Terms and Terminology

Before delving into the intricacies of digital banking, familiarizing yourself with key terms and terminology is crucial for a better understanding of our APIs and functionalities. Refer back to this page whenever you need clarification on the terms mentioned in the documentation.

General

Platform - An Mbanq customer, typically a Fintech, Neo Bank or Challenger Bank offering digital financial services to consumers/businesses
User - A user of the Mbanq solution. For example a client user that has access to the Mbanq back office dashboard.
End-User - Typically a customer of the Platform, such as a business or a consumer.
Consumer - An end user who is an individual vs. commercial entity.
Client - Mbanq object name for an end-user
Ledger - A ledger is a book or collection of accounts where financial transactions are recorded. The ledger balance, also known as the current balance, is the amount of money in a checking account at the beginning of each business day and remains the same throughout the day until the next business day's transactions are processed
Platform Ledger - A platform specific ledger that generally ties directly to the platform application and is intended to track the detailed records of end user and accountholder activity. This ledger reconciles to platform level account(s) maintained on the core ledger. The end of day balances will be reconciled daily to ensure that the funds movement between the accounts of these ledgers are balanced and consistent with funds settlement through the various payment rails and networks.
Partner Bank - A regulated financial institution (FI) that is contracted with by the Platform to offer Mbanq enabled financial services to their end customers. As the regulated FI, the Partner Bank must approve of all the Platform offerings in advance.

Accounts

Account - A Mbanq object that holds value, typically in some form of currency.
vAccounts - (aka Virtual accounts) Accounts issued to the end user by the platform.
Platform Reserve - A vAccount held on the Platform ledger that provisions for potential operating losses experienced the platform.
Platform Loss account - A vAccount held on the Platform ledger that provisions for losses associated with card issuing disputes.

Transfers and Payments

Creditor (Beneficiary) - The party that is set to receive the funds. This entity is often referred to as the beneficiary in the context of the transfer. The creditor's role is to provide the necessary details (such as bank account number, routing number, and any other required financial information) to receive the money from the debtor. In payments/transfers, the creditor awaits the receipt of funds that have been sent or are due to be sent.
Debtor (Originator) - The party that initiates the transfer of funds. This entity is responsible for sending money to the creditor (beneficiary). The debtor must ensure that the correct amount of money is sent to the creditor's account, adhering to agreed-upon schedules or terms. The debtor initiates the transfer process by instructing their bank or financial institution to move funds from their account to the creditor's account.
Internal Transfers - Transfers between vAccounts on a platform. Internal transfers are instant and are within the platform ledger.
ACH - ACH solution enables an exchange of funds between accounts of different banks through the ACH(Automated Clearing House) network, where one bank originates the transfer and the other receives the transfer. Funds can be debited, credited, and returned via ACH transfers.
ODFI (Originating Depository Financial Institution) - The bank that originates the transfer RDFI (Receiving Depository Financial Institution): The bank that receives the transfer
ACH Authorization - A payment authorization that gives the Originator permission to electronically take money from user’s vAccount.
Incoming ACH Credit - External user sending funds to the Platform’s User vAccount using Account and Routing Number. Ex: Family member sending money to platform’s end user.
Incoming ACH Debit - External entity pulling funds from Platform’s User vAccount. Ex: Bill Payments, Subscription fees etc.
Outgoing ACH Credit - Platform’s end user sending funds via ACH to an external account. Ex: Platform’s end user sending money to a friend.
Outgoing ACH Debit - Platform’s End user pulling funds from an external bank account. Ex: End user debiting funds from their external bank account.
ACH Return - A credit or debit entry initiated by the RDF or ACH Operator that returns a previously originated credit or debit entry to the ODFI within the time frames established by the National Automated Clearing House Association (NACHA) rules.
ACH Reversal - An entry, (credit or debit entry) that reverses an erroneous entry. It must be made available to the RDFI within five banking days following the settlement date of the erroneous entry.
WIRE - Wire transfers, facilitated domestically via Fedwire® (operated by the U.S. Federal Reserve), are irreversible once funds are received. A wire transfer involves crediting funds to the beneficiary bank from the originating bank.
Incoming Wire - External user sending funds via wire transfer to the Platform’s End user vAccount.
Outgoing Wire - Platform’s End user sending funds via wire transfer to an external account.
ODFI - Originating Depository Financial Institution which is the bank or other registered financial institution that is sending funds in a transaction.
RDFI - Receiving Depository Financial Institution which is the bank or other registered financial institution that is receiving funds in a transaction.
SWIFT - The Society for Worldwide Interbank Financial Telecommunications worldwide interbank network for sending international wire transfers.

