Money Transfer Glossary | CompareRemit

Money Transfer Glossary

Listed below are commonly used money transfer terms and their meanings. Familiarizing yourself with these terms will help you better understand your money transfer from start to finish.

Commonly Used Money Transfer Terms

Aadhaar Number

An aadhaar number is a 12 digit number issued by the Unique Identification Authority of India that is used as an individual’s identification number. It serves as proof of address and identity in India.


ACH stands for Automated Clearing House, and is a network used for electronic fund transfers made between banks and credit unions.

ACH Bank Direct

ACH bank direct is a type of payment made via the ACH network in which individuals will receive money directly into their bank accounts.

ACH Push

ACH push, also known as direct deposit, “pushes” your funds from your bank into another bank.

Bank Identifier

Bank identifier is part of your IBAN that indicates the source bank of the transaction.

Buy Rate

The buy rate is the exchange rate at which a forex provider will purchase a certain currency from you.

Cash Pickup

Cash pickup is a money transfer retrieval option offered through some providers that allows the recipient of the money transfer to collect cash from a physical location nearby rather than receiving the money through a bank account.

Commission Fees

A commission fee is a charge imposed by a bank or currency exchange provider for their services when sending money abroad, and is typically charged as a percentage of the total transfer amount.

Correspondent Bank

A correspondent bank is a financial institution that provides services such as money transfers, wire transfers, and check clearing on behalf of another bank or financial institution.

Correspondent Bank Fees

When one bank uses a correspondent bank to carry out services, there can be a correspondent bank fee imposed on you, the sender of the money.


Corridor, when mentioned in relation to remittance, is the path between two countries’ currencies. For example, USD to INR refers to the United States to India corridor.


Currency is the money issued by a country’s government that is nationally accepted as a method of payment, typically in the form of paper and coins.

Currency Exchange Provider

A currency exchange provider allows you to send money internationally by converting the money from its original currency to the recipient’s country’s currency, and then sending that money to the recipient.

Currency Notes

A currency note is any note that is issued by a government treasury that is receivable as legal tender of any debt.

Currency Pair

A currency pair is the quotation of two different currencies against each other. It is a way of understand one currency's value in relation to another currency's value. For example, INR to USD.

Currency Transfer

A currency transfer is the exchange of money from one currency to another currency, typically sent from one bank to another bank.

Delivery Method

Delivery method is the way in which your online money transfer will be received. In order words, how your recipient will get your money transfer. The typical methods offered by remittance providers include bank account transfer, cash pickup, multi-currency bank accounts, direct to card, and cryptocurrency.

Direct Deposit

Direct deposit is a method of electronic funds transfer where money of a payer is directly deposited into a payee’s bank account. It is often used by employers when paying salaries or government agencies when distributing tax returns or stimulus checks.


An eCheck is an electronic check payment that uses ACH to direct debit from one bank account to another.


EFT stands for electronic funds transfer, which is when money is sent from one bank account to another electronically. There is no need for direct intervention by bank staff for EFT payments and can be made across different financial institutions.

Exchange Rate

An exchange rate is the rate at which one country’s currency is converted into another. In other words, an exchange rate is the price of a country's currency in terms of another currency. Market forces, among other factors, can cause exchange rates to fluctuate daily.

Exchange Rate Alerts

You can sign up for exchange rate alerts which are notifications for when an exchange rate between currencies has been reached or to be notified of the best exchange rate of the day.

FCNR Account

A FCNR, or foreign currency non-resident, account is for NRIs who wish to maintain a fixed deposit account in India. It allows you to save money earned overseas in foreign currencies.


Fees are the costs associated with your money transfer, and can be a fixed fee for every transaction or can be charged at a percentage rate based on the amount of money sent.

Fixed Deposit

A fixed deposit account is a broader terms embodying both NRE and NRO bank accounts.

Fixed Fees

Fixed fees means that the fees associated with your money transfer are the same, regardless of corridor, currency, or the amount of money transferred.

Foreign Direct Investment

Foreign direct investment (FDI) is an ownership stake in a foreign company that is taken by a person or company in another country.

Foreign Exchange Broker

A foreign exchange broker, or forex broker, is a financial services provider that allows traders to buy or sell foreign currencies.


Forex stands for Foreign Exchange, which means trading one currency to another.


Forwards, or currency forwards, are a contract in the forex market that lock in a specific exchange rate for the purchase of a currency on a future date.

Fund Repatriation

Repatriation is when a taxpaying person or company transfers money they earned overseas back to the base country.


An IBAN, or International Bank Account Number, is a number used to identify an overseas bank account. It begins with a two-digit country code, then two numbers, followed by more alphanumeric characters. An IBAN is used when sending money between banks, typically internationally.

Interbank Rates

The interbank rate is the rate at which banks charge each other when swapping currencies. In other words, the interbank rates are the official live conversion rates for any given currency pair i.e. INR to USD.

Market Orders

A market order in remittance is when you place an order for a future transfer for a specific exchange rate. Once that exchange rate is reached, your transfer will be initiated.

