Glossary

term description 1099 form irs tax form that reports on income earned from sources other than wages, salary, or tips (for which the w 2 is used) institutions issue 1099’s for money paid as interest, dividends, etc aba routing number every financial institution has a nine digit code to identify itself for financial transactions (can be found printed on the bottom of checks) the american bankers association (aba) developed the system in 1910 to facilitate the sorting, bundling, and delivery of paper checks to the drawer's (check writer's) bank for debit to the drawer's account ach in the us, the ach network is the national automated clearing house (ach) for electronic funds transfers the ach payment rail manages ach inbound and outbound payments sent through the fedach payment system in cross river, ach refers to ach that uses ach account use to describe a demand deposit, savings, other asset accounts, or an extension of open ended credit from which a customer is able to transact example examples of account types include savings, cds, credit card aft account funding transaction general function pulls funds from an account and uses them to fund a non merchant account, such as that of an end consumer for example, load a credit, debit, or prepaid card, top up a digital wallet, or fund a p2p money transfer cross river benefits through our card rails and merchant acquiring product, cross river enables partners to originate pull payments from debit cards this provides a convenient and cost effective method to deliver and receive card payments this automated payment solution saves time, improves cash flow, and minimizes risk exposure, while ensuring security and privacy of financial information allowlist an allowlist is always a list of entities who are allowed to do something in cross river this could be a list of customers who have been approved to open accounts low risk customers domains allowed access to cross river systems aml anti money laundering (see money laundering below) history in the 1980s, the war on drugs led governments again to turn to money laundering rules in an attempt to track and seize the proceeds of drug crimes in order to catch the organizers and individuals running drug empires the september 11 attacks in 2001, which led to the patriot act in the u s and similar legislation worldwide, led to a new emphasis on money laundering laws to combat terrorism financing api application programming interface a software intermediary that allows two applications to talk to each other an api is a tool that allow developers to access data and interact with external software components in response to a request arn an acquirer reference number, or arn, is a unique number created in credit or debit card transactions when it transfers from the merchant’s bank through the payment processor, and to the cardholder’s bank baas banking as a service offering banking services to customers bai business application identifier bank rail see payment rail beneficiary a natural person or other legal entity who derives money or other benefits from something usually used to indicate a person who receives distributions from a trust, will or life insurance policy it can also refer to a recipient of a payment example jane is the beneficiary of her husband’s life insurance policy beneficial owner an individual who directly or indirectly, owns a % of the equity interests of a legal entity customer example the beneficial owner of the land will have a right to the income from the property bid pertaining to payment cards business identifier a unique number assigned by visa to a financial institution blocklist customers flagged by the system and prohibited from opening accounts these customers are reported to the appropriate regulatory authority borrower use to describe a loan customer can be a consumer or entity (in the days before we sell the loan on, the borrower is our customer) example once approved for the loan via the mpl, the funds are transferred directly via arix, to the borrower cos cross river bank operating system credit debt that is incurred or allowed to be incurred i e a loan or the amount a customer is permitted to spend on a credit card credit an account the act of adding/transferring funds to an account, opposite of debit an account example interest will be compounded daily and will be credited to the account monthly debit an account the act of removing/transferring funds from an account, opposite of credit an account example this is used to push funds to one cos account and debit from another account disburse to pay out funds (on behalf of a client to a third party) example once approved for the loan via the mpl, the funds are disbursed directly via arix, to the beneficiary medical service provider endpoint (ep) the location in a communication channel through which an api accesses the resources required to perform its function entity a non individual that can enter into contracts with crb example a legal entity includes trusts, estates, llcs, corporations, non profits, and all organizational structures that engage in business with crb fdic federal deposit insurance corporation (fdic) is one of two agencies that provide deposit insurance to depositors in u s depository institutions fedwire fedwire (formerly known as the federal reserve wire network) is a real time gross settlement funds transfer system operated by the united states federal reserve banks that allows financial institutions to electronically transfer funds between its more than 9,289 participants (as of march 19, 2009) fi financial institution fiserv global provider of financial services technology https //www fiserv com/ funds flow (fof) the path the funds take to get from one account to another general ledger a gl (general ledger) account is a parent account belonging to an institution or organization a gl account at crb records all transactions for that account the transactions are related to accounting elements, including assets, liabilities, equity, revenues, expenses, gains, and losses see also subledger hfi and hfs after a loan is made, the funds are either held for investment or held for sale holdback the clause in a commercial loan that puts aside a portion of the loan until a milestone is reached iam identity and access management iat ach iat was established by nacha as an extension of ach iat is designed for us banks (which payers must supply adequate iat information) to monitor and report international