Glossary.
Plain definitions, with examples, of the terms businesses meet when they pay and get paid across borders.
CNY vs CNH: what is the difference?
CNY vs CNH: the onshore and offshore Chinese yuan, who sets each rate, how CNH reaches mainland suppliers through Hong Kong, and the mistakes importers make.
ReadWhat are Incoterms?
What Incoterms are, the 11 Incoterms 2020 rules grouped by transport mode, what they cover and leave out, and the mistakes importers and exporters make.
ReadWhat are NEFT and RTGS?
NEFT and RTGS are India's two main interbank systems for rupee transfers, both running 24x7. See how they differ, minimums, timings, an example and key errors.
ReadWhat are exchange controls?
What exchange controls are, the main types with examples from Mexico, South Africa, Argentina, India and Nigeria, and how they affect holding and moving USD.
ReadWhat are nostro and vostro accounts?
A nostro account is a bank's own account held at another bank abroad; a vostro account is the same account seen by the bank holding it. See an example and uses.
ReadWhat are the UETR and Swift gpi tracking?
A UETR is the unique reference that tracks a Swift payment end to end, and Swift gpi is the service that uses it. See how tracking works and how to trace wires.
ReadWhat do SHA, OUR and BEN mean?
SHA, OUR and BEN are the charge codes that decide who pays bank fees on an international wire. See what each means, an example, the EU rule and ISO 20022 codes.
ReadWhat is ACH?
ACH is the US network for batch bank transfers used for payroll and business payments. See how it works, the Same Day ACH limit, 2025 volumes and common errors.
ReadWhat is AML (anti-money laundering)?
What AML (anti-money laundering) means for a business customer: the Bank Secrecy Act, $10,000 cash reports, transaction monitoring, stablecoins and mistakes.
ReadWhat is CHATS?
CHATS is Hong Kong's real-time system for payments between banks, run separately for HKD, USD, EUR and RMB. See how it works, an example and common mistakes.
ReadWhat is CHIPS?
CHIPS is the private-sector system that clears and settles large US dollar payments between banks. See how it works, its scale and how it differs from Fedwire.
ReadWhat is CNAPS?
CNAPS is China's National Advanced Payment System, the domestic network for yuan transfers between banks. See its parts, how payers abroad reach it and errors.
ReadWhat is FPS in Hong Kong?
FPS is Hong Kong's Faster Payment System, a 24x7 instant transfer system for Hong Kong dollars and renminbi. See how it works, its limits for trade and errors.
ReadWhat is Faster Payments?
Faster Payments is the UK's real-time bank transfer system for pounds, running 24/7 with a £1 million scheme limit. See how it works, an example and errors.
ReadWhat is Fedwire?
Fedwire is the Federal Reserve's real-time system for US dollar wires between banks. See how it works, its hours, 2025 volumes, ISO 20022 and common mistakes.
ReadWhat is Form W-8BEN-E?
What Form W-8BEN-E is, who gives it to whom, the 30% withholding it addresses, how long it stays valid, how it differs from W-9 and W-8BEN, and common mistakes.
ReadWhat is ISO 20022?
ISO 20022 is the global standard for payment messages, using structured XML data. See what it changed for Fedwire and Swift payments, key codes and examples.
ReadWhat is KYB (know your business)?
What KYB (know your business) means, what banks and payment providers check about a company and its owners, the US rules behind it, and the mistakes to avoid.
ReadWhat is OFAC sanctions screening?
What OFAC sanctions screening is, who must comply, how the SDN List and 50 Percent Rule work, blocking and reporting within 10 business days, and mistakes.
ReadWhat is Pix?
Pix is Brazil's instant payment system, created and run by the central bank, moving reais 24/7. See how Pix keys work, 2026 usage figures and its limits abroad.
ReadWhat is SEPA?
SEPA is the Single Euro Payments Area, where euro transfers move like domestic payments across 41 countries. See the schemes, timings, limits and common errors.
ReadWhat is SPEI?
SPEI is Mexico's interbank system for peso transfers, run by Banco de México 24/7 with an electronic proof of payment. See how it works and an example.
ReadWhat is USDC?
What USDC is, who issues it, how Circle backs and reports its reserves, which blockchains carry it, how businesses redeem or convert it, and mistakes to avoid.
ReadWhat is USDT?
What USDT (Tether) is, how Tether reports its reserves, which blockchains carry it, direct redemption minimums and fees, address freezing, and the mistakes.
ReadWhat is a CLABE?
A CLABE is the 18 digit standardized number every Mexican bank account carries for interbank transfers. See its structure, an example and how to check it.
ReadWhat is a SWIFT code?
A SWIFT code (BIC) is the 8 or 11 character code that identifies a bank in an international payment. See its structure, an example and the common mistakes.
ReadWhat is a beneficiary in a payment?
The beneficiary is the person or company that receives a payment. See which beneficiary details a wire needs, how name checks work, an example and key mistakes.
ReadWhat is a bill of lading?
What a bill of lading is, negotiable and straight bills under US law, how it controls delivery, and its role in letters of credit and supplier payments.
ReadWhat is a blockchain network fee (gas)?
What a blockchain network fee or gas fee is, how Ethereum gas and Tron energy and bandwidth are calculated, why you need the native token, and the pitfalls.
ReadWhat is a commercial invoice?