Mid-market Exchange Rate

Mid-market exchange rate refers to the current rate at which banks are trading currencies. The mid-market rate fluctuates constantly and is influenced by both national and international macroeconomic forces.

Mobile Wallet

A mobile wallet is a digital wallet that stores your payment information on a mobile device. Most mobile wallets allow you to enter in your credit card information for easy purchasing. They typically use near-field communication technology so you can simply tap your mobile device to pay for goods and services.

Money Transfer

A money transfer occurs when you send money from one source to another, typically from one bank account to another bank account.

MT103 Document

A MT103 document acts as a confirmation of payment made from your bank when you complete an international money transfer. It includes the beneficiary’s information along with all other important details of the transaction.


MTCN is a 10-digit Money Transfer Control Number you may receive when sending money in order to track your transaction. The recipient will also receive the same MTCN, and will need this number to retrieve the funds.

Multi-Currency Account

A multi-currency account is a bank account that lets you send, receive, and spend money in different currencies.

Net Banking

Net banking is a service offered by bank providers that allows bank account holders to access their accounts and complete transactions using the internet.

NRE Account

An NRE account is a non-resident external account for Indians which converts any currency deposited into the bank account in Indian Rupees, or INR.

NRO Account

An NRO, or non-resident ordinary, account is a bank account for non-resident Indians (NRIs) that allows them to manage deposits and income earned in India. It also allows you to receive funds in Indian Rupees or other foreign currencies.

Pay Card

A pay card is similar to a debit card and is used to give funds to another. Pay cards do not require the recipient to have a bank account, and can be reloaded. These are often used for employment.

Permanent Account Number (PAN)

Permanent account number, or PAN, is a 10-digit number issued by the Income Tax Department in India, and is often issued as a card. It helps link all transactions of the PAN card holder including tax payments, money transactions, TDS/TCS credits, investments, borrowing, and more.


Recipient is the individual that is receiving a money transfer from another.

Reference Number

A reference number is a unique number that is generated by the facilitating bank for a transaction in order to track a fund transfer.


Remittance comes from the word “remit”, which means “to send back”. Remittance refers to the payment of money from one person to another, typically overseas. Remittance often refers to an international money transfer, and is often used to send money to loved ones or to send money for business purposes. Types of remittance include cash, check, wire transfer, postal delivery, and more.

Remittance Provider

A remittance provider is a financial company that provides the service of sending money online internationally.

Routing Number

Routing numbers are nine-digit numbers that identify your bank or credit union in a financial transaction, and are used by banks to direct the exchange of funds to and from accounts.


Sender is the individual that is transferring funds to another.

Specified Bank Notes (SBNs)

A specified bank note, or SBN, is a bank note of the denominational value of five hundred rupees or one thousand rupees of the series existing on or before November 8, 2016.

Spot Transfer

A spot transfer is an agreement to exchange currencies at an agreed upon price on an agreed upon date, and must be settled within two business days.


SWIFT stands for Society of Worldwide Interbank Financial Telecommunication. It represents a global messaging network that banks and financial institutions use to securely and efficiently send and receive information, including pertaining to money transfers.


A SWIFT code is a string of 8 or 11 characters assigned to every bank that belongs to the SWIFT network. SWIFT codes identify bank branches for international transactions to ensure quick and accurate fund transfers. The code identifies the individual bank and its location, acting as a form of an international bank ID.

Store Pickup

Store pickup is a retrieval method option you may have when sending money. The recipient can pick up the funds at a participating location close to them.


Tenor is the period of installments given to a person when paying off debt to a lender.

Transaction Costs

Transaction costs are the costs associated with a money transfer, and are set by the remittance provider. Transaction costs often include any fees associated with your online money transfer. The amount of the transaction cost can depend upon the amount of money you send, your payment method, the currency you pay with, transaction type, destination country, and more.

Transfer Amount

Transfer amount is the amount of money that you want to be transferred from your account to your recipient when initiating a money transfer.

Transfer Date

Transfer date is the date that your money transfer will be initiated.

Transfer Fees

Transfer fees are the costs associated with an online money transfer. Transfer fees can be a flat rate fee, or can vary depending on the amount of money transferred. Most remittance providers are upfront regarding transfer fees so you'll know the costs before you confirm your transaction.

Transfer Limit

Transfer limit is the maximum amount of money that can be sent in a single transaction.

Transfer Speed

Transfer speed refers to how quickly your money will arrive to your recipient. Speed can vary from provider to provider, and can be anywhere from a few hours to days. Speed is also determined by delivery method - some can arrive faster than others.

Transfer Time

Transfer time is the amount of time it will take for your money to reach your recipient after completing your transaction online.

Transfer Type

Transfer type represents the different options you have when choosing the source for the money you will send online - options typically include ACH transfer, wire transfer, and credit/debit cards.

Wire Transfer

A wire transfer is a method of sending money electronically, either domestically or internationally, from one person to another. During this transaction, the sender’s bank sends a secure message to the recipient’s bank, including the transfer amount and details of the transfer.

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