A 2025 Guide for Founders, CFOs, and Global Operators

In a world of instant payments, crypto rails, multi-currency accounts, and real-time FX — understanding the language of global finance isn’t optional. It’s critical.

Whether you’re a founder scaling across borders, a CFO building a modern treasury stack, or a growth-stage operator trying to make sense of financial complexity — this glossary is your go-to guide to decode the jargon and operate smarter.

A–E

ACH (Automated Clearing House)
A U.S. network that batches and clears domestic low-cost payments, commonly used for payroll, vendor payouts, and direct debits.

AML (Anti-Money Laundering)
A regulatory framework aimed at preventing illicit money flows. Businesses must comply with AML checks during onboarding and transaction monitoring.

AP/AR (Accounts Payable / Accounts Receivable)
Money a business owes (AP) and is owed (AR). These are critical for managing short-term liquidity.

BIC (Bank Identifier Code)
Also known as a SWIFT code, it uniquely identifies banks globally and is required for cross-border transfers.

CBDC (Central Bank Digital Currency)
A digital form of a country’s fiat currency issued and regulated by its central bank.

Clearing
The process of reconciling, confirming, and preparing a payment for settlement between financial institutions.

Compliance
Adherence to legal and regulatory frameworks — especially relevant in global finance for KYC, AML, tax, and transaction reporting.

Custody
The safekeeping of assets by a third party (typically banks or custodians), increasingly relevant in digital asset management.

F–J

Fedwire
A U.S. real-time gross settlement system used for high-value domestic transfers, often preferred for B2B payments over ACH.

Fiat Currency
Government-issued currency (like USD, EUR, INR), not backed by physical commodities but by national credit and regulation.

Foreign Exchange (FX)
The process of converting one currency to another. FX fees and markups often impact cross-border business payments significantly.

FX Markup
The hidden cost between the mid-market exchange rate and the rate offered by banks or platforms. A common cost center in global payments.

FX Spread
The difference between the buying and selling rate of a currency pair. Financial institutions often profit from this spread.

IBAN (International Bank Account Number)
An international standard for identifying bank accounts across borders. Often used in Europe and the Middle East.

Invoice Factoring
A financial service where businesses sell their receivables to a third party at a discount to access cash quickly.

Intermediary Bank
A third-party bank used to facilitate international wire transfers when the sending and receiving banks don’t have a direct relationship.

K–O

KYC (Know Your Customer)
A process of verifying a customer’s identity. Mandatory for businesses opening accounts, issuing payments, or onboarding vendors globally.

Liquidity
The ease with which assets can be converted into cash. Crucial for treasury management and operational agility.

Local Payment Rails
Domestic payment networks like ACH (U.S.), SEPA (EU), FPS (UK), UPI (India), which enable low-cost, fast local money movement.

Multi-Currency Account
A business account that allows companies to hold and transact in multiple currencies from one dashboard.

Neobank
A digital-only bank or banking platform that operates without traditional branches and typically offers faster, more flexible services.

Netting
A treasury technique to offset receivables and payables between entities before making a payment, reducing FX exposure.

On-Chain Transaction
A payment or data transfer that occurs on a blockchain and is verifiable by a distributed ledger.

Off-Chain Transaction
A transaction that happens outside the blockchain but may be later reconciled on-chain. Typically used to improve speed and privacy.

P–T

Payment Service Provider (PSP)
A platform that facilitates online payments between merchants and customers (e.g., Stripe, Razorpay, Checkout.com).

Remittance
Money sent by individuals or businesses to another party, often cross-border, usually by migrant workers or freelancers.

RTGS (Real-Time Gross Settlement)
A continuous settlement of payments in real-time. Used for large-value transactions.

SEPA (Single Euro Payments Area)
A European Union initiative that standardizes euro payments within the EU, allowing faster and cheaper bank transfers.

Settlement
The final transfer of funds between two parties in a transaction. In global finance, delays in settlement can tie up working capital.

Stablecoin
A crypto asset pegged to a stable reserve like the U.S. dollar or Euro. Used increasingly for B2B payments and treasury operations.

SWIFT (Society for Worldwide Interbank Financial Telecommunication)
A messaging network that enables global bank-to-bank financial communication and cross-border transfers.

Treasury Management
The process of overseeing an organization’s liquidity, investments, and risk in financial operations.

U–Z

UPI (Unified Payments Interface)
India’s real-time mobile-first payment system for low-value transactions. A growing model for other countries.

USD Account (Non-Resident)
A business bank account in U.S. dollars that can be opened outside of the U.S. by foreign entities, typically for cross-border trade.

Virtual IBAN
A unique identifier that routes incoming payments directly to a master business account, used to simplify reconciliation.

Wallet Infrastructure
In crypto or fintech, wallets are digital tools used to hold, send, and receive funds. B2B platforms often use secure custody wallets.

Wire Transfer
An electronic transfer of funds via a network administered by banks or transfer service agencies. Often slower and more expensive.

Yield Product
A financial product that provides a return on idle balances, common in stablecoin treasury strategies or cash management platforms.

Why This Matters

The global finance stack is rapidly evolving. From stablecoins to SEPA, from compliance to real-time FX, founders and finance teams need to be fluent in this world to avoid costly mistakes — and unlock smarter growth.

Whether you’re setting up your first cross-border operation or rebuilding your treasury stack with modern tools, keep this glossary bookmarked. It’s your cheat sheet to making global banking less intimidating, more actionable, and future-ready.