Eurogiro list of Acronyms and glossary.

US ACH rules:

A 9-digit routing number that identifies the financial institution in the US (similar to the BIC address used in SWIFT).

See also FedACH

Directory of ABA numbers can be found on: www.fededirectory.frb.org

US ACH rules:

Means data transmitted between the USGO and DFIs in the United States in NACHA format.

US ACH rules:

Means the automated system through which United States DFIs transmit and settle payment orders subject to the NACHA Rules.

Certificate Authority.

Designates the computer system that generates and maintains the security certificates and associated keys.

US ACH rules:

Corporate Cross-border Payment

Certificate of Compliance.

Eurogiro request our members to return a yearly statement that they are in compliance with our security policies.

Cash on Delivery.

A service provided by the Post (parcel provider) which guarantees that the parcel is only delivered upon immediate payment. The payment side of the service is handled by banks/postal financial service departments, typically as a payment into an account or in cash. The in-payment is in principle in cash, but card payments occur if offered by the domestic provider of the financial services. In Eurogiro, all message types are available, but the payment must be flagged as "COD" and equipped with a reference number.

Data Encryption Standard is a widely-used method of data encryption using a private (secret) key. Both the sender and the receiver must know and use the same key. In Eurogiro DES is used for the MAC-ing.

See also Triple DES

US ACH rules: Depository Financial Institution

Means an entity in the United States that is authorised by law to accept deposits and is authorised to participate in electronic exchange of payment instructions and to settle for such payments.

In Europe: Depository Institution

Means an entity in certain countries in Europe that is authorised by law to accept deposits and is authorised to participate in electronic exchange of payment instructions and to settle for such payments.

Exceptions and Investigations.

European Association of Co-operative Banks.

It represents one of the leading banking groups in Europe. The EACB represents the common interests of co-operative banks and acts as their official spokesperson towards the European institutions.

Euro Banking Association.

Acts as an initiator and assists in the development of European-wide payment infrastructures.

Banks which have their registered office or a branch office in a Member State of the European Union as well as banks, which have their registered office in one of the EU Accession countries as well as in any EEA Member State, are eligible for membership of the Association.

www.abe.org

STEP1 allows banks not complying with EURO1 admission criteria, to process their cross border retail payments within a pan-European payment system.

The STEP1 system is open to any bank or financial institution having its registered office or a branch in the EU and that is a Full Member or a User Member of the Euro Banking Association.

STEP2 provides a pan-European ACH solution for processing bulk payments. The system offers direct access to a wide banking community, whose payment instructions, routed through to STEP2, are distributed to any bank operating in the EU.

STEP2 participation is open to financial institutions having their registered office or a branch in the EU.

Eurogiro Cash International^® (former TMO). A semi urgent Money Order product developed by Eurogiro.

TMO also designates the application and system that holds the database for the transactions.

Council of the European Union.

The Economic and Financial Affairs Council is, together with the Agriculture Council and the General Affairs Council, one of the oldest configurations of the Council. It is commonly known as the Ecofin Council, or simply "Ecofin" and is composed of the Economics and Finance Ministers of the Member States, as well as Budget Ministers when budgetary issues are discussed. It meets once a month.

US ACH rules:

A DFI located in Europe

European Economic Area is an organisation under EU.

The EEA is maintained because of the wish of the 3 countries - Norway, Iceland and Liechtenstein - to participate in the Single Market, while not assuming the full responsibilities of membership of the EU.

www.europa.eu.int

US ACH rules:

A Gateway Operator located in Europe

Eurogiro Intermediate System.

This is a central store and forward system for connection to specific Members.

Eurogiro (Local) System.

The Eurogiro System (ELS) is a turnkey system including all the hardware and software needed to connect to the Eurogiro Network and the Western Union services.

US ACH rules:

An ODFI located in Europe.

US ACH rules:

A RDFI located in Europe.

Eurogiro SWIFT Middleware.

Software in the Eurogiro/SWIFT CUG solution for bulking and compression of Eurogiro envelopes.

Euro Settlement Service Provider.

The Eurogiro member bank that is selected to provide all Eurogiro members with settlement of EUR for an agreed period of time. In principle, the concept provides settlement of all Eurogiro EUR payments at one institution, offering internet based information services for real-time liquidity handling.

Current: Deutsche Postbank

The EURO1 system is a same day payment system processing single end-to-end payment messages denominated in EUR.

Each EURO1 participant is a shareholder in equal share of EBA.

The Financial Action Task Force.

Is an inter-governmental body whose purpose is the development and promotion ofnational and international policies to combat money laundering and terrorist financing.The FATF is therefore a "policy-making body" created in 1989that works to generate the necessary political will to bring aboutlegislative and regulatory reforms in these areas. www.fatf-gafi.org

US ACH rules:

Means an institution that acts as an EGO or an USGO

International Bank Account Number

is a standardised structured, unique account number and conforms to International Standards Organisation standard 13616 (issued by ECBS) as amended from time to time.

International Payments Framework Association.

IPFA's mission is simple: Simplifying International Credit Transfers thru Global Standards. The concept of IPFA is to establish a membership organization providing rules, standards and operational procedures and guidelines. IPFA will improve non-urgent cross-border credit transfers through a member service agreement binding members to the operating rules. see www.internationalpaymentsframework.org

Internet Protocol - Secure.

An industry-standard technology to secure the IP-based communication between two parties. Eurogiro uses IPSec in all connections.

International Standards Organisation.

ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards.

ISO is a network of the national standards institutes of 162 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. see www.iso.org

The ISO 20022 standard provides the financial industry with a common platform for the development of messages in a standardized XML syntax, using:

• a modelling methodology (based on UML) to capture in a syntax-independent way financial business areas, business transactions and associated message flows;
• a set of XML design rules to convert the messages described in UML into XML schemas.

