• Glossary

    A glossary of terms used by Lloyds Banking Group and in LloydsLink online. Click on a letter for a list of terms and definitions starting with that letter.

  • Glossary



    A combination of numbers and letters from the English alphabet. In Payments, non alphanumeric characters such as punctuation can also be used and letters can be written in upper or lower case text.



    Within each organisation, there are one or more users who are responsible for the auditing of the Payments service for that customer. This user is known as the Auditor.



    A hand-held Smart Card reader that displays a security code, used to authenitcate a payment confirming that is valid and can be submitted by the user.


    Automated banking

    Using a computer based system that either credits or debits a bank account. This function is sometimes referred to as EFT (Electronic Funds Transfer).




    BACS Limited (now VOCA Ltd) is one of the world's leading automated clearing houses, owned by the major UK baks and building societies. The BACS service is a computer system which sorts automated payment instructions to allow the transfer of funds electronically.


    BAN - Bank Account Number

    A unique identification number for a particular bank or building society account. This must be alphanumeric, and in the UK is usually between 6 and 12 characters. For BACS processing, account numbers must be exactly eight digits.


    Bank option

    The Bank will nominate the most cost effective payment type with the information quoted.



    All payments are grouped within batches and cannot exist outside of a batch. A batch can consist of single or multiple payments.


    BBAN - Basic Bank Account Number

    In the UK the BBAN is made up of the account number and short code.



    The beneficiary is the recipient of a payment and the beneficiary bank is the bank receiving the payment on behalf of the recipient.


    Beneficiary account

    The account held by the beneficiary of the payment.


    BIC - Bank Identifier Code

    A unique address that precisely identifies the financial institution involved in an international financial transaction. A BIC consists of eight or 11 characters comprising at least three of the following components: bank code, country code, location code ad branch code. BICs are allocated and managed by SWIFT.



    CHAPS - Clearing House Automated Payment System

    An electronic transfer system for sending same-day value Sterling and Euro payments from bank to bank.


    CHAPS Euro

    The CHAPS service for payments denominated in Euro.



    (Transaction charges) the charges incurred by every transaction. They can be paid by the beneficiary, the remitter or shared. This is represented by the following codes:

    • OUR - Paid by the remitter
    • BEN - Paid by the beneficiary
    • SHA - Shared


    The processing of payments between the payers and payees.


    Corporate portal

    The gateway point to Lloyds Bank Commercial enabled products www.lloydsbankcommercial.com

    Correspondent bank

    A bank in a foreign country that can act on behalf of your bank and provie access to its branch network and banking services.


    Cross-border payment

    A payment between counterparties located in different countries.



    Debit account

    The account that will be used to fund the payment to the beneficiary. This will usually be a Lloyds Bank Commercial account listed in the Account library.

    Digital certificate

    A digital certificate is assigned by a trusted organisation such as a bank and is used to authenticate the holder and digitally sign instructions. The digital signature proves the authenticity of the instruction and also proves that the data exchanged has not been modified or tampered with.


    Domestic payment

    A payment between counterparties located in the same country.


    Dual control

    An optional process where changes to account management require authorisation by two service administrators before they can take effect. This provides the customer with the security of prohibiting one service administrator from making account changes without the agreement of a second.



    EBA (Euro Banking Association) EURO1

    A private sector owned country neutral payment system for cross-border and domestic transactions in Euro between banks operating in the European Union.



    You can configure your users to received email events.


    Euro payment system

    See Payment system. For Euro this can be any of the TARGET connected systems through CHAPS Euro, and the Euro Banking Association (EBA). We choose which one of these infrastructures is most appropriate for processing your payment.



    IBAN - International Bank Account Number

    30 countries currently operate the IBAN system. An IBAN is an alphanumeric code that, in participating countries, uniquely identifies a customer



    Multi-day file

    A payment file that contains payment instructions with different processing dates.



    Allows you to migrate data from your LloydsLink payments service to the on-line Payments service.


    Modulus check

    Modulus checking is a procedure for applying a mathematical algorithm to a number (such as an account number, sort code, reference or credit/debit card number) to check that its format is valid. This check cannot however verify that the number itself is correct for that organisation.



    Non- STP- Non Straight Through Processing

    Where a payment needs manual intervention by us. Payments processed Non-STP are done at a greater cost than STP payments.


    Nostro account

    An account that a bank holds at another bank.



    Outstanding tasks

    A list of tasks, seen on the Payments home page and the Payments management home page, that are waiting for the user to attend to (e.g. approve a payment, submit a payment). The user can attend to any of the tasks from these pages.



    Payer Bank

    The remitting Bank


    Payment status

    The stage that a payment is at, this can be any one of the following:

    Entered | Incomplete | Locked | Rejected | Archived | Complete | Awaiting verification | Verified | Failed verification | Awaiting approval | Approved | Failed approval | Pending submission | Submitted | Deleted


    Payment system

    A payment system consists of a set of instruments, banking procedures and typically, inter-bank funds transfer systems that facilitate the circulation of money.



    Within the Payments service, each user is set up with specific permissions, allocated to them by the service administrator. Setting permissions allows an organisation to restrict or expand a users



    Payment front end.



    Allows you to print Batch/Template and Account management details.



    Roll Account Number

    Used by some building societies to uniquely identify an individual



    Self approval

    Is an optional process where, if selected by an authorised user under customer preferences, users with the appropriate permissions are able to both create and approve a payment by themselves. This means that the security of having payments approved by more than one user is removed. This process is usually only chosen if a customer has very few members of staff, making multi user approval difficult.


    Security Settings

    Allows you to deny access to users for debit or beneficiary accounts and payment batches or templates.


    Service administrator

    Within each organisation/customer, there is at least one user who is responsible for the setting up of customers, user preferences and for general service upkeep and administration.


    Short code

    This is a short name chosen by you for an account which has all the account details associated with it. When creating a payment you can automatically populate the fields for an account by entering the relevant short code and selecting Find.


    Smart Card

    A card with an embedded microchip on which data can be stored. To authorise a payment, the Smart Card is inserted into the authenticator, which then reads the data held on the card and asks the user for a password response. Each user with permission to authorise payments has their own Smart Card with their individual permission data stored on it.


    Sort code

    A unique identification number for a particular domestic bank or building society branch.


    STP- Straight Through Processing

    Where a payment is completed comprehensively enough to need no manual intervention by us, they can be processed end to end without amendment. Payments processed STP are done at a reduced cost when compared to the standard tariff.


    SWIFT - Society for Worldwide Interbank Financial Telecommunication

    An industry owned co-operative, supplying secure messaging services and interface software.




    A set of basic payment details that can be used as a basis for creating new payments.


    The Bank of the beneficiary

    The Bank where the beneficiary holds their account.




    Within each organisation/customer, every individual who logs onto the Payments service is known as a user.



    Value date

    The date on which the beneficiary can draw on a payment without incurring penalties.


    Vostro account

    The account that a bank holds in local currency on behalf of another bank.



    If the value date for a payment is in the future - beyond the length of time that payment will take to be processed, then after it is submitted, the payment is held (warehoused). The payment will be released in sufficient time for it to credit the beneficiary

9/21/2021 4:15:39 PM