Glossary of Terms

Terms and their definitions are laid out in alphabetical order. If you cannot find a term you are looking for or have questions about the definition, please email ppi@albertacentral.com.

TermDefinition
A
APIApplication programming interface (API) are a set of pre- defined commands, functions, objects, and protocols which programmers can use when building systems or applications to interface to another system or application.
AFTAn automated fund transfer (AFT) is a domestic, low value, file-based payment system used primarily by corporate customers to transfer funds across Canadian financial institutions, with rules and regulations governed by Payments Canada.
AFTs consist of two types, direct deposits or pre- authorized debits:
• Direct deposits are credits sent to a member’s account at a financial institution (i.e. payroll deposits).
• Pre-authorized debits are debits drawn from an account at a financial institution – typically used for recurring payment obligations (i.e. membership dues).
AML rulesAnti-money laundering (AML) rules are a set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income and help detect and report suspicious activity.
Application managementApplication management refers to the maintenance and support for the application software to meet the agreed operational service levels and stay current from technology and regulatory compliance perspective.
B
Bill paymentBill payment is a payment transaction from a biller’s subscriber to the biller as payment for the services received during a billing period.
Note, bill payments are sometimes referred to as an EDI.
BillerBiller is an entity providing services to subscribers and invoicing the subscribers for the services provided.
BillingBilling is a process of invoicing the participant member by the central or participant for the payment transactions they processed during a billing cycle – typically on a monthly basis. Billing is an ‘after the fact’ process, as opposed to deducting ‘fees and charges’ which are withdrawn from the account when the payment is processed.
Bulk fileBulk file is a payment file containing two or more payment transactions.
C
CAFTCustomer automated funds transfer (CAFT) originates pre-authorized debits and direct deposit transactions (alternatively referred to as AFT payments). CAFT is a CUPS legacy system.
CARCourtesy amount recognition (CAR) is the process by which recognition engines read the numeric dollar amount written on a cheque.
CeleroCelero is a joint venture providing digital technology, integration and payments solutions such as core banking, digital banking, managed IT etc. to credit unions and financial institutions across Canada.
Celero XpressCelero Xpress is an omnichannel digital banking platform powered by ebankIT (a global digital banking developer) that connects credit unions with member experience solutions using modern application programming interfaces (APIs).
For example, connecting credit unions’ core banking platforms with members’ experiences such as content management, back office management, internet and mobile banking, front office delivery, and live assistance to members.
Channel APIsChannel application programming interfaces (API)s are a set of APIs provided by the service provider (IBM) that the central or participant can integrate into their digital platform to enable their members to initiate payments or determine their status.
ChequeCheque is a bill of exchange consisting of a document that orders a financial institution to pay a certain amount of money from the payer’s account to the payee it has been issued to.
Clearing and settlement systemsClearing and settlement systems are the technology financial institutions use to execute their processes for calculating how much is owed to each other as a result of their members’ transactions in order to reconcile between institutions.
CRDClearing replacement document (CRD) is a form of image printout that meets the specifications in the “Canadian Payments Association (CPA) Standard 014 -Clearing Replacement Document Design Standard”
CRDs are used for presentment and return purposes in place of an original paper payment item in accordance with “CPA Rule A10.”
CPA005CPA005 is the file format currently in use by Payments Canada for exchanging automated fund transfer payments.
CPA or CSN Services NetworkCanadian Payments Association (CPA) Services Network (CSN) is the Payments Canada managed network used by financial institutions to transmit Payments Canada managed payment items (i.e. AFT, EDI/bill payments and electronic cheque images). Additionally, these payment items may be used to transmit proprietary files on a bilateral basis, or as agreed to by the parties and with the consent of the Payments Canada.
CUCredit union (CU) is a co-operative bank owned by its members.
CU OnboardingWorkstream to support credit union change, communications, and business readiness plans to implement PPI.
CUPSCredit Union Payment Services (CUPS) is a joint venture of Saskatchewan Central and Alberta Central and provides aggregated payment processing, clearing and settlement functions to credit unions.
CUCMCredit Union Central of Manitoba (CUCM) is the trade association and a service provider for Manitoba’s credit unions – owned jointly by Manitoba credit unions.
D
Day 1 item processingDay 1 item processing is cheque payment settlement and related processes and services for electronic cheque items that are either captured by the member through remote deposit capture or received as in-clearing in an X9 file format.
De-bulkingDe-bulking is the process of splitting a bulk payments file into individual payment records with a unique payment identification number for the purpose of storing or further processing.
DNADNA from Fiserv is a Canadian account processing platform used by Celero that has also been the core banking system utilized by credit unions.
Duplicate detectDuplicate detect is a check performed on a payment transaction to determine if the same transactions have already been processed by the service provider’s platform.
E
EDIElectronic data interchange (EDI) is the payment file format used to exchange bill payments to businesses that includes data related to business’ corporate creditor identification number (CCIN) for credit to a corporation.
