Batch Total Entry Systems

Payment systems characterized by bilateral exchanges made outside of a central system, and the separate entry of batch totals into the clearing system to support settlement

Bilateral netting

The net amount that represents the difference owed between pairs of participants.

Bill of Exchange

An unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay, on demand at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer. [see s. 16 - Bills of Exchange Act]

Branch number

A five digit number (including leading zeros) assigned by a financial institution to identify a branch. Branch numbers can be found in the Financial Institutions File and in the Financial Institutions Branch Directory.

Business Day

From a CPA rules perspective, this means any day other than an Automated Clearing Settlement System holiday.

Business pre-authorized debit

A pre-authorized debit drawn on the account of a payor for the payment of goods or services related to a business or commercial activity of the payor. For example, payments between franchisees and franchisers, distributors and suppliers, and dealers and manufacturers.


Compound Annual Growth Rate calculates the annual average growth over multiple years, while taking into account the effects of average compounding growth experienced in each year.

Card network

A secure electronic payment system used to accept, transmit, process, authenticate and authorize transactions made by payment card (credit or debit) and to transfer information and funds among participants and payment card users

Cash management Pre-authorized debit (PAD)

A PAD drawn on the account of a payor to transfer, consolidate or reposition funds between their account at one member financial institution to an account at another member financial institution, for the same Business or closely-affiliated businesses (e.g. transfers between a parent company and its subsidiary).

Centralized systems

Payments are exchanged, cleared and settled through a single central system, where they are routed and validated by a central institution

Certainty of settlement

Knowing that settlement will take place.

Certified item

An item on the face of which the drawee financial institution has written or stamped the words "accepted" or "certified" or any other word or words to that effect.