ACH (Automated Clearing House) is a US electronic payment network that processes bank-to-bank transfers in batches, including direct deposits, bill payments, and business transactions.

Atomic settlement is a mechanism that enables the simultaneous exchange of assets and payments in a single, indivisible transaction. By using blockchain technology and smart contracts, it reduces or eliminates counterparty and settlement risk in cross-border and multi-asset transfers.

Blockchain is a distributed ledger technology that records transactions across multiple computers in a way that makes the record immutable and transparent, enabling faster and cheaper cross-border payments without traditional intermediaries.

A centralized exchange (CEX) is a cryptocurrency trading platform operated by a company that acts as an intermediary between buyers and sellers, managing user accounts, custody of assets, and order matching through centralized infrastructure.

CHIPS is the largest private U.S. dollar clearing system, settling an average of $1.9 trillion in payments each day. This guide explains how CHIPS works, how its multilateral netting model reduces liquidity and settlement costs, and how it compares to Fedwire for high-value domestic and cross-border transfers.

Custodial wallets are cryptocurrency wallets where a third party manages your private keys, while non-custodial wallets give users full control over their private keys and therefore their digital assets.

A decentralized exchange (DEX) is a cryptocurrency trading platform that enables peer-to-peer trading without requiring users to deposit funds with a centralized intermediary, using smart contracts to facilitate trades directly from user wallets.

EURC (Euro Coin) is a euro-backed stablecoin issued by Circle, designed to maintain a value of €1 through reserves of euros held in regulated European financial institutions.

Electronic Funds Transfer (EFT) is an umbrella term for any digital transfer of money between bank accounts without using cash or paper checks, including ACH transfers, wire transfers, debit card payments, and ATM transactions.

The Ethereum Virtual Machine (EVM) is a decentralized computation engine that executes smart contracts across thousands of nodes on Ethereum and EVM-compatible blockchains.

FedNow is an instant payment system operated by the Federal Reserve that settles transfers between US banks in seconds, operating 24/7/365 with transaction limits up to $500,000.

Fedwire is a real-time gross settlement system operated by the Federal Reserve Banks that allows financial institutions to transfer funds electronically between each other on the same business day.

Fiat money is government-issued currency that derives its value from government regulation and public trust rather than being backed by a physical commodity like gold or silver.

FinCEN is the U.S. Treasury bureau responsible for enforcing anti-money laundering (AML) and counter-terrorist financing regulations. This overview explains FinCEN’s mandate, who falls under its supervision, and what banks, fintechs, and payment companies must do to remain compliant with U.S. reporting and AML requirements.

Know Your Customer (KYC) is a regulatory compliance process that requires financial institutions to verify the identity of their customers before providing services, designed to prevent money laundering, fraud, and terrorist financing.

Liquidity management is the process of monitoring and controlling cash flow to ensure a business maintains sufficient liquid assets to meet its short-term financial obligations while optimizing returns on excess cash.

Nacha governs the ACH Network, setting the rules behind more than 35 billion U.S. payments each year. This guide explains Nacha’s role, how ACH rules are created and enforced, and what fintechs and payment companies need to understand to operate compliantly and scale on the network.

On-demand liquidity (ODL) is a payment settlement method that uses digital assets to convert between currencies instantly, removing the need for banks to maintain pre-funded accounts in multiple countries.

On-ramps and off-ramps are services that facilitate the conversion between fiat currencies (like USD or EUR) and cryptocurrencies or stablecoins, with on-ramps enabling fiat-to-crypto conversion and off-ramps enabling crypto-to-fiat conversion.

A payment API is a programmatic interface that enables applications to initiate, process, and manage financial transactions without building payment infrastructure from scratch, connecting to payment rails like ACH, wire transfers, or stablecoin networks.

A payment ledger is a record-keeping system that tracks all money moving between accounts. It ensures every dollar has both a source and destination, making balances accurate and auditable.

Payment orchestration is a technology layer that connects multiple payment providers through a single API, dynamically routing transactions to optimize approval rates, costs, and reliability. It enables businesses to manage gateways, acquirers, and fraud tools in one unified system.

Payment reconciliation is an accounting process that compares internal payment records with external bank statements and payment processor reports to verify that all transactions are accurate and properly recorded.

A Payment Service Provider (PSP) is a third-party company that enables businesses to accept electronic payments through multiple methods including credit cards, debit cards, digital wallets, and bank transfers.

Pix is an instant payment platform created and operated by the Central Bank of Brazil that enables real-time transfers in Brazilian real 24/7 with no fees for individuals.

Programmable money uses smart contracts to execute payments automatically when predefined conditions are met. This overview explains how the technology works, explores real-world use cases across finance and commerce, and examines how central banks are testing programmable features within digital currency initiatives.

QR code payments allow users to complete transactions by scanning a code with their smartphone, enabling fast, contactless transfers. This guide explains how QR payments work, the difference between static and dynamic codes, and which countries and payment ecosystems have widely adopted them.

RTP (Real-Time Payments) is a US instant payment network operated by The Clearing House that settles bank-to-bank transfers in seconds, available 24/7 year-round.

SEPA (Single Euro Payments Area) is a unified payment network that standardizes euro bank transfers across 36 European countries, enabling businesses and individuals to send EUR payments as easily as domestic transactions.

SPEI is an instant payment platform created and operated by the Banco de México (Mexico's central bank) that enables real-time transfers in Mexican pesos 24/7 with minimal or no fees for most users.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network that banks use to send secure payment instructions for international transfers.

Stablecoins are digital currencies designed to maintain stable value by pegging to fiat currency like the US dollar, enabling instant cross-border transactions that settle in seconds rather than days through traditional banking rails.

T2 is the Eurosystem’s real-time gross settlement (RTGS) system launched in 2023, processing around €1.8 trillion in euro payments daily. It uses ISO 20022 messaging standards and supports multi-currency services within the Eurosystem’s consolidated TARGET infrastructure, forming the core settlement layer for high-value euro transactions.

Treasury management is the strategic oversight of an organization's financial resources, focusing on optimizing liquidity, managing financial risk, and ensuring the company can meet its financial obligations while maximizing working capital efficiency.

USDC (USD Coin) is a fully-backed stablecoin issued by Circle, designed to maintain a value of $1 through reserves of cash and short-term US Treasury bills held in regulated institutions.

USDT (also called Tether) is a stablecoin designed to maintain a value of $1 by being backed by reserves including cash, Treasury bills, and other assets held by Tether Limited.

UPI is India’s real-time payment system, handling more than 20 billion transactions each month. This guide explains how UPI works, the infrastructure and participants behind it, its international expansion efforts, and what its scale and model mean for fintechs building in or integrating with India’s payments ecosystem.

A virtual account is a unique account number assigned within a traditional bank account that enables businesses to track and reconcile payments automatically without opening multiple physical accounts.

VASP (Virtual Asset Service Provider) is any entity that conducts business activities involving virtual assets such as cryptocurrencies, including exchanges, wallet providers, custodians, and payment processors.

A wire transfer is a bank-to-bank payment method that moves funds electronically through networks like Fedwire (domestic US) or SWIFT (international), typically settling within hours domestically or one to five business days internationally.

XRP is a digital asset created for institutional payment settlement, operating on the XRP Ledger with 3-5 second finality and $0.0002 transaction costs.