Financial Transaction Processing Glossary

Financial Transaction Processing Glossary
Financial Transaction
Prepared and Distributed
RKG, Inc.
FTP Industry Glossary
Dear Reader:
The RKG, Inc. Financial Transaction Processing glossary is a free service to the transaction
processing industry. The glossary is a culmination of terms that we gathered over the years.
We realize that the glossary will never be complete and therefore solicit your assistance. If you
have a term or definition that we should add or that should be included, email us your suggestion
through our website (
We provide this document for your personal use. While we wish everyone were as honest and
trustworthy as you, we have been unfortunate to experience otherwise. Others have taken a copy
of our glossary and published it under their name and title. We ask to be given the credit for our
work and discourage this type of deceitfulness.
Stephen McNair
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
- Numbers 1.4M - The 1.4 megabyte high-density 3 1/2” disk cartridges, or microfloppy.
151 - EDI Transaction Set for Electronic Filing of Tax Return Data Acknowledgement.
2D - Two-dimensional symbols. Machine-readable symbols that must be examined both
vertically and horizontally to read the entire message. There are two types: matrix and multi-row.
Two-dimensional symbols have error detection and may include error correction features.
3-1/2” - The standard size of a common disk cartridge, or microfloppy.
3PP - Third-Party Processor.
4GL - Fourth generation languages.
45-Day Amount - The dollar amount of all the ACH payments received within 45 calendar days
following the death or legal incapacity of a recipient or the death of a beneficiary.
813 - EDI Transaction Set for Electronic Filing of Tax Return Data.
820 - EDI Transaction Set for Payment Order/Remittance.
824 - EDI Transaction Set for Application Device.
835 - Numeric code for ERA (ANSI ASC X12 835 Health Care Claim Payment/Advice).
837 - Numeric code for EMC (ANSI ASC X12 837 Health Care Claim Transaction Set).
997 - EDI Transaction Set for Functional Acknowledgement.
1199A - U.S. Treasury Direct Deposit Sign-up Form.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-A“A” Credit Customer - Consumers with impeccable credit, who can obtain a loan from
traditional lenders.
AAP - Accredited ACH Professional.
ABA (American Bankers Association) - Administers standards for MICR encoding within the
United States.
ABA Number - See Routing and Transit Number.
Abend (Abnormal END) - Also called system crash. Almost always bad news. Usually caused
by input or data presented to a computer which is beyond its ability to cope. If an abend happens
in a single task program (like MS-DOS), the machine will cease to take input (lock up) and must
be restarted (re-booted). Multitasking operating systems (like UNIX) allows other programs to
continue running while only stopping the one causing trouble.
Ablate - To remove. Used in reference to the formation of laser-readable pits in the recording
layer of optical discs.
Abort - Function used when the operator decides not to complete the running of a batch for any
reason, such as a transport failure or in the event a batch is run in error. The Abort function must
be accessed prior to the completion of the batch. Processing stops and files are deleted. The
entire batch must be reprocessed once it has been aborted.
ABSCISSA - The horizontal axis of a graph.
Acceleration Clause - Language in a lease that secures payments for the full term of the lease.
Accelerator Board - A printed circuit board added to a PC to increase its performance.
Accept Character - A character is accepted if it can be read, or the form type can be
Accept Document - A document is accepted if it can be read, or the form type can be
Accept Rate - The percentage of the total documents scanned (rejects and accepted documents)
that were accepted. (Total Accepted Documents / Total Documents x 100).
Acceptance - When a buyer has accepted payment of a draft. The act of acceptance is done by
his signature.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Access - 1. The availability of, or the permission to consult, records. 2. The ability or
opportunity to obtain security-classified or administratively controlled information or records.
See Administratively Controlled Information, Classified Information.
Access Device - A card, code or other means of access to a consumer’s account that may be used
to initiate an electronic funds transfer. This does not include electronic devices, such as
telephones or personal computers, typically used in such transfers.
Access Method - The technique or the program code in the operating system that provides
input/output services. It defines where a group of data will be stored on a medium. By including
the access method in the basic operating system, computer makers have made the programmer’s
job much simpler. In the case of tape drives, the access method is straightforward - a block of
data is placed sequentially after the last one. Disk drives present a different challenge. Disk
drives do not (usually) place data in sequential tracks. The access method software places a
block of data in an available empty space, and creates an index (called a File Allocation Table,
or FAT) that notates where the block of data can be found for retrieval later.
Access Time - A term that can be used to describe several types of activity. 1. The amount of
time it takes to get an instruction or a unit of data from computer memory to the processing unit
of a computer. 2. The amount of time it takes to get a unit of data from a direct access storage
device to computer memory.
Accession - 1. The transfer of the legal and physical custody of permanent records from an
agency to the National Archives. See Block 1., Permanent Records, and Transfer 1. 2. The
transfer of agency records to a Federal records center for temporary storage. The agency retains
legal custody of the records. See Retirement, Transfer 1. 3. The records so transferred.
Accordion Fold - A term used in binding for two or more parallel folds of paper that open like
an accordion. (Usually from a line printer).
Account - A record of a customer’s business, to which credits or debits may be assigned.
Account Analysis (Balance and Activity Report) - An informational report providing the
corporate customer with data detailing account service activity. These statements are produced
periodically and usually detail:
a. Average Daily Book Balance
b. Average Daily Float
c. Average Available Balances
d. Itemized Activity Charges
e. Earnings Credit Rate
f. Balances Required to Compensate for Services
g. Balances Available to Support Credit Arrangements and Other Bank Services.
Account Closed - Reason for returned check: checking account closed; check not bankable.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Account Maintenance - Monthly fixed charge associated with the maintenance of a demand
deposit account (DDA), including a monthly statement.
Account Number - A number used to identify a customer’s account with your company.
Account Number Field – On a coupon, the customer account number is usually printed on the
document and included in the scan line. This account number determines which customer will be
credited with the payment. On a check, the customer account number is their bank account
number and determines which customer will be debited with the check amount. This account
number is included in the ON-US Field of the check. See "MICR Code Line".
Account Positioning - A service that maintains pre-selected account balances by transferring
funds between business accounts, a loan, or an investment account.
Account Pull Item - An exception item out sorted by account number. The item is extracted for
failure to match account numbers in the sort pattern or items for a particular account may be
pulled for administrative reasons - closed account, NSF (Non sufficient funds), etc.
Account Reconciliation Sort and List - Per item charge for check sorting where paid items are
arranged in a desired sequence and a corresponding listing provided.
Accountable Officers’ Accounts - Specified records accumulated by collecting, disbursing, and
certifying officers and required by the General Accounting Office (GAO) for audit purposes.
Also known as site audit records.
Accounting Period - A regular period of time, such as a quarter or year, for which a financial
statement is produced.
Accounts Payable - The amount of money a company owes for goods and services it has
received, any outstanding debt that a company has.
Accounts Receivable - Assets resulting from the extension of trade credit to a company’s customers.
Accounts Receivable Aging Report - A report showing how long invoices from each customer
have been outstanding.
Accounts Receivable Balance Pattern - The percentage of credit sales in a time period (usually
a month) that remains outstanding at the end of each subsequent time period.
Accounts Receivable Conversion (ARC) or Accounts Receivable Check (ARC) Conversion –
The process by which a personal check received through the mail as a payment can be converted
to an electronic ACH transaction. This is particularly important to remittance/lockbox processing
facilities where paper checks received are read, imaged, and formatted into this ACH transaction
(includes routing & transit number, account number, check serial number, and amount).
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Accounts Receivable Entry (ARC) - A single-entry debit initiated by an Originator to a
consumer account of the Receiver pursuant to a source document provided by the Receiver via
the U.S. mail or at a dropbox location.
Account Separator Ticker - A document that separates unique account numbers during fine
Accredited ACH Professional (AAP) - One who had demonstrated their knowledge of the
ACH system by passing the AAP examination and certification process.
Accredited Standards Committee (ASC) - A committee composed of industry representatives
chartered by ANSI to set standards for that industry.
Accretion - Records adding to, or extending, a series or system of permanent records previously
accessioned by the National Archives.
Accumulator - 1. The register and associated equipment in the arithmetic unit of the computer
in which arithmetical and logical operations are performed. 2. A unit in a digital computer
where numbers are totaled. The device stores an operand and upon receipt of a second operand
performs the indicated operation and stores the result where the first operand has been; i.e. result
Accuracy - The ability to provide service in accordance with established procedures and
instructions without error.
ACD - Automatic Call Distribution.
Acetate Base Film - Safety film with a substrate composed principally of cellulose acetate or
triacetate. See Safety Film.
ACH (Automated Clearing House) - See Automated Clearing House.
ACH Associations – Provide rules and guidelines for the efficient operation of the ACH
network. There are 36 regional ACH associations whose members include financial institutions
and affiliates. The National Automated Clearing House Association (NACHA) forms the
governing foundation for the regional associations.
ACH Credit - A transaction through the ACH network originated to pay a receiver (deposit
funds into an account).
ACH Debit - A transaction through the ACH network originated to remove funds from the
receiver (withdrawal from account).
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
ACH Network - The funds transfer system governed by the rules of NACHA which provides for
the inter-financial institution clearing of electronic entries for participating financial institutions.
ACH Operator/Processor - A central clearing facility, operated by a Federal Reserve Bank or a
private sector organization on behalf of depository financial institutions, in which participating
financial institutions transmit or receive ACH entries.
ACH Rules - The Operating Rules and the Operating Guidelines published by the National
Automated Clearing House Association (NACHA), a national association of regional member
clearing house associations, ACH Operators and participating financial institutions located in the
United States.
Acquirer - A bank or other financial institution that maintains the merchant relationship and
receives all credit card transactions. In some cases, referred to as the acquiring bank or merchant
Acquiring Processor - The processor provides credit card processing, billing, reporting and
settlement, and operational services to the acquirer. Many financial institutions hire a third party
for more cost-effective bankcard processing.
ACRS - Accelerated cost recovery system.
Actinic - The chemical change violet or ultraviolet light produces in certain photosensitive film.
Action Copy - The copy of a document sent to the agency, office, or individual responsible for
taking action. See Copy 1.
Activation - The process where a Customer selects a Biller account for bill presentment, agrees
to Biller terms and conditions, and establishes the account within the Biller’s and the CSP’s
Activator - A form designed to enable NRC clients to transmit information about a debt to NRC
to begin the collection process. By using the activator to transmit debt information, the client
does not need to submit (or copy) original debt information to begin the collection process. With
paper-based NRC systems, the activator resembles a check in a one-write accounting system.
With the electronic Tandem Online program, the activator is completed online and immediately
transmitted to NRC for collection.
Active Display Area - The part of an image that falls inside the borders of the display screen,
i.e., the part you can see.
Active Matrix LCD - LCD display technique that uses a transistor for each monochrome or
each red, green and blue dot. It provides sharp contrast, speeds screen refresh and eliminates loss
of cursor (submarining) on standard LCD screens.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Active Records - See Current Records.
ActiveX - A model for writing programs. ActiveX technology is used to make interactive web
pages that look and behave like computer programs, rather than static pages. With ActiveX,
users can ask or answer questions, use push buttons, and interact in other ways with the web
Actual or Constructive Knowledge - When used in reference to an RDFI’s knowledge of the
death or legal incapacity of a recipient or death of a beneficiary; actual or constructive
knowledge means that the RDFI received information, by whatever means, of the death or
incapacity and has had a reasonable opportunity to act on such information or that the RDFI
would have learned of the death or incapacity if it had followed commercially reasonable
business practices.
Actuator - Mechanism that moves an object; for example, the device that selects a laser disk or
CD in a jukebox, or the read/write head on a disk drive.
Adaptive Compression - Data compression software that continuously analyzes and
compensates its algorithm (technique), depending on the type and content of the data and the
storage medium.
Addenda Record - An ACH record type that carries the supplemental data needed to completely
identify an account holder(s) or provide information concerning a payment to the Receiving
Depository Financial Institution and the Receiver.
Additive Color - Color produced by the combination of red, green and blue.
Address - 1. Disks and other storage devices have numbers that identify locations by sector and
by byte, like addresses on a city street. Retrieval software searches for the address assigned to
the desired information in order to locate it. See Index. 2. Used as a verb, it means what a
computer can access.
Addressability - The capability of having information placed at a specific point within an area.
See Addressable Capacity.
Addressable Capacity - The number of locations on an image that are addressable. To calculate,
multiply the addressable vertical positions (row) by the addressable horizontal positions
(column). Think of a matrix of dots, eight across by 16 down. The addressable capacity of this 8
by 16 matrix is 128.
ADE - Applications Development Environment.
Adequacy of Documentation - A standard of sufficiently and properly recording actions and/or
decisions. Derives from the legal requirement that agency heads make and preserve records
containing adequate and proper documentation of the organization, functions, policies, decisions,
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
procedures, and essential transactions of the agency and designed to furnish the information
necessary to protect the legal and financial rights of the Government and of persons directly
affected by the agency’s activities (44 USC 3101). See Documentation 1., Record Keeping
Requirements, Records Creation.
Adhesive Gum (Envelope) - The gum applied to seal a flap. Gum can be divided into four
categories: Remoistenable - requires moistening agent when flaps are sealed, Pressure Sensitive
- A piece of paper is removed allowing the flaps to seal, Latex Gum - matching pieces of gum
are applied to the flap and the back of the envelope; when the flap is closed, sealing occurs,
Resealable - an adhesive that allows the flap to be sealed, and later opened without damage to
the envelope or the flap.
Adjacent Characters - Two OCR characters are adjacent if printed on the same line and their
character spacing reference lines are separated by less than one character space.
Adjusted Net Income - Long-term cash forecasting method that uses a company’s projected
sources and uses of funds to derive projected cash flows.
Adjustment - Any correcting entry to the balance of an account. For example, adjustments result
during cash letter processing for items listed but not enclosed, items enclosed but not listed, and
discrepancies between listed and actual item amounts.
Adjustments - The department that resolves differences between banks and customers. Usually
research is required to determine what caused the difference. Microfilm is a key resource for the
Administrative Records - Records relating to budget, personnel, supply, and similar
housekeeping, or facilitative, functions common to most agencies, in contrast to program
records. See Program Records.
Administrative Return – An administrative return occurs when the RDFI (Receiving
Depository Financial Institution) routing and transit number and/or account number printed in
the check MICR line are not the actual routing and transit number and/or account number in the
records of the financial institution. While RDFI check-clearing systems are typically
programmed to “translate” MICR data to the numbers on file, ACH systems often are not. Also
the database of routing and transit numbers and account numbers are not 100% accurate.
Administrative Value - The usefulness of records in conducting an agency’s current business.
Includes fiscal value and legal value, which are usually analyzed separately when records are
evaluated for disposition. See Fiscal Value, Legal Value.
Administratively Controlled Information - Privileged or other non-security classified
information in records sometimes bearing designations, such as For Official Use Only, to prevent
its unauthorized disclosure. See Classified Information, Closed File 2., Disclosure-Free Extract.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
ADN (Advanced Digital Network) - Usually refers to a 56Kbps leased-line.
ADP - Automatic data processing or automated data processing.
ADSI - Analog display services interface.
ADSL (Asymmetric Digital Subscriber Line) - A DSL line where the upload speed is different
from the download speed. Usually the download speed is much greater.
ADSTAR (Automated Document Storage and Retrieval) - Generic term for systems that
identify, select and display images that have been previously electronically stored.
ADV - Automated Accounting Advice.
Advance Rate - The percentage of the face amount of an income stream that a funding source
will advance to a client.
Aerial Photographs - See Remote-Sensing Imagery Records.
Affidavit - A sworn statement by a consumer declaring that a particular ACH transaction was
unauthorized, improper or that the authorization for that transaction had been revoked.
Affinity Card - A credit card issued in conjunction with an organization or collective group; for
example, profession, alumni, retired persons association. The card issuer often pays the
organization a royalty.
AFFIRM - Association for Federal Information Resources Management.
Affirmative Action - Measures taken to correct the effects of past discrimination in hiring and
AFP (Advanced Function Printing) - IBM’s method for graphic print output. Used to print
forms, special fonts, and to implement text formatting, such as italicizing and underlining.
Usually sent to high-speed laser printers for graphical production.
After Acceptance - A specified period of time (30, 60, 90 days etc,) when a draft is due for
payment after the date of acceptance.
After Date (A/D) - Time of payment begins from the date of the draft bearing this condition.
The fixed date of maturity (when payment is due) does not depend upon the date of acceptance
of the draft.
After Sight - Time of payment begins from date of acceptance of a draft bearing this condition.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Agency - A role in which a bank or trust institution manages assets in which the title remains
with the owner.
Agency Records Officer - See Records Management Officer.
Agency Records Schedule - See Comprehensive Records Schedule, Records Schedule.
Agent - An individual or business, other than the Customer or Biller, that receives and originates
bills or notices on behalf of the Customer or Biller.
Aggregator - A Customer Service Provider that aggregates bills and bill summaries from
Consolidators, Biller Service Providers and Billers for viewing by the Customer.
Aging Schedule - At a given point in time, a list of the percentages and/or amounts of outstanding accounts receivable classified as current or past due in 30-day increments.
Agreement - A contract between an originating company and an ODFI that defines the
operational and legal relationship between the two entities when transferring funds electronically
through the ACH.
AI - Artificial Intelligence.
AIAG - Automotive Industry Action Group. An automotive industry organization.
AIIM (Association for Information and Image Management) - Trade association and
professional society for the micrographics, optical disk and electronic image management
markets. Successor to the National Micrographics Association. Present address: 1100 Wayne
Avenue, Suite 1100, Silver Spring, MD 20910. Telephone 301-587-8202.
AIM - 1. Automatic Identification Manufacturer’s Association. Headquarters are at 634 Alpha
Drive, Pittsburgh, PA 15238-2802. 2. Associated Information Managers.
AIN - Advanced Intelligent Network.
Air Bill - Shipping document showing the destination, origin and type of service used in the
transport of air cargo.
AKS Amount Keystroke - See Amount Entry.
AKSV Amount Keystroke Verify - See Amount Verify.
Alabama - AL
Alaska - AK
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FTP Industry Glossary
Algorithm - Prescribed set of mathematical steps which is used to solve a problem or conduct an
Aliasing - Condition when graphics, either constructed with lines (vectored) or dots (bitmapped),
show jagged edges under magnification. Contrast with anti-aliasing.
Alienation - Unlawfully transferring records or losing custody of them to an unauthorized
organization or person.
Alignment - The position of the scanner in relation to the object to be scanned.
Alignment Edge - The guide edge of a scanning form that is used for alignment so that the
printed character line will be parallel to the direction of scanning.
All-In Rate - This rate consists of a risk spread that is added to a base rate such as prime, the
Fed funds rate, or LIBOR. The sum of these two components is referred to as the all-in rate. The
all-in rate is normally variable and will adjust in relation to changes in the base rate.
Allocate - To reserve the required amounts of a resource, such as disk space.
Alpha - Letters of the alphabet.
Alpha Character - Those letters (A to Z) in a specific font. Numeric characters (0 to 9) or
special characters (period, comma, asterisk and others) are not included.
Alphabetic-Subject Filing System - A classification system in which subjects are arranged in
alphabetical order regardless of their relationship to one another. For example, the subjects
adobe houses and adrenalin would immediately follow administration.
AlphaNumeric - (of a character set) Consisting of or representing both alphabetic and numeric
characters often using other symbols such as punctuation marks. May include special symbols,
such as @.
Alphanumeric Barcode - A mixture of bar configurations representing alphabetic and numeric
characters and symbols.
Alphanumeric COM - A computer output microfilm system that is limited to recording
alphanumeric data, punctuation characters and related images (forms, titles, etc.) on film. The
system does not have the ability to receive and record raster or vector graphic images.
Alpha-Numeric Filing System - A classification system in which letters are assigned to main
divisions and numbers to subdivisions. For example, W might stand for Personnel-Employment.
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FTP Industry Glossary
Alphanumeric OCR Reader – An OCR (Optical Character Recognition) reader that can read
both alphabetic and numeric characters. The read rate is normally better if you use only numeric
characters in a scan line (a smaller character set to recognize).
AMA - American Mgmt. Association.
Ambiguous Term - A word that can have more than one definition; a homonym. The meanings
of ambiguous terms can be managed in a thesaurus using the Equals operator.
American Bankers Association (ABA) - An organization of banks that created the magnetic
character recognition concept for automatic check processing. See Magnetic Ink Character
American Dental Association (ADA) -A professional organization for dentists. The ADA
maintains the hardcopy dental claim form and the associated claim submission specifications,
and also maintains the Current Dental Terminology code set. The ADA has a formal consultative
role under HIPAA, and hosts the Dental Content Committee.
American Health Information Management Association (AHIMA) - An association of health
information management professionals. AHIMA sponsors some HIPAA educational seminars.
American Hospital Association (AHA) - A health care industry association that represents the
concerns of institutional providers. The AHA hosts the NUBC, which has a formal consultative
role under HIPAA.
American Medical Association (AMA) - A professional organization for physicians. The AMA
is the secretariat of the NUCC, which has a formal consultative role under HIPAA. The AMA
also maintains the Current Procedural Terminology code set.
American National Standards (ANS) - Standards developed and approved by organizations
accredited by ANSI.
American Samoa - AS
American Standard Code for Information Interchange (ASCII) - See Code 2.
American Society for Testing and Materials (ASTM) - A standards group that has published
general guidelines for the development of standards, including those for health care identifiers.
ASTM Committee E31 on Healthcare Informatics develops standards on information used within
American Standard Code for Information Interchange (ASCII) - See Code 2.
AML - Adjustable mortgage loan.
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FTP Industry Glossary
Amortization - The gradual, systematic payment of a debt, such as a mortgage or other loan, in
installments of principal and interest for a definite time, so that at the end of that time, the debt
will have been paid in full.
Amount Allocation - The assignment of a portion of a customer’s payment to a general ledger
Amount Assigned - The portion of a payment credited or debited to one customer’s account.
See Customer’s Payment.
Amount Collected - An amount transferred with a transaction. See Payment.
Amount Entry - Image function that enables the operator to key amounts and complete missing
data for all items.
Amount Entry Validation - The verification that an amount can be accepted as a payment
amount, according to applicable rules or standards.
Amount Field – On a coupon, the amount field(s) is usually printed on the document and
included in the scan line. There can be more that one amount field on a coupon. One amount
may be the total amount due, while another amount may be the minimum due. On a check, there
is only one amount field and it is the right most field of the MICR code line of the check. See
"MICR Code Line". (link to MICR Code Line definition).
Amount Field Comparison - An amount entry validation that compares the customer’s payment
amount keyed with an expected amount. If the two amounts match, the customer’s payment
amount is accepted.
Amount Paid - See Payment.
Amount Recognition - The process of identifying, through software, handwritten or
machine-printed numerical amounts in images of checks and other documents. See Courtesy
Amount Recognition.
Amount to be Paid - The amount that the consumer has authorized for payment to his Biller.
Amount Verify - Image function that allows the operator to rekey amounts for items that were
not balanced by PreBalance 1 and rejects items.
Amplifier - An electronic device for boosting or strengthening a video or audio signal.
Analog - Comes from the word analogous, meaning similar to. Analog devices record or monitor
real world happenings - motion and sound, for instance - and convert them into analogous
electronic representations - film or audiotape, in our example. Analog means recreating the
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FTP Industry Glossary
continuous nature of the original thing; it’s the opposite of digital, which translates the original
happening into ones and zeros - an unanalogous representation. See Digital.
Analog Monitor - Video monitor that accepts an analog signal from the computer (digital to
analog conversion is performed in the video controller). Analog monitors can be designed to
accept a narrow range of display resolutions (for example, only VGA or VGA and Super VGA),
or multisync analog monitors can accept a wide range of resolutions including TV (NTSC).
Color analog monitors accept separate red, green and blue (RGB) signals for sharper contrast.
Contrast with digital monitor.
Anamorphic - Unequally scaled in vertical and horizontal dimensions.
AND (Advanced Digital Network) - Usually refers to a 56Kbps leased-line.
Angstrom - Unit of measurement, 1/10 of a nanometer, used for light wavelengths to scale the
color spectrum. Commonly refer to when determining spectral response of optical readers.
ANI - Automatic number identification.
Animation - The design and production of an artificially-generated visual sequence. A television
or motion picture cartoon is an example of animation.
Annotation - The ability to attach notes to graphics or images by typing them in, using a light
pen or digitizing tablet. Useful for clarifying documents or editing images.
Announcement Envelopes - Envelopes is a variety of premium paper grades and usually used
for business announcements, wedding invitations, etc. The flap on the announcement envelope
is squared off and is rectangular in nature. Commonly referred to as “A-“ with a corresponding
number. For example A-2, A-6 and A-8.
Annuitant - A retired Federal employee or his/her survivor who is receiving payments from the
Office of Personnel Management; a retired railroad employee, his/her spouse, or his/her survivor
who is receiving payments from the Railroad Retirement Board; a retired military service person,
his/her spouse or his/her survivor who is receiving payments from a military service.
Annuity - A recurring payment made to a retired individual, his/her survivor or spouse.
ANS - American National Standards.
ANSI (American National Standards Institute) - A standards setting, non-government
organization, which develops and publishes standards for voluntary use in the United States.
Standards set by national organizations are accepted by vendors in that country. ANSI is located
at 1430 Broadway, New York NY 10018 212-642-4900. The recognized coordinator and
clearing house for information on national and international standards including those for
electronic transaction formats that are used in electronic data interchange (EDI).
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FTP Industry Glossary
ANSI Accredited Standards Committee for Banking (X9) - Also known as ANSI ASC X9,
this committee sets, among other technical specifications, the standards for electronic data
interchange of business information.
ANSI Accredited Standards Committee for Electronic Data Interchange (X12) - Also
known as ANSI ASC X12, this committee sets the standards for electronic data interchange of
business information.
ANT - Automatic Number Identification.
