Cross-border payments glossary

This glossary explains the payment terms finance teams meet when a company sends and receives money across borders: payment rails, bank identifiers, currency conversion, compliance checks and settlement timing. Each entry gives a plain definition and a short note on how the term applies to an ArtPay business account.

ACH

The Automated Clearing House is the US network for batched electronic transfers between bank accounts. Payments are grouped and processed in cycles, so ACH is usually cheaper than a wire and typically slower, which suits payroll and recurring domestic payments.

USD ACH payments run through our partner SSB Bank. See how ACH, wire, SWIFT and SEPA compare.

Beneficiary

The person or company that receives a payment. A beneficiary record usually holds the legal name, account number or IBAN, bank identifier and address, and banks compare these details against the payment before crediting the funds.

Beneficiaries for contractor and partner payouts are set up in your ArtPay account. See paying partners and contractors on payout day.

BIC

The Business Identifier Code is an 8- or 11-character code that identifies a specific bank, and sometimes a branch, in international payments. It is often called a SWIFT code, and a wrong BIC can send a payment to the wrong institution.

You can check the format of a beneficiary's IBAN or BIC with our IBAN and BIC checker before you send a payment.

Chargeback

A reversal of a card payment that the cardholder starts through their card issuer, usually after a dispute about fraud, non-delivery or a faulty product. The merchant's acquirer debits the funds and the merchant can contest the claim with evidence.

ArtPay is not a card acquirer: it does not accept buyers' cards on a store website, so it does not process merchant chargebacks. See how e-commerce settlement works.

Correspondent bank

A bank that holds accounts for other banks and moves money on their behalf when they have no direct relationship. International payments often pass through one or more correspondents, and each one can add time, checks or fees.

USD SWIFT payments run through our partner Portage Bank. See cross-border settlement rails explained.

Cut-off time

The latest time of day a bank or payment network accepts an instruction for processing on that business day. Instructions received after the cut-off typically move to the next business day, which shifts the value date as well.

Cut-off times depend on the bank and the payment rail. See planning payout day for partners and contractors.

FX spread

The difference between the rate a provider applies to a currency conversion and a reference rate such as the mid-market rate. It is a cost even when no separate fee is shown, so finance teams compare the rate as well as the fee.

ArtPay works on a transparent fixed fee, confirmed in a written quote for your route. See pricing.

IBAN

The International Bank Account Number is a standard account format that starts with a country code and check digits, followed by the domestic account details. It is required for SEPA payments and used in many other countries to reduce routing errors.

EUR accounts at ArtPay settle over SEPA through ClearBank. Check any IBAN format with our IBAN checker.

Inbound payment

Money a company receives into its account, for example from clients, platforms or marketplaces. Banks may ask about the payer and the purpose of the payment before crediting it, especially when it arrives from another country.

Clients can pay you in USD or EUR to your ArtPay account. See receiving international client payments.

KYB

Know Your Business is the check a financial provider runs on a company before opening an account. It covers registration documents, ownership and controlling persons, the business model and the expected flow of funds.

KYB at ArtPay takes about 3 days once the documents are complete. See what the account review involves.

KYC

Know Your Customer is the identity check on an individual, such as a director, shareholder or account user. It usually involves an identity document and proof of address, and for a business account it sits inside the wider KYB review.

Directors and owners go through KYC as part of company onboarding. See how it works.

Mid-market rate

The midpoint between the buy and sell prices of two currencies on the wholesale market at a given moment. It is a reference point for comparing conversion quotes, and few providers convert at this rate without a margin.

Ask for a written quote on your conversion route and compare it against the mid-market reference. See pricing.

MSB

A money services business is a regulatory category for companies that transfer funds, convert currency or provide similar payment services. Whether a company must register as an MSB, and with which authority, depends on the country and the activity.

Registration and service provider details are on legal.artpay.co.

Multi-currency account

A single business account that holds balances in more than one currency, so a company can receive, hold and pay out in each currency and convert only when it needs to.

The ArtPay business account holds USD and EUR, with corporate VISA cards for spending. See how it works.

Nostro/Vostro account

Two names for the same account between banks. A nostro account is the one a bank holds at a foreign bank in that currency, and the foreign bank calls the same account a vostro account. Cross-border payments settle through these balances.

These balances sit between banks, not on a business account. See cross-border settlement rails explained.

Outbound payment

Money a company sends out of its account, for example to suppliers, contractors or partners. In accounts payable it covers the approval, the payment instruction, the transfer itself and the record kept for reconciliation.

You send USD and EUR payments from your ArtPay account. See outbound payments for international accounts payable.

Payout cycle

The fixed schedule on which a business pays a group of recipients, such as affiliates, publishers or contractors. A predictable cycle helps recipients plan and lets finance teams fund the account and check payment details in advance.

A fixed cycle also makes it easier to fund USD or EUR balances ahead of each run. See paying partners and contractors on payout day.

SEPA

The Single Euro Payments Area is a set of rules for euro transfers between participating European countries, using IBANs for routing. A SEPA credit transfer is typically processed within a business day and costs less than an international wire.

EUR payments at ArtPay run over SEPA through our partner ClearBank. See how SEPA compares with other rails.

Settlement

The point at which funds actually move between the institutions involved and the payment becomes final. Settlement can trail the moment a payment is authorised or shown as sent, which is why finance teams track it separately.

See cross-border settlement explained for how USD and EUR settle on an ArtPay account.

SWIFT

A global messaging network that banks use to send payment instructions to each other. SWIFT carries the message, while the money itself moves through correspondent and nostro accounts, so a SWIFT payment may pass through several banks.

USD SWIFT payments run through our partner Portage Bank. Check a SWIFT code with our IBAN and BIC checker.

Value date

The date on which funds are treated as available in the receiving account, for interest and balance purposes. It can differ from the date the payment was sent, mainly because of cut-off times, weekends and holidays.

Value dates depend on the rail and the banks involved. See choosing an international payments provider.

Wire transfer

A bank-to-bank transfer processed individually rather than in a batch. In the US, a domestic wire usually settles the same business day; internationally, the term often refers to a SWIFT payment.

USD wires run through our partner SSB Bank. See ACH versus wire for business payments.