21 banking terms that you need to know

21 Banking Terms That You Need to Know.

21 Banking Terms That You Need to Know.

A Glossary

3D Secure

A security protocol developed by VISA and MasterCard designed to combat debit/credit card fraud online. The system requires users to provide parts of their banking password or pin to verify online transactions.

ATM

Acronym standing for automated teller machine; more commonly referred to as a cash machine in the UK

BACS

An acronym standing for Bank Automated Clearing System. It is the system in place that banks use to make direct transfer between accounts. BACS is used for both debit and credit transfers.

Card Security Code

Sometimes referred to as the CVV2, CVC or CV2 number. This refers to the 3-digit number on the back of MasterCard and VISA credit/debit cards. The code is located on the right of the signature strip and is used as a security protocol when making online payments.

CHAPS

An automated system for processing payments within the UK. The system is usually used by corporate clients that make multiple high value payments at once. The system can be used by anyone although there is usually a charge of between 25 and 30.

Chip and Pin

A security measure that requires the cardholder to enter a pin to authorise the payment. Chip and Pin is used in situations when the cardholder is present

Digital Receipt

A receipt sent by E-mail usually after making an online payment. A digital receipt serves the same purpose as a physical receipt.

Direct Debit

A pre-authorised debit on an account that is authorised by the customer. Direct debit is a popular way to pay for recurring debts such as utilities and bills.

E-Commerce

The buying and selling of goods over the internet

EPOS

Acronym standing for Electronic Point of Sale. A card reader used to receive payments by card. They usually require the consumer to enter a pin.

Faster Payments

A service allowing users to make payments including direct debits, direct credits and standing orders almost instantly. The service is available 24/7 and was launched in May 2008.

Hacking

Gaining unauthorised access to data or information (including bank account details) through the use of computers

In-house payment

A payment that is made between two bank accounts that are part of the same financial institute e.g. a payment between 2 people who belong to the same bank.

IPSP

Acronym standing for Internet Payment Service Provider

Mobile banking

A term that refers to the act of checking a bank balance, transferring money between accounts or making a payment using a mobile device (usually a phone or tablet).

Mobile Payment

A term that refers to the act of making a payment using a mobile device (usually a phone or tablet. This can be done through the banks website using a mobile browser, using a banking app, using a businesss website to make a purchase or, less commonly, making use of contactless technology to use your phone as an alternative to a card payment.

PayPal

A web based application built to transfer funds securely between member accounts. PayPal is free to join and sending money is free however, there is a payment structure in place for members who wish to receive money. PayPal makes use of existing financial infrastructure and advanced fraud security. PayPal is the preferred method of payment on a number of online ecommerce sites including eBay.

PIN

Acronym standing for Personal Identification Number. A PIN is a security measure that requires the cardholder to enter a 4-digit code in order to authorise a payment.

POS

An acronym standing for point of sale. A physical location where a customer can make a purchase.

SafeKey

American Express branded version of the 3D secure security service.

Standing Order

An instruction from an accountholder to their bank to pay a pre-arranged amount into another account electronically at regular intervals.

More Information

For more information on banking, payment methods, internet banking and paying with your mobile phone please visit Pay Your Way

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21 banking terms that you need to know

Economy & Finance