Anti-Aliasing - Blending techniques that smooth the jagged edges of computer generated
graphics and type. A common anti-aliasing technique is to fill the pixels between the jagged ends
with levels of gray (or color) to soften the edge and blend it smoothly into the background.
Anticipation - The initiation of a transfer before cash becomes available at the depository
financial institution.
A-O (Acoustic-Optic) - Using sound waves passing through a transparent medium to deflect a
laser beam. Used in newer laser COM recorders.
APA (All Points Addressable) - Refers to an array (bitmapped screen, matrix, etc.) in which all
bits or cells can be individually manipulated.
Aperture - Opening in an optical device such as a scanner, photometer, or camera, which
determines the size of the field of view. Most apertures are circular, but they may be rectangular
or elliptical.
Aperture Card - Paper card the size of an IBM punch card with a rectangular opening that
holds a 35mm. frame of microfilm. Retrieval information can be punched into the card.
API (Application Program Interface) - Generic term for any language and format used by one
program to help it communicate with another program. Specifically, an imaging vendor can
provide an API that enables programmers to repackage or recombine parts of the vendor’s
imaging system, or integrate the imaging systems with other applications, or to customize the
user interface to the imaging system.
APP - Automated Payments Partnership.
Applet - A small Java program that can be embedded in an HTML page. Applets differ from
full-fledged Java applications in that they are not allowed to access certain resources on the local
computer, such as files and serial devices (modems, printers, etc.), and are prohibited from
communicating with most other computers across a network. The current rule is that an applet
can only make an Internet connection to the computer from which the applet was sent. See
HTML, Java.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Application - A broad and generic term for any software program that performs a specific task
or set of tasks. Examples of item-processing applications include remittance-processing
programs and reader/sorter programs.
Application Base - A software package that is required to support most item-processing
Application Identifier (AI) - A UCC/EAN prefix that defines the meaning and the purpose of
the data element that follows, as defined in ANSI/UCC-4, UCC/EAN-128 Application Identifier
Application Program - The software that creates the original output report on the host
computer. This output report is eventually printed on paper or COM but the data may pass
though other programs on the host computer (such as file managers, print spool managers, etc.)
before it is printed.
Application Programming Interface - In general, a set of routines, utilities, commands, and so
on that can be accessed from an application program to perform various tasks, so that the
programmer does not have to write new programs for these purposes.
Applications Software - Programs designed to perform a user specific task. Examples of
applications software include word processing and full-text search and retrieval.
APPN - Advanced Peer-to-Peer Networking.
Appraisal - The process of determining the value and thus the final disposition of records,
making them either temporary or permanent. See Evaluation 1.
APR - Annual percentage rate.
Arbitrage - The process of buying foreign exchange, stocks, bonds, or other commodities in one
market and immediately reselling them in another market at higher prices.
Arbitration - Means of settling a dispute between two parties in which the matter is decided by
a third party chosen by the two disputants.
ARC - Accounts Receivable Conversion Entry, an ACH transaction format that supports the
electronic clearing and settlement of remittance checks converted to electronic transactions at
lockboxes or other collection sites.
ARC - One of the first data compression utilities. Used for archiving files. From System
Enhancement Associates, Inc., Clifton, NJ. Has been upgraded to ARC+Plus.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Archie - A tool (software) for finding files stored on anonymous FTP sites. You need to know
the exact file name or a sub string of it.
Architectural and Engineering Records - Drawings and related records depicting the concepts
and precise measurements needed to plan and build static structures, such as buildings, bridges,
and canals, as well as those needed to complete other public works projects and produce such
objects as weapons and machines. Include design and construction drawings and related records.
Also include computer-aided design (CAD), computer-aided manufacturing (CAM), and
computer-aided engineering (CAE) system records that relate to architecture and engineering
and need to be managed like other electronic records.
Architecture - Refers to the way a system is designed and how the components are connected
with each other. There are computer architectures, network architectures and software
Archival Agency - See Archives 2.
Archival Depository - See Archives 3.
Archival Film - A photographic film that is suitable for the preservation of records having
permanent value when the film is properly processed and stored under archival storage
conditions, provided that the original images are of suitable quality. Strictly speaking, the film
must meet ANSI standard IT9.1, which requires a wet chemical process film.
Archival Quality - The degree to which a processed image will remain relatively unchanged
during a long period of use or storage. The ability to resist deterioration for a long time, the
expectation being forever.
Archival Records - See Archives 1., Permanent Records.
Archival Repository - See Archives 3.
Archival Storage Conditions - Conditions suitable for the preservation of a photographic print
or film having permanent value as defined in ANSI IT 9.1. Generally this includes control of
temperature, humidity and light.
Archive - A copy of data on disks, CD-ROM, mag tape, etc., for long-term storage and later
possible access. Archived files are often compressed to save storage space. Contrast with
Archives Administration - The management or direction of the program of an archival agency,
including the following basic functions: appraisal, accessioning, preservation, arrangement,
description, reference service, and such public programs as education, exhibits, and publications.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Archivist - A person responsible for, or engaged in, one or more of the functions listed under
archives administration.
Archivist of the United States - The head of the National Archives and Records Administration
Area Distribution Center (ADC) - A high level Sectional Center Facility that serves as a
transportation hub, sorting mail that an originating SCF cannot send directly to the destination
SCF due to transportation limitations.
Arizona - AZ
Arkansas - AR
ARM - Adjustable-rate mortgage.
ARMA - Association of Records Managers and Administrators.
Armadillo - Armored mammal, related to anteaters. The peba, or nine-banded armadillo, is
found in South and Central America and in Texas, southern Oklahoma, Louisiana, Arkansas,
Mississippi, and parts of Florida (Note not found in South Dakota.) It is the Corporate Logo
for FTP Consulting due to its adaptability and survival instincts. Scientific classification:
Armadillos make up the family Dasypodidae. The peba is classified as Dasypus novemcinctus,
See FTP Consulting.
ARP Check Paid - Per item reconciliation charge associated with a fully reconciled account.
This does not include the check paid charge.
ARPANet (Advanced Research Projects Agency Network) - The precursor to the Internet.
Developed in the late 60’s and early 70’s by the US Department of Defense as an experiment in
wide-area-networking that would survive a nuclear war. See Internet.
Arrangement - In files management, the act or result of placing records in a particular order or
sequence. See Classification 1., Filing, Records Maintenance and Use.
Array - An orderly arrangement of items with fixed spacing. The arrangement can be one
dimension (e.g., a line of LED’s), two dimensions (e.g., the pixels on a CRT screen), or three
Artificial Intelligence (AI) - Computer programs that perform functions, often by imitation,
which are normally associated with human reasoning and learning.
ASC - Accredited Standards Committee.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
ASC X12 - Accredited Standards Committee X12 of the American National Standards Institute
(ANSI) was formed to develop general standards for electronic data interchange; acts as a
coordinating body for the further development and support of EDI cross-industry standards in
North America.
Ascender - A typographic term for the portion of lowercase characters that rises above the main
body of the letter. The lowercase letters b, d, f, h, k, l and t have ascenders.
ASCII (American Standard Code) - For Information Interchange. Pronounced AS-kee.
American Standard Code for Information Interchange: a computer code consisting of 128
alphanumeric and control characters, each encoded with 7 bits (8 including parity check), used
for the exchange of information between computerized systems. It’s the most popular coding
method used by small computers for converting letters, numbers, punctuation and control codes
into digital form. Once defined, ASCII characters can be recognized and understood by other
computers and by communications devices. ASCII represents characters, numbers, punctuation
marks or signals in seven on-off bits. A capital “C”, for example, is 1000011, while a “3” is
ASCII Sort - A means of alphabetizing that accounts for capital letters and numbers. To arrange
something in an ASCII sort, numbers (digits) come first in numerical order, followed by capital
letters in alphabetical order, followed by lower case lower case characters in alphabetical order.
This glossary is NOT in an ASCII sort.
As-of Adjustment - Adjustment of the value date of a transaction in order to calculate collected
balances to a date different from the date the transaction occurred.
Aspect Ratio - The relationship of width to height. When an image is displayed on different
screens or on paper or microform, the aspect ratio must be kept the same. Otherwise the image
will be stretched either vertically or horizontally.
ASPI (Advanced SCSI Programming Interface) - An API defined by Adaptec to standardize
the interface for SCSI device drivers.
Asset - Any useful or valuable thing owned by an individual, corporation or other organization.
Asset-Based Borrowing - Lending based on the pledging of accounts receivable and inventory
as loan collateral.
Assign - To transfer ownership of an asset to another party by signing a document.
Assignability - The ability to assign (or sell) an income stream to another individual or business.
Assignee - The person or business entity that is given, obtains, or buys the right to an asset.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Assignment - The transfer of the rights, title or interest of any debt instrument that is properly
owned by another party.
Assignor - The person giving or selling an asset, and subsequently, forfeiting rights to that asset.
Association for Electronic Health Care Transactions (AFEHCT) - An organization that
promotes the use of EDI in the health care industry.
Association for Financial Professionals (AFP) - A national trade association for the promotion
of the Treasury profession. The association also sets and promotes certain standards and
conventions for the interchange of financial information.
Associative Memory - The process of recalling or memorizing information by logically linking
it to other pieces of information.
Asynchronous - In a data communication system, an arrangement whereby every character is
transmitted independently, and there is no associated clock.
At Sight - A draft to be paid by the buyer immediately upon presentation by the foreign bank.
ATL (Automated Tape Library) - Large-scale tape storage system, which uses multiple tape
drives and mechanism to address 50 or more cassettes.
ATM - Automated Teller Machine or Asynchronous Transfer Mode.
Attribute - In graphics, the condition a font is in, i.e., boldface, italic, underlined, reverse video
- is its attribute. In MS-DOS, files can be assigned attributes that define how accessible it is, i.e.,
read-only is a file’s attribute. In a document retrieval system, an attribute of a file is one of the
keys by which the document has been stored and indexed.
Audio - What a human can hear. Audio frequencies range from 15Hz to 20,000Hz.
Audio Frequencies - Frequencies that can be heard by the human ear, usually 30 to 20,000
cycles per second.
Audiovisual - Output you can see and hear. Television is audiovisual. Radio is not.
Audiovisual Records - Records in pictorial or aural form, regardless of format. Include still
photographs (or still pictures), graphic arts (posters and original art), motion pictures, video
recordings, audio (or sound) recordings, and related records. See Photographic Records, Record
Audit - Inspection and verification of financial accounts, records, and accounting procedures.
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FTP Industry Glossary
Audit Trail - Alphanumeric information printed on the front or back of documents processed by
the transport. This information allows the item to be traced from original entry to bank deposit or
update. It aids in the physical retrieval of documents and can be used to place the items in correct
capture output sequence during and after the transport process.
Audit Trail Printer - Hardware component that uses an ink jet to print audit trail information on
the front or back of documents processed on the transport.
Authentication - A data security technique used to ensure that the professed sender of
information or payment order is actually who they claim to be.
Authoring - See Mastering.
Authorization – (1) An agreement by a Receiver to allow for the posting of debit or credit items
to their account. (2) Process of verifying the identification of the true sender of a message and
also that the text of the message itself has not been altered.
Authorization Agreement - A written agreement signed by an employee or customer to allow
the posting of ACH transactions to his or her account.
Authorization Code - Identifying code - often a password - that allows a user access to a
system. Used mainly for privacy and security. Also used to divide up a computer’s capacity
among departments and/or hierarchies; different grades of service are given different
authorization codes.
Authorizing Agency - The Federal agency that authorized the initiation of the payment.
Auto Discrimination - The ability of a scanner or reader to distinguish automatically between
two or more fonts or character types.
Auto Distinguish - The ability of a scanner to recognize selected symbologies and process the
data without operator intervention.
Autochanger - A device that holds multiple optical discs and one or more disc drive, and can
swap discs in and out of the drive as needed. Same as a jukebox.
Autofeed - Process of mechanically feeding documents from an automatic feeder through the
transport. See Autofeeder.
Autofeeder - Hardware component within the hopper that holds items and feeds them into the
transport path using a moving paddle. See Hopper.
Automated Accounting Device (ADV) - A machine readable, information-only ACH
transaction which represents accounting information sent from an ACH Operator to a
participating DFI for use in automated accounting systems.
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FTP Industry Glossary
Automated Bill Payment - The crediting of funds from a consumer’s account to a company’s
account for the payment of a consumer’s bill or obligation.
Automated Clearing House (ACH) - A clearinghouse for settling of accounts between member
banks accomplished through transfer of information via electronic equipment or magnetic tape.
Through the Automated Clearing House banks can pass account debit and credit activity without
transferring paper instruments.
Automated Deposit - A deposit made directly to an account at a depository institution through
the ACH network (i.e., payroll deposits, social security payments, and retirement benefits).
Automated Enrollment Entry (ENR) - A credit or debit enrollment entry initiated by a
participating DFI to a Federal Government Agency on behalf of an account holder at the DFI.
Automated Notification of Change (COR) - A Notification of Change transaction
automatically derived from the original erroneous item.
Automated Retrieval - A retrieval system in which the image is identified, selected and
displayed automatically under computer control. Commonly, the user enters a data code (such as
a name or account number) and a computer-based index, code or key words is used to identify
and locate the desired image.
Automated Standard Application for Payments (ASAP) - A recipient-initiated payment and
information system, designed to provide a single point of contact for the request and delivery of
Federal funds.
Automated Teller Machine - A computer terminal to dispense cash, accept deposits and loan
payments, and enable a financial institution’s customer to order transfers among accounts and
make account inquiries.
Automatic Data Processing (ADP) - Systematically performing a series of actions with data by
using automatic machines, primarily electronic digital computers. Also called automated data
processing. Often used as a synonym for electronic data processing (EDP). See Data Processing,
Electronic Records.
Automatic Document Abstracting - The use of computer software, lexical tools, and expert
systems to automatically create synopses or abstracts of documents. See Document Abstract.
Automatic Feeder - An optional device that loads paper into the workstation/transport
automatically. Using the automatic feeder does not change the way items are processed.
Automatic Identification - A means of identifying an item by machine and entering the data
automatically into a computer. The most widely used technology at present is bar code; others
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
include optical character recognition (OCR), magnetic ink character recognition (MICR), and
radio frequency (RF), machine vision, magnetic stripe and voice systems.
Automatic Payment – A service allowing customers to authorize their bank to make regular
transfers for certain expenses from their checking or savings account.
Automatic Transfer – A pre-authorized transfer of funds from one account to another.
Automatics - Also referred to as Power Encode by some users/vendors. “Automatics” refers to
transactions that are full payments or matched payments. That is, where the check amount equals
an amount on the scan line. These transactions are batched separately and fed through the
transport, the amount due is read off the scan line on the coupon, and automatically encoded on
the check. The operator does not have to key in the check amounts
Automation - The process of sorting and routing mail very quickly using machines.
Autoreversing/Autopositive - Refers to a COM film that yields a negative-appearing image
(white line, dark background) and uses conventional chemical bath processing. Preferred by
many users since a diazo duplicate of the original image is also negative appearing; hence, easier
to read in a microfiche reader.
Auxiliary On-Us Field - Section of the MICR line that usually identifies the sequential check
Auxiliary Storage - External storage devices, such as disk drives, optical drives and tape
Availability - The time when deposited funds can be used for withdrawal, investment, or
compensation for services performed; usually measured in business days from receipt of a
deposit. Deposit receipt is often technically defined as the time of arrival at the check processing
department. The number of days that elapse in converting book balances to available balances.
Availability Float - Time between the date of a bank deposit and the date the deposit is credited
to the collected balance, usually expressed in days.
Availability Schedule - A list of routing transit numbers showing the time of day by which
checks drawn on each routing transit number must be deposited in order to receive collected
credit by a specified time.
Available Balances - Those balances in an account that can be invested, disbursed or wired out.
Available balances are defined as book balances less float.
Available Funds - Funds currently available for immediate use.
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FTP Industry Glossary
Average Available Balance - The sum of daily available balances is defined as book balances
less float.
Average Collected Balance - The sum of daily balances in an account, less the total of
uncollected items, divided by the number of days in the period.
Average Jam Time - The average number of time for each jam that occurred during the job.
(Sum of All Jam Times / Number of Jams).
Average Stop Time - The average number of time for each stop that occurred during the job.
(Sum of All Stop Times / Number of Stops).
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-B“B” Through “D” Credit Customers - These consumers have less than perfect to bad credit
and usually cannot qualify for traditional financing. Also called sub-prime credit customers.
B2B - Business to Business.
B2C - Business to Consumer.
B2E - Business to Employee.
Back Printing - Printing on the reverse side of a scanning form.
Back Up - As a noun, it’s a duplicate copy of data placed in a separate, safe place - electronic
storage, on a tape, on a disk, in a vault - to guard against total loss in the event the original data
somehow becomes inaccessible. Generally for short-term safety. Contrast with archive, which is
a filed-away record of data meant to be maintained a long time, in the event of future reference.
As a verb, to back up means to physically make the copy.
Backbone - The backbone is the part of the communications network that carries the heaviest
traffic. The backbone is also that part of a network that joins LANs together - either inside a
building or across a city or the country. LANs are connected to the backbone via bridges and/or
routers and the backbone serves as a communications highway for LAN-to-LAN traffic.
Back-End System - A computer that does the main processing but has a smaller, friendlier
computer that the user interacts with (called the front-end). Or, a program that takes care of
details behind the scenes, performing tasks not directly controlled by the user.
Backfile Conversion - The process of scanning in, indexing and storing a large backlog of
documents on an imaging system. Because of the time consuming nature of the task, it is
generally performed by a service bureau.
Background - 1. Pre-printed information on the form such as captions, instructions or lines. 2.
The light area between and surrounding the OCR characters in a scan line. 3. The simultaneous,
non-interrupting, execution of an automatic program while the computer is being used for
something else.
Background Color (Ink) - See Drop-Out-Color (Ink), Non-Read Color (Ink), Reflective Color
(Ink), & Blind Color (Ink).
Background Ink - A reflective ink used to print the parts of a document that are not meant to be
picked up by a scanner or optical character reader.
Background Reflectance - A brightness measurement of paper, expressed as a percent of a
reflectance standard.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Backlit - Any screen that has a light source which shines from the back of the image toward the
viewer, making image sharper and easier to see in low ambient lighting conditions.
Backspace - To move one unit in the reverse or backward direction as opposed to moving one
unit in the forward position direction. This generally refers to machine printing by either a
typewriter or line printer.
Backup - Copy of current and/or recent data for short-term storage in case of catastrophic loss.
Only data changed or added since the backup was made will be lost. Backups should be made
frequently. Their usefulness is over when a more recent backup is made. Contrast with archive.
Back-End System - A computer that does the main processing but has a smaller, friendlier
computer that the user interacts with (called the front end). Or, a program that takes care of
details behind the scenes, performing tasks not directly controlled by the user.
Back-Up Battery - A battery, which is available to maintain memory, contents in the event of
primary power failure.
Back-Up File - A copy of a data set that is kept in case the original data set is lost.
Bad Debt - Any debt that is delinquent and has been written off as uncollectible.
Bad Sector - Defective areas on a floppy or hard disk. The MS-DOS Format command
recognizes bad sectors, and locks them out so the computer won’t try to place any data on those
BAI (Bank Administration Institute) - A professional organization devoted exclusively to
improving the competitive position of banking companies through strategic research and a broad
range of educational offerings.
BAI Standards - The quality standards that many third-party providers and banks are held to in
providing cash management services such as lockbox. Each year, BAI surveys third-party
providers and financial institutions regarding their quality of processing for several cash
management services. The survey averages often become the de facto quality standards for the
Balance - 1. The condition that all elements of a transaction or a batch are equal in total dollar
amount. 2. The act of bringing all elements of a transaction or a batch into equality. Also known
as killing a transaction, transaction kill.
Balance and Transaction Activity - Information on current ledger and collected balances, one
and two-day float, debit and credit detail, and adjustment items. Average balances and a balance
history may also be reported.
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FTP Industry Glossary
Balance Management Service - A money management service for account positioning. One
side of the positioning service, often used as overdraft protection.
Balance Reporting-Current Day Activity - Monthly charge associated with the delivery of
information that is available on the same day that transactions occur.
Balance Reporting-Electronic Maintenance - Service charge for delivering balance
information electronically.
Balance Sheet - A financial statement showing assets on the left side and liabilities on the right.
A balance sheet provides an overview of a company’s financial position at the given time.
Balancing - Noun: A Department or function that insures that deposits from all areas of the bank
equal the debits they represent. This includes items from Proof, other banks, and the Federal
Reserve. Verb: The act of resolving differences between debits and credits, or between control
totals and detail items.
Ballistic Gain - Feature on some trackballs; and mice that makes the cursor move in relation to
the speed the user moves the mouse or trackball. The faster the mouse, the farther the cursor
moves. Move the mouse slowly, and the cursor moves only a tiny bit.
Balloon - The balance of principal that is due and owing in its entirety at a specified point in
time, but in any event, less than the time required to fully amortize the debt.
Balloon Payment - The majority of the principal balance is due in the final years of the loan
Bandwidth - Amount of data that can be sent through a connection. Usually measured in
bits-per-second. A full page of English text is about 16,000 bits. A fast modem can move about
15,000 bits in one second. Full-motion full-screen video would require roughly 10,000,000
bits-per-second, depending on compression. See BPS, Bit, and T-1.
Bangtail - An additional tear away flap on a remittance envelope generally used to provide
marketing information to the consumer.
Banking Day - A “banking day” is based on the cut-off time for a deposit to receive credit for
that day, usually 1:00 pm to 2:00 pm.
Bank Drive-Up (Teller) Envelope - Open-end style with a single side seam left purposely
unsealed. The seal flap is available in ungummed or latex seal. Used by financial institutions for
currency transfer.
Bank Identification Number (BIN) - The initial digits of an electronic device (e.g. credit or
debit card) which identifies the issuing financial institution.
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FTP Industry Glossary
Bank Insurance Fund (BIF) - A fund administered by the Federal Deposit Insurance
Corporation (FDIC), which insures the deposits of commercial banks and mutual savings banks.
Bank Routing Number - The first nine digits appearing across the bottom of a personal check
that identify the financial institution.
Bank Statement - A periodic statement of a customers account detailing credits and debits
posted to the account during the period and the book balance as of the statement cutoff date.
Bank Value - The balance adjustment, either positive or negative, resulting from a corrected
transaction that restates previous balances.
Bank Wire - A private wire service for financial institutions providing rapid transfer of funds
and reporting of credit and non-credit information.
Bankable Check - Check previously returned from the bank due to non-sufficient funds or
account closed but can be redeposited. Checks, which are not bankable due to account or check
problems, include returns due to Account Closed, Refer to Maker.
Banker’s Acceptance (BA) - A short-term obligation of a bank usually arising from an international trade transaction, such as the shipment or storage of goods.
Banking Day - Any day on which a participating financial institution is open to the public
during any part of the day for carrying on substantially all its financial functions. With reference
to an automated clearing house, any day on which the appropriate facility of the clearinghouse is
being operated.
Bankrupt Accounts - Accounts that are listed within a bankruptcy filing and, thus, cannot be
pursued by the credit grantor or a third-party agency.
Bankruptcy - A federal law that enables debtors with severe delinquency problems to get
forgiveness on that debt. Once debts are included in a bankruptcy filing, it is a violation of
federal law for either the credit grantor or any third-party collection source to pursue those debts.
During qualifying and while determining the amount of debt a prospect has, bankruptcy amounts
must be excluded from debt amount totals.
Bankstamp - Information typically printed in a square or rectangle on the bank of checks in the
United States. Traditionally, bankstamps have been printed with custom-made mechanical plates.
Today the stamp is sprayed on by inkjet.
Banner Page - This is a print page which may be appended to the beginning (and end) of a
report by the host computer’s spooling system. Banner pages are used to visually separate output
reports and usually contain such information as job name, time and date, programmer or
distribution name, number of copies needed, etc. Banner page formats are definable by the user,
and may be omitted entirely if the user so desires.
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FTP Industry Glossary
Bar - Any of the dark lines in a printed, machine-readable symbol.
Bar Length - The bar dimension perpendicular to the bar width, also called bar height.
Bar Printer - An impact printer in which the type slugs are carried on a type bar.
Bar Width - The thickness of a bar measured from its front edge (closest to the start character)
to its rear edge.
Barcode - A system of portraying data in a series of machine-readable lines of varying widths.
The UPC on consumer items is a bar code. In document management, a bar code is used to
encode indexing information. In mail processing, bar codes allow the automatic reading
zip+four code information in machine-readable format.
Barcode Character - A group of bars and spaces within a bar code that represent a single letter,
number, or other character.
Barcode Printer - An impact printer in which the type slugs print a complete bar code
representing an individual character. A series of bar codes can be printed to represent a complete
numerical sequence.
Barcode Reader - An optical scanning system that can read documents containing bar codes.
Barcode Reader Sorter - An optical scanning system that can read and sort documents
containing bar codes.
Barcode Sorter (BCS) - An automated machine capable of reading and sorting barcoded mail
by zip code at speeds up to 36,000 pieces per hour. The machine can handle multiple sorts.
Barcode Symbol - The combination of linear symbol characters and features required by a
particular symbology, including quiet zones, start and stop characters, data characters, check
characters, and other auxiliary patterns, that together form a complete scannable entity.
Bar/Half Bar Code - A binary code where the number “1” is represented by a full height bar
and the number “0” by a bar half the height. For example, the postnet code applied to addresses
by the U.S Post Office to allow machine sorting of the mail.
Barium Sulphate (BaS04) - A standard of reflectance used to calibrate instruments for the
measurements of reflectance of paper or ink. See MGO, or Magnesium Oxide.
Bark Mark - See Dirt.
Barter - Trade in which merchandise is exchanged directly for other goods without the use of
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FTP Industry Glossary
Base Alignment - Arrangement that allows columns of text to fall on the same line across the
page, regardless of varying sizes of the elements in the columns.
