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Payments and markets glossary

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All glossary entries    Abbreviations    Banking supervision    ECB    Macroprudential policy and financial stability    Monetary policy    Payments and markets    Statistics

P

P2P payment
peer-to-peer payment
pan-European automated clearing house (PE-ACH)
A business platform for the processing of euro payment instruments which is made up of governance rules and payment practices and supported by the necessary technical platform(s).
participant
An entity which is identified/recognised by a transfer system and – either directly or indirectly – is allowed to send transfer orders to that system and is capable of receiving transfer orders from it. See also
direct participant
indirect participant
remote participant
payer
The party to a payment transaction which issues the payment order or agrees to the transfer of funds to the payee.
payment
In a strict sense, a payment is a transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. However, in a technical or statistical sense, it is often used as a synonym for “transfer order”. See also
transfer order
payment card
A payment instrument, which is based on the rules of a card scheme, used to withdraw or place cash and/or enable a transfer of value at the request of the payer (via the payee) or the payee in respect of an end-user account linked to the card.
payment guarantee
A defined degree of protection against losses for end users and/or participating payment service providers as defined in the formal, standardised and common rules of an electronic payment instrument scheme.
payment integration services
A technical integration of several payment services in a merchant platform.
payment lag
See
settlement lag (payment lag)
payment order
An instruction sent by a payer or a payee to a payment service provider requesting the execution of a payment transaction.
payment service provider
A natural or legal person providing services (e.g. issuing, acquiring, the authorisation of transactions, the authentication of end users) enabling the transfer of value between end users. This also includes crypto-asset service providers when delivering services relating to digital payment tokens.
payment service user
A natural or legal person making use of a payment service in the capacity of payer, payee, or both.
payment system
This term has two meanings. 1) In some cases, it refers to the set of instruments, banking procedures and interbank funds transfer systems which facilitate the circulation of money in a country or currency area. 2) In most cases, it is used as a synonym for “funds transfer system”. See also
funds transfer system
payment versus payment (PvP)
A mechanism which ensures that the final transfer of a payment in one currency occurs if – and only if – the final transfer of a payment in another currency or currencies takes place. See also
exchange-for-value settlement system
PE-ACH
See
pan-European automated clearing house (PE-ACH)
personal identification number (PIN)
A personal and confidential numerical code which the user of a payment instrument may need to use in order to verify his/her identity. In electronic transactions, this is seen as the equivalent of a signature. See also
electronic signature
personalised security credentials
Personalised features provided by a payment service provider to a payment service user for the purposes of authentication.
physical delivery
Settlement of a derivatives transaction through the delivery of the underlying asset in exchange for payment.
PIN
See
personal identification number (PIN)
pledge
The delivery of assets in order to secure the performance of an obligation by one party (the debtor) vis-à-vis another (the secured party). For the secured party, a pledge creates a security interest (a “lien”) in the assets delivered, while ownership of the assets remains with the debtor.
point-of-sale (POS) terminal
A device allowing the use of payment cards at a physical (not virtual) point of sale. The payment information is captured either manually on paper vouchers or by electronic means. See also
EFTPOS terminal
position netting (advisory netting)
Netting of orders in respect of obligations between two or more parties which neither satisfies nor discharges those original individual obligations. Also referred to as “payment netting” in the case of payment orders. Antonym:
netting by novation
postal order
Money order in which the drawee is a postal institution.
PQD
public quantitative disclosure
prenotification
In the field of direct debits, the advance notification provided by the creditor to the debtor as regards: 1) the amount of the next direct debit; and 2) the date of collection.
price risk
See
market risk (price risk)
primary site
The place where systems operators locate the infrastructure and/or staff necessary to run their normal daily business operations.
principal
An entity that acts on its own behalf, with its own funds and at its own risk.
principal risk
The risk that the seller of a financial asset (e.g. securities or currency) will deliver, but not receive payment, or the risk that the buyer will pay, but not receive delivery. In such a situation, the full value of the securities or funds transferred is at risk. See also
delivery versus payment
payment versus payment
processing
Information technology services and network communication services, such as authentication and authorisation, which enable the governance body of an electronic payment instrument scheme or arrangement, an operator of a payment system and/or participating payment service providers to provide services.
provisional settlement
The discharging of an obligation by means of a transfer of funds and/or a transfer of securities which is dependent on the fulfilment of certain conditions and can therefore be rescinded by one or more parties. See also
final settlement
provisional transfer
A transfer order is provisional as long as it can be revoked by the originator or as long as it can be reversed subject to certain conditions. See also
final settlement
PvP
See
payment versus payment (PvP)