EDI includes bill payments initiated via telephone and internet banking and may include some paper-based bill payment remittances converted to EDI format by financial institutions.
Note, EDIs are sometimes referred to as bill payment.
ExchangeThe delivery and receipt of payments instructions between two entities.
F
FIFFinancial institution file (FIF) is the list of routing information of deposit taking institutions in Canada that is maintained by Payments Canada and provided as a service to its subscribers.
Fin techFinancial technology (Fin Tech) often refers to financial technology applications and services and the companies offering them.
ForgeForge is the new omnichannel digital banking platform provided by Central 1.
Fraud modelA fraud model is a set of business rules configured in a system and applied over payment transactions to detect fraudulent transactions.
G
GLGeneral ledger (GL) is an account or record used to sort, store and summarize a company’s transactions. These accounts are arranged in the general ledger (and in the chart of accounts) with the balance sheet accounts appearing first followed by the income statement accounts.
Go-LiveA go-live is the action of moving from a testing environment into production. i.e. a service provider’s platform is accepting and processing payment types in production.
I
IIAImage integrity analysis (IIA) is the level of analysis designed to detect a condition where the image of a cheque is incorrectly associated with the metadata of another cheque.
Implementation planAn implementation plan is a cohesive, high-level plan of service provider’s activities required for implementing the service provider’s platform in production.
IngestionRefers to the initiation or initial receipt of payments instructions from an end customer through service provider’s white label UI or APIs.
Integration participantParticipants that integrate their digital banking platforms and core banking systems directly with the service provider’s platform (as opposed to accessing it through another participant).
Interac clearing providerAn organization that provides access to the Interac network to submit Interac online payment transactions.
Interac e-Transfer®A fast, secure and convenient way to send money to anyone in Canada using online banking. The participating financial institution transfers the funds using established and secure banking procedures.
IPCCIBM Payments Centre Canada (IPCC) is a cognitive payments platform built on the IBM Cloud, used by many major Canadian and US banks, combining the infrastructure, software, application and business operations support under one multi-tenanted cost- effective and efficient platform.
IQAImage quality assessment/analysis (IQA) is the tests used to determine the quality of the item being captured (for example, the document has bent corners or streaks), or the quality of the image obtained from that item (for example, the image is too light or too dark). Image quality means to external image attributes independent of content such as image being too light, too dark, skewed, too big, too small, partial image, and piggy backs.
ISO 20022A single standardization approach (methodology, process, repository) to be used by all financial standards initiatives. Banks will need to update or replace their payments and messaging systems, and handle ISO 20022 inputs from customers across all channels, including open banking APIs.
IUAImage usability assessment (IUA) refers to the tests used to determine if an area on the item image is missing or could not be detected. The test determines if there is data in a field that might reasonably be printed or written text.
L
LARLegal amount recognition (LAR) is the recognition engine and extraction of the characters (usually in words) of the amount written on the cheque.
LVTSLarge Value Transfer System (LVTS) is the Payments Canada system used to send Canadian dollar wire transfers between participating financial institutions (FIs) across Canada. LVTS processes individual payments; it is a ‘credit push’ system, meaning that the transactions are initiated by the owners of the funds, and then sent to the beneficiaries. Once a wire transfer has been received by the receiving financial institution, the transfer of funds is considered final and permanent, and the credit must be applied to the beneficiary’s account.
LynxLynx is Payments Canada’s new high-value payments system, which will replace LVTS. It will be a real-time gross settlement system, built in compliance with strict Canadian and international risk standards and will be enabled with the global ISO 20022 messaging standard to be introduced in a future release of Lynx system.
M
MICRMagnetic ink character recognition (MICR) is a technology that uses special ink with magnetic properties that enable electronic scanning systems to read information from the bottom of clearing items to create files. MICR characters are printed in E13B font in Canada.
Mobile RDCMobile remote deposit capture (RDC) is integrated with a financial institution’s (FI) mobile application to scan and transmit cheque images for processing and allows FI’s customers to deposit cheques from their mobile devices.
N
NettingThe process of aggregating due from/due to between two financial institutions in the course of payment settlement to identify who is owing in a netted settlement.
Non-DNANon-DNA refers to the credit unions that will be connecting to the PaaS platform directly or through another provider (not using Celero DNA).
O
OFIOther financial institution (OFI) is a non-central financial institution.
OnboardingOnboarding is the process of registering a user on a system so that the user can start receiving the services offered by the system.
P
PaaSPayments as a Service (PaaS) which delivers an end-to- end payments management and infrastructure experience delivered through the IBM Payments Centre Canada (IPCC).
PaaS BuildWorkstream overseeing the implementation of the PaaS platform for processing in-scope payment types: AFT, EDI/bill payments, wires, cheques, Interac and real-time payments (future) as per Canadian industry and regulatory requirements.
