Every Money Transfer And Remittance Term You Need To Know: Letter A

Last updated: October 05, 2022

Airtime Top Up

Airtime Top Up is a way to add additional funds or airtime to a mobile subscription that may include voice, messaging and data services.

In the context of the international money transfer space, airtime top up is a form of delivery method to pay your overseas recipient. Of course, for this to work, the money transfer company must have partnerships with mobile operators and companies in the recipient’s home country.

Also known as: Mobile Top Up
Also see: Delivery Method, Delivery Option
Further reading: Delivery Methods for Money Transfer

Anti-Money Laundering (AML)

Anti-Money Laundering (AML) is a set of actions that a financial institution puts in place to prevent suspicious and fraudulent monetary transactions. Money laundering is a technique used by criminals to smuggle illegal money back into the legal monetary system by nefarious means, and AML is the financial service industry's answer to combat that.

In the context of money transfers, your money transfer company will thoroughly check your identity when you sign up, and may ask for the source of funds when you send money overseas with them. As part of their compliance with legal and regulatory policies, they are mandated to keep records of all transactions in case law enforcement needs access to the same.

Also see: Know Your Customer (KYC)

Ask FX Rate

An Ask FX Rate, also called a Buy FX Rate is the price you pay to buy one currency relative to the other when 2 currencies get traded. The opposite of the Ask FX Rate is the Bid FX Rate (also called the Sell FX Rate) which is the price you receive if you sell the currency being bought.

In general, the Ask (Buy) FX Rate is higher than the Bid (Sell) FX Rate. This is due to the fact that the FX Trader or Broker facilitating the currency trade makes a profit on the transaction.

Also known as: Buy FX Rate
Also see: Bid FX Rate, Sell FX Rate
Further reading: 5 Key FX Concepts You Need to Know

Automated Clearing House (ACH)

Automated Clearing House (ACH) is a central clearing and settlement system that banks rely on to handle account debit and credit reconciliations. In the US, for example, the ACH process is regulated and overseen by the US Federal Reserve in partnership with NACHA, an organization that governs ACH payments within the US.

The ACH network, thus, acts as the backbone of ACH Payments across participating banks, payment providers and merchants.

Also see: Payment Method
Further reading: How Do ACH Payments Work?