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Glossary of terms

Plain-language explanations of the terms you'll see around the portal.

Disbursement

A payment instruction that moves funds from one of your accounts to one or more recipients. The money that comes in to fund it (the pay-in) always matches the total that goes out (the pay-outs).

Pay-in / Pay-out

A pay-in is money coming in to fund a disbursement; a pay-out is money going out to a recipient.

Payment rail

The payment network used to move a pay-out. Which rails are available depends on your account configuration.

• ACH — a bank-to-bank transfer over the Automated Clearing House network, processed in batches and typically settling in one or more business days.
• Same Day ACH — an ACH transfer submitted for same-business-day processing.
• RTP (Real-Time Payment) — an instant payment that clears in real time and is available around the clock.
• FedNow — the U.S. Federal Reserve's instant-payment service.
• Wire — a wire transfer.
• Zelle — a payment sent over the Zelle network.

Verification

Before a pay-out is sent, DirecFunds checks that the recipient and their bank details match the party you intend to pay. The outcome is shown as one of:

• Verified — the recipient's details were confirmed.
• Unverified — the check has not yet been completed.
• Inconclusive — there wasn't enough information to confirm the recipient. You can review the details and, if you're confident they're correct, choose Override to continue.
• Failed — a potential issue was detected, so the request is stopped and your account administrators and our team are notified.
• Not Required — verification wasn't required for this pay-out.

Override

On an Inconclusive result, an authorised user can confirm the recipient is correct and let the disbursement proceed.

Disbursement status

Where a disbursement sits in its lifecycle. Common statuses include Pending Approval (waiting for an approver), Processing (funds are being moved), Processed (completed), Rejected (an approver declined it) and Failed (it could not be completed).

Funds to Close

Also called Consumer Funds to Close. A request that asks a payer (the consumer) to pay in money — for example ahead of a closing — depositing it into your branch's escrow (source-of-funds) account.

KYC / KYB

Know Your Customer (KYC) verifies the identities of the individuals behind a business; Know Your Business (KYB) verifies the business entity. Banks require these checks before accounts can be activated.

Beneficial owner

Any individual who holds at least 25% ownership of the business entity.