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A
ACH
ACH (Automated Clearing House) is a US electronic payment network used to move money between bank accounts. It is commonly used for direct deposits, bill payments, and business transfers. ACH payments generally take longer to settle than real-time payment methods but are often lower cost.
Example: A US business can use ACH to pay a vendor directly from its bank account.
Acquirer
An acquirer is a financial institution that enables merchants to accept card payments. It receives payment information from the merchant and works with the card network and issuer to authorize and settle transactions.
Example: When a customer pays at a restaurant with a Visa card, the merchant’s acquirer processes the card transaction.
Address
A blockchain address is a unique identifier used to send and receive digital assets on a blockchain network. It can be shared publicly to receive funds, while the private key controlling it must remain secret.
Example: A customer can send USDC to a merchant by entering the merchant’s blockchain address.
AML (Anti-Money Laundering)
AML (Anti-Money Laundering) refers to policies, controls, and procedures designed to prevent the use of financial systems for money laundering and related financial crimes. Payment and financial businesses may monitor transactions and conduct customer or business checks as part of AML requirements.
Example: Payments via Cray go through AML checks..
API
An API (Application Programming Interface) allows different software systems to communicate with each other. Businesses use APIs to connect payment services, retrieve transaction information, initiate actions, or integrate financial functionality into their products.
Example: A merchant could use Cray’s payment API to integrate crypto as a mode of payment on their websites
Automated Market Maker (AMM)
An Automated Market Maker (AMM) is a decentralized trading mechanism that allows users to exchange digital assets through liquidity pools rather than a traditional order book. Prices are determined using predefined mathematical formulas. Instead of matching individual buyers and sellers, traders swap tokens directly against pooled crypto reserves, enabling continuous 24/7 trading.
Example: A user can swap USDC for another token through a decentralized exchange using liquidity supplied to an AMM.
B
Bank Transfer
A bank transfer moves money electronically from one bank account to another. It can be domestic or international and may use different payment networks depending on the countries and currencies involved.
Example: A business can pay a supplier by transferring funds from its bank account to the supplier’s account.
Base
Base is an Ethereum Layer 2 blockchain designed to provide faster and lower-cost transactions while using Ethereum as its underlying settlement layer. It supports applications, wallets, and payment use cases.
Example: A merchant payment can be settled in USDC on Base instead of directly on Ethereum mainnet to reduce fees.
Blockchain
A blockchain is a shared digital ledger that records transactions across a network of computers. Transactions are grouped into blocks, and each block is cryptographically linked to the previous one, creating a chain of records that is difficult to alter. Blockchain systems operate without relying on a single central authority and are decentralized.
Example: Blockchain enables stablecoin payments to be transferred and verified directly on a network, without traditional card payment infrastructure.
Blockchain Explorer
A blockchain explorer is a tool that allows users to view publicly available blockchain activity, including transactions, addresses, and confirmations.
Example: After sending USDC, a user can use a blockchain explorer to verify whether the transaction has been completed.
Blockchain Network
A blockchain network is a blockchain system on which digital assets and transactions operate. Different networks can have different transaction speeds, fees, and technical characteristics.
Example: Ethereum, Solana, and Polygon are different blockchain networks that can support crypto transactions.
Blockchain Payment
A blockchain payment is a payment in which value is transferred using blockchain infrastructure. Instead of relying on traditional banking or card networks, the transaction is recorded on a blockchain.
Example: A customer pays a merchant 50 USDC using a QR code via Cray, and the transaction is recorded on the selected blockchain network.
Block Confirmation
A block confirmation occurs when a blockchain transaction is included in a block and the network continues to build on that block. More confirmations can provide greater confidence that a transaction is final and will not be reversed.
Example: A merchant may wait for a required number of block confirmations before treating a blockchain payment as settled.
Bridging
Bridging is the process of moving cryptocurrencies between different blockchain networks. Bridges enable assets to be used across networks that otherwise operate independently.
Example: A user may bridge USDT from Ethereum to a Layer 2 network to access lower-cost transactions.
Business Account
A business account is a financial account designed for a company rather than an individual. It can be used to receive payments, make business expenses, manage funds, and support financial operations.
Example: A restaurant can use a business account to receive customer payments and pay suppliers.
C
Card Authorization
Card authorization is the process of checking whether a card transaction can be approved. The issuer evaluates factors such as available funds, card status, and transaction risk before approving or declining the payment.
Example: When a customer taps their card at a restaurant, the transaction is first authorized before it can be completed.
Card Network
A card network connects merchants, acquirers, and card issuers. Networks define rules and facilitate the exchange of transaction information between participants.
Example: Visa and Mastercard operate card networks used by merchants and financial institutions worldwide.
Card Tokenization
Card tokenization is the process of replacing sensitive card information with a token that can be used for transactions. This saves the user from exposing the original card number and thus reduces the risk associated with storing and transmitting card details.
Example: A saved card in a mobile wallet may use a token instead of the physical card number when making a payment.
