Glossary of Terms

A

AML (Anti-Money Laundering): Regulations to prevent illegal funds from entering the financial system.

API (Application Programming Interface): A tool that allows software systems to communicate.

B

Blockchain: A decentralized ledger for secure and transparent transaction recording.

Beneficiary: The recipient of a payment or transfer.

C

Cryptocurrency: Digital assets like Bitcoin or Ethereum secured by cryptography.

Compliance: Adherence to legal, regulatory, and ethical standards in operations.

D

Digital Wallet: A system that stores payment information for digital transactions.

Distributed Ledger: A decentralized system for recording transactions.

E

Exchange Rate: The value of one currency relative to another in cross-border payments.

Escrow: A third-party arrangement holding funds until conditions are met.

F

Fiat Currency: Government-issued currencies like USD or EUR.

Fraud Prevention: Measures to detect and stop unauthorized transactions.

G

GDPR (General Data Protection Regulation): EU regulations for data privacy and protection.

Gateway: A system for authorizing online payments.

H

Hashing: A cryptographic method for securing data.

Hot Wallet: A digital wallet connected to the internet for quick cryptocurrency transactions.

I

IBAN (International Bank Account Number): A standardized bank account identifier.

Integration: The process of combining different systems to work as one.

J

Jurisdiction: The authority or region governing financial activities.

Joint Account: A bank account shared by two or more parties.

K

KYC (Know Your Customer): The process of verifying a customer’s identity.

L

Ledger: A record of financial transactions.

Liquidity: The ease of converting assets into cash.

M

Merchant Account: A business account for processing payments.

Mining: The process of verifying cryptocurrency transactions and earning rewards.

N

Node: A device on a blockchain network.

Non-Fungible Token (NFT): A unique digital asset.

O

Onboarding: The process of registering and verifying a new user.

Overdraft: A facility allowing account holders to spend more than their balance.

P

P2P (Peer-to-Peer): Direct transactions between users without intermediaries.

Payment Gateway: A service that facilitates online payments.

Q

QR Code: A scannable code for quick payments or data sharing.

Quote Currency: The second currency in a currency pair, e.g., EUR in USD/EUR.

R

Reconciliation: The process of matching financial records with statements.

Routing Number: A unique identifier for financial institutions in the U.S.

S

Smart Contract: A self-executing contract with terms directly written in code.

SWIFT Code: A unique identifier for international wire transfers.

T

Tokenization: The process of converting sensitive data into unique tokens.

Trading Pair: Two cryptocurrencies or fiat currencies used for exchange.

U

Underwriting: The process of assessing risk before approving a loan or account.

Utility Token: A cryptocurrency providing access to a product or service.

V

Virtual Card: A digital version of a payment card for secure online transactions.

Volatility: The measure of price fluctuations in the market.

W

Wallet Address: A unique identifier for sending and receiving cryptocurrency.

Wire Transfer: A method of electronic fund transfer.

X

XRP (Ripple): A cryptocurrency designed for cross-border payments.

XML (Extensible Markup Language): A format for structuring data.

Y

Yield Farming: A way to earn rewards by lending cryptocurrency.

YTD (Year-to-Date): The period from the start of the year to the present date.

Z

Zero Confirmation Transaction: A cryptocurrency transaction awaiting network verification.

Zero-Knowledge Proof: A cryptographic method for proving possession of information without revealing it.