Glossary
Payment Systems
Bank transfer is a method of sending funds from one business bank account to another. Example: A manufacturing company transferring payment to a raw material supplier.
Business bank account is a special account for business entities offering features like cash management and credit facilities. Important for separating business and personal finances.
Administrative fees are charges imposed by banks for business transaction services. These fees can vary based on transaction volume and types of services used by the company.
Bank code is a unique bank identification to facilitate inter-bank transfers. It is crucial in local and international B2B transactions to ensure proper routing.
Mobile banking is an application allowing business finance management from mobile devices. It is useful for quick payment authorization and real-time cash flow monitoring.
Internet banking is an online platform for large-scale company financial management. It provides features like multi-user access and batch payments.
E-wallet is a digital payment solution storing electronic payment information and funds as digital balance. Example: E-wallets are used for managing employee business travel expenses or small vendor payments.
- E-money is a prepaid payment instrument for business transactions, where money value is stored in specific electronic media. Unlike e-wallets, e-money is typically not directly linked to a bank account.
- It is often used for employee expense management or recurring vendor payments.
Transfer limit is the transaction limit or maximum amount that can be transferred in one transaction or one day, set by the bank or regulator. It can be adjusted based on company operational needs.
RTGS is a system for large fund transfers between companies or banks in real-time. It is ideal for high-value, urgent B2B transactions requiring quick settlement.
- Virtual account is a virtual account number to facilitate payment tracking from business clients or customers. It aids in reconciliation process and financial reporting.
- Virtual accounts are often used for bill payments or donations, where one organization can have multiple virtual accounts linked to one main account.
Interbank network is a network connecting various banks, allowing customers of one bank to transact with customers of other banks. Examples in Indonesia include ATM Bersama and Prima.
- Payment reconciliation is the process of matching financial transaction records to ensure data accuracy and completeness. It is important in the context of money transfers to verify that all transactions have been processed correctly.
- Example: A B2B e-commerce company using an automated reconciliation system to match payments from thousands of resellers with their orders daily.
- Fintech refers to technology and innovation aiming to compete with traditional financial methods in delivering financial services.
- Examples include mobile payment applications and peer-to-peer lending platforms.
API is a set of protocols and tools for building software applications. In the context of money transfers, APIs allow integration of money transfer services into other applications or platforms.
Payment API is an interface allowing integration of payment services into business systems. It enables automation of payment processes and receipt of money, improving operational efficiency.
- Disbursement API is a specialized API allowing businesses or platforms to send mass payments automatically to multiple recipients.
- It is ideal for businesses needing to make routine payments to many recipients, such as commission payments, payroll, or refunds.
- Non-API disbursement is a method of sending mass payments without using API integration, but through a dashboard. It generally involves uploading batch files (like CSV or Excel) to the payment platform.
- Non-API disbursement is suitable for businesses without technical capability for API integration or with infrequent mass payment needs. Example: A manufacturing company uploading an Excel file containing monthly employee payroll list to the payment dashboard, which is then automatically processed to each employee's account.
- Payment acceptance API is a method of using API to integrate payment systems with company internal systems or third-party platforms. It allows automation and customization of payment processes.
- Example: B2B marketplace integrating payment gateway via API into their platform, allowing sellers and buyers to transact directly on the platform.
Bulk payment system is a system for managing large volume payments to multiple recipients. It is suitable for companies with high transaction volumes such as insurance companies or e-commerce.
Real-time payment is a system allowing instant fund transfers between business entities. It improves liquidity management and accelerates payment cycles. BI-FAST is an example of a real-time payment system in Indonesia.
Payment gateway is a service that processes online payments for inter-business transactions. It connects merchants, banks, and customers to facilitate secure online transactions.
Payment aggregator is a third-party service that consolidates various payment methods for businesses. It allows companies to process payments through various channels without dealing with each payment provider separately.
Merchant account is a type of bank account allowing businesses to accept payments from various electronic payment methods. It is important for e-commerce and businesses accepting payments from various methods.
- Merchant Discount Rate (MDR) is the percentage of each transaction paid by the merchant to the acquiring bank. MDR includes interchange fee, network fees, and acquirer margin.
- Example: A B2B e-commerce company might pay an MDR of 2.5% for e-wallet transactions, which needs to be factored into their product pricing structure.
- Recurring billing is a system allowing businesses to bill customers automatically and periodically. It is very useful for subscription-based business models or long-term contracts.
- Example: SaaS company using recurring billing to charge their corporate clients monthly for platform usage.
- Subscription management is a platform or system managing subscription aspects such as billing, package upgrades/downgrades, and churn prevention. It is important for businesses with subscription-based revenue models.
- Example: Cloud service provider using a subscription management system to manage various service levels and billing for their business clients.
- Digital invoicing is an electronic billing system automating creation, sending, and tracking of invoices. It improves efficiency and reduces errors in B2B billing process.
- Example: Consulting service company using digital invoicing to send and track bills to their corporate clients, accelerating payment cycles.
- Accounts Receivable Automation is the use of technology to automate accounts receivable management processes, including billing, collection, and payment reconciliation.
- Example: Large distributor implementing AR automation system to manage thousands of transactions from retailers each month, improving cash flow and reducing DSO (Days Sales Outstanding).
- Dynamic QR Code Payment is a payment system using QR codes generated dynamically for each transaction, enhancing security and enabling contactless payments. In B2B, it can be used for on-site or event-based payments.
- Example: Event company using dynamic QR codes to accept payments from sponsors and vendors at trade show locations.
- Static QR Code Payment uses a QR code that remains constant and can be used repeatedly to receive payments. Unlike dynamic QR, static QR doesn't change for each transaction.
- In B2B context, static QR can be used for recurring payments or donations. Example: Supplier company using static QR on their invoices, allowing B2B clients to easily make payments by scanning the same code each time they receive a bill.
- Payment link is a unique URL link directing customers to a secure payment page. It simplifies payment process without need for complex API integration. In B2B context, payment links are often used for digital invoices or ad-hoc billing.
- Example: Business consultant sending a payment link to their corporate client after completing a project, allowing the client to make quick and secure payment through various payment methods available in the link.
