Reference
Fintech infrastructure glossary
Concise definitions of the infrastructure and regulatory terms used across our guides. Definitions orient you and link to a deeper article where relevant; they are not a substitute for the full explanations in the guides themselves.
- Account information service
- A regulated service (AIS) that, with the customer's consent, retrieves account data from account-servicing providers to present balances and transactions.Learn more →
- Acquirer
- A regulated entity that enables a merchant to accept card payments, receives card transactions on the merchant's behalf and settles funds to the merchant. It is distinct from a gateway or processor.Learn more →
- Agency banking
- An arrangement in which one institution provides banking or payment access to another under the first institution's regulated permissions and account relationships.Learn more →
- AML
- Anti-money-laundering: the legal obligations, controls and processes an institution uses to detect and prevent money laundering and terrorist financing.Learn more →
- API
- Application programming interface: the technical contract through which one system integrates with a provider's services, such as creating accounts or initiating payments.
- ART
- Asset-referenced token: under MiCA, a crypto-asset that references another value or right, or a combination of them, other than a single official currency.Learn more →
- Available balance
- The funds a customer can currently use, typically the booked balance adjusted for holds, reservations and pending items.Learn more →
- BaaS
- Banking-as-a-service: the provision of banking or e-money capabilities to another company, usually through APIs. BaaS is a commercial and technical model, not a regulatory licence in itself.Learn more →
- Beneficial owner
- The natural person who ultimately owns or controls a customer, identified as part of business onboarding and AML obligations.Learn more →
- BIN
- Bank identification number: the leading digits of a card number that identify the issuer and card programme within a network.Learn more →
- BIN sponsor
- A network member that provides access to a BIN range and sponsors a programme into the card scheme, often carrying regulated issuing responsibilities.Learn more →
- Booked balance
- The balance reflecting transactions that have been posted to an account, before adjusting for holds or pending items.Learn more →
- Card network
- A scheme that sets rules and operates the infrastructure connecting issuers and acquirers to authorise, clear and settle card transactions.Learn more →
- CASP
- Crypto-asset service provider: under MiCA, a person authorised to provide one or more crypto-asset services such as custody, exchange or transfer.Learn more →
- Chargeback
- A dispute mechanism in card schemes through which a cardholder's transaction can be reversed under defined scheme rules.Learn more →
- Clearing
- The exchange and reconciliation of payment instructions between institutions before final settlement of funds.Learn more →
- Core banking
- The system that manages banking products, accounts and their lifecycle. It is distinct from a general-purpose ledger, though the two interact.Learn more →
- Custody
- The safekeeping and administration of assets on behalf of others. For crypto-assets under MiCA, custody is a defined regulated service.Learn more →
- E-money
- Electronic money: monetary value stored electronically, issued on receipt of funds for making payments, and redeemable at par under the electronic-money framework.Learn more →
- EMI
- Electronic money institution: an entity authorised to issue electronic money and, typically, to provide related payment services.Learn more →
- EMT
- E-money token: under MiCA, a crypto-asset that purports to maintain a stable value by referencing a single official currency.Learn more →
- FX spread
- The difference between the exchange rate a provider applies and a reference rate; one component of the all-in cost of a currency conversion.Learn more →
- Gateway
- A technical component that securely transmits payment data between a merchant and downstream payment participants. A gateway is not the same as an acquirer.Learn more →
- IBAN
- International Bank Account Number: a standardised identifier for an account used in SEPA and other payment contexts.Learn more →
- Interchange
- A fee that moves between the acquiring and issuing sides of a card transaction, regulated for certain card types in the EU.Learn more →
- Issuer
- The entity that issues a payment card to a cardholder and carries the associated regulated responsibilities within the scheme.Learn more →
- Issuer processor
- The technology provider that processes issuing transactions — authorisations, controls and card lifecycle — on behalf of an issuer.Learn more →
- KYB
- Know your business: verifying a business customer, its structure and its beneficial owners as part of onboarding.Learn more →
- KYC
- Know your customer: verifying the identity of an individual customer as part of onboarding and ongoing due diligence.Learn more →
- Ledger
- A record of financial entries, typically double-entry, that tracks balances and movements. A ledger is not the same as a core banking system.Learn more →
- Merchant of record
- The entity legally responsible for a sale to the customer, including payment liability, refunds and certain compliance obligations.Learn more →
- Named account
- An account presented in the name of the end customer, as opposed to a pooled account holding multiple customers' funds together.Learn more →
- Network token
- A scheme-issued token that replaces a card number for card-on-file and digital transactions, maintained through the network's tokenisation service.Learn more →
- On-ramp
- Infrastructure that converts fiat currency into crypto-assets; an off-ramp performs the reverse conversion.Learn more →
- Orchestration
- A layer that routes and manages transactions across multiple payment providers, with logic for routing, failover and reconciliation.Learn more →
- Payment initiation
- A regulated service (PIS) that, with the customer's consent, initiates a payment from the customer's account held at another provider.Learn more →
- Payment institution
- An entity authorised to provide specified payment services under the payment-services framework. It is distinct from an EMI and from a bank.Learn more →
- Payment processor
- A technology provider that handles the technical processing of payment transactions on behalf of another party.Learn more →
- Payment service provider
- A general term for an entity that provides payment services; specific regulated categories carry specific permissions and obligations.Learn more →
- PEP
- Politically exposed person: an individual entrusted with a prominent public function, subject to enhanced due diligence rather than automatic exclusion.Learn more →
- Pooled account
- An omnibus account holding funds for multiple customers together, with individual entitlements tracked in a ledger rather than separate accounts.Learn more →
- Programme manager
- The party that runs the commercial and operational side of a card programme, coordinating issuer, processor and other participants.Learn more →
- Safeguarding
- The obligation of payment and e-money institutions to protect customer funds, for example through segregation. It is not the same as deposit protection.Learn more →
- Sanctions screening
- Checking customers, counterparties and transactions against sanctions lists to prevent prohibited dealings.Learn more →
- SCT
- SEPA Credit Transfer: the scheme for standard euro credit transfers within the Single Euro Payments Area.Learn more →
- SCT Inst
- SEPA Instant Credit Transfer: the scheme for instant euro credit transfers, operating continuously with near-immediate availability of funds.Learn more →
- SDD
- SEPA Direct Debit: the scheme for euro direct debits, with Core and B2B variants and mandate-based collection.Learn more →
- Settlement
- The final transfer of funds between parties that discharges a payment obligation.Learn more →
- Stablecoin
- A market term for a crypto-asset designed to hold a stable value. It is not a single legal classification; under MiCA a token may be an EMT, an ART or another crypto-asset.Learn more →
- Strong customer authentication
- Authentication based on two or more independent elements (knowledge, possession, inherence), required for certain electronic payments under EU rules.Learn more →
- Transaction monitoring
- Ongoing analysis of transactions against rules, scenarios or models to detect activity that may indicate financial crime.Learn more →
- Travel Rule
- The requirement to transmit originator and beneficiary information alongside transfers; extended to certain crypto-asset transfers in the EU.Learn more →
- Virtual account
- A ledger-level account used to organise and reconcile flows, which may map to a shared underlying legal account rather than a separate bank account.Learn more →
- Virtual IBAN
- An IBAN used to route and reconcile payments to an underlying account. A virtual IBAN is not necessarily a separate bank account in its own right.Learn more →
- Wallet-as-a-service
- Infrastructure that provides wallet creation, key management and transaction functionality; it may or may not itself constitute regulated custody.Learn more →
- Webhook
- An automated message a provider sends to your system when an event occurs, such as a payment status change.