When you approach a bank, you should understand the common terminologies in use. Without the right words, you might have trouble expressing yourself fully. Also, you risk communicating wrongly with the parties involved. To prevent such, this article explains the top 22 basic banking terms.
Also called Automated Teller Machine, ATM is an electronic device that provides easy access to your funds anytime, anywhere. It works nonstop from morning to midnight until you reach your daily limit.
Automated Credit Transfer
It represents the seamless movement of funds from a second bank account into yours. Depending on the sender’s location, you may receive it on the same day.
BACS stands for Bankers Automated Clearing Service. It refers to the transfer of money into your account from a UK-based account. For instance, a client paying your earnings.
It stands for charge, which is the money you pay for services the bank renders to you. It reflects in your monthly bank statement.
It stands for Clearing House Automated Payment System. CHAPS is the movement of money from your account into another at a different bank.
A shortened form of Cheque. It refers to financial transactions (both credit and debit) you make with a cheque. Also, it will reflect on your record of financial transactions.
It stands for Correction, an indicator of a transactional error such as overpayment, underpayment, or account mistake.
It represents cash. Anytime you deposit money into your account physically, it reflects as “CSH” in your account statement.
It refers to credit, which is money entering your account. For an individual, “credit” appears in your financial records statement when money comes in.
It’s a piece of customized plastic or metal that empowers its holder to buy goods without paying immediately from their account. It is a form of quick loans to fund your lifestyle.
It’s a tangible gateway to your checking account. You can quickly withdraw funds, make transfers, and perform other transactions with it. Moreover, it works with POS and ATM.
D/D is an Abbreviated form of Direct Debit. It is a signed command for your credit institution to pay an amount to a business or an individual at agreed intervals. The actual amount depends on the discretion of the business.
It refers to debit, which is money leaving your checking account. Besides, it will reflect in your monthly financial statement.
ITL refers to International Transfer. When you move money from your UK checking account into a foreign bank account, your bank records it as “ITL”.
IMO refers to International Money Order. It refers to a protected gateway to send money overseas.
It is a financial instrument your credit partner provides to ensure there is no incomplete payment despite an insufficient balance.
PIN stands for Personal Identification Number. It is your secure, four-digit code to complete your banking deals from an ATM or POS.
Point of Sale or POS refers to payments you make with your debit card at retail stores or mobile money outlets.
S/O or STO
S/O refers to Standing Order, which is an instruction to your credit institution to pay a fixed amount to a business at regular intervals. For instance, vehicle lenders and mobile phone lenders use it for customers who pay in installments.
SWIFT means Society for Worldwide International Financial Telecommunications. It represents a network of global credit institutions that facilitates faster and secured international transfer of money.
If you perform transactions from your mobile phone, it goes under “TEL.” TEL means Telephone.
Transfer. When you move funds from your account into another via the “transfer” feature, your bank records it under “TRF”.