Finance & Treasury Glossary of Terms

Account Name Verification

A security measure designed to prevent fraud and misdirected payments. This service automatically checks whether the name on a bank account matches the details entered by the payer, reducing the risk of errors and Authorised Push Payment (APP) fraud.

Account Segregation

The separation of funds across accounts to support financial control, regulatory compliance, and risk management requirements.

ACH (Automated Clearing House)

A US-based electronic payment network that processes large volumes of low-value bank transfers in batches, commonly used for payroll, supplier payments, and recurring consumer transactions.

Ad-hoc Payment

An ad-hoc payment is a one-off (or “exceptional”) transaction made outside of a company’s standard or scheduled payment runs. It is typically used when a payment needs to be processed quickly or unexpectedly, such as settling an urgent supplier invoice, correcting a payment error, or making a time-sensitive transfer that cannot wait for the next automated payment cycle like a tax payment.

Unlike recurring or batch payments that are processed through predefined workflows, ad-hoc payments are initiated manually and often require additional approval controls to ensure accuracy and security. In many organisations, they are used sparingly because they bypass normal payment schedules, but they play an important role in maintaining operational flexibility when urgent financial transactions arise.

API (Application Programming Interface)

A set of secure rules and protocols that allows different software systems to communicate, exchange data, and automate actions without manual intervention.

Within the context of financial and treasury data, API connections can be leveraged to exchange data between banks and back-office systems as well as to perform account name verification checks in real-time and embedded into back-office system

API-Based Bank Connectivity

Bank connectivity achieved through APIs that enables real-time data exchange, payment initiation, and payment status updates.

Approval Workflow Automation

The automation of payment approval processes to enforce internal policies, segregation of duties, reduce approval delays and inconsistencies, and improve auditability.

Audit Evidence Automation

Automatic capture, organisation, and secure retention of payment data, approval records, system logs, and bank responses, creating a clear, time-stamped audit trail that supports internal controls, simplifies regulatory reviews, and enables faster, more accurate financial and compliance audits.

Audit readiness

The state of having clearly documented processes, controls, evidence, and reporting structures in place to support internal and external audits with minimal disruption.

Audit trail

A complete and time-stamped record that documents every action taken on a transaction, including creation, review, approval, modification, and execution.

Automated Bank Statement Retrieval

A workflow that retrieves bank statements directly from financial institutions and integrates them into accounting or treasury platforms. This eliminates the need for manual downloads and data entry, making reconciliation faster, more accurate, and less prone to errors.

Automated Direct Debit Amendment and Cancellation Service (ADDACS)

A UK Bacs messaging service that automatically notifies organisations when a customer’s bank details change or a Direct Debit instruction is cancelled. ADDACS messages are sent by banks to service users (or their bureaux/software providers) to communicate amendments such as updated account numbers, branch transfers, or instruction cancellations. This enables organisations to promptly update their records, prevent failed collections, maintain data accuracy, and ensure ongoing compliance with Direct Debit scheme rules while reducing manual intervention and operational risk.

Automated direct debit instruction service (AUDDIS)

A system that allows businesses to submit Direct Debit Instructions electronically, eliminating the need for paper mandates.