Base Font - Typeface that graphics software defaults to if no other font is specified.
Baseline - The imaginary horizontal line upon which typeset characters appear to rest.
Basis Point - The minimum price change in interest rates is one basis point (0.01 %).
Basis Weight (Paper) - The weight in pounds of a ream (500 sheets) of paper cut to a given
standard size for that grade.
Batch - Set of documents or electronic data physically and logically grouped together for
processing. Each batch is identified by a number and it is delineated by physical or electronic file
separators. Also known as a Unit of Work.
Batch Authorization Transaction System (BATS) - A system designed to allow certain
merchants - for example, mail order merchants - to batch process authorizations on their own
time schedules.
Batch Balancing - Reconcile each batch; if an out of balance occurs, it must be corrected.
Batch End Trailer - A slip of paper that contains printed information about a batch. A trailer
travels with the paper processed in a batch in order to provide information about the batch.
Batch Header Ticket - Control document that identifies the beginning of a batch. The Batch
Header Ticket typically contains a batch number that is printed with Magnetic Ink Character
Recognition (MICR) characters. This sets the batch number for the system, which may also be
included in the audit trail application.
Batch Number - Number used to distinguish one batch from another. It is printed on the batch
header ticket and is used throughout the system to identify the subsequent items as belonging to
a particular physical and logical batch.
Batch Preparation - Task of preparing stubs, control documents, and checks for processing on
the transport. Documents are removed from envelopes, reviewed, and grouped into batches
according to payment type. The appropriate control documents are inserted. Items are cleaned
-staples, paper clips, attached notes or correspondence are removed. Non-transportable items such as mutilated documents, are placed into document carriers. The batches are then placed into
trays of work for feeding into the transport.
Batch Processing - Conducting a group of computer tasks at one time, instead of steadily
throughout the day.
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FTP Industry Glossary
Batch Status Utility - Allows the supervisor to delete, restage, re-post, unlock, change the
priority, or change the processing date of a batch.
Batch Ticket - A control document which represents to a group of items.
Batch Total - The sum of certain quantities, used to verify accuracy of operations on a particular
batch of records; e.g., in a payroll calculation, the batches might be departments and batch totals
would be number of employees in the department, total hours worked in the department, total
pay for the department.
Batch Type - A particular way of processing a category of remittances.
Baud - The measurement of the speed of data transmission over a communication line. Named
after Baudot, a pioneer of telegraphic communication.
Baud Rate - The rate of a unit of signal speed equal to the number of code elements (pulses and
spaces) per second or twice the number of pulses per second.
BBS (Bulletin Board System) - A computerized meeting and announcement system that allows
people to carry on discussions, upload and download files, and make announcements without the
people being connected to the computer at the same time. There are many thousands (millions?)
of BBS’s around the world, most are very small, running on a single IBM clone PC with one or
two phone lines. Some are very large and the line between a BBS and a system like CompuServe
gets crossed at some point, but it is not clearly drawn.
BCC (Block Check Character) - In data transmission, a control character appended to blocks in
character-oriented protocols and used for figuring if the block was received in error. See CRC.
Beam Recording - A method using an electron beam or laser beam to record images directly
onto film, as contrasted with recording indirectly onto film the glow of excited phosphors on the
faceplate of a cathode-ray tube (with electrons impinging on the phosphors to cause the glow).
Bear Market - Period in which the prices in a market generally decline.
Bearer Bar - A bar abutting the tops and bottoms of the bars in a bar code symbol to prevent a
short scan by the bar code reader.
Bearer Security - A treasury security where the holder can collect interest or principal at
maturity as well as sell the security.
Beginning Segment for Payment Order/Remittance Advice (BPR or BPS Data Segment) A segment within an ANSI X12 EDI transaction set which gives instructions for payment.
These segments are identified as BPR in newer versions of the X12 standards and as BPS in
older versions.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Benchmark - One or more measurements of capability, performance or other attributes using a
fixed, well-defined set of stimuli. The results are usually compared with equivalent
measurements from similar or competive products, services or operations.
Benchmarking - The process of identifying, learning, and adapting outstanding practices and
processes from any organization, anywhere in the world, to help an organization improve its
performance. Benchmarking gathers the tacit knowledge -- the know-how, judgements, and
enablers--that explicit knowledge often misses.
Beneficiary - A person who has applied for and is entitled to Federal benefits by law.
Benefit Payment - A payment for a Federal entitlement program or for an annuity, including,
but not limited to, payments for Social Security, Supplemental Security Income, Black Lung,
Civil Service Retirement, Railroad Retirement annuity and Railroad Unemployment and
Sickness benefits, Department of Veterans Affairs Compensation and Pension, and Worker’s
BER (Bit Eror Rate) - A measurement of the average number of errors which occur (or can
occur) while writing or transmitting data.
Bernoulli Box - A storage disk system that uses the principles of fluid dynamics (discovered by
18th century Swiss scientist Daniel Bernoulli). When the disk is rotated at great speed, a cushion
of air is created, keeping the read/write head at the perfect close distance from the disk’s surface.
Best Practice - There is no single best practice because best is not best for everyone. Every
organization is different in some way--different missions, cultures, environments, and
technologies. What is meant by best are those practices that have been shown to produce
superior results; selected by a systematic process; and judged as exemplary, good or successfully
demonstrated. Best practices are then adapted to fit a particular organization.
Best Read - A feature of the Enhanced IPS Application Base and Imaging Extensions software
packages. Best read improves the accuracy of E- I 3B MICR reading by comparing the MICR
reader output with a second source.
Best-In-Class - Outstanding process performance within an industry; words used as synonyms
are best practice and best of breed.
Bezel - The metal or plastic part - in short, the frame - that surrounds a display tube.
BFT (Binary File Transmission) - Standard for transmitting facsimile data between fax boards
directly. Faster than conventional fax modems.
Bi-Directional Code - A bar code that can be read either left to right or right to left.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Bi-Directional Printing - A typewriter always prints from left to right. So did the early
computer printers. That’s unidirectional printing. The newer computer printers will print from
left to right, drop down a line, then print from right to left. Bi-directional. This increases the
printer’s speed.
Bi-Directional Symbol - A bar code symbol format which permits reading in either direction
across the bars and spaces.
Bifurcate - To divide in two.
Bilateral Netting - System in which purchases between two subsidiaries of the same company
are netted against each other, so that over time, typically one month, only the difference is
Bilevel - A binary scan that assigns each pixel an attribute of either black or white - no gray
tones, no colors.
Bill - A request for payment issued by a provider of goods or services (vendor) itemizing charges
for goods purchased or services rendered.
Bill Consolidator - A Bill Service Provider that consolidates bills from other Bill Service
Providers or Billers and delivers them for presentment to the Customer Service Provider
Bill Detail - Information from a Biller that provides invoice line level information to a
customer. This may include specific billing event information such as credit card charges,
telephone calls, or kilowatts used. Also: Invoice Detail.
Bill Notification - A process whereby a Customer is notified that an electronic bill is available
for review and payment.
Bill of Lading - A receipt given by a carrier to the shipper of goods.
Bill of Sale - A document used to transfer the title of certain goods from seller to buyer.
Bill Payment Provider (BPP) - An agent (usually a financial institution) of the biller that
originates and accepts payments on behalf of the biller.
Bill Payment Service Provider (BPSP) - A financial institution or non-financial entity acting as
an intermediary between the biller and consumer for the exchange of electronic bill payment
Bill Summary - The summary information from a Biller that is essential to a Customer to
understand what is owed. Typical information may include, Amount Owed, Date Due, Biller,
and Biller’s Account Number. Also: Summary Record, Summary, Invoice Summary, Invoice
Summary Record, and Bill Summary Record.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Biller - A company or organization that sends a Bill or Statement, usually a request for payment
for a product or service, to a Customer.
Biller Direct - One of four models of electronic bill presentment and payment (EBPP). A biller
establishes an electronic billing capability on its own Web site and provides its consumers with
their billing information and the capability to make payments directly from the site. Other
models include: Thick Consolidator, Thin Consolidator and Customer Consolidation.
Biller Service Provider (BSP) - A vendor or service bureau that generates and delivers bills,
statements and orders of confirmations on behalf of other vendors. The BSP may also complete
the cycle by accepting payment response and delivering corresponding Automated
Clearinghouse (ACH) transactions to the biller or its designated bank.
Billing Document - Portion of the billing statement that is returned with a check when payment
is made by a customer. Also called coupon, payment voucher, remit, remittance document, skirt,
statement, or stub.
Billing Statement - Summary of a customer account that describes the amount owed by the
customer and the amount the customer is expected to pay.
BIN - Bank Identification Number.
Binary - Denoting a numbering system in which numbers are expressed as combinations of the
digits 0 and 1, based on powers of 2. In computing these can be represented electrically by off
and on, or in bar codes by narrow and wide bars or spaces.
Binary Coded Decimal (BCD) - Pertaining to a decimal notation in which the individual
decimal digits are each represented by a binary code group, i.e., in the 8-4-2-1 coded decimal
notation the digits of the number twenty-three are represented as 0010 0011. (In pure binary
notation, the value of twenty-three is represented by 10111.)
Binary Image - An image in which all details have been converted either to black or to white, as
opposed to gray-scale images, where details are represented in shades of gray. Compared with
grayscale images, binary images take less space on data-storage devices and less time to transmit
between computer systems. They are therefore better for those item-processing applications
where storage efficiency and transmission speed are more important than distinguishing fine
details in the document image.
Binhex (Binary Hexadecimal) - A method for converting non-text files (non-ASCII) into
ASCII. This is needed because Internet e-mail can only handle ASCII. See ASCII, MIME,
Biometric Identifier - An identifier based on some physical characteristic, such as a fingerprint.
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FTP Industry Glossary
Biometrics - A technology that uses a person’s unique physical or behavioral characteristics,
such as a fingerprint, voice or iris pattern, to validate his identity almost instantaneously.
BISDN - Broadband integrated services digital network.
BISYNC (Binary-Synchronous Communications Protocol) - A data of communications
protocol developed by IBM, usually for high-speed applications, linking terminals with host
computers. The set of rules governing communication between an IBM 2780/3780 Remote
Batch Subsystem terminal and an IBM host computer
Bit - Contraction for binary digit. The smallest unit of data a computer can process. Represents
one of two conditions: on or off, 1 or 0, mark or space; something or nothing. Bits are arranged
into groups of eight called bytes. A byte is the equivalent of one character.
Bit Map - Representation of characters or graphics by individual pixels, or points of light, dark
or color, arranged in row (horizontal) and column (vertical) order. Each pixel is represented by
either one bit (simple black & white) or up to 32 bits (fancy high definition color).
Bit-Mapped - A format for storing an image in an electronic array memory in which each of the
pixels of the image are stored in one memory cell, usually one bit.
Bit-Mapped Font - A set of dot patterns that represent all the letters, characters and digits in a
type font at a particular size.
Bit-Mapped Graphics - Images that are created with sets of pixels, or dots. Also called raster
graphics. Contrast with vector graphics.
Bit Specifications - Number of colors or levels of gray that can be displayed at one time.
Controlled by the amount of memory in the computer’s graphics controller card. An 8-bit
controller can display 256 colors or levels of gray. A 16-bit can show 64,000 colors. A 24-bit
controller can display 16.8 million colors or gray levels.
Bit String - A group of arbitrarily arranged binary bits.
BITNET (Because It’s Time Network or Because It’s There Network) - A network of
educational sites separate from the Internet, but e-mail is freely exchanged between BITNET and
the Internet. Listserv®, the most popular form of e-mail discussion groups, originated on
BITNET. BITNET machines are usually mainframes running the VMS operating system, and the
network is probably the only international network that is shrinking.
Bits-Per-Second (BPS) - A measure of the speed of transmission in information systems.
Bit-Stream - Refers to a binary signal without regard to groupings by character.
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FTP Industry Glossary
Black Line - Cathode-ray tube (CRT) images normally consist of black character lines with
clear background, or what is also referred to as positive appearing images. Similarly, when
computer output microfilm (COM) images are recorded from CRT’s or lasers, the output is often
described as black line. The opposite polarity is white line with dark background, or negative
appearing image. White line images are often referred to as reverse video when viewed on
Black Matrix - Picture tube in which the color phosphors are surrounded by black for increased
Blank Space - A character used to indicate space in which nothing is printed.
Blink Color (Ink) - See Non-Read Color (Ink), Reflective Color (Ink) & Non-Scan Color (Ink).
Blip - A mark placed on a microfilm for counting or timing purposes.
BLOB (Binary Large Object) - Used to store any information that can be represented as binary
data. The BLOB data type is part of a database structure, which provides complete DBMS
functionality for the manipulation of the BLOB item.
Block - The amount of data recorded contiguously on magnetic tape or disk in a single
operation. Blocks are separated by physical gaps, or identified by their track/sector addresses.
Block Error Correction - During CD-ROM pre-mastering, data recovery methods are applied
to a physical block of data (2,048 bytes) to ensure the recovery of all user data.
Block Size - The number of bytes contained in a Block.
Blue Collar - Employee working for hourly wages in an occupation which often requires
wearing a uniform. Examples are mechanics, miners, and factory assembly-line workers.
Blueline - Photographic print of negatives in the printing process that shows the exact position,
size, and elements of the final printed material.
Board of Governors of the Federal Reserve System – The seven-member body that oversees
the U.S. Federal Reserve and supervises the U.S. banking system.
Body (Ink) - A term referring to the viscosity, consistency or covering power of an ink or
Boilerplate - Common material that is used over and over from one document to the next
Bond - An interest-bearing certificate of debt by which the issuer becomes obligated to repay the
principal on a specified maturity date and to pay periodic interest.
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FTP Industry Glossary
Bond Equivalent Yield - Nominal yield on a long-term instrument quoted on a 365-day basis.
Bond Indenture Agreement - Formal agreement between an issuer of bonds and the bondholder.
Book (or Gross) Balance - Refers to the ledger credit for funds on deposit prior to any reduction
for float, uncollected funds or reserve requirement.
Book Entry - Securities are stored at the Federal Reserve Bank of New York, and entries are
made when ownership changes; book entry securities do not physically move when traded.
Booked Float - The total dollar amount of cash items in the process of collection which are
reflected on a bank’s balance sheet.
Booklet Envelope - A large open side style with side seams and the seal flap on the long side.
Usually used for mailing booklets and multiple unfolded documents.
Boole, George (1815-1864) - The mathematician who represented logical reasoning with
mathematical formulas; inventor of Boolean algebra. Modern digital computing is based on
Boole’s work.
Boolean Logic - A system for representing set relationships using the operators AND, OR, and
NOT. The foundation of most text retrieval query languages.
Boot - Process of starting up a computer in which the computer loads a small program into
memory which in turn allows the computer to load larger programs.
Bootstrapping - Refers to a machine-level software routine the first instructions of which are to
bring either the rest of the routine or some other larger program into the CPU from an input
device such as a keyboard. Often used to facilitate system start-up.
Boycott - Refusal to deal commercially or otherwise with a person, firm or country.
BPI (Bits Per Inch) - Measurement of the number of bits stored per linear inch on magnetic
tape. Measures density.
BPI (Bytes Per Inch) - An indication of the maximum number of data bytes that can be
recorded in a linear inch of the medium. A byte generally consists of 8 bits and is recorded
vertically across the tape, not in the direction of tape movement.
BPP (Biller Payment Provider) - An agent of the Biller that accepts remittance information on
behalf of the Biller.
BPR/BPS - Beginning Segment for Payment Order/Remittance Advice.
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FTP Industry Glossary
BPS (Bits Per Second) - Measurement of the number of bits transferred in a data
communications system. Measures speed.
Branch Office - A remittance collection point outside the processing site.
Break Action - Pre-set instructions that tell a COM system where to place the next block of data
after a break condition.
Break Condition - Also called fiche break. Separating recorded frames of data on microfiche.
Instructs the COM system to insert blank pages, go to the next column, go to the next
microfiche, whichever, in preparation of recording the next frame of data.
Break-Even Point - The volume of sales at which total costs equal total revenues. Sales above
this volume generate profits.
BRI - Basic rate interface (ISDN standard).
Brightness - The balance of light and dark shades in an image. Contrast with contrast.
BRMAS - Pronounced Brahmas. Abbreviation for Business Reply Mail Accounting System,
which allows for automated accounting of business reply envelopes and cards.
Broadband - Network technology that allows the transmission of multiple independent channels
of data.
Broader Term - A term that represents a more general definition of another term. A thesaurus
operator that allows the tracking of broader terms. Using Broader Term and Narrower Term
operators, a thesaurus can establish a definition hierarchy. See Narrower Term.
Broker - Individual or company authorized to buy or sell something for another party without
ever owning the goods.
Browser - A road map of a hypertext system, often a graphical depiction of the semantic
network, indicating available nodes and links.
BSC - Bisynchronous.
B-Size Printer - A printer capable of handling up to 11” x 17” paper size.
BSP (Biller Service Provider) - A financial institution or non-financial entity acting as an
intermediary between the biller and consumer for the exchange of electronic bill payment
information. An agent of the biller that provides an electronic bill presentment and payment
service for the biller.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Bubble - One technique for recording data on optical discs. A laser strikes the non-image areas
of the recording medium, causing bubbles to form and leaving the image area clear to reflect the
reading laser’s light.
Buffer - Device or allocated memory space used for temporary storage. Printers commonly use
buffers, for example, to hold incoming text because the text arrives at a much faster rate than the
printer can output.
Bug - 1. An error in a computer program. 2. A malfunctioning piece of hardware.
Bulk (Paper) - The degree of thickness of paper.
Bulk Data - 1. Name of the file traffic session (as opposed to message traffic) on Fedline. 2.
The technical specifications for mainframe-to-mainframe computer transmission of files between
a financial institution and the Federal Reserve Bank.
Bulk Filing - A filing method in which documents are sorted by statement rendering date (cycle)
rather than by sort field; fine sorting is done at the time statements are prepared.
Bulk Fine Sort - A software module used to sort documents for a particular statement date
account number.
Bulk Mail Center (BMC) - Mechanized mail processing plant that primarily handles bulk,
second-, third-, and fourth-class mail.
Bull Market - Period in which the prices in a market generally increase.
Bullet Maturity Payment - The entire principal is due on the final maturity date.
Bundle - Group of checks sorted to a specific pocket in Pass 2. Delimited by Bundle Tickets.
Referred to by bundle number.
Bundle Ticket - Control document that indicates the end of a bundle of checks for a specific
endpoint. Inserted by the merge feeder during Pass 2 when the pocket limit is reached. Encoded
with the total amount of the checks for that bundle. Used when Endpointing is installed.
Burst - To separate continuous-form paper into discrete sheets.
Burst Error - Errors are detected in consecutive data bits, which are often the result of
CD-ROM disc surface scratches, fingerprints and other physical irritants.
Burst Mode - A method of writing or reading data that does not permit an interrupt to occur.
Burst Rate - A rate indicating an item processing system’s theoretical maximum performance:
the number of documents that it can process per minute under specified laboratory conditions.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Burster - Forms handling device for mechanically separating continuous forms at the cross
perforation, usually using two sets of pressure rollers rotating at different speeds.
Bus - Signal path or line shared by many circuits or devices. Information is often sent to all
devices throughout the same bus; only the device to which it is addressed will accept it. This
makes designing system architecture much easier; devices can be plugged in anywhere on the
Bus Mouse - Mouse that takes up an expansion slot in a PC, rather that a serial port (those are
called serial mice). There are generally more expansion slots available than serial ports.
Business Day - A calendar day other than a Saturday, Sunday or Federal holiday.
Business Form - 1. Any material that has been printed or otherwise especially prepared in a
predetermined format for the primary purpose of facilitating the entry of variable information.
Such written information may be hand or machine entered. Blank paper may be included,
especially if it is continuous and has undergone some manufacturing operation such as punching
or perforating, etc. 2. More specifically, document-bearing instructions with repetitive
information printed in fixed positions to save writing and reference time.
Business Office - A remittance collection point outside the processing site.
Business Reply & Return Envelope - Refers to the printing on the outside, the difference being
who pays for return postage. Both have the address pre-printed on the face. A business reply
includes a pre-printed First Class Permit indicia, while the return envelope requires the sender to
affix postage. Both envelopes may be any style or size. Most common sizes are #6¼, 6¾, 9 and
Business Reply Mail (BRM) - A service which enables mailers to receive First-Class Mail back
from customers by paying postage only on the mail which is actually returned to them from their
Business-Based Income Streams - Cash flow instruments that are paid to a business by another
business or government.
Button - The graphical depiction of a link; usually an icon or specially denoted text.
Bylaws - Rules adopted by a corporation or association governing its own actions.
Bypass - Action of omitting the printing of selected sections of data while processing a report.
Byte - Common unit of computer storage. A byte is eight bits of information, one of which may
be a parity bit. Generally, eight bits equals one character. Also called an octet.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-CC&F (Cost and Freight) - Commercial term meaning that the stated value of a shipment of
goods includes all costs and freight involved in shipping the goods to their destination.
CA$HLINK - A cash concentration and information system used to manage the collection of
Federal government funds. It also provides agencies with financial information to verify bank
deposits, ACH transfers, wire transfers, as well as information to reconcile their accounts.
Cache - Pronounced cash. Small portion of high-speed memory used for temporary storage of
frequently used data. Reduces the time it would take to access that data, since it no longer has to
be retrieved from the disk.
CAD/CAM - Computer aided design/computer aided manufacturing. Hardware and software
system used to automate the product design process, and to facilitate the automation of the
product manufacturing process.
CAE - Computer-aided engineering.
CAI (Customer Account Information) - A detail field within Remittance Information, usually
the account number assigned to that customer by the Biller. This can also be used to mean the
Customer’s billing name and address as well as any other information that the Biller uses to
identify the Customer.
CAL - Computer-assisted locater.
Calibration - The measure of certain variables to determine the current behavior of a
color-capable device and the subsequent adjustment of those variables to match the standard
settings for the device.
California - CA
Caliper (Paper) - The thickness of a sheet of paper-usually expressed in thousandths of an inch.
Call Back - A return call to a company to ensure that a transaction has been authorized; a call is
placed after the transaction has been entered, but before it is executed.
Call Campaign - A series of three attempts by collectors to contact a debtor by telephone. Calls
are typically made on weekdays, weekday evenings, and weekends.
Call Center - A functional area within an organization or an outsourced, separate facility that
exists solely to answer inbound or place outbound telephone calls; usually a sophisticated voice
operations center that provides a full range of high-volume, inbound or outbound call-handling
services, including customer support, operator services, directory assistance, multilingual
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
customer support, credit services, card services, inbound and outbound telemarketing, interactive
voice response and web-based services.
Call Option - The holder of a security has the right, but not the obligation, to purchase the
foreign currency at a given price.
Camel - An acronym for Capital, Assets, Management, Earnings, and Liquidity. CAMEL is
among the most common measures of depository financial institution strength.
Camera - See Microfilm Camera.
Camera Microfilm - First generation microfilm. Also called the master film.
Cancel Character - An accuracy control character on some typing elements used to indicate that
the data with which it is associated are in error or are to be disregarded.
Can’t Read Character - A character on the MICR line or scan line of a document that cannot
be read by the system.
CAP - Custom Application Programs.
Capital Market - A financial market that consists of both equity and debt instruments that
mature in more than one year.
CAPM - Capital asset pricing model.
Capstan - The cylinder which moves a magnetic tape at the proper speed.
Captive Finance Company - Typically, a company’s wholly-owned subsidiary whose major
purpose is to perform credit operations and obtain receivables financing for its company.
Capture - 1. The function performed by a hardware device such as a sorter. The MICR ink of
checks is read and stored on a computer system for additional processing. 2. Converting the
authorization amount into a billable transaction record within a batch. Transactions cannot be
captured unless previously authorized and the goods or services have been shipped or
transmitted to the consumer.
Capture Date - The date on which a transaction is processed by an acquirer.
Capture File Server - File Server that receives compressed images and data from the transport,
and distributes work requiring correction or data entry to the image workstations.
Capture Pass - See Pass 1.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Capture Process - Transport process that automatically reads and captures Optical Character
Recognition (OCR), Magnetic Ink Character Recognition (MICR), and image data from
documents for use by subsequent processes. After the data is captured, the documents are sent to
the Pocket Module(s). Optional transport features available in the Capture process includes audit
trail, microfilm, and pocket sorting applications.
Capture System - A combination of transport modules and file server applications used to read
MICR & OCR scanlines and to produce electronic images of documents. The Capture System
distributes the data and images to client workstations.
CAR (Computer Assisted Retrieval) - Computer systems that locate or identify data stored on
microform or paper. CAR systems rely on indexing and cross-indexing, pre-assigned to the
documents, to find all documents related to the CAR search attributes. A (simplified) attribute
string may be something like Purchase Orders for Widget Style 007 in October. The CAR
software would search Purchase Orders, Widget Style records and October activity files for
matches. It would then notify the user of the whereabouts of the relevant documents
CAR (Courtesy Amount Recognition) amount of a check.
Scanned reading of the hand-written numerical
CAR Confidence Rate - Is a selectable tolerance to optimize the CAR engines performance. A
higher confidence setting results in lower recognition rates and greater accuracy. Lowering the
confidence setting results in higher recognition rates and less accuracy. Not all CAR engines have a
confidence setting.
CAR Engine Courtesy Amount Reader (CAR) - Intelligent character recognition (ICR)
software that locates and then reads the courtesy amount of the check - the number printed in
numbers on the upper right side of the check (for example, $34.95).
CAR Kill Rate - Kill rate is the percentage of transactions in which the dollar amount of the
check equals an amount on the OCR scan line. Kill items do not require any manual intervention
to complete balancing of the transaction.
CAR Recognition or Read Rate - The percentage of courtesy amount fields, on checks, which
are correctly read by the CAR software.
CAR Substitution Rate - The characters mis-identified by the CAR software and an incorrect
character is substituted in its place.
