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Nine-digit code which appears at the bottom of negotiable instruments such as checks to identify the financial institution on which is was drawn. This also applies to wire transactions and Automated clearinghouse (ACH) transactions.
Account
A deposit account at a depository institution that is held by or offered to a consumer.
Account number
A unique number of several digits used to identify an account at a financial institution.
Account statement
See also Bank statement.
Summary of transaction activity occurring during an accounting period, usually monthly, but sometimes quarterly or at other intervals.
Accrued interest
Interest that has been earned, but not yet paid, on a term deposit. It is typically calculated based on the 360-day year.
Interest = Rate x Par Value x Number of Days x 360
ACH
See Automated clearinghouse (ACH).
ACH Operator
The central facility for the clearing, delivery, and settlement of entries between or among participating depository financial institutions.
Acquirer
The following are the three types of acquirers.
For cards: A bank that purchases merchant sales drafts; receiving credit for the dollar value of the credit card receipts, less a processing fee (merchant discount rate).
For ATMs: The financial institution that dispenses the cash, collecting a transaction fee from the card-issuing bank.
For mergers and acquisitions: A bank gaining control over another financial institution through exchange of stock, payment in cash, or a combination.
Activity charge
A fee charged to a bank account to cover the servicing costs of the account. Some activity fees are triggered when the balance falls below a certain level (e.g., a monthly service charge on a checking account).
Adverse action
In consumer credit, the denial of an applicant's request for credit. Under the Fair Credit Billing Act, creditors who decline a request for credit must advise the applicant of the reason.
Agent bank
A bank named by members of a multi-bank lending syndicate to protect the interests of the participating banks in administering a loan to a domestic borrower. Responsible for notifying other banks of advances or drawdowns by the borrower and changes in the interest rate.
For credit cards: A bank that participates in the credit card program of another bank by issuing credit cards and acting as a merchant depository, but does not finance the card receivables. Most financial institutions participating in bank card programs are agents rather than principal issuers.
ALCO
See Asset liability committee (ALCO).
APR is used to calculate interest or "interest rate" which also has downstream impact on APYE (earned).
Helix uses the APR to arrive at the daily rate which is used for the interest accrual job
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If we choose the option YES respect leap year, the daily rate = APR/365 (non-leap year) and daily rate = APR/366 (leap year)
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If we choose NOT to respect leap year, the daily rate = APR/365 always
Helix rounds to 11 decimal places.
Helix does not use APY as part of the interest accrual calculation methodology.
APY is only captured by Helix to allow a front-end application to display APY in place of a marketing requirement. See Annual percentage yield earned (APYE).
Annual percentage yield earned (APYE)
Counting days for the APYE (APY earned) calculation:
APYE counting options – In the calculation of APYE (for statements), the formula includes the number of days in the period, this can be either the number of days in the period the account was open or the number of days in the period the account had accrued interest (could differ because of timing of account opening or closing)
Anti-money laundering
Procedures, laws and regulations designed to stop the practice of generating income through illegal means.
APR
See Annual percentage rate (APR).
APY
See Annual percentage yield (APY).
APYE
See Annual percentage yield earned (APYE).
Archived status
The status an end user has once they have requested their Helix account to be closed. To reopen the account, the end user must attempt the registration process again until they are placed in a Verified status.
Asset
Anything owned by a person or organization having monetary value, usually its cost or fair market value. May be a specific property, such as a title to real estate or other tangible property or enforceable claims against others. In banking, assets may be loans, discounts, investment securities, and claims against other banks.
Asset liability committee (ALCO)
Senior management committee of a bank or thrift institution responsible for coordinating the institution's borrowing and lending strategy and funds acquisition (deposit gathering) to meet profitability objectives as interest rates change. Also monitors actions by the Federal Reserve that may affect interest rates such as a change in the Fed discount rate.
Asset liability management
Active management of a financial institution's balance sheet with the objective of maintaining balanced growth in net interest income and earnings and control of interest rate risk as rates change.
Asset size
Total market value of the securities in a fund.
ATM
See Automated teller machine (ATM).
Audit
Examination and verification of a company's books and records by a qualified accountant. An auditor's letter of opinion, qualified or unqualified, is included in the company's annual report.
Authorization
Issuance of approval to complete a transaction or pay funds (e.g., bank card authorization or payment authorization). In bank cards, the card-issuing bank notifies the merchant processing bank, or merchant bank, that a cardholder has available credit and issues an authorization code for the transaction.
A payments processor for business to business payments.
Automated teller machine (ATM)
Machine enabling customers to withdraw money from their bank account by using a special card.
Availability of funds
Refers to funds that have been deposited by third-party check into a customer's bank account. These funds are typically not usable by the customer until the check clears.
Average daily balance
Method where credit card interest charges are calculated using the total amount due on a card at the end of each day. The average daily balance totals each day's balance for the billing cycle and divides by the total number of days in the billing cycle.
Average ticket
A metric that provides details on the average amount of sales by a given customer. It is used by a range of businesses when analyzing business performance and sales activity.
