Master international money transfer terminology with our comprehensive guide to 93+ essential terms.
Aadhaar Number
A unique 12-digit identification number issued by the Indian government, commonly used for identity and address verification.
Account Verification
The process of confirming a user's identity and bank details before allowing transfers.
ACH (Automated Clearing House)
A US based electronic payment network that enables bank to bank transfers such as direct deposits and bill payments.
ACH Push
A transfer where funds are sent out from your bank account to another account using the ACH network.
Agent
An intermediary authorized to process or facilitate a financial transaction on behalf of another party.
Amount Received
The final sum the recipient gets after exchange rates and fees are applied.
Anti-Money Laundering (AML)
Regulations and monitoring systems designed to prevent illegal funds from entering the financial system.
Authorization
Approval given by a bank or provider to process a transaction.
B
7 terms
Balance
The total funds available in an account at a given time.
Bank Cut-Off Time
The daily deadline after which transfers are processed on the next business day.
Bank Identifier
A code that identifies the bank involved in a transaction, often embedded within IBAN or BBAN numbers.
Basis Point
One hundredth of a percent, commonly used to measure changes in exchange rates or fees.
Beneficiary Bank
The bank where the recipient's account is held.
Bid Rate
The exchange rate at which a provider buys a currency from you. A higher bid rate benefits the sender.
Buy Rate
The rate at which a currency provider purchases your currency, often interchangeable with bid rate.
C
10 terms
Cash Pickup
A delivery method allowing recipients to collect money in cash from a physical location instead of a bank account.
Chargeback
A reversal of a transaction initiated by a bank or card issuer.
Commission Fee
A charge applied by a provider for processing a money transfer, either as a flat fee or percentage.
Compliance Check
Regulatory review to ensure a transaction meets legal requirements.
Conversion Fee
A charge applied when converting one currency into another.
Correspondent Bank
A third party bank used to process international transfers between two banks that do not have a direct relationship.
Counterparty
The other party involved in a financial transaction.
Credit Limit
The maximum amount allowed to be sent using credit based payment methods.
Cross Currency Transfer
A transfer involving two currencies that do not include the sender's domestic currency.
Currency Pair
Two currencies quoted together to show their relative value, such as USD to EUR.
D
5 terms
Daily Transfer Limit
The maximum amount allowed to be sent within a single day.
Delivery Method
The way funds reach the recipient, including bank transfer, cash pickup, card credit, or digital wallet.
Depreciation
A decline in the value of a currency relative to others.
Digital Wallet
An electronic account used to store and transfer money digitally.
Direct Deposit
An electronic transfer where money is sent straight into a recipient's bank account.
E
4 terms
EFT (Electronic Funds Transfer)
Any transfer of money processed electronically between financial institutions.
Exchange Margin
The markup added to the mid-market rate by a provider.
Exchange Rate
The value of one currency expressed in another currency.
Exchange Rate Alert
A notification triggered when a currency pair reaches a specified rate.
F
6 terms
Fees
Costs charged by providers to process a money transfer, which may be fixed or variable.
Forex (Foreign Exchange)
The global market where currencies are exchanged.
Forward Contract
An agreement to exchange currencies at a fixed rate on a future date, often used to manage risk.
FX Exposure
The risk of loss due to currency value changes.
FX Intelligence
Data driven insights related to currency markets and exchange rates.
FX Rate Lock
A feature that allows users to secure a rate for a limited time.
G
1 terms
Gross Amount
The total amount sent before deducting fees or exchange costs.
H
1 terms
Hedging
A strategy used by businesses to reduce exposure to currency fluctuations, often using forwards.
I
3 terms
IBAN (International Bank Account Number)
A standardized international bank account format that improves accuracy in cross border transfers.
Inbound Transfer
Money received into an account from another bank or country.
Interbank Rate
The rate at which banks exchange currencies with each other, also known as the mid-market rate.
K
1 terms
KYC (Know Your Customer)
Identity verification process required by financial regulations.
L
3 terms
Limit Order
An instruction to execute a transfer only when a specific exchange rate is reached.
Liquidity
How easily a currency can be exchanged without affecting its price.
Local Clearing
Processing payments within a country using domestic banking networks.
M
5 terms
Mark Down
A reduction applied to an exchange rate in favor of the provider.
Market Volatility
The degree of fluctuation in currency prices.
Mid-Market Rate
The true market exchange rate between two currencies, without markups.
Money Transfer Control Number (MTCN)
A tracking number used to monitor and collect certain international transfers.
Multi-Currency Account
An account that allows holding, sending, and receiving multiple currencies.
N
3 terms
Net Amount
The amount remaining after fees and deductions.
NRE Account
An Indian bank account for non resident Indians that holds funds in Indian rupees.
NRO Account
An account for NRIs used to manage income earned within India.
O
1 terms
Outbound Transfer
Money sent out from an account to another destination.
P
6 terms
Payee
The recipient of a money transfer.
Payer
The individual or entity sending money.
Payment Rail
The network used to move money, such as ACH, SWIFT, or local clearing.
Pip
A small unit of movement in an exchange rate.
Processing Time
The period required to complete a transaction.
Provider Spread
The difference between the provider's buy and sell rates.
R
9 terms
Rate Fluctuation
Ongoing changes in exchange rates due to market activity.
Real-Time FX
Exchange rates updated instantly based on live market data.
Recipient
The person or business receiving the transferred funds.
Recipient Country
The destination country where funds are delivered.
Reference Number
A unique identifier used to track a transaction.
Regulated Provider
A money transfer company licensed by financial authorities.
Remittance
Money sent by an individual or business across borders, often to another country.
Remittance Cost
The total cost of sending money, including fees and FX margin.
Routing Number
A numeric code used to identify banks during domestic and international transfers.
S
7 terms
Sender
The party initiating the money transfer.
Settlement
The completion of a transfer when funds reach the recipient.
Settlement Date
The date on which a transaction is finalized.
Source Currency
The currency used by the sender.
Spot Rate
The current market price for exchanging two currencies.
Spread
The difference between the buy and sell rates offered by a provider.
SWIFT Code
An international bank identification code used for cross border payments.
T
10 terms
Target Currency
The currency received by the recipient.
Third Party Fees
Charges imposed by intermediary banks or processors.
Transaction Costs
All fees and charges associated with completing a transfer.
Transaction Reference
A unique code used to identify a transfer.
Transfer Amount
The sum of money being sent.
Transfer Confirmation
A receipt or notification verifying a completed transfer.
Transfer Limit
The maximum amount allowed per transaction.
Transfer Reversal
The cancellation and return of funds to the sender.
Transfer Speed
The time required for funds to reach the recipient.
Transfer Status
The current stage of a transaction, such as pending or completed.
V
1 terms
Value Date
The date when funds become available to the recipient.
W
2 terms
Weekend Processing Delay
Slower transaction handling due to non-banking days.
Wire Transfer
An electronic transfer of funds between banks, often used for international payments.