Card Verification
Card verification is the process of checking card details or validating a card before or during a transaction. It can include checking the card number, expiry date, security code, etc..
Example: An online merchant may ask for a card’s CVV as part of card verification.
Chargeback
A chargeback is a card payment reversal initiated through the card network when a cardholder disputes a transaction. With this the cardholder gets back the funds while the merchant has an opportunity to respond to the dispute.
Example: A customer may request a chargeback if they believe a card transaction was unauthorized.
Checkout
Checkout is the stage of a payment journey where a customer reviews what they are buying and completes payment. A checkout can support card, bank, stablecoin, or other payment methods.
Example: An online store may offer USDC payments at checkout using Cray.
Closed-Loop Payment
In a closed-loop payment, transactions take place within a specific network or ecosystem controlled by a particular provider.
Example: If people start paying merchants in USDT, and they in turn pay their employees or vendors in USDT, we can make a closed loop payment system running on blockchain rails.
Cold Wallet
A cold wallet is a cryptocurrency wallet that is kept offline, and mostly comes as a hardware. It is commonly used for long-term storage because it reduces exposure to online threats.
Example: A business holding long-term digital asset reserves may keep them in a hardware wallet.
Contactless Payment
With a contactless payment, a customer pays without physically inserting or swiping a payment card. It commonly uses NFC technology or a compatible mobile device.
Example: A customer taps a contactless card or smartphone on a payment terminal.
Conversion Rate
A conversion rate is the rate at which one currency or asset is exchanged for another.
Example: If a customer pays in USDC while a merchant settles in USD, a conversion rate may determine how much USD the merchant receives. Thankfully, for stablecoins like USDT, USDC it is always equal to 1 USD.
Corporate Card
A corporate card is a payment card issued for business expenses and managed by a company. It can help businesses control employee spending and track expenses.
Example: A company may give employees corporate cards with predefined spending limits for travel and software subscriptions.
Credit Card
A credit card allows a cardholder to make purchases using a line of credit provided by the card issuer. The cardholder typically repays the amount later, subject to the card’s terms.
Example: A customer buys a laptop with a credit card and repays the issuer after the purchase.
Cross-Border Payment
A cross-border payment is a payment where the sender and recipient are located in different countries or jurisdictions. It can involve multiple currencies, payment networks, and financial institutions.
Example: A business in the UAE paying a supplier in India is making a cross-border payment. If they choose Cray and stablecoin payments, they can remove all the intermediaries and costs added in between with the layers.
Cross-Chain
Cross-chain refers to transfers of assets or information between different blockchain networks.
Example: Moving USDC from one blockchain network to another is a cross-chain transaction. Cray makes it so easy that the payers/receivers don’t even realize it is happening.
Custodial Wallet
A custodial wallet is a wallet where a third party holds or controls the private keys on behalf of the user. The wallet provider manages access to the assets while the user interacts with the wallet through its platform.
Example: A centralized exchange may hold a user’s crypto in a custodial wallet.
D
Debit Card
A debit card allows users to make payments using funds linked to a bank account rather than borrowing against a credit line.
Example: A customer uses a debit card to pay at a restaurant, with the transaction drawing from their available account balance.
Decentralized Finance (DeFi)
Decentralized Finance (DeFi) refers to financial applications built on blockchain networks that provide services such as trading, lending, borrowing, and asset management through smart contracts.
Example: Cray is becoming a big part of the DeFi ecosystem.
Decentralized Exchange (DEX)
A decentralized exchange (DEX) allows users to trade digital assets using blockchain-based smart contracts rather than relying on a traditional centralized exchange.
Example: A user can swap USDC for another token through a DEX using a liquidity pool.
Digital Currency
A digital currency is money or a monetary asset that exists in digital form. Digital currencies can include privately issued digital assets, stablecoins, etc.
Example: A stablecoin can represent a digital form of dollar-denominated value.
Dispute
A dispute occurs when a customer challenges a payment or transaction. Depending on the payment method, disputes can lead to investigations, refunds, or chargebacks.
Example: A cardholder may dispute a transaction they do not recognize.
Double Spending
Double spending is the attempt to use the same digital asset more than once. Blockchain networks use consensus mechanisms and transaction validation to prevent the same funds from being successfully spent twice.
Example: A blockchain network rejects a conflicting transaction attempting to spend the same USDC balance twice.
Due Diligence
Due diligence is the process of assessing a customer, business, transaction, or counterparty before providing financial services or entering a relationship.
Example: A payment provider may conduct business verification for due diligence before onboarding a merchant.
E
Embedded Wallet
An embedded wallet is a digital wallet built directly into an application instead of requiring users to manage a separate external wallet application.
Example: A payment app can provide users with an embedded wallet directly inside the app so they can receive and send stablecoins.
Ethereum
Ethereum is a blockchain network that supports digital assets, smart contracts, and decentralized applications. It is also the foundation for many token and DeFi ecosystems.
Example: A USDC transfer on Ethereum requires some gas fee.
Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine (EVM) is the execution environment used by Ethereum to run smart contracts. EVM compatibility allows other blockchain networks to support many of the same applications and tools.
