Invoice-to-Pay Glossary of Terms

A comprehensive reference guide to key terms in accounts payable (AP)The amount a company owes to suppliers for goods and services received but not yet paid. automation, payments, fraud prevention, and financial operations.

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Glossary

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Account Takeover - A type of fraud in which attackers gain unauthorized access to a legitimate user’s payment or banking account.
Accounting Software - A system for recording and managing a company’s financial transactions, often integrated with ERP and AP solutions.
Accounts Payable (AP) - The amount a company owes to suppliers for goods and services received but not yet paid.
ACH (Automated Clearing House) - A U.S. electronic network used to process batch payments like payroll, vendor payments, and direct deposits.
AP Card - A credit or virtual card used by AP teams to pay suppliers, offering more control and often generating cash-back rebates.
API (Application Programming Interface) - A set of protocols and tools that allow different software systems to connect and communicate.
Artificial Intelligence (AI) - The use of computer systems to simulate human intelligence processes like learning, reasoning, and decision-making—often applied in AP automation for data capture, fraud detection, and workflow optimization. B

Bank Identification Number (BIN) - The first six digits of a card number, identifying the issuing financial institution.
Business Email Compromise (BEC) - A cybercrime in which attackers impersonate executives or suppliers to fraudulently divert payments. C

Card-Not-Present Transaction - A transaction processed without the physical card, such as online or phone payments.
Card-Present Transaction - A transaction in which the card is physically presented at the point of sale.
Check Forgery - A fraudulent act where a criminal alters or creates a check without authorization to unlawfully withdraw funds.
Check Kiting - A type of fraud where funds are moved between bank accounts to falsely inflate account balances and avoid overdrafts.
Check Washing - A type of check fraud where criminals use chemicals to erase details from a check, allowing them to rewrite the check fraudulently.
Cloud Computing - The use of internet-based computing resources for data storage, management, and processing.
Contactless Payment - A payment method that uses RFID or NFC technology to make secure payments without physically swiping or inserting a card.
Credit Memo - A document issued by a seller reduces the amount owed by a buyer, often due to returned goods or pricing errors. D

Data Protection - Practices and technologies used to protect sensitive data from unauthorized access or theft.
Debit Memo - A document issued by a buyer to notify the supplier of a debit made to their account, often due to pricing or quantity discrepancies.
DFI (Depository Financial Institution) - A financial institution authorized to accept monetary deposits and facilitate financial transactions. Discount Terms (e.g., 2/10 Net 30) Payment terms that offer a discount (e.g., 2%) if payment is made within a specific period (e.g., 10 days), with the full amount due in 30 days. E

E-Invoicing / Electronic Invoicing - The digital exchange of invoice data in a structured format between a buyer and a supplier.
Early Payment Discount - A financial incentive is provided by a supplier to encourage early payment of invoices.
Edenred Pay - Edenred Pay is the market leader in B2B payments automation.
EDI (Electronic Data Interchange) - A standardized electronic communication method for exchanging business documents between systems.
Encryption/Decryption - The process of converting information into a secure format and then returning it to its original form using encryption keys.
ERP (Enterprise Resource Planning) - An integrated suite of applications that helps businesses manage core processes like accounting, procurement, and HR.
Escheatment - The legal process of transferring unclaimed or dormant funds – such as uncashed checks – to the state. F

Faster Payments - A general term for modern payment methods that allow funds to move quickly – often in seconds – between financial institutions.
For Benefit Of (FBO) Account - An intermediary account opened for the benefit of another party, often used in payment processing and custodial services.
Fraud Mitigation - Strategies, controls, and technologies designed to prevent, detect, and respond to fraudulent activities.

