Glossary of Main Financial Terms You Need to Know

The world of finance and banking can be confusing, especially if you're unfamiliar with the various acronyms and terminology used. In this blog post, we'll provide a basic guide to understanding some of the most important financial terms, including:

• IBAN stands for International Bank Account Number. It's a unique identifier used to identify a bank account in an international context. IBANs are used to facilitate cross-border transactions and ensure that payments are made to the correct account.
• BBAN stands for Basic Bank Account Number. It's a local account identifier used in a specific country to identify a bank account. BBANs are typically combined with the country code and IBAN to create a complete international bank account number.
• SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It's a global financial messaging network that enables banks to securely exchange electronic messages and financial transactions.
• BIC stands for Bank Identifier Code. It's a unique identifier used to identify a financial institution in the SWIFT network. BIC codes are used to ensure that financial transactions are accurately and efficiently processed.
• ACH stands for Automated Clearing House. It's a type of electronic payment system used to transfer funds between bank accounts. ACH transactions are commonly used for direct deposit of paychecks, automatic bill payments, and other types of financial transactions.
• SEPA stands for Single Euro Payments Area. It's a euro-denominated payment system that enables individuals and businesses to make cross-border payments within the European Union using a single bank account.
• SCT stands for SEPA Credit Transfer. It's a type of payment transaction that enables the transfer of funds from one bank account to another within the SEPA region.
• SDD stands for SEPA Direct Debit. It's a type of payment transaction that enables merchants to directly debit a customer's bank account for payment.

By understanding these basic financial terms, you'll be better equipped to navigate the world of finance and banking. Whether you're sending or receiving payments, or just want to understand how your own bank account works, knowing these terms will help you make informed decisions and ensure that your transactions are processed efficiently and securely.