What a commercial invoice is, what US Customs requires on it under 19 CFR 141.86, how banks use it in letters of credit, and the mistakes that delay goods.
ReadWhat is a correspondent bank?
A correspondent bank holds accounts for other banks so they can pay in a foreign currency. See how correspondent banking works and why it is shrinking.
ReadWhat is a documentary collection?
What a documentary collection is, how documents against payment and against acceptance work, how it differs from a letter of credit, and when to use it.
ReadWhat is a forward contract?
What a currency forward contract is, how importers and exporters use one to fix a rate, the obligations it creates, how it compares with options, and mistakes.
ReadWhat is a letter of credit?
What a letter of credit is, who the parties are, how a documentary credit pays against documents under UCP 600, when to use a confirmed LC, and common mistakes.
ReadWhat is a money transmitter?
What a money transmitter is under US law, FinCEN registration as a money services business, state licensing and the MTMA, crypto exchangers, and what to check.
ReadWhat is a multi-currency account?
What a multi-currency business account is, how separate balances and local account details work, what providers publish, protection questions and mistakes.
ReadWhat is a payment cut-off time?
A payment cut-off time is the latest time a bank accepts a payment to send it that business day. See published Fedwire, CHIPS and CHAPS cut-offs and an example.
ReadWhat is a payment reference?
A payment reference, or remittance information, is the text that tells the payee what a payment is for, such as an invoice number. See limits and an example.
ReadWhat is a proforma invoice?
What a proforma invoice is, what it should contain, how it is used for deposits, import permits and letters of credit, and how it differs from a final invoice.
ReadWhat is a purpose code?
A purpose code is the code a bank uses to record why a cross-border payment was made, required in India, Brazil and elsewhere. See examples and common errors.
ReadWhat is a remitter in a payment?
The remitter, also called the originator or payer, is the person or company sending a payment. See which remitter details banks collect and why, and an example.
ReadWhat is a stablecoin?
What a stablecoin is, how dollar stablecoins like USDC and USDT are backed and redeemed, what the US GENIUS Act requires, and the mistakes businesses make.
ReadWhat is a value date?
A value date is the date a payment settles and the funds count as available in the receiving account. See how it differs from the booking date, with an example.
ReadWhat is a virtual account? Named vs pooled FBO accounts
What a virtual account is, how named account details differ from a pooled FBO account, what the FDIC proposed on custodial records, and what payers see on each.
ReadWhat is a wallet address?
What a crypto wallet address is, how it differs from a private key and a token contract address, why the network matters, and how OFAC lists addresses.
ReadWhat is a wire recall?
A wire recall is a request from the sending bank asking the receiving bank to return a payment. See when it works, SEPA time limits, published fees and steps.
ReadWhat is an ABA routing number?
An ABA routing number is the nine digit code that identifies a US bank for ACH, wire and check payments. See its structure, check digit and common errors.
ReadWhat is an EIN (Employer Identification Number)?
What an EIN (Employer Identification Number) is, how to get one online or as an international applicant by phone, fax or mail, how long it takes, and mistakes.
ReadWhat is an FX margin (exchange rate markup)?
What an FX margin or exchange rate markup is, how to calculate it, what providers publish, why US disclosure rules skip business transfers, and how to cut it.
ReadWhat is an IBAN?
An IBAN is the international account number format used across Europe and in many other countries. See its structure, check digits, an example and key errors.
ReadWhat is an IFSC code?
An IFSC code identifies an Indian bank branch for NEFT and RTGS transfers. See where to find it, when a payment from abroad uses it and how it differs.
ReadWhat is an MT103?
An MT103 is the Swift message a bank sends for a customer's international payment, and the usual proof that a wire was sent. See its key fields and an example.
ReadWhat is an intermediary bank?
An intermediary bank passes an international wire between two banks with no account with each other, and may deduct a fee. See how it works and what it costs.
ReadWhat is an on-ramp and an off-ramp?
What on-ramps and off-ramps are, how businesses turn dollars into stablecoins and back, issuer, exchange and account routes, and US money transmitter rules.
ReadWhat is an ultimate beneficial owner (UBO)?
What an ultimate beneficial owner (UBO) is, the US 25 percent ownership and control tests, how indirect stakes are counted, the OFAC 50 percent rule and BOI.
ReadWhat is export proceeds repatriation?
Export proceeds repatriation explained: deadlines in Nigeria, India, Bangladesh, Sri Lanka, South Africa and Argentina, what to do after receipt, and mistakes.
ReadWhat is receivables finance?
What receivables finance is, how export factoring, forfaiting and insured receivables work, advance rates and costs in the US Trade Finance Guide, and pitfalls.
ReadWhat is supplier finance?
What supplier finance is, how a lender pays suppliers early while the buyer pays later, how it differs from receivables finance, IFRS disclosure, and mistakes.
ReadWhat is the mid-market rate?
What the mid-market rate means, how central banks publish benchmark rates, how to measure the markup in a quote, and mistakes businesses make when converting.
ReadWhat is the spot rate?
What the spot exchange rate means, why spot deals settle within two business days, how it differs from mid-market and forward rates, and common mistakes.
ReadWhat is trade finance?
What trade finance is, the payment methods from cash in advance to open account, the main tools such as LCs, factoring and credit insurance, and the pitfalls.
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