PaymentsPayments GlossaryPart 2 of 6
The Rules Glossary
32 terms from the Payments book's The Rules part, each defined in a line and linked to the chapter that explains it.
- 1033 (personal financial data rights): the CFPB rule giving consumers the right to share bank data with third parties, enjoined and under reconsideration as of October 2026 (The Payments Rulebook).
- AFT (Automated Funds Transfer): Payments Canada's name for the EFT credits and debits in a Standard 005 file; unrelated to Visa's account funding transaction (see OCT, AFT) (Payments in Canada).
- AML, BSA, KYC, KYB: anti-money-laundering programs, the Bank Secrecy Act that requires them, and knowing your customers and their businesses (Merchant Onboarding).
- APP scam reimbursement: the UK's mandatory reimbursement of authorized push payment scam victims on Faster Payments and CHAPS since 7 October 2024, up to £85,000 per claim, with the receiving provider paying half (Payments in the EU & UK).
- Bacs, SUN, AUDDIS: the UK's batch scheme for Direct Debits and Direct Credits on a three-day cycle (input, processing, entry), the service user number a collector gets through a sponsor, and the electronic mandate setup replacing paper (Payments in the EU & UK).
- CHAPS: the Bank of England's same-day, high-value sterling payment system, settled gross in its RTGS service (Payments in the EU & UK).
- Convenience fee, service fee: a flat fee for paying through an optional channel, and Visa's fee for government, education and utility merchants, which may be a percentage and apply in any channel; neither is a surcharge (Surcharging & Fees, Payments by Vertical).
- CTR, SAR, Form 8300: reports of large cash transactions, of suspicious activity, and of cash over $10,000 received by any business (The Payments Rulebook).
- Direct Debit Guarantee: the UK payer's right to advance notice of each collection and a full and immediate refund from their own bank if an error is made (Payments in the EU & UK).
- EFT, Real-Time Rail (RTR): Canada's batch electronic funds transfers, the credits and pre-authorized debits cleared through ACSS, and Payments Canada's real-time account-to-account system (Payments in Canada).
- FinCEN: the US Treasury bureau that enforces the Bank Secrecy Act (The Payments Rulebook).
- FINTRAC: Canada's financial intelligence unit, which registers money services businesses (Payments in Canada).
- GLBA: the Gramm-Leach-Bliley Act, the US privacy and safeguards law for financial institutions' customer data (The Payments Rulebook).
- IFR (Interchange Fee Regulation): the EU regulation capping consumer debit interchange at 0.2% and credit at 0.3% and requiring unblended pricing; the UK kept the caps for domestic payments (Payments in the EU & UK).
- Money transmission, MTMA: holding or moving other people's money, licensed state by state, and the model law harmonizing those licenses (Becoming a Payment Provider).
- MSB (money services business): the BSA's (and Canada's) category for money transmitters, check cashers and similar businesses that must register (The Payments Rulebook).
- OFAC, SDN list: the Treasury office that runs US sanctions, and its list of blocked persons (The Payments Rulebook).
- PAD (pre-authorized debit), Rule H1: Canada's direct debit, and the Payments Canada rule that governs it (Payments in Canada).
- Passporting: an institution authorized in one EU member state serving the others on that authorization; the UK left the system at the end of 2020 (Payments in the EU & UK).
- Payment institution, e-money institution (PI, EMI): the two main licenses for non-bank payment firms in the EU and the UK, each with its own initial capital (Payments in the EU & UK).
- Payment processor exemption: FinCEN's exclusion from money transmitter status for a business that only facilitates payment for goods or services through a clearance and settlement system, under conditions (The Payments Rulebook).
- PIS, AIS: payment initiation and account information services, the two regulated open banking services PSD2 created (Payments in the EU & UK).
- PSD2, PSD3, PSR: the EU's current payment services directive, its successor directive and the directly applicable regulation that accompanies it (The Payments Rulebook).
- Regulation CC: US funds availability and check collection rules (Accepting Checks).
- Regulation E, Regulation Z: consumer rights for electronic fund transfers and for credit cards (The Payments Rulebook).
- RPAA: Canada's Retail Payment Activities Act, under which payment service providers register with and are supervised by the Bank of Canada (Payments in Canada).
- SCT, SCT Inst: SEPA Credit Transfer, credited by the end of the next business day, and SEPA Instant, credited within 10 seconds at any hour and now required by the Instant Payments Regulation (Payments in the EU & UK).
- SDD Core, SDD B2B: SEPA Direct Debit's general scheme, refundable for 8 weeks (13 months if unauthorized), and its business-only scheme, under which an authorized debit can't be returned (Payments in the EU & UK).
- Standard 005: the Canadian EFT file format, Canada's counterpart of a Nacha file (Payments in Canada).
- Surcharge: a fee added to a credit card payment to cover the cost of acceptance, capped and disclosed under network rules and state law (Surcharging & Fees).
- Tip tolerance: how far a card's cleared amount may exceed its authorization by merchant type, such as 30% for US restaurants on Visa since February 21, 2026 (Payments by Vertical).
- UDAAP: unfair, deceptive or abusive acts or practices, the CFPB's standard for disclosures and flows (The Payments Rulebook).