Carbon - Paper coated on one or both sides used in a form set to effect image transfer under
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Carbon Black - The color pigment used in most black carbons and black inks.
Carbonized Paper - Paper part of a form to which a carbon coating has been directly applied to
the backside. It is used in specialized instances to effect good write-through at low cost.
Carbonless Paper - Any paper stock coated, manufactured or treated to provide part-to-part
imaging without use of carbon interleaves or carbon type coating. Mated-chemical carbonless
systems require contact of two paper surfaces each with a different chemical coating which
reacts chemically under impact of pressure to form a visible image on one surface (coated front
or CF surface). Self-contained chemical carbonless paper (self imaging) has the two materials
coated on or manufactured into the same sheet. Mechanical transfer carbonless paper relies on
physical transfer of pigmented materials. Mated-mechanical carbonless systems require contact
of two paper surfaces like the mated chemical except there is a physical transfer requirement.
Mechanical self contained has a pigmented under surface that is revealed when a lighter colored
surface coating is rendered transparent by pressure or impact.
Card Base - A population of cardholders, especially in the context of a single-card family.
Card Issuer - 1. The financial institution or retailer that authorizes the issuance of a card to a
consumer (or another organization), and is liable for the use of the card. The issuer retains full
authority over the use of the card by the person to whom the card is issued. 2. Any bank or
organization that issues, or causes to be issued, bank cards to those who apply for them. 3. Any
organization that uses or issues a personal identification number (PIN).
Card Set - Cards and forms, bound in a manner that provides multiple copies of source data.
Cardholder - Any person who opens a credit card account and makes purchases using a credit
Carpal Tunnel Syndrome - An injury most often attributed to repetitive strain activities. It most
often involves the compression of the Median nerve at the wrist with symptoms in the hand, a pain or
numbness in the fingers, usually in the thumb and first 2-3 fingers.
Carriage Control - The host generated commands sent to a printer to instruct it about the line
commands required to produce the desired output. Examples of carriage control commands are:
top of form, skip two lines, advance to fine n. Advanced COLD systems are capable of reading
host generated carriage control formats without an interim conversion process.
Carriage Return (CR) - The operation that prepares for the next character to be printed or
displayed at the specified first position on the same line.
Carrier - An envelope-like document used as a carrier for another item that cannot be processed
by a document processor. A carrier item would be used to carry a mutilated item through a
document processor. The data for the item being carried is encoded on the carrier item.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Cartographic Records - Graphic representations at reduced scale of selected physical and
cultural features of the surface of the earth and other planets. Include maps, charts
(hydrographic/nautical, weather, and aeronautical), photomaps, atlases, cartograms, globes, relief
models, and related records, such as field survey notes, map history case files, and Wing aids.
Also include digital cartographic records, such as geographic information system records, which
are managed like other electronic records. See Remote-Sensing Imagery Records.
Cartridge - Generally, a removable unit which makes the replacement of some resource
convenient for the user. Technically, a bullet is a cartridge - it combines the shell, gunpowder,
padding, etc., into a unit that is easier to replace than each of its components would be. For our
purposes, any removable storage device that is not a cassette.
Cartridge (Film) - A container enclosing roll microfilm that is designed to be inserted into
readers or other retrieval devices. Most often the size involved is 16mm wide film, occasionally
105mm wide film.
Case - An instance or invocation of a workflow procedure. Case information is stored in folders.
CASE (Computer Aided Software Engineering) - CASE is a new, faster, more efficient way
of writing software for some applications. The idea with CASE is to sketch out relations between
databases, events, and options and then have the computer write the code.
Case Files - Records, regardless of media, documenting a specific action, event, person, place,
project, or other matter. Include personnel, project, and transaction files, which are types of case
Case Sensitive - Knows the difference between capital letters and lower case letters. A
case-sensitive search for CASE would not find case.
Case Working Files - Background or support files, such as worksheets, questionnaires, rough
notes, calculations, or drafts, used to prepare or analyze case file documents. Often bulky when
in paper form. See Working Files.
Cash - A payment made in cash.
Cash and Due From - An accounting category encompassing all cash and currency accounts, all
due from accounts, and all CIPC accounts on a bank’s general ledger. Cash and due from often
appears on a bank’s balance sheet as the summation of all accounts within this category.
Cash Application - The process of matching and applying customer payments against outstanding accounts receivable.
Cash Before Delivery (CBD) - Credit terms requiring payment, often in the form of a check, a
cashier’s check, or a certified check, before the order is shipped.
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Cash Concentration or Disbursement (CCD) - Electronic payment format used for concentration and disbursement of funds within or between companies.
Cash Concentration or Disbursement Plus Addendum (CCD+) - Electronic payment format
identical to the CCD format, but containing one additional addendum record.
Cash Drawer - A locked drawer where cash payments are stored until deposit.
Cash Flow - The flow of cash through a business or household. In business terms, cash flow
involves the flow of cash into a company in the form of revenues, and out of the company in the
form of expenses.
Cash Flow Broker - Professional whose primary purpose is to unite income stream sellers with
funding sources. They may operate as referral sources or as the primary liaison for cash flow
Cash Flow Industry - The buying, selling, and brokering of privately held debt in the secondary
marketplace; the marketplace where businesses and individuals get help managing their cash
flow needs.
Cash Flow Instrument - Future payment or series of payments. Also called a debt instrument or
income stream.
Cash Flow Specialist - A cash flow professional who brokers cash flow transactions or buys
cash flow instruments.
Cash Flow Transaction - Occurs whenever a funding source pays cash to an individual or
business in exchange for an income stream.
Cash Forecasting - The process of predicting cash flow for the purposes of liquidity management and financial control.
Cash-In Ticket - A debit ticket that, in lieu of cash received by a teller, is sent to the proof
department for balancing a given deposit.
Cash Item - Any item immediately convertible into cash such as a check, depository transfer
check, or pre-authorized check.
Cash Items in Process of Collections (CIPC) - The total dollar value of all items that have
been accepted for deposit but for which a bank has not received investable funds. Primarily used
in accounting, CIPC may be applied to a specific account, a group of accounts, or a line item on
the balance sheet.
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Cash Letter - 1. A batch of items, accompanied by a letter detailing transit routing, amounts and
totals, sent directly to a bank, or to a regional check processing center, containing items drawn
on that bank as well as items drawn on many banks within the region. 2. A bundle of one or
more checks accompanied by a list of individual items and dollar amounts together with deposit
tickets and other control documents. 3. A document (also known as a transmittal letter)
deposited with cash items (i.e. checks). It indicates the date of deposit, the name of the customer
depositing, the Federal Reserve office that will receive the deposit, the total dollar amount of the
cash items, and the type of credit: immediate, one-day deferred, or two-day deferred. Often used
to refer to the package of checks itself.
Cash Letter Recap - A recap listing of the bundles in a given cash letter detail.
Cash Management - The corporate discipline of managing a corporation’s cash flow by using
products offered by financial institution.
Cash On Delivery (COD) - Credit terms in which goods are shipped and the buyer must pay
upon delivery.
Cash-Out Ticket - A credit item that represents cash paid out by the teller.
Cash Slip - A slip of paper that is processed when a payment is made in cash. The payment
amount and audit trail information about the transaction is printed on the cash slip.
Cash Terms - Credit terms in which the buyer generally has a week to 10 days to m payment.
Cash Transfer Scheduling - The decision on when and how much cash to transfer.
Cash Treasury Management Functions - Collection management and disbursement of funds.
CASS (Coding Accuracy Support System) - A program through which the U.S. Postal Service
approves software vendors and other information services providers to provide certified ZIP + 4
and address correction services to the public. To be eligible for automation discounts, a mailing
list must have been verified and corrected using CASS-certified software.
Cassette - A magnetic tape storage device, which combines the tape, and supply and take-up
reels into a removable unit. The 1/4” audiocassette and the VHS and Beta videotape units are the
most familiar forms of cassette. See Cartridge.
Catalog - Another name for a listing of directories or files stored on a computer or disk.
Catalog Envelope - A large open-end style with a center seam and the seal flap on the short
side. Normally used for mailing catalogs and multiple unfolded documents.
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FTP Industry Glossary
Cathode-Ray Tube (CRT) - An electronic tube in which a well-defined and controllable beam
of electrons produced and directed to give a visible or otherwise detectable display or effect. The
displayed image may be read visually, microfilmed, photographed or recorded in some other
manner. Generally abbreviated CRT.
Causality - The principle that every change implies the operation of a cause.
Cause - That which produces an effect or brings about a change.
CAV (Constant Angular Velocity) - A method for formatting information on disk. On CAV
media, data is arranged in multiple concentric tracks. See CLV.
CBEMA (Computer and Business Equipment Manufacturer’s Association) - Sponsor of the
X3 committee and X3 subcommittees.
CBR - Constant Bit Rate or Corporate Cross Border Entry.
CBT (Computer-Based Training) - Using the computer to teach. Also called courseware.
CCD - Cash Concentration or Disbursement.
CCD - Charge-Coupled Device sensor detects reflected light from a scanned document and
converts the light to an electrical (analog) signal for digitization.
CCITT (Consultative Committee for International Telephony and Telegraphy) - An
advisory committee of the United Nations, responsible for establishing standards for
international data transmission. Issues standards for facsimile, including Groups III and IV
digital standards that include data compression and decompression.
CCL (Common Command Language) - A NISO proposed standard text retrieval query
language. Also known as Z39.58.
CD (Compact Disc) - A standard medium for storage of digital data in machine-readable form,
accessible with a laser-based reader. CDs are 4-3/4” in diameter. CDs are faster and more
accurate than magnetic tape for data storage. Faster, because even though data is generally
written on a CD contiguously within each track, the tracks themselves are directly accessible.
This means the tracks can be accessed and played back in any order. More accurate, because data
is recorded directly into binary code; mag tape requires data to be translated into analog form.
Also, extraneous noise (tape hiss) associated with mag tape is absent from CDs.
CD-Audio - Compact disk for storage of audio information. These are the consumer CDs used in
high quality stereo systems; same 4.7” diameter as CD-ROM disks.
CD-I (Compact Disk Interactive) - Consumer-oriented data format on CD media requiring a
specialized player which is connected to a television. This format is backed by Phillips, Sony,
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Matsushita, and others.
CD-R (Compact Disc Recorder) - A digital recorder capable of recording CD or CD-ROM
formatted digital information onto CD Master (gold) disks.
CD-RDx (Compact Disk Read-Only Data Exchange) - A proposed standard for full-text
retrieval databases. The primary focus of the proposed standard is the interoperability of
CD-ROM (Compact Disc Read-Only Memory) - A data storage system using CDs as the
medium. CD-ROMs hold more than 600 megabytes of data. Used in document or data
publishing in place of magnetic tape or disk.
CD-ROM XA - A superset standard of CD-ROM for mixing audio, images, and data.
Cellular - A wireless telephone technology that makes use of a range of radio frequencies to
transmit calls.
CEN (Comité Européen de Normalisation) - The European Union (EU) organization
responsible for the coordination of EU standards. The Central Secretariat is at Rue de Stassart
36, B-1050, Brussels, Belgium.
Center Seam (Envelope) - The permanent seam used to construct the envelope. Positioned near
the center and running from the bottom fold to the throat.
Centerline Stroke (Character) - The line drawn between the two average edges of a character
and which follows the character shape.
Central Bank – The principal monetary authority of a nation. The Federal Reserve is the central
bank of the United States.
Central Files - Files accumulated by several offices or organizational units and maintained and
supervised in one location. Also called centralized files.
Central Information File (CIF) - A master file maintained by the ACH containing information
on each depository financial institution. This file includes the depository financial institution’s
name, transit routing number, address, settlement and delivery information and output medium
Central Processing Unit - The main component of a computer that includes the circuits
controlling the interpretation and execution of instructions. Generally abbreviated CPU.
Centralized Processing - All or substantially all of an enterprises computing is done in one site,
usually called the data center. Was the norm in US business until the penetration of desktop PCs,
which led the way to distributed processing.
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Centrex - Central Exchange (LEC telephone services).
Centronics - Standard 36-pin parallel interface for connecting printers and other devices to a
CEO - Chief executive officer.
Certificate Authority - An issuer of Security Certificates used in SSL connections.
Security Certificate, SSL.
Certificate of Dishonor - A testimony to the effect that a debt (draft) has not been paid.
Certificates of Deposit (CDs) - Negotiable or non-negotiable obligations of a bank, have a fixed
or a variable interest rate.
CFO - Chief financial officer.
CFR - Code of Federal Regulations.
CGA (Color/Graphics Adapter) - A low-resolution video display standard, invented for the
first IBM PC.
CGI (Common Gateway Interface) - A set of rules that describe how a Web Server
communicates with another piece of software on the same machine, and how the other piece of
software (the CGI program) talks to the web server. Any piece of software can be a CGI program
if it handles input and output according to the CGI standard. Usually a CGI program is a small
program that takes data from a web server and does something with it, like putting the content of
a form into an e-mail message, or turning the data into a database query. You can often see that
a CGI program is being used by seeing cgi-bin in a URL, but not always. See CGI-Bin, Web.
CGI-Bin - The most common name of a directory on a web server in which CGI programs are
stored. The bin part of cgi-bin is a shorthand version of binary, because once upon a time, most
programs were referred to as binaries. In real life, most programs found in cgi-bin directories are
text files -- scripts that are executed by binaries located elsewhere on the same machine. See
Chad - The little scrap of confetti that results from punching an old-fashioned machine-readable
card, or from the holes in on the border of tractor-feed paper. A chadded form is one that has the
holes punched clean through; a chadless form is one with the chads still hanging on by a thread.
CHADD - See Change of Address Detection.
CHADD Data Entry - Optional image application that allows image operators to key
handwritten correspondence and/or name/address changes from displayed images.
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CHADD Data Verify - Optional image application that allows image operators to re-key and
verify handwritten correspondence and/or name/address changes from displayed images.
Discrepancies are noted, and the operator makes the final determination of correct data entered.
Chain Printer - An impact printer in which the type slugs are carried by links of a revolving
Champion - Person responsible for the logistical and business aspects of a Six Sigma project.
Champions select and scope projects that are aligned with the corporate strategy, choose and
mentor the right people for the project, and remove barriers to ensure the highest levels of
Change of Address (CHADD) Detection - Feature that detects correspondence and/or name/
address changes (or any other region of interest) indicated on documents being imaged during
Pass 1. System can outsort detected documents for scheduling to a data entry application. The
operator can identify a document as a CHADD item, classify a document as a specific CHADD
type, or enter information to update customer accounts.
Channel - An electronic path for the high-speed transfer of information, usually between
computer systems or a computer system and its peripheral devices (such as magnetic tape, disk,
high-speed printers, COM and communication links).
Channel Separation - Refers to an audio player’s to distinguish high-fidelity stereo signals from
each other.
Character - 1. A graphic shape representing a letter, digit, punctuation mark, or other symbol,
for example in an OCR font. 2. A single group of bars and spaces which represent one letter,
digit, etc. in a bar code. 3. A symbol that is used in the organization, control, or presentation of
data, for example a start or stop character in a bar code or a function code in an OCR string of
data. 4. A single letter, digit or punctuation symbol. A character equals a byte. 5. One of a set of
symbols that may be arranged in ordered groups to express information. The symbols may
include the numbers 0 through 9, the letters A through Z, punctuation marks and special
characters. The symbols may be human readable and/or machine-readable. See Alphanumeric.
Character Alignment - The placement of a printed or typed character in relation to its intended
Character Boundary - The largest rectangle with sides parallel and perpendicular to the
document reference edge that can be drawn tangential to the character outline.
Character Cell - One means of displaying text is to assign a matrix of dots, say 8 x 16 deep, to
each character space. That’s a character cell. Which dots are fit and which are dark determines
the display of the letter. A character cell display is used in chasing lighted displays like the one
on Times Square.
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Character Density - The number of characters in a line of print per unit of length.
Character Device - A printer or other peripheral device that receives data character by
character, instead of in bursty blocks of data.
Character Dimensions - Characteristics of printed data, including the height and width of a
character as well as the stroke width of a character.
Character Erase - A graphic shape that will delete a single character or space.
Character Generator - The electronic device, such as within a computer output microfilmer,
which converts digital signals to visible characters. See Stroke Generation and Dot Matrix.
Character Independent - A code where each character stands by itself and is not dependent on
the preceding or following bars or spaces.
Character Misread - The incorrect identification of a valid OCR readable character (a
Character Outline - Printed boundary patterns.
Character Pitch - The number of characters per inch. The tightness of letters a printer can
Character Reader - Any input unit that can perform character recognition.
Character Recognition - 1. A process in which a device reads and interprets the characters
encoded on documents such as checks. See MICR and OCR. 2. The ability of a machine to read
human-readable text. 3. The identification of characters by automation.
Character Segmentation - The separation of characters within a field by software for
Character Set - 1. The group of symbols, letters and/or codes that are used to represent a
language. The character set for English has 26 characters. The ASCII character set has 128
characters. 2. The total range of letters, numbers, and symbols that can be encoded in a
particular font. An ordered and finite set of characters used for representation. The entire
population of symbols.
Character Skew - A character, whose vertical centerline is not perpendicular to the reference
edge of the document, is skewed. The angle formed by the centerline and a line perpendicular to
the document reference edge must have certain tolerance levels dependent upon the machine.
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Character Spacing - The center-to-center distance between adjacent characters, marks or bars.
The two basic values often specified are the minimum and maximum distances permissible for
proper recognition.
Character String - Any group of characters acted upon in a computer system as though they
were a single unit.
Character Stroke Width - The distance between average edges of a character element.
Character Style (Font) - A distinctive construction, with no restriction as to size, that is
common to a group of characters. Different sizes of a given character style are proportional in all
Character Terminal - A terminal that cannot show graphics, only text.
Character Transfer Rate - The rate at which characters are transferred from one place to
another; e.g., magnetic tape to computer, computer to magnetic tape, computer to microfilm, etc.
Characteristic - A definable or measurable feature of a process, product, or variable.
Charge Per Transaction - A fee charged on any authorized transaction to cover costs usually
associated with delivery of the authorization.
Chargeback - A dispute procedure initiated by the card issuer after receipt of the initial
presentment from the acquirer. The issuer may determine that, for a given reason, the transaction
was presented in violation of the rules or procedures and is therefore eligible to be returned to
the acquirer.
Chargeout - The act and result of recording the removal and loan of a document or a file to
indicate its location. Usually involves the use of a form, such as OF 23.
Charge-Coupled Device - A semiconductor that can collect, store and move charges in packets.
An imaging charge-coupled device responds to light and provides electrical signals. Generally
abbreviated CCD, and used in scanning physical documents and converting them to electronic
bit maps.
Charged Image - A general type of printing including xerographic, laser, electrostatic, ion
deposition and magnetographic printing. These printers use an electrically charged image and
ink toner to form images.
Chargeout - The act and result of recording the removal and loan of a document or a file to
indicate its location. Usually involves the use of a form, such as OF 23.
Charts - See Cartographic Records.
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FTP Industry Glossary
Chat Room - A place on the Internet where people go to chat with other people in the room.
Actually there are thousands of these Chat Rooms. The rooms are usually organized by topic.
For example in a Michigan Room you would expect that most of the participants in the room are
probably from Michigan. When you’re in a Chat Room you can view all of the conversations
taking place at once on your screen. You can also get into a private chat room where only you
and one or two others may talk. This can be an inexpensive way to keep up with friends and
relatives who are online.
Chattel Mortgage - A mortgage on personal property, given to secure a debt. Typically used in
the sale of a business. Also called a security agreement.
Check - 1. A demand instrument to transfer funds from the payer to the payee. 2. Document
encoded with Magnetic Ink Character Recognition (MICR) characters that is used to pay
amount(s) due on one or more stubs.
Check 21 – Officially known as “The Check Clearing for the 21st Century Act”; a version of the
“Check Truncation Act” introduced by the House of Representatives as H.R. 5414 (9/02).
Check Amount ICR - Check amount interpreted from the handwritten or machine-printed
courtesy amount field by the Intelligent Character Recognition (ICR) system.
Check & List - Multiple payments on one list with a single check attached for the total- no
scannable remittance document attached.
Check and List Payment - A paper-based processing method in which the biller is sent a single
check representing multiple payments accompanied by a list of payments that it represents.
Check Bits - In data transmission, the bits inserted for error-checking purposes. After a segment
has been transmitted, a code corresponding to the segment is inserted, called the check bit. The
receiving device accepts the data segment, and checks’ the check bit to see if they agree.
Check Character - A character included within a bar code to detect errors. Its value is
calculated from the other characters in the code. Also Called Check Digit or Checksum.
Check Clearing - The process by which a check is presented to and accepted by the drawee
bank, the institution on which it is drawn.
Check Clearing for the 21st Century Act - a version of the “Check Truncation Act” introduced
by the House of Representatives as H.R. 5414 (9/02); also known as “Check 21”.
Check Digit - A single digit used to verify captured information is interpreted correctly.
Running an algorithm on one or more field of characters to be captured generates the digit. The
most common check digit is the Standard IBM mod 10.
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Check Digit Verification (CDVR) - A procedure used to determine the validity of a field; a
formula is used to compute the check digit value.
Check Power Encoding - Power encoding consists of using automated methods to determine
check amounts, then printing these amounts on the checks in machine-readable form at
high-speed, with minimal operator intervention.
Check Reconciliation Services - The process of matching issued and paid checks verifying a
business’s own record of checks written against the bank statement.
Check Retention (also known as Check Safekeeping) – A service financial institutions
perform by retaining paid checks. Companies can receive microfilm, microfiche, image
statements, CD-ROM image records, or access to images via the Internet or an intranet.
Check Retention Service - The bank retains paid checks and microfilm records. Copies of
checks can be obtained when needed.
Check Truncation – (1) The process by which essential information contained on a
conventional paper check is captured electronically and the electronic information, not the paper
check sent through the clearing system. (2) The practice of holding a check at the last point in
the clearing process and not returning it with the monthly statement.
Check Truncation Act – an act introduced by the Senate as S.3034 (10/02); this is also the
name of the act introduced by the Federal Reserve Bank (12/01).
Check Verification - A service used to verify or authorize that a check-writer and/or their
checking account information is valid and/or the account is in good standing.
Check Writer - Individual who has written a personal check (usually does not apply to the
presenter of a company check).
Checking Account Number - Second set of numbers (following the bank routing number)
appearing on the lower left hand corner of the check.
Check-Only Payments - Payments received without a remittance coupon or payment document.
Checkpoint - 1. A disaster recovery scheme. A copy of new computer activity is made
periodically. If there is a disaster, only data entered or changed since the last checkpoint is lost.
2. Information which is stored at a predetermined and regular interval in a database for the
purpose of permitting or facilitating restarting a job at any of these intervals.
Checks By Phone - A system that allows consumers to provide their checking account
information to a merchant over the phone, and a duplicate check (paper draft or electronic check)
is created for payment.
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Checks Deposited - Charge for depositing un-encoded checks. This charge includes the
encoding fee as well as the most distant, non-premium transit charge.
Checks Only Data Entry - Image application that allows image operators to key customer
payment information from checks processed through Pass 1 that have no related payment
document. Using the checks-only data, the host updates the account record. The operator can
also reject an item. This application creates logical document from the check images.
Checks Only Transaction - Payment received from a customer without a supporting payment
Checks Paid-Controlled Disbursement - Charge for the handling and posting of checks drawn
on and paid against a controlled disbursement account.
Checks Paid-Regular - Charge for the handling and posting of checks drawn on and paid
against a demand deposit account.
Checksum - An error-checking scheme in data communications. When a packet of data is sent,
the total of the ASCII character numbers represented by the data is sent along also. At the
receiving end, the ASCII characters are totaled, and that sum is compared to the checksum. If
they don’t agree, there’s been an error in transmission.
Child - In database management, data that is dependent on other data is the other data’s child.
Child Program - A second program which is executed by the main program you’re running.
The user is not required to instruct it to run.
CHIPS - Clearing House Interbank Payments System.
Chronological (Chron) Files - See Reading Files.
Chunk - See Node.
CICS - Customer Information Control System.
CIE - Customer Initiated Entry.
CIF - Customer Information File.
CIF (Cost, Insurance and Freight) - Same as C&F, except that insurance is also included in the
stated price.
CIM - See Computer Input Microfilm.
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FTP Industry Glossary
Cine Mode - 1. See Vertical Mode. 2. When human-readable data (e.g. microform) is recorded
on a filmstrip so that it can be read when held vertically. Also called vertical mode. See
Circuit - A means of two-way communications between two points.
CIS - Customer Information System.
City Bank - One of the three classifications of financial institutions corresponding to the three
basic clearing programs (city, regional, and country) operated by each Federal Reserve office. A
city bank is any bank located within the same city as the Federal Reserve office.
City Items - Checks drawn on banks located in Federal Reserve cities.
Claim Adjustment Reason Codes - A national code set for indicating the reasons for any
differences, or adjustments, between the original provider charge for a claim or service and the
current payment for it. This code set is used in the X12 835 Claim Payment & Remittance
Advice and the X12 837 Claim EDI transactions, and is maintained by the Health Care Code
Maintenance Committee.
Claim Attachment - Any of a variety of hardcopy forms or electronic records needed to process
a claim in addition to the claim itself.
Claim Number - A number which identifies the recipient’s or beneficiary’s records at the
Federal agency that authorizes the payment; usually a Social Security Number or an equivalent
identification number.
Claim Number Prefix - One or more alpha character(s) that precedes a claim number. These
letters indicate the type of claim for which benefits are being paid.
Claim Number Suffix - A one or two alphanumeric character that follows the claim number.
These characters indicate the type of claim for which benefits are being paid.
Claim Status Category Codes - A national code set for indicating the general category of the
status of health care claims. This code set is used in the X12 277 Claim Status Notification EDI
transaction, and is maintained by the Health Care Code Maintenance Committee.
CLASS - Custom Local Access Signaling Services.
