Sometimes referred to as a web browser, a software program that is used to access various Internet resources (i.e. Microsoft's Internet Explorer or Netscape's Communicator).
- buyer direct
- EIPP model connecting one buyer to many sellers. Sellers post their invoice data to the buyer's site.
- Cash Concentration/Disbursement (CCD)
- ACH corporate payment format with no addenda record capability.
- Cash Concentration/Disbursement Plus (CCD+)
- ACH corporate payment format that includes addenda record capability.
- check
- A paper negotiable instrument payable upon demand to transfer funds from the payer to the payee.
- check and lists
- The procedures for generating and processing paper remittances, in which one check is attached to a list of name(s), account number(s), and payment amount(s) for each customer covered by the attached check.
- clearing
- The process by which a check is presented to and accepted by a drawee bank, the institution on which a check is drawn.
- clearing house
- An association of depository institutions that facilitates the settling of checks or electronic items through the direct exchange of funds between members.
- consolidator
- An EIPP model connecting many buyers and many sellers through a single site.
- Council for Electronic Billing and Payment (CEBP)
- NACHA group that oversees EBPP.
- credit cap
- Limit on the amount of credit transactions for an account or entity.
- credit counseling agency
- An agency that originates payments on behalf of consumers wishing to enter a debt management plan.
- credit counseling payments
- Payments originating from agencies that service consumers wishing to enter a debt reduction plan. Credit counseling payments can include a gross and net payment amount for each transaction.
- creditor
- A biller that receives electronic payments from credit counseling agencies.
- customer account information
- A detail field within remittance information, usually the account number assigned to that customer by the biller. This can also be used to mean the customer's billing name and address as well as any other information that the biller uses to identify the customer.
- customer payment provider (CPP)
- An agent (usually a financial institution) of the customer that originates and accepts payments on behalf of the customer.
- customer service provider (CSP)
- An agent of the customer that provides an interface directly to customers, businesses, or others for bill payment and presentment. The CSP enrolls customers, enables payment and presentment, and provides customer care.
- data transmission
- Electronic exchange of information between two data processing points.
- daylight overdraft
- Intra-day status of an account when a financial institution initiates a payment without sufficient or available funds in the account.
- debit
- An entry to request transfer or removal of funds from an account.
- debit block
- Process to restrict debits from a demand deposit account. Also referred to as a debit filter.
- debit cap
- Limit on the amount of debit transactions for an account or entity.
- debt management proposal (DMP)
- Nonfinancial information transmitted through MasterCard RPPS from credit counseling agencies to creditors on behalf of consumers wishing to establish a debt reduction plan.
- Demand deposit account (DDA)
- Account that can be drawn by check, cash withdrawal from an automatic teller machine, or by transfer to other accounts.
- dispute management
- EIPP system function that allows a buyer to notify the seller of invoice disputes. The function also allows the seller to respond to the buyer.
- electronic bill payment and presentment (EBPP)
- Electronic presentment of customer bills that contain a mechanism that enables the customer to pay the bill.
- electronic data interchange (EDI)
- An industry standard format used to transfer business data between computers. The EDI unit of transmission (equivalent to a message) is called a transaction set, which often consists of what would usually be contained in a typical business document or form.
- electronic funds transfer (EFT)
- Electronic payments such as ACH or wire transfer.
- electronic invoice presentment and payment (EIPP)
- In the B2B arena, EIPP is the presentment of an invoice from a seller to a buyer, and corresponding payment from a buyer to a seller.
- electronic invoicing and payment (EIP)
- Synonymous with EIPP.
- electronic payment
- Any non-paper-based type of payment.
- encryption
- Computer-generated algorithm that allows secure communication between parties. A means of encoding data to prevent the data from being read by anyone than the intended recipient. The sender uses a key to encrypt the message; the recipient uses the decryption key.
- enrollment
- The process associated with a customer establishing a relationship with a CSP.
- Extensible MarkUp Language (XML)
- A markup language for documents containing structured information.
- Fedwire Payment
- System operated by the Federal Reserve or payment transactions that are electronically initiated and settled on the same day.
- file transfer protocol (FTP)
- A method to move data across the Internet.
- financial institution
- Any organization that can originate and receive payments, such as a bank, thrift, or credit union.
- float
- The period of time between the deposit of a check in a bank and settlement.
- gateway
- A node or switch that permits communication between two dissimilar networks. A technical means by which users of one computer system can access another computer system without a separate connection.
- gateway biller
- A biller that can be reached through public or proprietary networks.
- gross payment
- Dollar amount posted by biller/creditor to a consumer~Rs account.
- guaranteed funds
- Funds that both the buyer and seller know are available at the time of payment.
- Interactive Financial Exchange (IFX)
- A standard for the exchange of financial data and instructions independent of a particular network technology or computing platform. IFX builds on previous industry experiences, including OFX and GOLD, which are currently implemented by major financial institutions and service providers to enable electronic exchange of financial data between themselves and their customers.