PayeeThe end-user (person or organization) who receives funds when a payment item is credited to their account.
PaymentThe transfer of value from a payor to a payee through the intermediary of a financial institutions. Payments can be debit transfers or credit transfers authorized by the payor.
Payment fileA file containing one or more payment instructions.
Payment recordA single payment transaction for any payment type.
Payments processingRefers to actions taken by a person wherein another person has delegated responsibility to the other person to perform any, some, or all of the following activities on their behalf: ingestion, processing, posting, exchange or settlement.
Payments processing servicesRefers to the ingestion, processing, posting, exchange or settlement.
Payment typeRefers to the different types of payments accepted in Canada, including: AFT, EDI/bill payment, cheque, Interac payment, and wires.
PayorThe end-user (person or organization) who authorizes their financial institution to debit their account for the amount of a payment item.
Project Management Office (PMO)Workstream responsible for managing all elements of payments modernization including the PaaS Implementation, Payments “business development”, and digital transformation and innovation.
PoCPoint of contact (PoC) is a person that serves as the coordinator or focal point of information concerning an activity or program.
PostingThe processing of debits or credits to the bank account of one, or both, parties involved in a payment transaction.
Posting APIsA set of application programming interfaces (API)s provided by service provider that the Central or participant can integrate into their core banking systems to enable the service provider to post debit and credit transactions to member’s bank accounts.
PPIPrairie Payments Initiative (PPI) is the initiative the Prairie Payments Joint Venture Initiative (PPJV) was developed to manage.
PPI works to ensure prairies credit unions are competitive in payments by providing access to the most efficient, cost-effective, modernized payments processing infrastructure, all within the context of meeting Payments Canada modernization requirements.
PPJVPrairie Payments Joint Venture Initiative (PPJV) is the corporate entity that is managing the Prairie Payments Initiative and the migration to PaaS (and current payments services of prairie centrals).
PPJV Transition Management BoardThe management board that will execute and manage the transition to PaaS and provide PPI oversight.
ProcessingThe set of activities applied to a payment instruction after it is ingested that validates the content of the payment instruction against the regulatory requirements and rules defined by the sending or receiving financial institution.
P8The eight largest credit unions in the prairies (by asset value) who are part of PPI: Servus, Affinity, Conexus, Cambrian, Assiniboine, Connect First, Steinbach and Access.
R
Rejected AFT itemRefers to an automated fund transfer (AFT) transaction which has not passed the business rules checks by the beneficiary’s financial institution (FI), and is delivered back to the sender’s FI in an AFT payment file.
RTRReal-time rails (RTR) is a new retail payments system that facilitates the delivery of low-value payments with immediate funds availability for the recipient. This system is intended to provide clearing capability for retail and commercial purposes.
S
SchedulingRefers to the process of selecting payments records from warehouse for processing the next payment cycle/batch based on due date/value date of payment.
Service provider’s platformRefers to the service provider’s production systems which are accessed by the Central, participants and members for payments processing.
SettlementRefers to the activities that result in the transfer of funds between two or more parties to complete a financial payment transaction.
SPISensitive personal information (SPI) refers to personal information that is considered sensitive due to many countries’ legal considerations or the potential risks that such information (or both) could be misused to harm an individual in a financial, employment or social way.
Standard ERP file formatThe payment file formats generated by industry leading enterprise resource planning systems like Oracle, SAP etc.
STPStraight-through processing (STP) is the movement of funds from sender to beneficiary, with no manual intervention, in a timely manner.
Submission cut-off timeThe time of day for each payment type by which the payments need to be received in the service provider’s platform to be eligible to be processed by the processing cut-off time.
SWIFTThe Society for Worldwide Interbank Financial Telecommunication (SWIFT) refers to the payments network used to send and receive wires domestically and internationally.
SWIFT message typesThe format or schema used to send messages to financial institutions on the SWIFT network.
SWIFT MTThe literal message type (MT), followed by a three-digit number that denotes the message category, group and type (e.g. MT103, single customer credit transfer).
SWIFT MX typeThe recent version of SWIFT message type, an XML based version, under the ISO 20022 standards.
V
Value DateThe date on which an incoming wire becomes available to the receiving bank and its member.
W
WiresWire transfers help move money electronically from one
person to another, domestically or internationally, using banks or transfer providers.
WarehousingWarehousing is the storing of payment records for future processing based on their due date.
White label GUIWhite label graphical user interface (GUI) is the system that the users (members/employees) interact with to complete transactional activity.
X
X9X9 is the financial industry standard used to exchange cheque images electronically. It is defined by the US Standard ANSI X9.100-187-2008, “Specifications for Electronic Exchange of Check and Image Data – Domestic” and as complemented by the Canadian Payment Association Standard 015, “Companion Document to the ANSI X9.100-187-2008.”
X12X12 the electronic data interchange (EDI) file format used in the processing of EDI payments in the Payments Canada clearing system.