Classification - Identifying a form image in order to select the correct processing template for
automatic recognition.
Classified Information - Records or information requiring, for national security reasons,
safeguards against unauthorized disclosure. See Administratively Controlled Information, Closed
File 2., Declassification.
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FTP Industry Glossary
Clean Draft - A draft submitted for collection without any shipping documents attached to it.
Shipping Documents have been mailed directly to the buyer by seller. These types of drafts are
used when there is an implicit trust from seller that buyer will pay.
Cleanliness - A measure of the absence of process dirt in paper.
Clear Area - A specified area that is to be kept free of printing or any other markings not related
to machine reading.
Clear Band - The area around the characters to be captured, which should be free of any
extraneous marks or data, which could interfere with the interpretation of the characters.
Clearing - The process of collecting the cash represented by a paper check, by presenting the
item at the drawer bank. Checks are cleared through the Federal Reserve System, Clearing
Houses an bank Direct Send Programs.
Clearing and Settlement – The process whereby banks collect or pay out for items drawn on or
paid into accounts in their institution.
Clearing Agent - An institution or organization to which a financial institution may deposit or
present checks for collection. A clearing agent may be the final paying institution or an
intermediary that will forward checks, possibly involving additional intermediaries, to the final
paying institutions.
Clearing Balance - The balance in an account maintained by a financial institution at a Federal
Reserve of correspondent bank.
Clearing Float - Time between the date the payee deposits the check and the date the payer’s
account is debited (a part of disbursement float). It has two components - availability float and
clearing slippage float.
Clearing House - An organization established by banks in the same locality, through which
checks and other instruments are exchanged and net balances settled.
Clearinghouse Association - A voluntary association of banks located in a geographic area
formed to facilitate the daily exchange of checks, drafts, and notes among its members and to
settle balances and rules for their mutual benefit.
Clearing House Interbank Payment System (CHIPS) - An independent message-switching
system that permits international financial transactions to be settled among New York banks.
CHIPS is operated by the New York Clearing House Association.
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Clearing Slippage Float - The delay between the time the payee receives collected funds and
the time the payer’s account is debited. Also called Fed float.
Client - A program or device that obtains services from another program or device in a computer
network. The other device is known as a server. In recognition-based remittance processing, the
workstation controller is a client, obtaining amount recognition services from the Recognition
Client-Server Architecture - A method of organizing computer networks so that programs or
devices known as clients can obtain services from other programs or devices, known as servers.
This type of architecture offers many advantages for information processing. See OCCA.
Client-Server Computing - Describes a computer system that stores information centrally on a
server application. When a client (workstation) makes a request from a server (may be a file
server or another workstation) for information, the server performs the look-up or query and
returns the results to the client.
Clipboard - What Apple calls the temporary cache of memory in a Macintosh where data is held
while it’s being copied from one place to another.
Clock - A device that records the progress of real-time or some approximation of it and whose
contents are available to a computer program. The timing device generates the basic periodic
signal used to control the timing of all computer-processing operations in a synchronous
Clock Mark - See Timing Mark.
Clock Pulses - Electronic pulses are emitted periodically to synchronize the operation of
computer circuits. Also referred to as clock signals.
Clock Rate - Refers to the rate at which words or bits are transferred from one internal computer
element to another.
Clock Track - A series of clock marks in a track on which a pattern of signals is recorded to
provide a timing reference.
Closed File - 1. A file unit or series containing documents on which action has been completed
and to which more documents are not likely to be added. 2. A file unit or series to which access
is limited or denied. See Administratively Controlled Information, Classified Information.
Closed For Cause - Closing of a consumer’s checking account by a financial institution due to
non-sufficient funds, unpaid fees, etc.
Closure - The ability to perceive the end of a document, path, or sequence of ideas.
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FTP Industry Glossary
Cluster - Group of terminals or workstations on the same system.
CLV (Constant Linear Velocity) - 1. A method for formatting information on disk. On CLV
media, data is arranged in one long spiral track. CLV has a higher storage density but slower
access than CAV media. See CAV. 2. The technique of adjusting the speed of a disc’s spinning,
so that the larger outer tracks (which normally would spin faster) can be slowed down and thus
hold more data than the smaller inner tracks. Used in CD-ROM.
CMC 7 - A font (set) of MICR characters that can be read by a MICR reader and. Used mainly
in Europe, it was developed by the European Computer Manufacturers Association.
CMYK - A color model based on the subtractive primary colors of cyan, magenta and yellow,
and black. Used in the printing process to generate color by laying transparent ink on film or
CO - Central Office.
COA – the abbreviation for “change of address”.
Coax - Slang for coaxial cable. Used in high-speed, high bandwidth data communications.
Coaxial Cable - A cable capable of passing a wide range of frequencies with very low signal
loss. A coaxial cable consists of a hollow metallic shield with a single wire accurately placed
along the center of the shield and isolated form the shield. The cable used as a hardwire link
between receiving equipment and originating equipment for the transmission of television
COBOL - Common business oriented language.
Co-Branded Card - A credit card issued by a financial institution bearing the logo of another
company that has a commercial purpose.
COD - Cash on delivery.
Codabar - A barcode symbology whose symbols consist of characters made up of four bars with
three spaces.
Code - 1. See File Codes. 2. In electronic record keeping, a set of rules to convert data from one
form of representation to another. Also called a computer code. Examples include ASCII
(American Standard Code for Information Interchange) and EBCDIC (Extended Binary Coded
Decimal Interchange Code). 3. A systematically arranged collection of laws or regulations, such
as the United States Code (USC) or the Code of Federal Regulations (CFR). 4. A bar or pattern
of bars representing predetermined data.
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FTP Industry Glossary
Code 39 - A barcode symbology whose symbols consist of characters with nine elements, of
which three are wide.
Code 128 - A barcode symbology able to represent the 128-character ASCII character set.
Code Density - The number of data or message characters which can be represented per unit
length of space.
Code Line Data - A set of alphanumeric data encoded (machineprinted) on a check, remittance
coupon, or other financial document, typically near its bottom edge in a MICR or OCR font.
Code fine data are commonly divided into fields and can be read by devices such as MICR or
OCR readers.
Code of Federal Regulations (CFR) - See Code 3.
Codec (Coder-Decoder) - A device (actually a circuit chip) that converts analog input into
digital form, and digital into analog.
Coding - 1. The process of putting abbreviated file designations on documents. See File Codes,
File Designation. 2. The process of writing a computer program. See Code 2.
COFF - Cutoff.
Coin Envelope - Small open-end style with a single side seam. Used for currency transfer and
by some businesses to hold small parts. Very similar to the Bank Drive-Up style, but with the
side seam sealed and the seal flap gummed.
Coin Rolls - Charge for each coin roll received as deposit or issued for withdrawal.
COLA (Cost of Living Adjustment) - Periodic change in wages designed to compensate for the
effects of inflation.
COLD (Computer Output to Laser Disk - 80’s definition, or Computer On-Line Data - 90’s
definition) - An acronym that refers to systems that can efficiently store and retrieve computer
generated reports and documents, such as greenbar reports and form based documents, such as
invoices, purchase orders, and statements. An electronic version of microfiche.
Collate - To arrange in a set order. Microfiche duplicates are collated or arranged in such sets by
a device located at the output end of a microfiche duplicator known as the collator.
Collateral - Something of value (land, a home, a car, etc.) that is pledged as security to ensure
the payment of a debt. Collateral is promised to a lender until a loan is repaid. If the borrower
defaults, the lender has the right, by law, to seize the collateral.
Collateral-Based Income Streams - Cash flow instruments that are secured by collateral.
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FTP Industry Glossary
Collator - In production, the machine used for assembling the part of a business form either
from sheets or from paper and carbon rolls.
Collected Balances - Also referred to as good funds, available balances, or usable balances.
Definitions may vary slightly among banks. Those bank balances representing deposits for which
the depository bank has received payment from a paying bank and which can be used by the
corporation for compensation or withdrawal. Also, the difference between ledger (or book)
balances and float. Collected balances may be used to cover the cost of services provided by the
financial institution.
Collected Funds - Funds for which final payment has been received.
Collected Overdraft Rate - Annual interest rate charged each day for the amount of negative
collected balances.
Collectibility - Refers to the funding source’s ability to collect future income stream payments
once they are purchased.
Collection Charges - 1. A fee that is assessed by banks for collecting a draft, opening letters of
credit, or negotiating letters of credit, transmittal of documents, etc. 2. Charges added to the
delinquent account balance to offset (all or in part) the cost of outside collection activity.
Collection charges can only be added when the document creating the debt advised the debtor
that collection charges will be added if the account must be sent to an outside collection source
for resolution.
Collection Float - The delay between the time the payer mails a check and the time the payee
receives available funds. It has three components: mail float, processing float, and availability
Collection Speed - The average number of days from the time of receipt of a check to the time
the bank attains use of the funds. Average collection speed is generally calculated by dividing
the average amount of float by the average daily volume.
Collimated - In optics, the condition where all the light rays are parallel, or multiple light paths
are made parallel.
Collusion - Secret agreement among individuals or corporations for illegal purposes, such as
fixing prices.
Co-Location - Most often used to refer to having a server that belongs to one person or group
physically located on an Internet-connected network that belongs to another person or group.
Usually this is done because the server owner wants their machine to be on a high-speed Internet
connection and/or they do not want the security risks of having the server on their own network.
See Internet, Server, Network.
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FTP Industry Glossary
Color - The spectral appearance of the image, dependent upon the spectral composition of
incident light.
Color Drop Out Form - A form with some or all of the background information printed in an
ink color that won’t be read by the scanner. For example, any portion of a form printed in red ink
will not be read by a scanner with a red bulb.
Color Gamut - Range of color available on a particular device.
Color Management System - Hardware and/or software that automatically translates color data
to and from different color spaces and adjusts color data to accommodate differences in color
technologies and color gamuts.
Color Target - A sample image used to measure a scanner’s color performance during a
calibration procedure.
Colorado - CO
Column - The vertical arrangement of data frames on a microfiche, usually designated by
number. The vertical arrangement of entries on an index frame.
COM (Computer Output Microform) - The process of converting data (having been input by a
number of means) to microfilm or microfiche.
Comic Mode - 1. See Horizontal Mode. 2. When human-readable data (e.g. microform) is
recorded on a filmstrip so that it can be read when held horizontally. Also called horizontal
mode. See Cine-Mode.
Commercial Envelope - The most common and widely used style. Has an open side and
diagonal seams. Available as regular or window in #6-¼, 6-¾, 7, 7-¾, 8-5/8, 9 & 10.
Commercial Letter of Credit - Letter of credit issued by a bank to another bank on behalf of a
commercial customer stating that payment will be made if documents are presented as provided
in the credit agreement.
Commercial Paper - An unsecured promissory note issued for a specific amount with a
maturity of 270 days or less.
Commercial Relationship - An agreement between parties to do business together for the
purpose of EBPP. It may or may not include a contract.
Commercially Reasonable - A commercially reasonable system, technology, practice or
procedure is one that corresponds to commonly accepted commercial practices among
commonly situated Originators conducting similar types of business.
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Commercially Reasonable Security Procedures - A security procedure for the transmission of
payment orders which meets the relevant tests under the Uniform Commercial Code Article 4A.
Commercially Reasonable Time Frame - A period of time generally considered acceptable for
a process within a given industry, taking into consideration the circumstances of the parties to
the transaction.
Commingling - Combining mail of different characteristics into a single bulk mailing.
Commission - Fee paid to a broker for executing or referring a cash flow transaction.
Commitment Fee - A component of pricing for a line of credit. A percentage fee, either on the
total amount of the commitment or on the unused portion of the commitment.
Commodity - Any good exchanged in trade. Usually refers to raw materials and agricultural
products traded principally on the basis of price.
Compact Disc - A trademarked name for the optical read-only disc (12 cm in diameter)
originally developed by Sony and Phillips for audio. The information is read by laser beam.
Compact Disc as Programmable Read-Only Memory (CD-PROM) - This type of CD-ROM
disc can be written once by the user and thus can be programmed. See PROM.
Compact Disc Read-Only Memory - A version of the Compact Disc for storage of digital data.
User capacity is 556 MB.
Company - A business entity that creates paperless entries for introduction into the ACH
Company Batch/Header Record - The record(s) contained within an ACH file that describes
the Originator(s) of an ACH transaction(s) and the types of transactions within that batch.
Company Identification Number - The number in the Company Batch/Header Record that
identifies the Originator to the ODFI.
Company Processing Center - A collection system in which the company does its own processing and depositing of payments.
Compare with Previous Amount - An amount entry validation that compares an amount rekeyed with the prior amount keyed.
Compensating Balances - Amount of collected balances bank customers must maintain in
accounts to compensate for bank services and credit accommodations.
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Competitive Analysis - Analyzing the magnitude and rationale for the gap between one’s own
organizational performance measures and the performance measures of competing organizations.
Compile - For computer languages. Analysis of the computer instructions that are described in
the language and generation of the appropriate machine-readable instruction file(s) to be
executed by the computer.
Compliance Labeling - Barcode label requirements issued by industries and individual
companies. Label size, configuration, content, print quality, symbology and other requirements
may be specified.
Composite Receivers’ File (CRF) - A file listing all depository financial institutions qualified
to receive ACH entries. Call your association office to subscribe. The CRF is available from the
FRB as magnetic tape for direct computer input, or on microfiche.
Composite Video - The standard TV signal in which all the colors and the signaling (vertical
and horizontal controls) are sent together. Unlike RGB, in which the red, green and blue signals
are separate.
Composition - Assembly of camera-ready art (type rules and other form components such as
screens, logos, etc.) to be used in the production of the form.
Compound Document - A document that contains information in several formats; text,
graphics, and image.
Compound Interest - Interest earned on previously accumulated interest as well as the
Comprehensive Records Schedule - A schedule or collection of schedules based on
NARA-approved disposition authorities and issued as a directive or manual to cover all the
records of an independent agency or department, or those of a bureau, service, or office within a
department. Should also include instructions for non-record materials, whose disposition is based
on agency needs. See Records Schedule.
Compression - 1. A software or hardware process that shrinks images so they occupy less
storage space, and can be transmitted faster and easier. Generally accomplished by removing the
bits that define blank spaces and other redundant data, and replacing them with a smaller
algorithm that represents the removed bits. 2. In data formats: Reducing the amount of computer
or media storage that is required to hold the required data. A common technique is to substitute a
repeat count and one character of the data to replace a long string of data characters. 3. The
process of reducing the size of image files captured so that they can be transmitted faster and
take less space to store. Images are compressed before being transmitted and stored, and
decompressed before being displayed or printed.
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Computer - An electronic device designed to accept data (input), perform prescribed
mathematical and logical operations at high speed (processing), and supply the results of these
operations (output). A digital computer processes data as numbers and includes mainframe
computers, minicomputers, and microcomputers. In contrast, an analog computer represents data
by measurable quantities, such as voltages. See Analog, Digital, Local Area Network,
Mainframe Computer, Microcomputer, Minicomputer, Office Automation.
Computer Assisted Retrieval - The capability to have images located and displayed or
identified by commands initiated through a computer or similar console. Generally abbreviated
Computer Based Training (CBT) - Lessons or classes designed for self-study from computer
programs (often on diskette or CD-ROM).
Computer Code - See Code 2.
Computer Input Microfilm - The process of reading data contained on microfilm by a scanning
device and transforming this data into a form suitable for computer use. Synonymous with CIM.
Computer Output Microfilm - The process of converting computer generated signals into
images on microfilm (usually at high speeds) which are human readable. Also, the end film
product resulting from this process.
Computer Output Microfilmer - A recorder that converts data from a computer into human
readable language on film at a reduced size (e.g., 1/24th, 1/42nd, or 1/48th original size).
Computer Printout - See Printout.
Computer Readable - Data that is in a format, such as ASCII, or on a medium, such as disks,
tapes, optical discs or punched cards that a computer can understand. Same as machine-readable.
Computer System - A configuration, or working combination, of hardware, software, and data
communication devices. See Electronic Records, Information System, and System Manager.
Computer-Aided Engineering (CAE) - See Architectural and Engineering Records.
Computer-Aided Manufacturing (CAM) - See Architectural and Engineering Records.
Computer-Assisted Locator (CAL) System - A computer system that keeps track of
documents as they circulate through an agency.
Computer-Assisted Retrieval - Indexes for information stored on micrographics or other mass
media can be stored in computer memory.
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Concatenation - The ability of a reading system to join together data from multiple scan lines
and interpret it as a single message.
Concentration ACH - Charge for transfer of funds from one account to another by use of the
ACH. Electronic items are directly credited to a specific account at the concentration bank.
Concentration Maintenance - Monthly fixed charge per account for users of the cash
concentration product.
Concentrator - A financial institution or a third-party service provider that has been retained by
a biller to handle payment and/or remittance data.
Concept-Based Retrieval - A textual search based on a concept rather than an exact word
match. A concept automatically defines a list of search terms, phrases, and rules. Accomplished
at various levels of sophistication through various tools and methodologies (i.e. a Synonym list,
Thesaurus, Topic definitions, Concept based Clustering). Also known as Concept Searching.
Concurrency - The process of running two or more programs at the same time. Concurrency
allows for more efficient usage of the hardware and the operator’s time. In the case of COM, a
concurrent function is that of building job setups at the same time as producing microfiche.
Conditional Segment - Within a transaction set, a specified data element that is present or not
depending on the value or presence of other data elements in the segment.
Conference Call - Telephone call among three or more people.
Confidence Level - A value given by recognition software for each character read indicating
how sure the recognizer was about its result. Low confidence indicates the character should be
checked by some other means.
Confidence Limits - The two values that define the confidence interval.
Configuration - The way a hardware or software system is set up to perform a specific task.,
Hardware configuration means the particular combination of hardware features and options with
which a particular piece of hardware is equipped. Software configuration means two things: the
combination of software products installed on the system, and the process of using software tools
to customize the way this software works.
Confirmation - A notice verifying that a transaction has been completed or verifying a request
for a transaction has been received.
Conglomerate - Corporation made up of many companies engaged in unrelated businesses.
Connecticut - CT
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Consecutive Numbering - Numbers preprinted in series on forms, normally by mechanical
numbering machines that are mounted on the press or collator.
Consolidator - A Biller Service Provider that consolidates bills from other Bill Service
Providers or Billers and delivers them for presentment to the Customer Service Provider.
Consortium - A group pursuit of a common objective.
Constant Angular Velocity (CAV) - Each frame of the videodisc can be addressed separately;
the videodisc rotates at 1800 revolutions per minute (one revolution per frame). CAV discs are
used in interactive and intelligent videodisc programs.
Constant Linear Velocity (CLV) - Each frame of the videodisc cannot be addressed separately;
the disc is labeled extended play and has a longer playing time per side than the CAV disc.
Constraint Boxes - See Guide Boxes.
Constraints - Boundaries placed on a data field to ensure that users enter the data correctly.
Constraint ranges from a straight line for the field to a separate box for each character to be
Construction Drawings - See Architectural and Engineering Records.
Consultant - An individual working as an independent contractor in supplying professional or
technical services to a corporation.
Consumer - Usually refers to a natural person not engaged in commercial transactions.
Consumer Account - A deposit account held by a participating DFI and established by a natural
person primarily for personal, family or household use, and not for commercial use.
Consumer-Based Income Streams - Cash flows in which the party that owes payments is a
consumer, a private individual.
Contact Printing - A method of copying film in which the raw stock is held in contact with film
bearing the image to be copied.
Content Management - The delivery of business-critical information to consumers or businessto-business customers by drawing data from disparate sources. The composed documents may
contain billing data, customer service information, marketing messages or other types of content.
ACH Direct clients manage this process through tools, which empower them to control this
critical information flow to customers.
Contention - What ifs called when two or more users try to access the same device at the same
time. There are collision prevention techniques to solve contention problems in LANs.
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Context Checking - A method for checking for errors in text fields using the probability that
certain character sequences will occur. Context checking also refers to any means for verifying a
recognized field by comparing it to other data read from the same form.
Contextual Search - To locate documents stored in a system by searching for text that appears
in them, rather than by searching for them by file name or other indexing technique.
Contiguous - Placed adjacently, one after another.
Contingency-Based Income Streams - Cash flows in which the recipient is not necessarily
legally entitled to receive payments, or in which the amount of the payment is uncertain or
contingent upon outside factors.
Contingent Fee - A collection charge based on a percentage of the amount collected. This is
how most conventional collection sources charge for their services.
Contingent Records - Records scheduled for final disposition after the occurrence of an event at
some unspecified future time, such as the decommissioning of a vessel.
Continued Preservation - See Permanent Records, Preservation Records.
Continuing Value - The lasting value of records, especially of permanent records. See
Permanent Records.
Continuity Reference Form - A form, such as OF 22, used to replace a record that has been
moved to another location in the file. Often indicates that correspondence has been brought
forward from a cutoff subject file for attachment to correspondence in the current year’s file.
Continuous Code - A symbology where the space between characters is part of the code.
Continuous Form - Forms attached to one another vertically to permit continuous, uniform
feeding to a printing device.
Continuous Process - Ongoing improvement of business process in terms of quality,
improvement cost, or cycle time.
Continuous Symbol - A barcode symbol with no gaps between characters. All spaces within
the symbol are parts of characters.
Continuous Tone - A photographic image that contains gradient tones from black to white.
Contract Specification - A detailed, legal statement of particulars that prescribe how something
will be built and will perform.
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FTP Industry Glossary
Contrast - The range between the lightest tones and the darkest tones in an image.
Control Character - A character whose occurrence in a particular context initiates, modifies or
stops an operation; e.g., a character that indicates the start of a field.
Control Document - Used by the system to control the processing of work and to divide work
into logical units. Examples are batch header tickets, lead tickets, and end of batch tickets.
Control Panel - A part of control console that contains manual controls.
Control Segment - A segment within an EDI transaction set which carries control information
for grouping data segments.
Control Total - A sum of numbers accumulated from specified record fields of a batch of
records, determined repetitiously during the processing operations so that any discrepancy from
the control indicates an error.
Controlled Disbursement - A cash management service that provides same-day notification,
usually by early or mid-morning, of the dollar amount of checks that will clear against the
controlled disbursement account that day.
Controller - A functional electronic and software subsystem which provides independent
detailed control of a peripheral device or data path in response to commands from the central
processor (i.e., host computer).
Convenience Files - Non-record copies of correspondence, completed forms, and other
documents kept solely for ease of access and reference. See Technical Reference Files, Working
Convention - In the context of EDI transactions, an agreement among members of a particular
industry on how to consistently format and treat the contents of a generic transaction set (such as
the 820).
Conventional Collection Sources - Collection agencies, attorneys, or credit bureaus that charge
for their services on a contingent-fee basis (i.e., they keep a percentage - typically 33 to 50
percent of what they collect).
Conversion - Procedure by which a program recording on one format is transferred to another
format, e.g. paper to microform, microform to electronic information.
Convert - To change the representation of data from one form to another without changing the
information they convey.
Convertible Bond - A type of bond convertible into shares of the company’s common stock at a
defined price.
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FTP Industry Glossary
COO - Chief operating officer.
Cookie - The most common meaning of Cookie on the Internet refers to a piece of information
sent by a Web Server to a Web Browser that the Browser software is expected to save and to
send back to the Server whenever the browser makes additional requests from the Server.
Depending on the type of Cookie used, and the Browser’s settings, the Browser may accept or
not accept the Cookie, and may save the Cookie for either a short time or a long time. Cookies
might contain information such as login or registration information, online shopping cart
information, user preferences, etc. When a Server receives a request from a Browser that
includes a Cookie, the Server is able to use the information stored in the Cookie. For example,
the Server might customize what is sent back to the user, or keep a log of particular user’s
requests. Cookies are usually set to expire after a predetermined amount of time and are usually
saved in memory until the Browser software is closed down, at which time they may be saved to
disk if their expire time has not been reached. Cookies do not read your hard drive and send
your life story to the CIA, but they can be used to gather more information about a user than
would be possible without them. See Browser, Server.
Coordinates - The divisions of the scanning area.
Co-op Mailing - Mailing in which two or more businesses or other organizations include
material in the same mail piece in order to lower the mailing cost to each business or
Coordinates - The divisions of the scanning area.
Coordination of Benefits (COB) - A process for determining the respective responsibilities of
two or more health plans that have some financial responsibility for a medical claim. Also called
Copy - A duplicate of the original. A digital copy (from CD to CD, for instance) will be
perfectly identical. The condition is binary; the signal is either on or off, no noise in between.
An analog copy (from mag tape to mag tape, for instance) will likely degrade each time a copy is
made (called generations) because of tape noise.
COR - Automated Notification of Change/Refused Notification of Change.
Core Competencies - Strategic business capabilities that provide a company with a marketplace
Corner Card (Envelope) - The printed name, address, etc. appears in the upper left-hand corner
of the envelope.
Corner Cut - Diagonal cut on one comer of a form so proper alignment can be maintained in a
batch of documents.
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FTP Industry Glossary
Corona Wire - A fine metal wire that functions to impart a positive or negative charge.
Corporate Payments – Payments used by businesses to pay other businesses for goods and
Corporate-to-Corporate Payments - Payments made through the ACH Network by trading
partners, normally using the CCD, CCD+ or CTX formats.
Corporate Trade Exchange (CTX) - Electronic payment format for corporate-to-corporate
payments that contains additional addenda records in the ANSI ASC X12 format.
Corporate Trade Payment (CTP) - A payment made between corporations through the ACH
Corporate Trustee - As a trustee for a corporate bond or preferred stock issue, a financial
institution monitors compliance with the indenture agreements between issuers and investors.
Corporation - A legal entity, chartered by an U.S. State or the federal government, and separate
and distinct from the persons who own it. The courts regard it as an artificial person; it may own
property, incur debts, sue or be sued.