The business items used in financial communications, the resulting models and derived messages are stored on this website in a central Financial repository. See www.iso20022.org

Message Authentication Agent.

Is also used to refer to the DES keys for the MAC calculation.

Message Authentication Code.

Used in Eurogiro to protect Envelopes from being tampered with in the communication between the Host and the ELS.

Markets in Financial Instruments Directive.

is a European Union law which provides a harmonised regulatory regime for investment services.

Multilateral Framework.

Eurogiro MLF is a concept for providing a simple multilateral framework of True International Payments based on: One signing - Simple payments - Global reach.

Mobile Network Operator

Multiprotocol Label Switching.

A network technique used by network providers as it gives them a great deal of flexibility to divert and route traffic around link failures, congestion, and bottlenecks.

The National Automated Clearing House Association in the United States.

Sets standards for exchange of payments in US. See www.nacha.org.

New Legal Framework.

EU directive for payment services in the international market. See PSD

US ACH rules:

Originating DFI.

The Office of Foreign Assets Control.

("OFAC") of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction.

US ACH rules:

Originating Gateway Operator

Public-Key Cryptography Standard.

Specifications produced by RSA Laboratories in co-operation with secure systems developers world-wide.

PKCS documents have become the basis for the de facto standards for secure exchange of information.

www.rsasecurity.com/rsalabs/pkcs

Public Key Infrastructure.

A security system using digital certificates and keys for data protection based on the PKCS documents and standards.

Point of Presence.

The location of the network partner’s access point. The leased line goes from the member site to the POP.

Payment Service Directive – formerly known as NLF - EU directive for payment services in the international market.

The Directive on Payment Services (PSD) provides the legal foundation for the creation of an EU-wide single market for payments. The PSD aims at establishing a modern and comprehensive set of rules applicable to all payment services in the European Union. The target is to make cross-border payments as easy, efficient and secure as 'national' payments within a Member State. The PSD also seeks to improve competition by opening up payment markets to new entrants, thus fostering greater efficiency and cost-reduction. At the same time the Directive provides the necessary legal platform for the Single Euro Payments Area (SEPA).

After the formal adoption by the Council and the European Parliament and the publication, the provisions of this Directive will need to be implemented by all Member States by 1November2009.

The PSDsets out full harmonisation rules on the provision and use of payment services including on execution time and liability.

ThePSD covers electronic payments made in any currency where either or both the payer’s payment service provider or the payee’s payment service provider is located in the EU. ThePSD does not apply to cheque payments or most cash transactions.

US ACH rules:

Receiving DFI.

US ACH rules:

Receiving Gateway Operator

Real Time Gross Settlement System.

A gross settlement system in which both processing and final settlement of funds transfer instructions can take place continuously (i.e. in real time). An RTGS system can be characterised as a funds transfer system that is able to provide continuous intra-day finality for individual transfers.

The RTGS system of Deutsche Bundesbank (German central bank).

The system is open to all credit institutions and security firms with registered offices in the European Economic Area (EEA).

SWIFTAlliance Webstation.

An interface product enabling a person-to-application communication over the SWIFTNet services. Using a web browser environment, it provides access to business applications through service graphical user interfaces.

Swift Alliance Gateway.

It is an interface product enabling an application-to-application communication over the SWIFTNet services. Using host adapters, it connects to SWIFTNet, via SNL, business applications and service-specific interfaces that sometimes run on the same system as the SAG, but usually on a different one

SEPA Cards Framework.

The SCF spells out high level principles and rules which when implemented by banks, schemes, and other stakeholders, will enable European customers to use general purpose cards to make payments and cash withdrawals in Euro throughout the SEPA area with the same ease and convenience than they do in their home country. There should be no differences whether they use their card(s) in their home country or somewhere else within SEPA.

Means a day on which TARGET is open for transactions.

The Governing Council of the European Central Bank decided in 2000 that, from 2002 until further notice, the Trans-European Automated Real-time Gross settlement Express Transfer (TARGET) system will be closed, in addition to Saturdays and Sundays, on the following days:

• New Year's Day,
• Good Friday (Catholic/Protestant),
• Easter Monday (Catholic/Protestant),
• 1 May (Labour Day),
• Christmas Day and
• 26 December.

On these closing days, TARGET as a whole, including all the national real-time gross settlement (RTGS) systems will be closed.

Although DES is considered "strong" encryption, many applications use "triple DES", which applies a three time encryption using three 64-bit keys in succession.

Triple DES is also referred to as 3DES.

US ACH rules:

A DFI located in the United States

US ACH rules:

A Gateway Operator located in the United States

US ACH rules:

An ODFI located in the United States

US ACH rules:

A RDFI located in the United States

USD Settlement Service Provider.

The Eurogiro member bank that is selected to provide all Eurogiro members with settlement of USD for an agreed period of time. In principle, the concept provides settlement of all Eurogiro USD payments at one institution, offering internet based information services for real-time liquidity handling.

Current: Deutsche Bank

The date on which the payment and the funds are settled with the receiving bank/post in their nostro/loro

account

Virtual Private Network.

A technology to secure communication via external connections. Eurogiro uses VPN both on the EQUANT network as well as on the Internet connections.

eXtensible Business Reporting Language.

XBRL is a standard-based way to communicate and exchange business information between business systems. XBRL is an open, market-driven global standard.

eXtensible Markup Language.

A way to describe format data. It represents not only the information to be exchanged, but also the metadata encapsulating its meaning and the structure of the information to be exchanged. The structure is readable for both humans and machines and is therefore a powerful tool for exchange of data.