Glossary of Terms

In addition to the definitions which appear in Standards General Information, Glossary of Terms, the following terms apply to category 2 message types:

Available Funds   

Funds available for transfer or withdrawal in cash.

Bankleitzahl   

An eight digit numeric code used to identify banks in Germany. It may only be assigned, changed or cancelled by Deutsche Bundesbank, in Germany.

CHIPS (Clearing House Interbank Payments System)   

A private telecommunications payment service operated by the New York Clearing House Association for banks in the New York area, which handles US dollar payments only.

CHIPS Participant   

A bank authorised to send and receive payments on the CHIPS system.

CHIPS Participant ID (ABA Number)   

A unique number identifying a CHIPS participant. The first four digits are the participant's number, followed by a one digit group identifier. For SWIFT purposes, only the first four digits of the CHIPS Participant ID will be used.

CHIPS Settling Participant   

A CHIPS Participant responsible for the settlement of its own CHIPS net debit or credit position at the end of the CHIPS business day.

CHIPS Universal Identifier   

A unique six digit number assigned by CHIPS to identify an account.

Cover Payment   

The reimbursement of a correspondent bank for a payment.

Federal Funds   

US dollars on deposit at a Federal Reserve Bank in the United States.

Fedwire   

A payment service operated by the US Federal Reserve System as a private wire network for transfers between financial institutions having accounts at the Federal Reserve Bank.

Fedwire Routing Number   

A nine digit numeric code used to identify banks in the United States.

Funds Transfer   

Complete movement of funds between the originator and the beneficiary. A funds transfer may consist of one or more funds transfer transactions.

Funds Transfer Transaction   

The movement of funds directly between two parties, involving no intermediaries other than a payment or communications service.

Immediate Funds   

Same day funds in which the settlement is simultaneous with execution of the transaction.

Instructing Party   

The party instructing the Sender to execute a transaction.

Originator   

Initiator of the transfer instructions. Equivalent to the ordering institution (field 52a) in the MT 202.

Originator's Institution   

Identifies the financial institution which is acting for the originator of the transfer.

Remitter   

The party which is the source of funds in a payment order.

Same Day Funds   

The funds available for transfer today, or for withdrawal in cash, subject to the settlement of the transaction through the payment mechanism used.

Settlement   

A transfer of funds to complete one or more prior transactions made, subject to final accounting.