Correspondence - Letters, postcards, memorandums, notes, telecommunications, and any other
form of addressed, written communications that are sent and received. See General Correspondence Files Transitory Correspondence Files.
Correspondent Balances - Demand deposits held by one bank at another bank to facilitate
check clearing, securities, letters of credit and other transactions.
Correspondent Bank - A bank that serves as depository and prefers banking services for other
banks, usually located out of town.
Cottage Industry - Business or industry in which goods are produced primarily in the home of
the producer.
Counter - 1. A mechanical or electronic device cleared manually or by program control and
incremented by program control to record information useful to the operation, such as number of
lines scanned. 2. A number on many web pages that will count the number of hits or count the
number of times the page has been accessed. Basically, it counts the number of people that have
visited that page.
Counter-Trade - Method of payment, typically an exchange of merchandise, used by companies
lacking access to sufficient hard currency to pay for imports.
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Country Bank - One of the three classifications of financial institutions corresponding to the
three basic clearing programs (city, regional, and country) operated by each Federal Reserve
office. A country bank is any institution located outside the boundaries of the area serviced by
the Federal Reserve’s Regional Check Processing Center (RCPC).
Country Items - Checks drawn on banks located outside the area served by a Fed city or RCPC.
Coupon - See Stub. Also referred to as a stub, bill, statement, remittance advice, or turnaround
document; the portion of the bill sent to a customer that is returned with the check; has the
customer account number and the amount owed on the document, normally, in the scan line.
Courtesy Amount (U.S. and Canada) - The amount appearing on a check in handwritten or
machine-printed numerals, as opposed to the amount written out in words.
Courtesy Amount Recognition (CAR) - 1. A software program that recognizes handwritten
or machine-printed courtesy amounts on checks. 2. The ability of a computer system to find and
recognize the handwritten or machine printed numeric courtesy amount on a check or other
financial instrument.
Courtesy Reply Mail - Mail that is preaddressed and pre-bar coded to facilitate return to the
distributor of it. Courtesy reply mail does not carry prepaid postage.
Covenants - Provisions in loan agreements that restrict a borrower’s activities in ways that
protect the lender during the term of the agreement.
CPA (Canadian Payments Association) - This is the association that administers the standards
for MICR encoded checks in Canada.
CPCS (Check Processing Control System) - This is IBM’s check processing software. It
supports both traditional and image processing.
CPE - Customer Premises Equipment.
CPI (Characters Per Inch) - The density of characters per inch on tape or paper. See Pitch.
CPP (Customer Payment Provider) - An agent of the Customer that originates payments on
behalf of the Customer.
CPS - Characters per second.
CPU - See Central Processing Unit.
CPUP (Customer Profile Update Processing) - An optional enhancement to the Change of
Address Detection (CHADD) Subsystem. CPUP automates the form resolution and legacy data
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entry procedures, employing human intervention only to verify the results of the forms
recognition (ICR) process.
Cracker - A person who breaks into a site through a computer’s security. While Basically the
same thing as a Hacker, a Cracker is sometimes considered to be more malicious and destructive.
Crash Imprinting - Imprinting of numbers and other data through all copies of a multiple part
form set by mechanical numbering machines and relief plates on a collator.
CRC (Cyclical Redundancy Checking) - An error checking technique in data communications.
A CRC character is generated at the transmission end. Its value depends on the hexadecimal
value of the number of ones in the data block. The receiving end makes a similar calculation and
compares its results with the sending machine’s result. If there is a difference, the recipient
requests retransmission.
Creation - See Records Creation.
Credit - An entry to the record of an account to represent the transfer or placement of funds into
the account.
Credit Bureau - Company that compiles and maintains information on consumer credit and
provides the information to potential creditors for a fee.
Credit Card Authorization Services - Service used by merchants to verify payment during a
credit card transaction.
Credit Deposit - The value of a merchant’s credit card purchases that are credited to its bank
account after the acquiring bank buys the merchant’s sales slips. The deposit is credited but is
not funded until the acquiring bank gets the monetary value from the issuer during settlement.
Also referred to as Deposit Credit.
Credit Enhancement - Use of an indemnity bond or letter of credit to back a debt issue, thereby
substituting the creditworthiness of the guarantor for the borrower’s creditworthiness.
Credit Loss - The amount lost (charged off) as a result of failure of the cardholder to repay the
amount owed on the account.
Credit Posting - Charge associated with the posting of a credit to a demand deposit account.
Credit Rating - Evaluation of an individual or corporation’s history of repaying past loans.
Credit ratings are used as a benchmark to assess the future ability of a creditor to pay back loans.
Credit Risk - The risk that a party to a transaction cannot provide the necessary good funds, as
previously committed by files originated, in order for settlement to take place.
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Credit Scoring - Statistical analysis used to estimate the creditworthiness of credit applicants.
Credit Transaction - A payment transaction that pushes funds from the CSP or CPP to the BPP.
Creditor - Individual or business to which money is owed.
CRF - Composite Receivers File.
Crippled Account Statement - An account statement with a missing item or extra item.
Cropping - Removing pixels (picture elements) inside or outside of a specified area within an
image, so that a smaller portion of the original image can be displayed or otherwise processed.
Cropping is one of the functions provided by Enhanced IPS Imaging Extensions software.
Cross-Border Payments - ACH payments made between accounts in different countries, from
the payment system on the country of origin through a Gateway Operator to the payment system
of the country of receipt. Conversion to and from the different currencies and payment formats
is transparently done by the Gateway Operator.
Cross-Footing - The accumulation of the columns of figures or fields from a matrix wherein
each horizontal line has a total and the sum accumulated equals the sum of totals.
Cross-Interleaved Reed-Solomon Code (CIRC) - Using a sophisticated method of error
detection and correction (a layered error correction code) that involves techniques of data delay
and data rearrangement techniques, corrected data can be one bit error in a trillion bits. CIRC
detects and corrects up to two errors in one code word and interpolates for long error bursts. The
maximum completely correctable error burst length is 4,000 data bits, and the maximum worst
case interpolatable curst is 12.300 data bits assuming that no random errors occur at the same
Cross-Reference - In files management, a finding aid, such as OF 21, directing a user from one
place in a file to another when a particular document must be retrievable under more than one
filing feature. See Filing Feature, Index 1.
CRSP - Commercially Reasonable Security Procedure.
CRT (Cathode-Ray Tube) - The glass, vacuum display device found in television sets and
computer terminals.
Cryptographic - Referring to data encryption.
CSMA/CD - Carrier Sense Multiple Access/Collision Detection (LAN standard for on-LAN
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CSP (Customer Service Provider) - An agent of the Customer that provides an interface
directly to customers, businesses or others for bill presentment. CSP enrolls customers, enables
CSR - Customer Service Representative Computer Telephony Integration.
CST - Central Standard Time.
CTI - Computer Telephone Integration.
CTX - Corporate Trade Exchange.
Currency Per Strap - Charge for each standard strap of currency (usually $1,000) deposited or
Currency Swaps - Agreements between borrowers with debt in different currencies to exchange
payments in different currencies. They are normally arranged through financial institution
Current Day Balance and Activity Reporting - Per item charge associated with the delivery of
current day transaction detail and current available and ledger balances.
Current Records - Records necessary to conduct the current business of an office and therefore
generally maintained in office space and equipment. See Non-Current Records, Semi-Current
Cursor - The symbol on a screen that shows where the next activity will take place. Graphics
programs often change the shape of the cursor, depending on what action the computer is
programmed to take next.
Curve Tracing or Following - This scanning technique is accomplished by tracing the
character’s curvature; the recognition unit determines certain features that it used to identify the
Custody - Guardianship, or control, of records, including both physical possession (physical
custody) and legal responsibility (legal custody), unless one or the other is specified.
Custom Form - Form manufactured to client order in all respects as compared to stock form,
Customer - A person or business who purchases goods or services from you.
Customer Consolidation - One of four models of electronic bill presentment and payment
(EBPP). Bill content and payment instructions and/or a payment mechanism are sent to the
customer via e-mail. Other models include: Biller Direct, Thick Consolidator and Thin
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Customer Information File (CIF) - A database containing a financial institution’s customer
Customer Initiated Entry (CIE) - These are ACH entries initiated by a consumer through
direct contact with an originator such as a bill payment system.
Customer Transactions - Outbound invoices, statements and bills from clients to their
customers and inbound payments received from customers to clients.
Customer’s Payment - An amount credited or debited to a customer’s account. See Payment.
Cut and Paste - The process of moving data from one application to another, usually with a
Cut Sheet - Individual form-sheets not printed in continuous form fashion or the end product of
a continuous forms press employing a sheet cut-off.
Cutoff - Breaking, or ending, files at regular intervals, usually at the close of a fiscal or calendar
year, to permit their disposal or transfer in complete blocks and, for correspondence files, to
permit the establishment of new files. Case files are generally cut off at the end of the year in
which the case is closed. Cutoff is sometimes abbreviated as COFF and is also called file cutoff
or file break. See Block 1.
Cyber banking – Full-service banking, anytime, anywhere, on an electronic network.
Cyberpunk - Cyberpunk was originally a cultural sub-genre of science fiction taking place in a
not-so-distant, dystopian, over-industrialized society. The term grew out of the work of William
Gibson and Bruce Sterling and has evolved into a cultural label encompassing many different
kinds of human, machine, and punk attitudes. It includes clothing and lifestyle choices as well.
See Cyberspace.
Cyberspace - Term originated by author William Gibson in his novel Neuromancer the word
Cyberspace is currently used to describe the whole range of information resources available
through computer networks.
Cycle - A time interval in which a characteristic or repeated event occurs. In a graphics system
most processing is said to run in machine cycles.
Cycle Billing - The preparation of monthly cardholder statements by group (cycle) for the
purpose of evenly distributing the workload and receipt of cardholder payments.
Cycle Item - A document associated with a particular cycle.
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Cycle Sort - A system used to sort Demand Deposit Accounts into groups by date for bulk
filing. Exception items are also sorted to the appropriate pocket during cycle sort. The module
may also produce exception reports.
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-DD&B - Dun & Bradstreet.
DACS - Digital Access and Cross Connect System.
Daily Cash Position - A daily cash position assists a cash manager in determining a company’s
cash needs. Information about incoming and outgoing wire transfers, collection of large accounts
receivable, clearing of large disbursement items, and Automated Clearing House
Daisy Chain - The connection of multiple devices to a SCSI channel.
Daisy Wheel - A printer that uses a rotating wheel with spokes. Mounted on the spokes are the
various characters. The wheel rotates, bringing the character in line with the paper, then a
hammer strikes the character against the ribbon, forming an image on the paper. Daisy wheel
printers print letter quality, but are slow.
Dark Line Image - Same as positive image. The letters and characters are dark, and the
background is light.
DASD (Direct Access Storage Device) - Any on-line data storage device. A disc, drive or
CD-ROM player that can be addressed is a DASD.
Dashboard - A set of metrics, usually not more than five or six, that provides an at-a-glance
summary of a Six Sigma project’s status. Every participant in a Six Sigma deployment -- from
the CEO to a factory floor worker -- should have his or her own dashboard with function- and
level-appropriate data summaries.
DAT (Digital AudioTape) - A technology that records noise-free digital data on magnetic tape.
Generally used for audio, a DAT cassette can hold up to 2 gigabytes when adapted for data
Data - A representation of facts, concepts or instructions in a formalized manner, suitable for
communication, interpretation or processing.
Data Bus - A piece of computer hardware that transmits coded data in either parallel or serial
mode between processors or other hardware components in a computer system.
Data Capture - The electronic collection of merchant bankcard sales draft receipts directly from
the merchant’s point-of-sale terminal or electronic cash register.
Data Center - Physical location of computers; where computer operations department manages
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Data Collection - The act of bringing data from one or more points to a central point.
Data Communications - The movement of data between points, including all the manual and
machine operations necessary for this movement. Contrast with data transfer.
Data Compression - Reducing the amount of electronic space data takes up. Methods include
replacing blank spaces with a character count, or replacing redundant data with shorter stand-in
codes. No matter how data is compressed, it must be decompressed before it can be used.
Data Dependent Data - Information which is changed by the information that precedes it.
Data Dictionary - A manual that defines the content and definition of data elements used in
building a particular transaction set.
Data Element - In electronic record keeping, a combination of characters or bytes referring to
one separate item of information, such as name, address, or age.
Data Encryption - The scrambling of sensitive information, such as account numbers or access
codes, to prevent unauthorized use. The Data Encryption Standard (DES), the encryption format
adopted by the financial industry, requires that information scrambling take place in a computer
or terminal before transmission.
Data Encryption Standard - A technique by which a message is scrambled into an
indecipherable stream of bits for transmission.
Data Entry - Method of utilizing computers which permits the entry and verification of data into
the system, allowing selective sorting, searching, reporting and auditing.
Data Exchange - The method by which multi-bank reporting is gathered. An arrangement is
established by which one of a company’s financial institutions or a third-party reporting service
gathers and consolidates account balances and transaction activity from each of the
Data Extract - See Extract.
Data Field - A specific area of an electronic record allocated for a particular category of data,
usually one data element, such as a name. See Logical Record, Record Layout.
Data File - Set of related data in which all records are organized alike and which can be
accessed under a single name.
Data Flow - The path of transmitting data; from source to final location.
Data Frame - A unit of information, represented as a page or two of data, including the margin
around the frame.
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Data Header - User-defined title for a data frame.
Data Identifier - A barcode character (or string of characters) that defines the general category
or specific use of the data that follows.
Data Interchange Standards Association (DISA) - A non-profit organization which serves as
the coordinating body and secretariat for the ANSI Accredited Standards Committee X12, and
which serves as a clearing house for information about electronic commerce and EDI.
Data Mapping - The process of matching one set of data elements or individual code values to
their closest equivalents in another set of them.
Data Model - A conceptual model of the information needed to support a business function or
Data Prep - Also Data Preparation. The new function created by Image check processing. The
area is responsible for preparing checks for high-speed image scanning. Paper clips and tapes are
removed, and checks are placed in trays with special control.
Data Processing (DP) - Systematically performing a series of actions with data. May be done by
manual, mechanical, electromechanical, or electronic (primarily computer) means. Often used
interchangeably with automatic data processing (ADP). See Automatic Data Processing (ADP),
Information Resources Management (IRM).
Data Records - See Data, Electronic Records.
Data Segment - A predefined set of functionally related elements within a transaction set.
Data Set - A collection of related data. Usually refers to the part of the data to be viewed, but
can also include indexing information, commands, printing parameters, etc.
Data Transfer - The movement of data inside a computer system.
Data Transmission - The electronic exchange of information between two data processing
points (computers).
Database - Data that has been organized and structured in a disciplined fashion, so that access to
information of interest is as quick as possible. Database management programs form the
foundation for most document storage indexing systems.
Database Management - This software program can be thought of as a computerized filing
cabinet full of information that comes with a superior indexing system. DBM software allows the
user to create a database and store and retrieve any type of information. This kind of software
program allows speed of access and the ability to automatically produce reports. A Database
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Management System (DBMS) is a set of programs designed to organize, store and retrieve
machine readable information from a computer-maintained database or databank.
Database Management System (DBMS) - A software system used to access and retrieve data
stored in a database.
Datarom - Used by Sony as an acronym for their 5.25-inch optical read-only memory disk. Also
referred to OROM (Optical Read-Only Memory).
Day Cycle - The first scheduled time for the Federal Reserve system’s interregional transmission
of data from Originating ACHs to Receiving ACHs. Also referred to as the daytime window.
Day Files - See Reading Files.
Daylight Overdraft - An intra-day exposure of a bank when an account is in an overdraft
position at any time during the business day.
Days’ Sales Outstanding (DSO) - A credit measurement ratio calculated by dividing accounts
receivable outstanding at the end of a time period by the average daily credit sales for the
DBA - Doing business as.
DBMS - Database Management System.
DCE - Data communication equipment.
DDA - See “Demand Deposit Account”.
DDE (Direct Data Entry) - Direct access to the Fiscal Intermediary Standard System (FISS) for
claim entry, correction and status as well as beneficiary eligibility verification.
DDE (Dynamic Data Exchange) - A process by which two Windows programs communicate.
DDS (Digital Data Storage) - A DAT format for storing data. It is sequential and chronologicalall data that is recorded to the tape falls after the previous block of data.
Death Notification Entry - An automated notice of death sent by a Federal Agency to a
financial institution that a recipient of payments from that agency has passed away.
Debit - An entry to the record of an account to represent the transfer or removal of funds from
the account.
Debit Card - Debit card transactions post to bank deposit accounts as withdrawals. On-line
settlement requires a Personal Identification Number (PIN) to initiate the transaction.
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Debit Posting - Charge associated with the posting of a debit to a demand deposit account.
Debit Transaction - A payment transaction authorized by the Customer, originated by the Biller
that pulls funds from the Customer’s account.
Debit Transaction - A payment transaction authorized by the Customer, originated by the Biller
that pulls funds from the Customer’s account.
Deblock - The process of identifying individual records (i.e., print lines) from a larger block of
data (e.g.-, physical tape record, disk cluster).
Debt Instrument - Future payment or series of payments, or a debt that one party owes to
another party. Also known as income streams or cash flow instruments.
Debtor - Individual or business that has an obligation to pay money to another individual or
Debug - To detect, trace and eliminate errors in computer programs.
Decimal Code - A code in which one uniquely shaped code bar represents one decimal digit.
Decimal Filing System - A system for classifying records by subject, developed in units of 10
and coded for arrangement in numerical order.
Decipher - To decrypt, or unencode, information.
Declassification - The process or result of determining that information no longer requires
classification for national security reasons. See Classification 3., Classified Information.
Decode - The set of rules used to convert the dark and light element patterns of a machinereadable symbol into data characters.
Decoder - The electronic package which receives the signals from the scanner, interprets the
signals into meaningful data, and transmits the data to other devices.
Decollator - Forms handling device for separating the parts of a continuous form, normally
carbon paper, if present, will be removed at the same time.
Decompress - To reverse the procedure conducted by compression software, and thereby return
compressed data to its original size and condition.
Decompression - The act of restoring compressed data to its original form. The process of
expanding an image file that was captured, compressed, and sent to an external device for
storage or processing. An image must be decompressed before it can be displayed or printed.
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Decryption - The mathematical process of unencoding encrypted information so the original
message or information can be used.
Deduction - Amount by which taxpayers can reduce their gross income for tax purposes.
Deed - Written document used to transfer ownership of land.
Default - Predefined parameters that are used when specific job parameters are not provided.
Default Printer - In Windows, the printer that will be used if another printer is not selected by
the user for a print job.
Defect Management - Programs which control the power, focus or tracking of read or write
devices in optical or magnetic recording systems to compensate for defects in the recording
Defer - A key word in reference to break timing. When the break condition is satisfied, the break
defers to the end of that page.
Degausser - A device that removes unwanted magnetism from monitors or the heads in a tape or
disk drive mechanism.
Delaware - DE
Deleaver - Forms handling device for removing one-time carbon from continuous forms.
Delete Character - A control character used primarily to obliterate an erroneous or unwanted
Deleting - The process of permanently removing, erasing, or obliterating recorded information
from a medium, especially a magnetic tape or disk, which then may be reused. In electronic
record keeping, sometimes called scratching or erasing. See Destruction.
Delimiter - 1. A code or sequences of codes in a string of data that identifies the start (or the
end) of one logical grouping and often the beginning of the next. For example, the carriage
return and/or line feed characters are often used as a delimiter for the end of a print line. 2. The
divider character, often a comma, between separate fields in database records. 3. The nonnumeric characters in a MICR line that divide the different fields of information.
Delinquency Cycle - The cycle a credit grantor’s accounts goes through - advancing through the
various aging periods (30 days delinquent, 60 days, 90 days, etc.). Typically, when credit
grantors focus their internal recovery efforts on the older delinquent accounts (120 days or
more), many of the accounts in the earlier stages of the delinquency cycle (e.g., 30- to 60-day
accounts) are missed and they begin to age. If the credit grantor focuses on the early accounts,
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the older ones just get older. The delinquency cycle develops because most credit grantors do not
have the internal resources required to pursue all of their aged delinquencies.
Delinquents - Remittances received after the payment due date.
Delivery Point Barcode - Extended barcode that allows mail to be sorted in the order in which it
is delivered on a carrier route.
Delta Code - One of two fundamental ways of encoding information. An interval is subdivided
into modules and are assigned values of 1 or 0 for each module. A 1 is a bar and a 0 is a space.
A single bar or space may contain many modules.
Demand Deposit Account (DDA) - Bank account from which funds can be transferred to a third
party with a check, a wire transfer, or an ACH transfer.
Demand Draft - A single payment check without a scannable remittance document attached.
This draft may be drawn on the Customer’s account or the CPP account.
Demodulation - Makes communication signals compatible with computer terminal signals.
Demographics - Characteristics of a population defined by age, sex, race, income or other
socioeconomic factor.
Densitometer - A device used to calibrate a color printer. Measures amount of fight reflected
from a printed page.
Density - 1. Degree of darkness of an image. Also percent of screen used in an image. 2. The
opacity of the non-information area of microfilm. See Background.
Department of Health and Human Services (DHHS) - The Federal Government Department
that has overall responsibility for implementing HIPAA.
Departmental Imaging System - A multi-workstation imaging system, typically used by at
least three and usually by more than 25 people in a workgroup or department. See Desktop
Imaging System.
Deposit - Charge for the handling and posting of a deposit. A deposit could include checks,
currency and/or coins.
Deposit Cutoff - Time before which checks must be deposited at a bank to take advantage of the
bank’s direct send network and insure the greatest availability possible. Enables banks to control
volume of checks and make several mailings of transit items each day.
Deposit Float - The sum of each check deposited multiplied by its availability in days.
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Deposit Reconciliation - Service that enables deposits from multiple locations, being credited to
a single corporate account, to be identified and reported. Also called branch consolidation.
Deposit Release/Cutoff - When all the batches in a job’s transport run have been reconciled, an
operator inputs this fact to the system. This makes all batches in this run ready for extract. The
checks associated with this run may then be deposited. As many Pass 2 runs as desired may be
prepared and deposited before performing an Extract. Cash Letters are generated automatically
after Deposit Cut-off.
Deposit Ticket - In Remittance Systems with Endpointing, Deposit Tickets are fed into the
transport from the merge feeder and sorted to the appropriate pocket for each bank during Pass 2.
One ticket is necessary for each endpoint; it is encoded with the total amount of all bundles
processed for the endpoint from the beginning of the Pass 2 run.
Depository - A place where records are kept and made available for use. Also called repository.
See Archives 3., Records Center.
Depository Financial Institution (DFI) - A financial institution able to receive deposits from
one financial institution to another by completing and depositing a preprinted check.
Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) Federal law that required the Federal Reserve to eliminate or price Fed float and to charge for its
services explicitly. Commonly referred to as the Monetary Control Act.
Depository Transfer Check (DTC) - A device for effecting the transfer of funds from one
corporate bank account to another. DTC’s are preprinted, non-negotiable, usually unsigned
demand deposit instruments, payable only to the bank of deposit for credit to a specific corporate
Depreciation - Decrease in the value of equipment from wear and tear and the passage of time.
Depreciation is deductible for tax purposes.
Depth of Field - The range of distances over which a scanner can read a symbol.
DES - Data Encryption Standard.
DES Algorithm - The Data Encryption Standard algorithm. This is a publicly available
mathematical calculation which is used in conjunction with confidential encryption keys to
encrypt and decrypt information.
Derogatory File or Item – Also known as a "hot" file or negative file. This refers to an item that
is an exception, an account that you may not want to process, generally due to insufficient funds
or a closed account.
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Descenders - A typographic term for the portion of lowercase characters that falls below the
main body of the letter. The lowercase letters g, j, p. q and y have descenders.
Descending Sort - Sorting data backwards, from high to low, or from Z to A.
Description - 1. In records management, the process of giving a written account of the contents
and characteristics of a record series or system. 2. In archives administration, the process of
preparing finding aids. See Inventory 3.
Descriptive Statement - A bank account summary that contains information concerning one or
more entries for which no separate item is enclosed. ACH entries necessitate some form of
descriptive statement unless the financial institution produces a substitute enclosure document.
Minimum reporting requirements are defined by Regulation E.
Descriptor - The key word, code or phrase that an automated document retrieval system uses to
identify and locate the document. Descriptors sometimes summarize the most relevant data in the
document, so that reading the descriptors - rather than retrieving the entire document - is
sometimes sufficient for the purposes of the search.
Design Drawings - See Architectural and Engineering Records.
Designated Code Set - A medical or administrative code set, which DHHS has designated for
use in one or more of the HIPAA standards.
De-Skewing Fingers - A set of mechanical retractable fingers extending perpendicularly up into
the path of the document in an optical transport system, which are retracted to allow passage of
the document if the document is not skewed.
Desktop - Slang for any computer function that can be done on a stand alone PC, rather than a
larger, more powerful, computer.
Desktop Imaging System - An imaging system with a single workstation - often a
microcomputer meant to be used by only one person at a time.
Desktop Publishing - The term applied to the creation of printed documents using a PC. The
documents may be printed directly from the desktop publishing application software (usually
with a desktop laser printer), or prepared for a commercial printing process. Do not confuse with
electronic publishing, which refers to electronically preparing documents which are to be read by
electronic means.
Destroyed Check Entry (XCK) - An ACH transaction which represents the collection of an
item which was originally a check but which, along with the entire cash letter it was part of, was
lost or destroyed.
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Destruction - In records management, the major type of disposal action. Methods of destroying
records include burning, pulping and selling, or salvaging the record medium. See Deleting,
Disposal, Disposition, Emergency Destruction.
Developing - The process of making visible a latent image on film by means of chemical agents
or by heat.
Developing Agent - The chemical in a photographic developer that reduces or converts exposed
silver halide to visible black metallic silver.
Deviation - The difference between the value of a specific variable and some desired value,
usually a process set point.
Device Drive - Small programs that tell the computer how to communicate with particular types
of peripheral devices.
