Glossary

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.

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.

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 our payment product that uses ACH.

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

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.

An allowlist is always a list of entities who are allowed to do something. In Cross River this could be a list of:

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.

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.

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.

Banking as a Service. Offering banking services to customers.

Business Application Identifier

See Payment rail

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.

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. 

Pertaining to payment cards. Business identifier. a unique number assigned by Visa to a financial institution.

Customers flagged by the system and prohibited from opening accounts. These customers are reported to the appropriate regulatory authority.

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.

Cross River Bank Operating System

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

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.

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

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

The location in a communication channel through which an API accesses the resources required to perform its function.

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.

Federal Deposit Insurance Corporation (FDIC) is one of two agencies that provide deposit insurance to depositors in U.S. depository institutions.

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).

Financial institution

Global provider of financial services technology: https://www.fiserv.com/

The path the funds take to get from one account to another

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.

After a loan is made, the funds are either Held For Investment or Held For Sale.

The clause in a commercial loan that puts aside a portion of the loan until a milestone is reached.

Identity and Access Management

International ACH Transactions. 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.

Check processing for COS checks deposited at other banks.

The ISO standard for electronic data interchange between financial institutions.

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.

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 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, 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 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.

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.

The National Automated Clearing House Association manages the development, administration, and governance of the ACH Network, the backbone for the electronic movement of money and data in the United States.

Short for narrative. Part of the ISO 200022 standard.

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.

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.

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.

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.

Use to describe the person who is initiating a transaction.

Example

Each originator can have many profiles from which they originate transactions.

A payment is a type of transaction in which funds are sent.

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

Payment card industry data security standard

Procurement Credit Card

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.

Use to describe the consumer or entity who receives the funds.

Example

The recipient receives funds immediately in their account.

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.

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.

US Small Business Association

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.

Refers to the partnership between a borrower and the partner who is servicing their loan.

An alias to a master account which can also be used to classify a specific amount within the master account balance

The Clearing House (TCH) is a private banking association and payments company owned by 24 of the largest banks.

The movement of funds from one account to another or an account to a fund