Example: An EVM-compatible network can run smart contracts originally designed for Ethereum.
Exchange
An exchange is a platform or service where users can buy, sell, or swap financial or digital assets.
Example: A user can exchange fiat currency for USDC through a crypto exchange.
Expense Management
Expense management refers to the processes and tools businesses use to control, track, approve, and reconcile expenses.
Example: A company can give employees corporate cards and monitor their spending through an expense management system.
F
Fiat
Fiat currency is government-issued money that is not backed by a physical commodity such as gold. Examples include USD, EUR, GBP, and AED.
Example: A merchant may accept USDC from a customer and settle the value into USD.
Finality
Finality is the point at which a transaction is considered irreversible or highly unlikely to be reversed by a blockchain network. Different networks achieve finality in different ways and at different speeds.
Example: A merchant may wait for transaction finality before considering a blockchain payment fully settled.
Foreign Exchange (FX)
Foreign exchange (FX) is the conversion of one fiat currency into another. FX markets determine exchange rates between currencies.
Example: A business receiving EUR but needing USD may use an FX conversion to exchange the funds.
Fraud
Fraud is the use of deception or unauthorized activity to obtain money, assets, or financial benefit. Payment systems use various controls to identify and prevent fraudulent transactions.
Example: A stolen card being used to make unauthorized purchases is an example of payment fraud.
Funding
Funding refers to adding money or assets to an account, wallet, or payment method so they can be used for transactions.
Example: A user can fund a wallet by transferring USDC into it.
G
Gas Fee
A gas fee is a fee paid to a blockchain network to process and validate a transaction. The amount depends on the blockchain and network conditions.
Example: Sending a token on Ethereum may require the sender to pay a gas fee in ETH.
Gasless Transaction
A gasless transaction is a blockchain transaction where the user does not directly pay the network fee in the traditional way. The fee may instead be sponsored or abstracted by another mechanism.
Example: A payment app can sponsor gas so a customer can make a stablecoin payment without first acquiring the network’s native token.
Gross Settlement
Gross settlement is the settlement of transactions individually rather than grouping multiple transactions together for net settlement.
Example: A payment system may settle each transaction separately as it is processed.
H
Hardware Wallet
A hardware wallet is a physical device designed to securely store and manage private keys for digital assets. The keys are kept isolated from typical online environments.
Example: A business may use a hardware wallet to secure long-term crypto holdings.
Hosted Wallet
A hosted wallet is a wallet managed by a third-party service provider on behalf of the user. The provider typically controls the underlying wallet infrastructure and access mechanisms.
Example: A centralized platform may provide users with hosted wallets for holding crypto.
Hot Wallet
A hot wallet is a crypto wallet connected to or accessible through the internet. It is convenient for frequent transactions but can have greater exposure to online security risks than cold storage.
Example: A wallet used regularly to make stablecoin payments is typically a hot wallet.
I
IBAN
IBAN (International Bank Account Number) is a standardized format used to identify bank accounts for international and domestic transfers.
Example: A business receiving EUR by bank transfer may provide its IBAN to the sender.
Identity Verification
Identity verification is the process of confirming that a person is who they claim to be. It is commonly used during account opening and financial transactions.
Example: A financial platform may ask a user to submit identification documents during onboarding.
Interchange Fee
An interchange fee is a fee associated with card transactions that is generally paid by the acquiring side of a transaction to the issuing side.
Example: When a customer pays with a card, an interchange fee may be included in the overall cost of processing the transaction.
Invoice
An invoice is a document or digital record requesting payment for goods or services. It typically includes the amount due, payment details, and information about the transaction.
Example: A consulting business can send a client an invoice requesting payment in USD or USDC.
Issuer
An issuer is the financial institution that issues a payment card to a cardholder. The issuer authorizes transactions and manages the cardholder’s account.
Example: When a bank gives a customer a Visa credit card, the bank is the card issuer.
Issuing Bank
An issuing bank is the bank or financial institution that provides a payment card to a customer and manages the associated account.
Example: A customer’s bank that issued their debit card is the issuing bank for that card.
Instant Settlement
Instant settlement means funds are settled immediately or within a very short period after a transaction is completed. The exact timing depends on the payment infrastructure.
Example: A merchant receiving USDC directly after a confirmed payment can experience near-instant settlement with Cray.
Interoperability
Interoperability is the ability of different systems, networks, or technologies to work together and exchange information or value.
Example: A payment application supporting multiple blockchain networks has greater interoperability across different blockchain ecosystems.
K
Know Your Business (KYB)
Know Your Business (KYB) is the process of verifying a business before providing financial or payment services. Checks can include business identity, ownership, and other information.
Example: A payment provider may verify a restaurant’s legal entity and ownership before onboarding it.
Know Your Customer (KYC)
Know Your Customer (KYC) is the process of verifying a customer’s identity and assessing relevant information before or during a financial relationship.
Example: A user may need to provide an identity document and other information before accessing certain financial services.