Finance & Treasury Glossary of Terms
Here are some definitions for commonly used terms in the finance and treasury space. If you can’t find the definition you’re looking for here, feel free to contact us – we’re here to help!
Contact usPacs.002
A payment status report used between financial institutions to inform about the status of a payment instruction.
Pacs.008
An ISO 20022 message type used for customer credit transfers, replacing the SWIFT MT103 message format.
Pacs.009
A financial institution credit transfer message under ISO 20022, replacing the SWIFT MT202 message.
Pain.001
A payment initiation message sent by a corporate to a bank requesting fund transfers.
Pain.002
A payment status report sent by a bank to a corporate, providing details about previously submitted payment instructions.
Paperless Direct Debit
A process enabling customers to set up Direct Debits electronically via online platforms or telephone without needing a signed paper mandate.
Payment Aggregation
A setup where one main company (a ‘master merchant’) processes payments for smaller businesses (sub-merchants) under its umbrella. This model is commonly used by platforms like Etsy and Uber, allowing independent sellers or drivers to accept payments without needing their own payment processing infrastructure.
Payment approval management
The governance and control of payment approval workflows to ensure payments are reviewed and authorised in line with policy.
Payment control gaps
Weaknesses or missing controls within payment processes that increase exposure to financial loss, fraud, or regulatory breaches.
Payment Controls
Mechanisms and protocols implemented within payment systems to monitor, authorise, and regulate transaction activities, ensuring that payments are accurate, authorised, and compliant with internal policies and external regulations.
Payment Cut-Off Governance
The management of bank, scheme, and internal cut-off times to ensure payments are approved and submitted within required settlement windows.
Payment Factory
A centralised enterprise payments operating model where all outbound payments are initiated, validated, approved, and released through a single controlled platform, improving visibility, standardisation, and risk management across the organisation. Often employed in businesses operating Shared Service Centres (SSC).
Payment Factory Operating Model
A defined organisational and technology framework that standardises payment processes across multiple ERPs, Treasury Management Systems (TMS), banks, and legal entities, reducing complexity while strengthening governance and control.
Payment Failover Capability
The ability to reroute or continue payment processing using alternative systems or channels if the primary route fails.
Payment file
A structured electronic file containing multiple payment instructions that is submitted to a bank for processing.
Payment File Routing
The intelligent distribution of payment instructions to the correct bank, channel, or payment scheme based on predefined rules.
Payment file validation
The process of checking payment files for formatting accuracy, policy compliance, and bank acceptance prior to submission.
Payment Governance
The framework that defines how payments are created, approved, executed, and audited within an organisation.
Payment hub
A centralised platform that manages payment routing, validation, approvals, and connectivity across multiple systems and banks.
Payment Lifecycle Management
The management of payments from initiation through approval, processing, settlement, and reconciliation.
Payment Operations
The teams, systems, and processes responsible for executing payments, monitoring statuses, and resolving payment issues.
Payment Orchestration
The coordination and automation of various payment processes and systems within an organisation to optimise transaction routing, reduce costs like bank fees or exchange rates, and improve the overall efficiency of payment operations.
Payment Platform Scalability
The ability of a payment platform to support increasing transaction volumes, business entities, and banks without loss of performance or control.
Payment Policy Enforcement
The automated enforcement of organisational payment policies through configurable rules and workflows.
Payment Resilience
The ability of payment operations to continue functioning during system failures or banking disruptions.
Payment Risk Assessment
A formal evaluation of risks across payment processes, systems, and controls to identify vulnerabilities and prioritise mitigation actions.
Payment Run Automation
The automated scheduling and execution of payment batches, reducing manual effort, processing delays, and operational risk.
Payment screening
A security measure that automatically checks payments for potential fraud, errors, or compliance breaches before processing.
Payment Status Report (PSR)
A report that provides visibility into the current processing, rejection, or settlement status of submitted payments.
Payment Straight-Through Processing (STP)
The automated processing of payments without manual intervention or rekeying.
Payment Workflow Orchestration
The coordination of validation, approval, submission, confirmation, and reconciliation steps within a single controlled workflow.
Payments Automation
The use of technology to streamline and automate the processing of all incoming and outgoing payments. By reducing manual intervention, payment automation increases efficiency, minimises errors, and helps businesses scale their financial operations effortlessly.
Payments outside the ERP
Exceptional or ad-hoc payments that are initiated outside the main ERP system, which often leads to reduced transparency, control, and auditability.
Physical Cash Pooling
A liquidity structure where funds are physically swept into a central account, giving treasury direct control over group cash positions.
Procure-to-Pay
The end-to-end business process that covers purchasing goods or services, processing invoices, approving spend, and making payments.
Purpose of Payment Codes (PoP)
Standardised codes indicating the intent behind a transaction, used for regulatory compliance and transparency.
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