- Internet service provider (ISP)
- A vendor that provides access to the Internet.
- interoperability
- Standards and file formats promoting interaction between systems.
- invoice cycle
- The period of time between the recurring events of updating, invoicing, and charging for services rendered.
- invoice detail
- Information from a seller that provides itemized information to a buyer.
- invoice notification
- A process by which a buyer is notified that an electronic invoice is available for review and payment.
- invoice summary
- The summary information from a seller that is essential to a buyer to understand what is owed. Typical information may include amount owed, date due, seller, and seller's account number.
- legacy system
- Any existing system that may require integration with the EIPP solution.
- lockbox
- A cash management system whereby consumer payments are deposited into the client's bank account and the bank sends a consolidated remittance file to the client.
- lockbox processor
- An organization that processes payments on behalf of other organizations and manages their accounts receivable. At MasterCard RPPS, a lockbox processor is also known as a concentrator.
- MasterCard Remote Payment and Presentment Service (RPPS)
- An extensive network enabling approximately 95 percent of the EBPP industry's service providers to have customers bills paid online. MasterCard RPPS offers participants one-stop access to comprehensive electronic routing, posting, and settlement services typically within 24 hours to effectively displace paper.
- National Automated Clearing House Association (NACHA)
- Association that provides governance for ACH processing,establishing the standards, rules, and procedures for financial institutions to exchange ACH payments. NACHA also promotes electronic payments and provides education for members.
- net settlement
- The settlement of a number of obligations or transfers between or among counterparts on a net basis.
- netting
- An agreed offsetting of positions or obligations by trading partners or participants.
- nonrepudiation
- A security feature that verifies to the sender that the recipient of the message received the message and that the integrity of the content was not compromised.
- notification of change
- ACH message notifying an originator that a change has occurred.
- Open Financial Exchange (OFX)
- A unified specification for the electronic exchange of financial data between financial institutions, businesses, and consumers via the Internet.
- originator
- Initiator of payment instructions to a financial institution.
- participant directory
- A listing of members of an EBPP network.
- payment
- A vehicle to effect the transfer of value. Typically transfers funds from one bank depository to another. May also transfer funds to/from a debt instrument, such as a credit card. Also known as a funds transfer.
- payment authorization (or instructions)
- Instructions for routing/posting the payment (i.e., into which bank account payments should be deposited).
- payment consolidation
- The process of combining payments from multiple payment networks and concentrating them into a single deposit.
- payment dispute
- Disagreement between financial institutions or within the payment network.
- payment due date
- The date under which the biller requires payment from the customer.
- payment instruments
- The instruments required to initiate a payment (e.g., checks, credit cards, debit cards).
- payment method
- The method used to facilitate and process payment. Includes payment instruments and payment systems.
- payment posted date
- The date under which a payment is posted to an account.
- payment systems
- A system or network used to process payment (e.g., ACH, debit card, and credit card networks).
- personal finance management (or manager) (PFM)
- Software used by a consumer to manage and organize their finances.
- posting
- The process of recording debits and credits to account balances after settlement.
- prenote
- Notification to a financial institution that an originator will send one or more entries to a receiver's account. A zero-dollar transaction used for verifying a customer account number before initiating live transactions.
- real time
- The processing of instructions on an individual basis at the time they are received rather than at some later time.
- recipient
- An individual or business, other than the customer, that receives bills or notices and pays them.
- registration
- The process by which a biller establishes a relationship with a BSP. Registration is also a process of BSPs and CSPs establishing relationships with each other. It is expected that a BSP and CSP will have a relationship before they exchange any account activation information. It is expected that a biller will have a relationship with a BSP before a CSP will start sending activation requests to a BSP for that biller.
- rejected transaction
- A transaction that could not be processed.
- remittance information
- Information required by the biller to post customer bill payments effectively.
- remittance method
- The method used to deliver funds and remittance information.
- remote banking
- Online banking from computers or dedicated terminals, telephones, the Internet, and other devices used by consumers.
- retail lockbox
- Automated remittance processing and collection of customer payments consisting of one remittance document and one check. Usually high volume and low dollar amounts.
- returns
- Any entry that cannot be processed by the receiver or network and is returned to the sender.
- reversals
- A debit reversing an entry previously initiated.
- routing (or transit) number
- The number associated with a financial institution for the purpose of processing payments. Also referred to as an ABA routing number or bank routing number.
- seller
- A biller or vendor. An entity providing products or services.
- seller direct
- EIPP model connecting one seller to many buyers. Buyers connect to the seller's site to view invoices.
- Society for Worldwide Interbank Financial Telecommunication (SWIFT)
- A bank-owned international financial messaging organization.
- statement (or notice)
- An electronic or paper document that provides information to a recipient.
- value-added network (VAN)
- Independent third-party that processes and/or translates electronic remittance files.
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