Ghost Card - A virtual card tied to a specific vendor or category of spend, simplifying recurring or repeat payments.
GL Coding (General Ledger Coding) - The classification of financial transactions into specific accounts to maintain accurate financial reporting. H

Human-Assisted Exception Resolution - A service that involves a human team resolving issues flagged by the automation system, such as mismatched invoices or approval bottlenecks. I

Integrated Payables - A platform that consolidates all payment types – ACH, card, check – into one streamlined workflow.
Intelligent Data Capture - AI-powered technology that extracts, validates, and structures data from invoices or documents with high accuracy.
Invoice Automation - The use of technology to eliminate manual tasks in the invoice processing lifecycle – from receipt to approval and ERP posting.
Invoice-to-Pay (I2P) - The end-to-end process from receiving an invoice to paying the supplier and reconciling the transaction. K KYB/KYC (Know Your Business / Know Your Customer) Regulatory compliance practices that verify the identity of a business or individual before initiating a financial relationship. L

Late Payment Penalty - A fee or interest charged by a supplier when an invoice is paid after the due date. M

Machine Learning (ML) - A subset of AI that allows systems to learn from data and improve over time without being explicitly programmed—used in automation to improve accuracy and prediction.
Mobile Point of Sale (mPOS) - A mobile device or tablet-based system for processing payments without traditional register hardware.
Monetized AP Process - Transforming accounts payable into a revenue-generating function through tools like virtual card rebates and early payment discounts. N

Natural Language Processing (NLP) - A form of AI that enables computers to understand and process human language—used in chatbots, document review, and invoice categorization. Net Terms (e.g., Net 30) This is a payment agreement where full payment is due within a specified period (e.g., 30 days) after the invoice date.
Network Payments - Supplier payments are routed through a third-party payment network for added security, remittance tracking, and data enhancement. P

Payee / Beneficiary - The party receiving payment, such as a supplier, vendor, or contractor. PCI DSS (Payment Card Industry Data Security Standard) A set of industry-mandated standards for securing cardholder data during processing and transmission.
Phishing - A type of cyberattack that uses fraudulent emails to trick users into sharing sensitive information like login credentials or banking details.
Positive Pay - A fraud prevention system where businesses send check issuance details to their bank, which then verifies checks presented for payment.
Procure-to-Pay (P2P) - The complete purchasing cycle, from requisitioning and purchasing goods/services to payment and reconciliation.
Purchase Order (PO) - A formal document issued by a buyer authorizing the purchase of goods or services under agreed terms. R

Real-Time Payments (RTP) - A digital payment method that settles and clears transactions immediately, typically 24/7/365.
Rebate - A financial incentive returned to the buyer based on specific criteria, such as using virtual cards or meeting spend thresholds.
Reconciliation - The process of matching financial records—such as payments and invoices—to ensure accuracy in accounting and reporting.
Remittance Advice - A document that accompanies a payment, listing the invoices and amounts included to assist with reconciliation.
Routing Number / ABA Code - A nine-digit code used in the U.S. banking system to identify financial institutions and direct electronic payments. S

SaaS (Software as a Service) - A cloud-based software delivery model where users access applications via a subscription through a web browser.
SDK (Software Development Kit) - A collection of development tools that programmers use to build and integrate software applications.
SMB/SME (Small and Medium Business/Enterprise) - Companies with a limited number of employees or revenue—typically with agile finance needs.
Supplier Enablement - The process of onboarding suppliers to electronic invoicing and payment systems to streamline transactions.
Supplier Network - A connected platform that links buyers and suppliers to exchange invoices, payments, and remittance information efficiently.
Supplier Portal - A self-service web portal for suppliers to submit invoices, check payment statuses, and update account information.
Supply Chain Finance - A financial strategy enabling suppliers to be paid early by a third-party funder, improving cash flow for all parties. T

The Financial Close - The process of finalizing all accounting entries at the end of a reporting period to produce financial statements. G
Three-Way Match - A process that compares an invoice, purchase order, and goods receipt to ensure they match before approving payment.
Tokenization - A payment security process where sensitive data (like card numbers) is replaced with non-sensitive, random tokens to prevent misuse.
Touchless Invoice Processing - A fully automated, no-human-touch workflow that captures, approves, and posts invoices electronically.
Two-Way Match - A simpler validation process that matches an invoice against a purchase order—typically used when goods receipts aren’t required. V

Value-Added Reseller (VAR) - A company that enhances third-party products and resells them as part of an integrated solution.
Virtual Card - A single-use or vendor-specific digital payment card used in B2B payments to improve control, visibility, and rebate potential. W

Wire Transfer - An electronic method for sending funds between banks, often used for large or urgent payments. # # #