transactions for ofac compliance image cash letters check processing for cos checks deposited at other banks iso 20022 the iso standard for electronic data interchange between financial institutions kyb know your business (kyb) is a regulatory and legal requirement for banks and other related institutions to identify and verify the identity of their clients kyc know your customer (kyc) is the mandatory process of identifying and verifying the identity of your client when opening an account and periodically over time banks must make sure that their clients are genuinely who they claim to be loan tape loan tape denotes an electronic file or set of files that captures lending product data from a financial firm's systems (also loan data tape, loan exposures tape, servicing tape, "loan by loan file") it is typically a database extract that needs to be specified in detail (the "scope" of the extract) or spreadsheet the term likely originates in magnetic data tapes used in earlier generations of computer storage a loan tape can be considered as a one time snapshot of a subset of an organization's credit portfolio information memo post memo post, or memo posting , is a term used in traditional computerized banking environments where batch processing is employed a memo post represents a temporary credit or debit transaction/entry made to an account for which the complete posting to update the balance will be done as part of eod (end of day) batch processing money laundering money laundering is the illegal process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers or commercial transactions the overall scheme of this process returns the "clean" money to the launderer in an obscure and indirect way one problem of criminal activities is accounting for the proceeds without raising the suspicion of law enforcement agencies interesting fact the united nations office on drugs and crime (unodc) estimates that the amount of money laundered globally in one year is "2–5% of global gdp, or $800bn – $2tn in current us dollars mpl marketplace lender an mpl offers loans to higher risk individuals who would otherwise be turned down for a loan they approach cross river with the relevant documentation and information to facilitate the loan of the money the mpl itself does not lend the money only a bank can do the lending, and cross river is a bank nacha the national automated clearing house association https //www nacha org/ manages the development, administration, and governance of the ach network, the backbone for the electronic movement of money and data in the united states narr short for narrative part of the iso 200022 standard noc notification of change (noc) is a notification from the ach network that something about a bank account has changed for example, if you as a paypal user submit a payment for which the name on the bank account has changed, then paypal receives a noc that lists the corrected name oct original credit transaction general function a real time payment method that enables the direct transfer of funds to cardholders around the globe using the push payment capabilities of visa oct and mastercard moneysend services, cardholders receive funds directly on the account linked to their card in the visa network, oct sends payments via a ‘push' mechanism specifically over the visanet electronic payments network to specific card based account holders in turn, payments are credited into those cardholder’s accounts cross river benefits through our card rails and merchant acquiring product, cross river enables partners to originate push payments to debit cards, resulting in a dramatic reduction in processing time the wait for transaction approval drops from days to literally minutes, providing cardholders with access to their funds almost instantly odfi originating depository financial institution this term is used in connection with ach network (ach) in the ach flow, the odfi acts as the interface between the federal reserve or ach network and the originator of the transaction ofac the us office of foreign assets control is responsible for administration and enforcement of economic and trade sanctions for the us treasury department ofac maintains several lists of persons who are blocked under ofac sanctions us banks are required to check the ofac lists every time a customer comes to open an account originator use to describe the person who is initiating a transaction example each originator can have many profiles from which they originate transactions payment a payment is a type of transaction in which funds are sent payment rail a payment rail is the method by which funds are transferred from one account to another examples of rails include ach, rtp, and wires example depending on the rail type, funding results might be immediate or take up to a few days pci payment card industry data security standard pcc procurement credit card rdfi receiving depository financial institution (rdfi) is a financial institution qualified to receive ach (automated clearing house) entries these institutions should abide by the nacha (national automated clearing house association) rules the rdfi interlinks the receiver's account with the cards association network recipient use to describe the consumer or entity who receives the funds example the recipient receives funds immediately in their account rpps remote payment and presentment service (rpps) is an electronic payment processing and presentment hub used by mastercard it includes routing and settlement within 24 hours, risk management procedures, and automatic editing of customer accounts rtp real time payments the rtp domain integrates payments between banks through “the clearing house” an rtp payment is near instant within a matter of seconds, the money will be in the receiver account sba us small business association sender use to describe the person or entity who sends the funds example the sender's bank will charge the sender a fee for the payment order servicing partner refers to the partnership between a borrower and the partner who is servicing their loan subledger an alias to a master account which can also be used to classify a specific amount within the master account balance tch the clearing house (tch) is a private banking association and payments company owned by 24 of the largest banks transaction the movement of funds from one account to another or an account to a fund w2 form wage and tax statement form further information us treasury dept glossary