Cards

Merchant - A merchant is an entity that offers goods, services, or cash for a card payment. A merchant can be a physical store, an online vendor, a mobile app, an ATM, a card-loading vendor, or a money-movement app. Merchants have card-reading devices on their physical premises or card-processing software(Payment Gateways) on their online sites or in their mobile apps.
Acquirer - Prior to accepting card transactions, a merchant must set up a business relationship with an acquirer, which is a bank or intermediary. The acquirer has physical access to the card networks and provides the merchant with card-reading hardware or software. The acquirer handles card-network messages on behalf of the merchant as well as moves funds between the merchant account and the card networks. Transactions are exchanged over an electronic communication.
Card Network - An entity that manages the network through which the card transactions are processed. The network’s physical infrastructure is called rails through which a standardized set of messages are transmitted between acquirers and issuers.
Issuer - An entity that offers cards to customers and maintains the card accounts. Issuers determine which card types to offer, what features the account has, and which restrictions to impose. Mbanq’s bank partner will be acting as issuers for providing cards to end users onboarded by the platform.
Cardholder Account - Platform’s vAccount on which the card transacts
Card Processor - Entity that creates cards and registers them onto the network. Card Processors will facilitate access to the card networks for the Issuers.
BIN(Bank Identification Number) - The term bank identification number (BIN) refers to the initial Six to Eight numbers that appear on a payment card. This number identifies the institution that issues the card and is key in the process of matching transactions to the issuer of the charge card. Mbanq associates each Eight digit BIN with a platform to identify and match transactions.
PAN (Primary Account Number) - typically a 14- to 19-digit number that serves as a unique identifier on credit and debit cards
CIQ(Client Information Questionnaire) - A form used to configure and install the BIN to a platform.
Mobile Wallets - A mobile wallet stores credit card or debit card information on a mobile device like phone, tablet, or smartwatch. Mobile wallets are a convenient way for a Platform’s users to buy things online or in stores that are set up to take payments through the wallet.
Push Provisioning - The process of adding user’s credit/debit cards to an approved list of user’s mobile wallets. Push provisioning allows cardholders to click a button in the mobile banking app that “pushes” the card (token) to a digital wallet e.g., Apple/Samsung/Google.
Chargebacks - The process initiated by the card network or a merchant in response to a customer dispute. When a customer raises a dispute with the platform, and the investigation concludes in favor of the customer, In this situation, the card network credits the chargeback amount to the platform’s FBO account.

Card Products

Virtual Only - A virtual card represents a digital version of a traditional card, lacking a tangible physical form. These cards can be linked to either a debit or credit account and are capable of being added to mobile wallets for use.
Digital First - The Digital First card combines the convenience of virtual cards with the physical card's traditional features. Customers receive a digital card for immediate use upon registration, alongside an embossed physical card mailed to them. Both cards share identical PAN, CVV, and expiry dates, making the transition from digital to physical seamless for recurring payments. The physical card arrives pre-activated, requiring only PIN setup for immediate use.
Physical - A physical card (most often made of plastic) that is used as a token in real world / brick-and-mortar transactions interacting with a card reading device. Most cards include electronic storage of the card number and other key information in a variety of formats including: magnetic stripe, IC chip, near field chip, that allow for this information to be electronically transferred to the card reader connected to the payment network.