DFI - Depository Financial Institution.
DIA/DCA (Document Interchange Architecture) - IBM endorsed architectures, part of SNA,
for transmission and storage of text, data, voice or video documents over networks.
Diagnostics - These are routines or programs that are run to help in determining whether a
problem exists or in finding a problem’s cause. A diagnostic can be of two types: those that are
run automatically in the case of an error to alert the operator of a problem (such as film out, file
not found, etc.), or those which are run on demand in order to investigate an already suspected
Diagonal Seam (Envelope) - The permanent seam used to construct the envelope running
diagonally from the bottom fold and corner to the throat. They also have a diagonal seal flap that
follows the shape of the throat. The only exception is a Wallet Flap.
Dial-Up Access - Connecting to another computer or network using a modem over a regular
telephone line.
Dial-Up Terminal - A merchant authorization device that, like a telephone, dials the
authorization center for validation of transactions.
Diam - Film used for the duplication of negative appearing (clear characters/dark background)
original silver masters. Diazo film is exposed by light and processed through either aqueous
(liquid) or anhydrous (gas) ammonia. The diazo process does not reverse an image, so the copy
of the original negative-appearing master is also negative-appearing.
Diazo Film - In micrographics, the type of film used to create same-polarity copies (i.e.,
negative image of negative-reading original). Diazo film is exposed with the original under
ultraviolet light, then processed with either aqueous (liquid) or anhydrous (gas) ammonia.
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DIBACOS (Dictionary-Based Compression System) - A text compression algorithm based on
the premise that 2/3 of the words in any document are represented by 1,024 of the most
commonly used words in the English language. DEBACOS can typically compress text by 60%.
Dielectric (Paper) - Paper specially treated, consisting of a conductive base layer coated with a
nonconductive thermoplastic material and used in the electrostatic process.
DIF - Data interchange format.
Differential Spacing - In typography, allowing letters to take up varying horizontal space in
relation to their widths. For example, a lower-case “i” takes up less space than an upper-case
“W”. Opposite of fixed spacing, where each letter is assigned the same space, regardless of its
shape or width.
Diffuse Reflection - Reflection of light in all directions. Non glossy surfaces reflect light in this
way, whereas glossy surfaces produce specular reflection.
Digit - One of the N symbols of integral value, ranging from 0 to N-1 inclusive, in a system of
numbering with radix N; for example, the ten digits 0, 1, 2, 3, 4, 5, 6, 7, 8, 9 in the decimal
Digital - The use of binary code to record information, information can be text in a binary code
like ASCII, or scanned images in a bit mapped form, or sound in a sampled digital form, or
video. Recording information digitally has many advantages over its analog counterpart, mainly
ease in manipulation and accuracy in transmission.
Digital Architectural and Engineering Records - See Architectural and Engineering Records,
Electronic Records.
Digital Audio - The storage of sound and music on a compact disc.
Digital Audio Tape (DAT) - See Audiovisual Records, Electronic Records.
Digital Camera - The newest generation of video cameras transform visual information
(lightness and darkness) into pixels, then translate the pixel’s level of light into a number (or, in
the case of color, into three numbers - one for the level of red, green and clue in the pixel).
These digital images can then be manipulated pixel by pixel to create exciting new applications
in video and film production. They can also be compressed, stored and transmitted in more or
less the same manner as traditional digital data.
Digital Cartographic Records - See Cartographic Records, Electronic Records.
Digital Cash – Encrypted forms of cash that can be sent to merchants for payment.
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Digital Certificate – An online identification that authenticates a consumer, merchant, or a
financial institution.
Digital Signature - An electronic means of authentication which uniquely identifies the sender
of a message or payment order through the use of special encryption techniques.
Digital Imaging and Communications in Medicine (DICOM) - A standard for
communicating images, such as x-rays, in a digitized form. It could be included in the claim
attachments standards.
Digital Video Interactive (DVI) - DVI is a newly-announced system that compresses and
decompresses digital video and audio data on a CD-ROM disc. A DVI system, coupled with a
microcomputer and a CD-ROM player, will permit the use of full-motion video, multi-track
audio and 3D graphics on a disc.
Digital-to-Analog Converter - Mechanical or electronic devices used to convert discrete digital
numbers to continuous analog signals. (Also referred to as a D-A Converter, and DAC).
Digital Wallet – Software that provides the equivalent of a wallet for electronic commerce. A
digital wallet, or e-wallet, holds digital money that you can purchase similar to travelers’ checks.
A wallet also may hold your credit card information along with a digital certificate that identifies
the authorized cardholder.
Digitize - 1. Process of representing images as a matrix of binary code, with zero representing
white space and one representing non-white space. 2. To convert an image or signal into binary
code. Visual images are digitized by scanning them and assigning a binary code to the resulting
vector or raster graphics data. Sounds are digitized by recording frequent samples of the analog
wave, and translating that data into binary code.
Digitizing - The process of converting data into digital form (0’s and 1’s). Video images
captured by the image-lift camera are digitized so that they can be sent more quickly to external
processors such as a Recognition Unit and processed more quickly once they get there. As a
result of digitizing, the document images become black and white, with no shades of gray.
Dimensioning - The standards, applied in CAD programs, that govern drafting.
Diode - 1. An electronic device that permits electrical current flow in one direction in order to
inhibit current flow in the opposite direction. 2. A two-electrode electron tube that contains an
anode and cathode.
DIP (Document Image Processing) - See Imaging.
Direct Access Method - A data search technique that uses an identifying word or code in the
document itself as its address.
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Direct Access Storage Device (DASD) - A storage peripheral, usually a disk drive, which can
respond directly to random requests for information.
Direct Debit - A method of ACH collection used where the debtor gives authorization to debit
his or her account upon the receipt of an entry issued by a creditor.
Direct Deposit - A method of payment used in the ACH system where funds are automatically
transferred from the account of the party which owes funds to a payee into the account of the
payee on the agreed upon payment date.
Direct Deposit/Payment - A form of Electronic Funds Transfer. Usually used for making
payroll, pension or dividend payments.
Directed Fine Sort - The sorting of documents into sort key sequence using an externally
supplied sort account table.
Direct Image Film - A film that will retain the same polarity as the previous generation or the
original material; that is, tone for tone, black for black, white for white, negative for negative, or
positive for positive with conventional processing. See Polarity, Autoreversing.
Direct Marketing - Sales promotion technique in which the promotional materials are delivered
individually to potential customers via direct mail, telemarketing, door-to-door selling or other
direct means.
Direct Participants – Financial institutions that are permitted to transact with the clearing
Direct Payment - A method of collection used in the ACH Network where the party which
owed money obtains an authenticated authorization from its customer to create a transaction
which automatically debits the customer’s account and credits its account on the due date of the
Direct Sending - The process of a bank sending a batch of items directly to the drawer bank or
Regional Check Processing Center, thereby circumventing the normal Federal Reserve clearing
process in order to clear checks more rapidly.
Direct Thermal - A printing method in which the print head applies heat to coated stock, which
turns black to create images.
Directive - A written instruction communicating policy and/or procedure in the form of orders,
regulations, bulletins, circulars, handbooks, manuals, notices, numbered memorandums, and
similar issuances.
Directsend - A cash letter that bypasses the local Federal Reserve clearing system and is sent
directly to another Fed or to a correspondent bank.
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Dirt - Non-reflective foreign particles in a sheet of paper that adversely affect the sheet’s
reflectance and optical readability.
DISA - Data Interchange Standards Association.
Disbursement Float - The delay between the time a payer issues the check and the time when
the funds are debited from the payer’s account. It has the following components: mail float,
processing float, and clearing float.
Disbursement Network - A system of check mailing locations and drawee banks based on
disbursement studies and designed to maximize disbursement float.
Disc - Same as optical disc. A digital storage medium. Optical discs are made of a metal alloy
recording surface sandwiched between a rigid substrate and a plastic protective coating. Lasers
record data in the metal alloy by either creating tiny pits (ablation technique) or by causing small
bubbles to form in the negative area, thereby reflecting the laser away. Generally, and in this
dictionary, disc with a “c” means optical disc. Disk with a “k” means magnetic hard or floppy
Disclosure-Free Extract - A copy of a record that excludes all exempted information; that is,
information deleted or otherwise concealed under provisions of the Freedom of Information Act
(FOIA) or the Privacy Act. Also called a public use file. See Administratively Controlled
Discount - The face value multiplied by the discount rate times the number of days divided by
Discount Rate - Interest rate charged by the Federal Reserve for loans to depository institutions;
rate used to determine present value.
Discrete Code - A symbology in which the spaces between symbol characters do not contain
information as each character begins and ends with a bar.
Discrete Symbol - A bar code symbol with gaps between characters. These gaps are not part of
the code.
Discretionary Allotment - An amount permitted by the employing Federal agency to be
deducted from a Federal government employee’s net salary amount and paid to a recipient. The
amount of discretionary allotments may not exceed the net pay due the employee for each pay
period after all deductions required by law are subtracted.
Dishonor – The refusal of a drawee or drawer (maker) to pay a check, draft, note, or other
instrument presented.
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Disk - Same as magnetic disk. A round, flat magnetic recording medium with one or more layers
deposited on the surface which data can be recorded onto.
Disk/Disc Array - Combining redundant disk or disc drives for more capacity, or for disaster
recovery. See RAID.
Disk Drive - A device containing motors, electronics and other gadgetry for storing (writing)
and retrieving (reading) data on a disk. A hard disk drive is one that is generally not removable
from the machine. A floppy disk drive accepts removable disk cartridges.
Disk Duplexing - A method of failsafe protection, occasionally used on file servers on local area
networks. Disk duplexing involves copying data onto two hard disks simultaneously, each
through a separate disk channel. The idea is, if one disk or channel is faulty, the other will most
likely continue to operate normally.
Disk (File) Server - A mass storage device that can be accessed by several computers, usually
through a local area network (LAN).
Disk Management - Refers to the control of information stored on a disk. The logical
relationship of subdirectories to root directories, for instance.
Disk Mirroring - A fault-tolerant technique that writes data simultaneously to two hard disks
using the same hard disk controller. The disks operate in tandem, constantly storing and updating
the same files. Mirroring alone does not ensure data protection. If both hard disks fail at the same
time, you will still lose data. See Disk Duplexing.
Disk Operating System (DOS) - A microcomputer software program that controls the flow of
data between the system’s internal memory and external disks, e.g. VMS, MSD/DOS, CP/M and
UNIX. Examples of a CD-ROM operating system include Reference Technology’s STA/File,
TMS’ LaserDOS and Digital Equipment Corporation’s Uni-File.
Disk Pack - A cartridge of hard disk platters arranged as a single unit. A disk pack contains
more space for storing and retrieving information than one single disk. See Disk Array.
Disk Sector - Magnetic disks are typically divided into tracks, each of which contains a number
of sectors. A sector typically contains a predetermined amount of data, such as 256 bytes.
Disk Striping - Spreading data over multiple disk drives. Data is interleaved by bytes or by
sectors across the drives.
Diskette - 1. A storage device on which information is recorded magnetically on the surface of a
rotating flexible disk media. 2. A floppy disk
Diskless Workstation - A computer with processing power but no disk storage device. Diskless
workstations are usually arranged on a local area network, and share a disk server.
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Dispersion - A separation of visible light into color components by refraction.
Disposable Records - See Temporary Records.
Disposal - 1. The actions taken regarding temporary records after their retention periods expire
and consisting usually of destruction or occasionally of donation. See Destruction, Dispose,
Disposition 1., Donation 1., Final Disposition, and Temporary Records. 2. Also, when so
specified, the actions taken regarding non-record materials when no longer needed, especially
their destruction. See Disposition 2.
Disposal Authority - See Disposition Authority.
Disposal List - A document providing one-time approval for the disposal of records no longer
accumulating and having no further value. Now incorporated into an SF 115. See Disposal 1.,
Records Schedule, and Standard Form 115.
Disposal Schedule - See Records Schedule.
Dispose - To carry out disposal, which includes either the destruction or the donation of
temporary records but not the transfer of permanent records to the National Archives. See
Disposal 1., Final Disposition.
Disposition - 1. The actions taken regarding records no longer needed in current office space.
These actions include transfer to agency storage facilities or Federal records centers, transfer
from one Federal agency to another, transfer of permanent records to the National Archives, and
disposal of temporary records. Disposition is the third stage of the records life cycle. See
Disposal 1., Final Disposition, Life Cycle of Records, Retention Period, Retirement, Scheduled
Records, Scheduling, Transfer, and Unscheduled Records. 2. The actions taken regarding nonrecord materials when no longer needed, including screening and destruction. See Disposition
Instructions 2., Scheduling.
Disposition Authority - 1. Legal approval empowering an agency to transfer permanent records
to the National Archives or carry out the disposal of temporary records. Must be obtained from
NARA and also, for certain records proposed as temporary, from the General Accounting Office
(GAO). 2. The agency’s approval of disposition instructions for non-record materials.
Disposition Instructions - 1. Directions for cutting off records and carrying out their disposition
in compliance with NARA’s regulations. 2. Directions for screening non-record materials and
carrying out their disposal when no longer needed by the agency.
Disposition Item - See Item 2.
Disposition Program - Policies and practices designed to achieve effective and efficient
disposition of records by scheduling them, ensuring their proper storage, ensuring the prompt
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disposal of temporary records and the timely transfer of permanent records to the National Archives, and evaluating the program.
Disposition Schedule - See Records Schedule.
Disposition Standard - See Retention Period.
Disputed Stop Payment - Stop payment placed by a check writer due to a complaint or dispute
over goods or services.
Distance Learning - Instruction from remote locations. For example, a Japanese-language
teacher can instruct students in several school districts from a broadcast studio.
Distribution Method - A forecasting technique used in cash scheduling wherein the distribution
of cash flow over a given time period is estimated.
Distribution Microform - A duplicate copy of a microfilm or microfiche that is intended to be
used in a viewer. Distinct from the master or intermediate microform, from which distribution
copies are made.
Distributions - Tendency of large numbers of observations to group themselves around some
central value with a certain amount of variation or scatter on either side.
District of Columbia - DC
Dithering - A method used by scanners to simulate shades of gray. Geometric pixel patterns of
various sizes are created according to the brightness of the image area. Also known as electronic
Dithering Simulating - Gray tones by altering the size, arrangement or shape of background
Dividend - Money paid to shareholders of a corporation out of earnings.
DJIA - Dow Jones Industrial Average.
D-Max - The highest density (the darkest image) obtainable for a particular photographic
emulsion. Usually measured in the background area or on an exposed leader.
D-Min - The minimum density (the lightest image) obtainable for a particular photographic
emulsion. Usually measured in the background area.
DNE - Death Notification Entry.
Doc - Short for Document.
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Document - 1. A collection of data, organized into some logical order and presented (for the
purposes of this glossary) on paper. 2. Any paper item processed on the transport such as a
control document, a remittance stub, a check, etc. or Sheets of paper containing complete unit
records of information. Designed as a form for an input reader.
Document Carrier - A sleeve in which mutilated or damaged documents are inserted in order to
be processed through the transport. Document carriers typically have at least one transparent or
translucent side so that the face of the document remains visible, and they include an unencoded
MICR line.
Document Feeder Hand-Drop Module - The hardware module used to feed documents into a
Document Feeder, Automatic - The automatic document feeder lets operators feed stacks of
documents into the transport track automatically for tasks such as reading/sorting and power
Document Images - See Imaging.
Document Management - A generic term used to refer to imaging, COLD, and workflow (work
management) systems.
Document Mark - Same as blip. An indicating mark exposed on microfilm for counting or
timing purposes.
Document Preparation - See Batch Preparation.
Document Reader - A character reader designed for text on a given form.
Document Reference Edge - A specified edge with respect to which the alignment of data is
defined. See Reference Edge.
Document Registration Time - the time lapse between the trailing edge of one document until
the next document is ready for reading at the read station.
Document Retrieval - The ability to search for, select and display a document or its facsimile
from storage.
Document Type - A preset configuration of scan line fields on the return portion of a bill or
form that result in a category of documents. There is at east one document type in every batch
Documentary Collections - Credit tied to a set of documents specifying the conditions of the
sale. Also called draft bill of lading.
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Documentary Draft - A draft that is accompanied by all the required shipping documents in
good order and within the allowed time-in-transit frame.
Documentary Materials - A collective term for records and non-record materials that refers to
all media on which information is recorded, regardless of the nature of the medium or the
method or circumstances of recording. See Files, Medium, Non-Record Materials, Recorded
Information, Records.
Documentation - 1. The act or process of substantiating by recording actions and/or decisions.
See Adequacy of Documentation. 2. See Document 1. 3. Records, generally in paper form,
required to plan, develop, operate, maintain, and use electronic records. Included are systems
specifications, file specifications, codebooks, record layouts, user guides, and output
specifications. See Master Files, Processing Files, and Software.
Documentation Requirements - See Record-Keeping Requirements.
Documentation Standards - See Record-Keeping Requirements.
Documents Against Acceptance - When documents (shipping) are delivered to the buyer by the
collecting bank after the buyer has accepted the draft for payment at a certain maturity date.
Documents Against Payment - When documents are delivered to the buyer upon payment of a
Documents Per Hour - The total amount of documents that move through the scanner in one
hour. (Total Documents / Total Hours).
Documents Per Minute - The total amount of documents that move through the scanner in one
minute. (Total Documents / Total Minutes).
Dog-Eared Document – A document that is damaged or bent at the bottom right corner.
Dollar-Days - Dollar-days is the usual measurement for float value. It is calculated by
multiplying the days of float by the dollar amounts being delayed.
Domain Name - The unique name that identifies an Internet site. Domain Names always have
two or more parts, separated by dots. The part on the left is the most specific, and the part on the
right is the most general. A given machine may have more than one Domain Name but a given
Domain Name points to only one machine. Usually, all of the machines on a given Network will
have the same thing as the right-hand portion of their Domain Names. It is also possible for a
Domain Name to exist but not be connected to an actual machine. This is often done so that a
group or business can have an Internet e-mail address without having to establish a real Internet
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site. In these cases, some real Internet machine must handle the mail on behalf of the listed
Domain Name. See IP Number.
Donation - 1. In records management, the transfer of temporary records from a Federal agency
to an eligible person or organization after the authorized retention period has expired. Requires
NARA’s approval. See Disposal 1. 2. In archives administration, the transfer from private
sources to the National Archives of documents, including audiovisual materials, appropriate for
preservation by the Government as evidence of its organization, functions, policies, decisions,
procedures, and transactions.
DOS - Disk operating system.
Dot Code - A subset of matrix symbologies in which individual modules are surrounded by clear
space that has no information content.
Dot Matrix - 1. An array of points of ink, light or similar image forming elements that are used
to form alphanumeric characters. 2. Type of printer that produces text and graphics from many
small dots.
Dot Pitch - The distance of one phosphor dot in a CRT to the nearest phosphor dot of the same
color on the adjacent line.
Dot Size - The size of the printed dot created by a dot matrix printer.
Double Detector - A photoelectric device used by some optical equipment that prevents two or
more documents from being transported at the same time.
Double Document – A condition that occurs when two or more items are overlapping as they
enter a document processor transport path. A double document is one example of a condition
causing a feed check or jam.
Double Document Detection - A method to prevent transport of more than one document at a
time using a sample slot or some other device.
Double Face Carbon - Carbon paper coated on both sides.
Douglas Amendment - Federal law enacted in 1956 that allows banks to merge across state
lines if each of the states involved permits it. It also prohibits bank holding companies from
acquiring banks across state lines.
DOV - Data over voice.
Download - The process of transferring a data set from one unit (often the host computer) to
another. Download usually refers to moving the file from a main unit to a peripheral unit, while
uploading is the reverse.
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Downtime - Any period of inability to use equipment because of its malfunction when it should
be available for use.
DP - Data processing.
DPI (Dots Per Inch) - A measurement of output device resolution and quality. Measures the
number of dots a printer can print per inch both horizontally and vertically. A 600 dpi printer can
print 360,000 (600 by 600) dots on one square inch of paper.
DPM (Documents per Minute) - A measure of track speed in a transport.
Draft - An order signed by the drawer requesting the drawer to make payment in lawful money
at a future time to a third party. Drafts often cover commercial transactions and may be written
so as to be non-negotiable.
Draft Acceptance - When buyer agrees to pay the amount of a draft upon maturity. Acceptance
takes place by means of the buyer’s signature on the face of the draft.
Draft At Sight - A draft to be paid by the buyer immediately upon presentation by a collecting
Draft Collection - When a draft is sent to a bank for collection.
Draft Endorsement - The act of signing a draft on the back (by the seller or his agent) making
the draft negotiable,
Draft Instructions - Instructions by the seller to the bank regarding collections and remittance
of a draft,
Draft Proceeds - The money collected from a draft.
DRAW (Direct-Read-After-Write) - Method used to ensure that data written is error free.
Drawdown Wire - A company initiates instructions to debit its own or another party’s account.
The party being debited must authorize the transfer.
Drawee - The person owing the money (the buyer). The party to whom the drawer issues
instructions to make payment.
Drawee Bank - The bank on which an item is drawn and to which it must be presented to collect
Drawer - The person to whom the money is owed (the seller). The party who issues a set of
written instructions to a drawee, calling for a payment of funds.
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DRDW (Direct-Read-During-Write) - Refers to the ability to read the information during the
writing (recording) process.
Drier - In ink making, any substance added to hasten drying.
Drive - A device that reads and records information on a disk or diskette.
Driver - Specialized software interface to a peripheral. Optical disk drives and jukeboxes require
specialized drivers, as do CD-ROM towers and auto-changers. Drivers for stand-alone (desk-top)
CD-ROM drives are usually provided with the operating system, such as Windows 95 or
Windows NT, at no additional cost.
Driver Software - See Device Drivers.
Drop Down List - A selection field which only displays one choice at first; the rest of the list is
revealed when the user clicks and holds the mouse button down, or takes some other action.
Drop Out - A section of magnetic media with a defect, on which the writing device is unable to
record data.
Drop-Out Ink – A type of ink used on documents that is not detected by an optical or image
reader. Drop-out ink is normally used to show a "box" where a number or letter should be
entered, however, does not interfere with the reading of the number or letter.
Drop Out Print - Printing that cannot be detected by the scanner because of its high reflectance
value. The dropout effect can be produced by solid printing in a highly reflective color or by
descreening a less reflective color to a small dot size and low density. Drop out print is used to
provide information that is visible to the human reader, but is removed during the scanning
process. Also known as blind inks.
Drop Shipment - Initial shipment of goods to distribution points from which the goods will be
individually distributed.
Drop-Out Colors (Ink) - Reflective colors of ink used for lines and instructions on scanner
designed forms. The purpose of such colors is to produce images which are invisible to optical
scanners, but visible to people utilizing the forms. See Non-Read Color (Ink), Blind Color (Ink)
& Reflective Color (Ink).
Drop-Out Ink - Background print that is transparent to an optical scanner or image camera.
Drum Printer - A line printer in which the type is mounted on a rotating drum that contains a
full character set for each printing position.
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Dry Offset - Printing process that uses a blanket (like conventional offset) for transferring the
image from the plate to the paper, unlike conventional offset, the plate has a relief image and
requires no dampening.
Dry Processing - Method in which an exposed latent image is made visible without chemical
treatment (usually a heat process).
Dry Silver Film - Thermal process film A non-gelatin silver film type that is processed by heat,
not chemicals.
DS1 - Digital Signal, Level 1 (same as T1, 1.544 MBPS).
DSL (Digital Subscriber Line) - A method for moving data over regular phone lines. A DSL
circuit is much faster than a regular phone connection, and the wires coming into the subscriber’s
premises are the same (copper) wires used for regular phone service. A DSL circuit must be
configured to connect two specific locations, similar to a leased line. A commonly discussed
configuration of DSL allows downloads at speeds of up to 1.544 megabits (not megabytes) per
second, and uploads at speeds of 128 kilobits per second. This arrangement is called ADSL:
Asymmetric Digital Subscriber Line. Another common configuration is symmetrical: 384
Kilobits per second in both directions. In theory ADSL allows download speeds of up to 9
megabits per second and upload speeds of up to 640 kilobits per second. DSL is now a popular
alternative to Leased Lines and ISDN, being faster than ISDN and less costly than traditional
Leased Lines. See Bit, BPS, ISDN, Leased Line.
DSU - Data Service Unit.
DTC - Depository Transfer Check.
DTE - Data terminal equipment.
Duality - The handling of both MasterCard and Visa transactions (cardholder or merchant, or
both) or both CIRRUS and Card Program Development Group by single institution.
Due Diligence - Exhaustive research on a transaction, income stream, client, and/or payor. Due
diligence may involve credit checks, appraisals, UCC searches, lien searches, or on-site visits
with clients.
Due from Account - A deposit account held with another financial institution. The owner of the
account views the funds on deposit as being due from the bank holding the account. Conversely,
the bank that holds the account views the funds as being due to the financial institution that has
title to that account.
Due from Banks - The accounting category-sometimes a line item on a bank’s balance sheet-for
the summation of balances on deposit at other financial institutions. Some banks include items in
process of collection; others limit the definition to collected funds on deposit.
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Due To - An account with the balance payable to another correspondent bank that deposited
Dump - Printout of a file’s contents without any report formatting.
DUN (Dial-Up Networking) - TCPIP method to access the VMS LAN
DUNS - Dun and Bradstreet Number.
Dunning Letter Service -Service that distributes dunning or collection letters to customers that
have paid for clients’ services with NSF (Not Sufficiently Funded) checks.
Duplexing - Printing on both sides of the paper.
Duplex-Numeric Filing System - A system for arranging records by adding assigned numbers
associated with subordinate headings to those associated with main headings. For example, 2
Communications; 2-1 Mail; and 2-1-1 Postage.
Duplicate - 1. A copy of a microform made by contact printing or by optical means. 2. To make
multiple copies of a document or microfilm, usually with the aid of a master or intermediate.
