A | B| C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

A

• ABA# or Bank Routing#: The nine digit number that designates the bank and location to which the transfer must be delivered. This applies to only transfers within the U.S.

• Account Name: The actual name of the individual or entity on the bank account. All official U of M accounts at financial institutions are named Regents of the University of Michigan.

• Automated Clearing House (ACH) System: A domestic electronic funds transfer system.

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  B

• Beneficiary: The individual or entity receiving the funds transfer.

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C

• Correspondent Bank: A financial institution that regularly performs services for other banks.

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D

• Depository Bank: The bank that accepts an electronic transfer and credits it to a beneficiary bank account.

• Domestic Transfer: A funds transfer with the receiving bank located in the U.S. or the correspondent bank is located in the U.S.

• Drawee Bank: The bank on which the electronic transfer is drawn, the payor’s bank.

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E

• Earnings Credit: an interest rate on collected balances in a commercial account using account analysis. The interest rate is typically to tied to government issued securities. The earnings credit is not deposited to the account as interest earned. It is solely used to offset account analysis fees. Any earnings credit above the total fees for a month is forfeited.

• Electronic Funds Transfer (EFT): The movement of funds by non-paper means (i.e. electronically usually through a payment system such as the ACH network of Fedline.

• Encryption: The process of encoding electronic transaction information, to allow secure transmission of date over the Internet.

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F

• Fed Reference Number: A tracking number given to a wire transfer, to identify it and to assist in research.

• Federal Reserve System (Fed): An independent agency of the U.S. government that plays a central role in monetary policy, domestic payments systems, and the regulation of financial institutions.

• Fedwire: The same-day value electronic funds transfer system operated in the U.S. by the Fed.

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G

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H

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I

• Initiating Bank: The bank responsible for sending the transfer.

• Initiator: The individual responsible for communicating funds transfer information to the financial institution. An Office of the Treasurer staff member is the initiator for most electronic funds transfers.

• International Transfer: A funds transfer with the receiving bank located outside the U.S.

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J

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K

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L

• Lockbox: A banking service in which payments or deposits are collected by the bank at a postal or drop box, and then processed by a special department in the bank.

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M

N

• Negotiable Instrument: A commitment to pay a specific sum of money, most commonly in the form of a check or draft. For an instrument to be negotiable, it must be signed by the maker, must have a specific currency value, must be made payable to a person or organization, and must be payable on demand.

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O

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P

• Payee: the party to which a transfers is made payable.

• Payor: The party that issues the transfer.

• Presentment: The delivery of an electronic funds transfer or negotiable instrument to the payor’s bank.

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Q

R

• Receiving Bank: The bank where the beneficiary account is held.

• Repetitive Transfer: Repeated electronic funds transfers in which the credit parties and transaction description remain the same and only the amount and date of the transfer changes.

• RFP: A Request for Proposal is a method used to solicit business plans from corporations. The RFP process allows for the equitable and simultaneous comparison and analysis of competing businesses’ product and service offerings.

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S

• Settlement Date: Date of electronic funds transfer that determine the availability of funds.

• Society for Worldwide Interbank Financial Telecommunications (S.W.I.F.T): The major international financial telecommunications network that transmits international payment instructions as well as other international financial messages.

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T

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U

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V

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W

• Wire transfer: A same day transfer of funds between financial institutions, conducted through the Federal Reserve’s Fedline system.

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X

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Y

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Z

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