Duplication Ratio - The number of duplicates (diazo or vesicular) produced for each original. A
common duplicate ratio is 4 to 1.
Duplicator - A device that makes a single or multiple copy of a master (original) silver film. The
copy film is usually diazo or vesicular. Diazo duplicators use fight and ammonia for
development. Vesicular or thermal duplicators use fight and heat for development.
Durable Goods - Goods intended to be used over a long period of time and which are replaced
DVI (Digital Video Interactive) - A proprietary technology for full-motion video in real-time.
The DVI capacity is 72 minutes of video, with compression, on a single CD-ROM.
Dvorak Keyboard - A keyboard, invented mainly by August Dvorak, on which letters and
characters are arranged for faster and easier typing than on the standard QWERTY keyboard.
(The QWERTY keyboard was actually designed to be difficult to use, in order to slow down
typists so they wouldn’t jam the old typewriter’s mechanisms!)
Dynamic Data Exchange - See DDE.
Dynamic Link Libraries (DLLs) - Sets of prewritten routines that can be linked dynamically
(that is, without compiling) to applications.
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-EE-13B - A font (set) of MICR characters that can be read by a MICR reader and encoded The
E-13B font is the most common in North America. It was created by the American Bankers
EAN (European Article Number) - Similar to U.P.C. in the United States.
Earnings Credit - A financial institution credit used to offset service charges.
Earnings Credit Rate (ECR) - Rate used by a bank to determine the earnings allowance for a
customer’s demand deposit balances. Depending upon the bank, the rate may be arbitrarily set or
tied to some market rate.
EBCDIC (Extended Binary Coded Decimal Interchange Code) - An 8-bit computer code that
is used to represent upper- and lower-case characters and special symbols. Supported by some
OCR programs.
EBFM - Electronic Business Flow Management. A form of procedural and control for
deployment of HIPAA transactions.
EBMS - Electronic Banking Messaging Standard.
EBPP (Electronic Bill Presentment and Payment) - Using the Internet or e-mail to present
bills and collect payments.
EBT - Electronic Benefit Transfer.
EC - Electronic Commerce.
ECA (Electronic Check Acceptance) - A system, which captures banking information off a
paper check and converts it into an electronic item processed through the Automated Clearing
House network. With ECA, checks are processed similarly to credit cards, and the paper check is
returned to the consumer at the point of sale.
ECA (Electronic Check Acceptance) A system, which captures banking information off a
paper check and converts it into an electronic item processed through the Automated Clearing
House network. With ECA, checks are processed similarly to credit cards, and the paper check is
returned to the consumer at the point of sale.
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E-Cash - Electronic cash is a payment mechanism designed for the Internet. It is electronic
money that can be passed along from person to person like cash. It is anonymous like cash, and
has value immediately - it’s cash, not a promise to pay later.
E-Check – The electronic version or representation of a paper check.
ECC (Electronic Check Council) - A membership organization, operated under auspices of
NACHA, and dedicated to improving check clearing and collection through the implementation
of E-Check standards and applications.
ECC (Error Correction Code) - In the event of read-write error, ECC is a method of
recovering a block - 2,048 bytes - of data, applied by CD-ROM drives and in the mastering of
CD-ROM discs.
ECCHO - Electronic Check Clearing House Organization.
ECK - Electronic Check.
ECMA - Acronym for European Computer Manufacturer’s Association, which sponsors
European Manufacturer’s standards development activities for OCR.
E-COM - Electronic computer-originated mail.
E-Commerce (Electronic Commerce) - The use of computers and electronic communications
in business transactions. The ability to customize a purchase over the Internet through
configuration technology is an advantageous facet of E-Commerce.
Economic Exposure - The exposure reflected by the potential decline in the value of a company
that may result from changes in the exchange rate.
ECP (Electronic Check Presentment) - The process of exchanging debit information (checks)
between banks (via tape or transmission) with the intent to update customer accounts with this
information. One goal is to post dollars to customers’ accounts faster.
ED (Electronic Delivery) - The Internet-based distribution and presentment of documents,
which may or may not be payment related.
ED&P (Electronic Delivery & Payment) - A more flexible term for EBPP (Electronic Bill
Presentment & Payment).
EDAC (Error Detection and Correction) - An error detection scheme. It works this way: An
prearranged extra block of data is added to each block written. After writing, the extra data is
read back. If the extra data is correct, EDAC assumes the entire writing procedure went
smoothly, and goes on to repeat the procedure with the next block. If an error is detected, the
write process is repeated.
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Edge - See Document Reference Edge.
Edge Act - Federal act that permits banks to invest in corporations that engage in international
banking and finance and allows banks to develop domestic networks of Edge Act corporations
devoted to international transactions.
EDI (Electronic Data Interchange) - Refers to the process of companies transferring documents related to a business transaction electronically, rather than using paper documents.
EDI Translation - The conversion application data to and from standard X12 transaction set
EDI Translator - A computer program which takes information created in the format unique to
a company’s application program and translates that information into a standard transaction set,
and vice versa.
EDIFACT - A set of standards approved by the United Nations for international electronic data
EDI-INT - The current de facto standard for transmitting EDI via the Internet, utilizes S/MIME
or PGP/MIME as a transport mechanism. EDI-INT is for companies and their trading partners
that want to use the Internet and encryption to exchanging EDI documents.
Edit - 1. To rearrange information for machine input or output, i.e., to rearrange, delete, select or
insert any needed data, symbols or characters. 2. To rearrange data or information. Editing may
involve the deletion of unwanted data; the selection of pertinent data, the application of format
techniques, the insertion of symbols such as page numbers and typewriter characters, the
application of standard processes such as zero suppression and the testing of data for accuracy
through use of a number of techniques such as range checks or check digits.
EDP - Electronic Data Processing.
Effective Entry Date - The date placed on an ACH transaction by the Originator of the
transaction - it is normally the date the originator intended the transfer to take place.
Effective Reduction - A measure of the number of times an imaginary document would have
been reduced to equal the size of the computer output microfilmer-generated microimage,
expressed as 1:24,1.42, etc. See Reduction Ratio.
EFS (Electronic Financial Services) - Financial services that are provided via electronic
delivery channels (e.g. PCs, telephones, screen phones and ATMs). These services may be
transaction and/or information oriented and may be provided by bank and non-bank providers.
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FTP Industry Glossary
EFT (Electronic Funds Transfer) - Electronic payments made via an Automated Clearing
House (ACH). The Federal Reserve’s Fedwire and MasterCard’s Remittance Processing System
(RPS) are two examples. EFTs may also be made directly to a merchant (point-to-point) by
transferring data directly to the merchant (by fax, tape or modem) with a single, aggregate ACH
or wire transfer payment. Long touted as the future of banking, EFT/ACH has not yet taken off
as fast as was predicted and thus remains a relatively small component of the flow of cash in
America today.
EFT Act - The EFT Act (or EFTA) is the federal law that sets out the rights and obligations of
consumers and their financial institutions with respect to the use of electronic systems for funds
transfers. The law is implemented through Federal Reserve Regulation E.
EFTPS - Electronic Federal Tax Payment System.
EGA (Enhanced Graphics Adapter) - A display technology for the IBM PC. It’s been replaced
by VGA.
EHNAC - The Electronic Healthcare Network Accreditation Commission.
EIA - Electronic Industries Association.
EIN - Employer Identification Number.
EIS - Environmental impact statement.
Elapsed Time - The total amount of time taken for a batch or for a job.
Electric Typewriter - A hand operated, electric powered individual printing device having the
property that almost every operation of the machine after the keys have been depressed is
performed by electric rather than manual power.
Electron Beam Recording - See Beam Recording.
Electron Gun - The device in the CRT that produces the electron beam that activates the
phosphors, causing them to emit red, green and blue light.
Electronic - Relating to technology having electrical, digital, magnetic, wireless, optical,
electromagnetic, or similar capabilities.
Electronic Authorization - An alternative means of authorization for ACH transactions.
Electronic authorizations must be displayed in such a manner that the consumer can read the
authorization, create a record or hard copy of the authorization so the consumer can refer back to
it and must be authenticated in a similar manner to that in which a signature authenticates a
written authorization (that is by a digital signature, PIN or other code which uniquely identifies
that consumer.)
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Electronic Banking - Form of banking in which funds are transferred through an exchange of
electronic signals between financial institutions, rather than an exchange of cash, checks or other
negotiable instruments.
Electronic Benefits Transfer (EBT) - Government benefits distributed electronically through
Point of Sale (POS) Terminals and Automated Teller Machines. Benefits can include Aid to
Families with Dependent Children, Aid to the Aged, food stamps and child support payments.
Electronic Bill Delivery - A bill delivery system offered by Visa Interactive that allows banks to
send consumers their bills through their personal computers or via telephone lines. This system
now allows consumers to transfer funds through their bank to the billing agent itself.
Electronic Bill Payment (E-pay) - An alternative to paper checks for paying bills. Consumers
can use PCs, telephones, screen phones or ATMs to send electronic instructions to their bank or
bill payment provider to withdraw funds from their accounts and pay merchants. Payments may
be made either electronically or by a paper check issued by the bill payment provider.
Electronic Bill Presentment (EBP) - The electronic delivery of vendor requests for payment.
Vendors send consumers their bills via PCs, telephones or screen phones.
Electronic Bill Presentment and Payment (EBPP) - The electronic presentation of statements,
bills, invoices and related information sent by a company to its customers, and corresponding
payment for goods or services.
Electronic Bulletin Board - A general-notice board, or a board for a special-interest group,
stored on a server. Also used for the distribution of shareware.
Electronic Cash – An electronic representation of paper money that is stored on a PC and can
be used to conduct financial transactions online.
Electronic Check - A payment transaction which originally started out as a paper check, but
which has been completely converted to an ACH transaction at the point of purchase or, in the
case of a re-deposited paper check, reinsertion into the financial system. The original paper item
is either returned to the check writer at the point of purchase or retained by the collecting
Electronic Check Acceptance - A system, which captures banking information off a paper
check and converts it into an electronic item processed through the Automated Clearing House
network. With ECA, checks are processed similarly to credit cards, and the paper check is
returned to the consumer at the point of sale.
Electronic Check Clearing House Organization (ECCHO) - A national clearing house for
electronic check presentment.
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FTP Industry Glossary
Electronic Check Presentment (ECP) - The drawee bank debits the payer’s account based on
MICR-line data captured by the depository bank and transmitted to the drawee bank.
Electronic Commerce (EC) (E-Commerce) - Electronic Commerce is the exchange of business
information from one organization to another in an electronic format in some mutually agreed
standard EC includes unstructured electronic messaging such as facsimile (fax) or electronic
mail (E-mail) as well as Electronic Data Interchange (EDI) formats.
Electronic Data Interchange (EDI) - The movement of business data electronically between or
within companies (including their agents or intermediaries) in a structured computer-processable
data format that permits data to be transferred without re-keying.
Electronic Data Processing (EDP) - See Automatic Data Processing (ADP).
Electronic Depository Transfer (EDT) - An ACH transaction used for concentration of fun
Electronic Federal Tax Payment System (EFTPS) - Electronic system for collecting and
accounting for taxes. By 1998, most organizations are scheduled to make federal tax deposits
Electronic Financial Services (EFS) - Financial services that are provided via electronic
delivery channels (e.g. PCs, telephones, screen phones and ATMs). These services may be
transaction and/or information oriented and may be provided by bank and non-bank providers.
Electronic Forms - Information or graphics that are merged electronically with data to appear
one each frame. Can be as simple as a border box, or a logo or running header.
Electronic Funds Transfer (EFT) - The movement of funds by non-paper means (i.e.,
electronically), usually through a payment system such as an automated clearinghouse network.
Electronic Funds Transfer Act - Federal law enacted in 1978 that defines the rights and
responsibilities of users and providers of consumer EFT services.
Electronic Funds Transfer at the Point of Sale - The technology and practice of making
payments for goods and services by means of electronic funds transfer initiated at the point
where goods and services are purchased.
Electronic Funds Transfer System (EFTS) - A system using electronic equipment to
consolidate information currently recorded on paper checks, thus reducing the amount of paper
handled by banks.
Electronic Healthcare Network Accreditation Commission (EHNAC) - An organization that
accredits healthcare clearinghouses.
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FTP Industry Glossary
Electronic Lockbox - A bank service that receives and consolidates various electronic payments
and, possibly, lockbox deposits into a selected standard format.
Electronic Mail - The process or result of sending and receiving messages in electronic form via
remote computer terminals. See Telecommunications.
Electronic Media Claims (EMC) - This term usually refers to a flat file format used to transmit
or transport claims, such as the 192-byte UB-92 Institutional EMC format and the 320-byte
Professional EMC NSF.
Electronic Payment - An alternative to paper checks for paying bills. Consumers can use PCs,
telephones, screen phones or ATMs to send electronic instructions to their bank or bill payment
provider to withdraw funds from their accounts and pay merchants. Payments may be made
either electronically or by a paper check issued by the bill payment provider.
Electronic Point of Sale - A point-of-sale merchant with electronic equipment for pricing and
recording transactions, but not necessarily incorporating functions for electronic funds transfer.
Electronic Publishing - Producing and providing documents in electronic form.
Electronic Purse – A specific type of smart card that allows for transactions with different
merchants in many locations.
Electronic Record-Keeping (ERK) - The creation, maintenance and use, and disposition of
records created and stored by using a computer.
Electronic Records (ER) - Records stored in a form that only a computer could process. Also
called machine-readable records or ADP records. See Automatic Data Processing (ADP),
Computer System, Information System, and Optical Disk.
Electronic Remittance Advice (ERA) - Any of several electronic formats for explaining the
payments of health care claims.
Electronic Signature - An electronic sound, symbol, or process attached to or logically
associated with an agreement, authorization, written statement under penalty of perjury, or other
record and executed or adopted by a person with the intent to sign the record.
Electronic Sticky Notes - Bodies of text attached to a document via hypertext links. These texts
are used to annotate an electronic document, without altering the document’s text.
Electronic Transactions – The use of electronic terminals (such as automated teller machines,
point-of-sale terminals, automated telephone or bill pay systems, PC banking or PC bill payment
systems), pre-authorized electronic credits (Social Security or payroll deposits) or pre-authorized
debits to or from your personal account.
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FTP Industry Glossary
Electronic Transfer Account (ETASM) - A low cost account designed by Treasury to provide
individuals who receive Federal benefit, wage, salary, or retirement payments the ability to
receive their payments electronically. Any individual who receives a Federal benefit, wage,
salary, or retirement payment is eligible to open an ETA.
Electronic Wallet – Software that enables a cardholder to conduct online transactions, manage
payment receipts, and store digital certificates. An electronic wallet also stores credit card
numbers and shipping details.
Electronic Window - Information reporting systems are sometimes referred to as window
products, when data is often obtained through multiple points of access; when a single point of
access is used the technology is referred to as an electronic window.
Electrophotographic Printing - The technology used in copy machines and laser printers. An
electrically charges drum is hit with small beams of light. Wherever the light hits, the drum loses
its electrical charge. When toner is applied, it sticks to the non-charged parts of the drum. Paper
is then pressed against the drum, and the toner adheres to the paper. The paper is then heated to
set the toner.
Electrostatic - Pertaining to electrical charges and potentials. Now used to identify certain
electrophotographic dry processes.
Electrostatic Printing - Printing process that uses a special paper which is charged by an
electron beam. The tone sticks to the charged areas. Used in large-image plotters.
Element - A single bar or space or cell.
Elite - A class of typewriter fonts normally providing 12 characters to the linear inch.
E-Mail (Electronic Mail) - Messages, usually text, sent from one person to another via
computer. Email can also be sent automatically to a large number of addresses (Mailing List).
See Listserv®, Mail List.
Email Address - A digital address usually belonging to the Customer.
Embargo - Government restriction of the shipment of goods to a designated foreign country.
Embossing - The condition of the paper when the type slugs have dented or cut the document
with the outline of the characters. Embossing can be seen or felt on the reverse side of typed
Emergency Destruction - Eliminating records under abnormal circumstances, as provided by
law or regulations. These circumstances involve a state of war or impending hostilities and also a
continuing menace to life, health, or property. See Destruction.
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FTP Industry Glossary
Emergency-Operating Records - That type of vital records essential to the continued
functioning or reconstitution of an organization during and after an emergency. See Vital
Employer Identification Number (EIN) - An identification number assigned by the Internal
Revenue Service to employers. This serves as the Tax Identification Number for businesses.
EMS - Element management system (in distributed network management systems).
Emulation - Imitation of a computing function by a system not originally designed to perform
that function.
Emulsion - Light sensitive coating of a photographic material, mainly silver salts dispersed in
Emulsion Sensitivity - Sensitivity to light of a layer of emulsion on film.
Encode - To machine-print code fine data on a check, remittance coupon, or other financial
document, typically near its bottom edge in a MICR or OCR font. The encoded data can then be
read by a MICR or OCR reader. The device that does the printing is called an encoder.
Encode Error - An error in which the MICR encoded amount of the check does not match the
legal amount of a check.
Encode Process - A process of the Pass 2 application during which dollar amounts accepted by
the balancing applications are encoded on checks, and totals are encoded on the associated
control documents.
Encoder - A device that encodes data.
Encoder Module - Hardware component that encodes checks in Magnetic Ink Character
Recognition (MICR) fonts with the amount.
Encoder, High-Speed - See Power Encoder, High Speed.
Encoding - 1. The process of printing MICR (Magnetic Ink Character Recognition) information
onto a check usually the account number, routing number, check number, and after scanning the
drawn amount. 2. The basis for most data compression methods used in Imaging. Transmits
numbers describing the length of an image’s black and white regions, rather than separately
sending each black or white pixel.
Encoding a Check - Entering the amount of the check into the MICR line at the bottom of the
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FTP Industry Glossary
Encryption - A process that scrambles a message so that it cannot be read by someone who may
intercept it.
Encryption Key - A string of characters or numbers, private to the parties using a particular
encryption process, which allows the Originator of a message to encrypt and the Receiver to
decrypt the message.
End of Batch Ticket - Control document that identifies the end of the batch. First ticket sent to
check pocket used by the batch; second ticket, if used, is sent to stub pocket used by batch.
End of Day (EOD) - Function performed at the end of the processing day when all work is
complete. Extracts data and transmits it to the host system, generates reports, clears tables,
deletes images, creates a backup to disk, and performs housekeeping tasks.
End-of-Run Ticket - A control document that marks the end of a run or pass.
Endorse - Process of printing an endorsement on a check during Pass 2 processing so that it may
be deposited in a bank. In the narrow sense, to hand-write or machine-print information on the
back of a financial instrument to transfer title to another person or bank. In the more general
sense, to print various kinds of information on the front or back of a financial document in the
course of processing.
Endorsement - Authorization printed or stamped on the back of a check that permits a
depository bank to negotiate a check on behalf of the payee. Typically includes the payee’s bank
account number, the name of the depository bank, and the date of deposit.
Endorsement Area – The space on the reverse side of a check that is reserved for endorsements,
as specified in Regulation CC under the Expedited Funds Availability Act.
Endorsement Date - The date on which a payment is recorded as being endorsed.
Endorser - Hardware component that prints an endorsement on checks during Pass 2 processing.
Endorsing - Stamping or printing deposit account information on the back of a check.
Endpoint - Endpoint can refer to the transport pocket, the depository bank, an internal
programming code:
The pocket destination of a check, determined by the Routing and Transit Number.
The drawee bank or correspondent bank to which the check will be sent for payment.
A code number used to sort checks according to the banks on which they are drawn. Each
endpoint is designated with a Routing and Transit number (or a range of R/T numbers)
and each endpoint is associated with a pocket or group of pockets on the transport.
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FTP Industry Glossary
Endpoint Maintenance - The Endpoint Maintenance facility can establish multiple endpoints,
each capable of dealing with multiple Routing & Transit entries. It also creates the physical
pocket map by which the transport aligns pockets with pocket groups. Optional.
Endpointing - The process of sorting checks to a predetermined pocket group based on the
Routing and Transit number.
End-to-End Solution - A solution resulting from one system’s ability to transmit data to a
receiving system through an intermediary.
End-Use Microfilm - Same as distribution microfilm; a copy that is meant to be used in a
Engineering Records - See Architectural and Engineering Records.
Enhanced Electronic Check Presentment (EECP) - In this approach, paper is captured via
image technology at the bank of first deposit. The check’s code line and the image are separated.
The code line is transmitted via ECP to the paying bank or the Federal Reserve. The image is
forwarded separately. ECP is the non-image enhanced version of EECP in which a physical copy
of the check follows the transmittal of the code line.
ENR - Automated Enrollment Entry.
Enrollment - The process associated with a Customer establishing a relationship with a CSP.
Enrollment (Automated) ENR - An ENR entry is a non-dollar entry sent through the ACH by
any Receiving Depository Financial Institution (RDFI) to a Federal government agency
participating in the ENR program for the purpose of transmitting Direct Deposit enrollment
Enterprise Network - A complex network for a large business enterprise. This kind of network
may comprise a number of local area networks, which have to interface with each other as well
as a central database management system and many client workstations.
Enterprise-Wide - Refers to a solution that can be used throughout a company or business unit,
potentially by every employee with access to a PC.
Entry - An electronic item representing the transfer of funds in the ACH Network.
Envelope Back - The side of the envelope that the flap folds onto. The seams are visible on the
envelope back.
Envelope Blank - The paper stock that has been cut into a shape that, when folded, will make up
the final envelope.
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FTP Industry Glossary
Envelope Flap - The flap is what, when sealed, closes the envelop.
Enveloping - The process of putting information such as ANSI X12 transaction set, inside the
addenda records of CTX transaction. In essence, the first 80 characters of information from the
transaction set are inserted between the first three and the last 11 characters of the first addenda
record, the next 80 characters into the second addenda record, and so on. (The analogy to
inserting a letter into an envelope is how this process got its name.)
Environment - The hardware/software configuration of a computer, which may refer to its
human interface, networking interface, programming tools, database type, etc. The environment
determines what can be done with the computer or program.
EOD - See End of Day.
EOF (End of File) - Special character that marks the end of a file or other document. Used in
both stored and transmitted data.
EOM - End of month.
EPROM (Erasable Programmable Read-Only Memory) - Read-only memory in which data
can be erased by ultraviolet light or other means, and data can be re-programmed bit by bit with
appropriate voltage pulses. See PROM.
EPS - Earnings per share.
Equity - The value or interest an owner has in property over and above any indebtedness owed
on the property.
Equity Warrant - A long-term option to buy a stated number of shares of stock at a specified
price (exercise price). The value of a warrant moves in relation to the value of the underlying
stock. At the time of their issuance, warrants usually have an exercise price greater than the
current market price of the stock.
ER - Electronic records.
ERA - Electronic Remittance Advice (electronic posting of payment)
Erase Character - Same as delete character. Error in optical recognition, an error is generally
defined as the in correct recognition of an image. (A misread).
Erasing - See Deleting.
Ergonomics - The study of the way that human beings interact with machines and software, and
the attempt to design machines and software to make this interaction more efficient and
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
comfortable. Ergonomic features may include, but are not limited to, display screens, armrests,
and keyboard.
ERK - Electronic record keeping.
Error Correction - Mathematical techniques used by decoders to reconstruct missing or
damaged symbol characters.
Error Correction Code (ECC) - ECC is a method of data recovery that allows the full recovery
of a single physical block of user data, which is 2,048 bytes. It is used by the CD-ROM drive and
during CD-ROM pre-mastering.
Error Detection Code (EDC) - Used in conjunction with ECC, EDC allows the detection of
errors for correction.
Error Rate - The ratio of the amount of erroneously transmitted information to the total amount
Error Resolution Process - Procedures required under Regulation E for resolving a consumer’s
allegation that entries were improperly charged to the consumer’s account.
Escrow - Temporary deposit with a third party of assets by agreement between two parties to a
contract. The money is released when the conditions of the contract have been met.
ESP - Electronic Statement Presentment with no response functionality, just delivery of
ESP+ - Electronic Statement Presentment with response functionality (e.g. 401K statement with
ability for the consumer to transfer funds).
Essential Records - See Vital Records.
ETA - Electronic Transfer Account.
ETA Provider - Financial institutions that choose to offer ETAs. They must enter into a
Financial Agency Agreement with the Treasury Department.
Ethernet - A very common method of networking computers in a LAN. Ethernet will handle
about 10,000,000 bits-per-second and can be used with almost any kind of computer. See
Bandwidth, LAN.
Eurobond - A bond issued outside the country where the currency of the bonds is domiciled.
Eurodollar CD - U.S. dollar-denominated CD issued by banks, including branches of U.S.
banks, outside the U.S.
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FTP Industry Glossary
Eurodollar Deposits - U.S. dollar-denominated deposits in banks or bank branches located
outside the U.S., but not necessarily in Europe.
Eurodollar Time Deposits (Euro-TDs) - Non-negotiable, fixed-rate time deposits with maturities from overnight to several years, issued by non-U.S. banks and branches of U.S. banks
outside the U.S.
Evaluation - 1. In records disposition, the process of assessing the value of records to
recommend or determine their retention periods, making the records either temporary or
permanent. See Appraisal. 2. The inspection, audit, or review of records management programs,
including records disposition, either by the agency or by NARA and/or GSA, to ensure
compliance with applicable laws and regulations.
Evidential Value - The usefulness of records in documenting the organization, functions, and
activities of the agency creating or receiving them. Considered by NARA in appraising records
for permanent retention. See Informational Value, Permanent Records, Records.
Exception - Remittances that require special handling, such as cash, note, missing document,
damaged document, etc.
Exception Item - Any entry that requires special attention or processing, such as return entries,
stop payments, notifications of change, dishonored returns, etc.
Exception Processing - Used to describe those processes that are outside the normal
(automated) workflow. Those processes in a operation that require extra effort, above that of the
majority of transactions, in order to complete the processing operation.
Exception Processing Keys - Keys that initiate functions to process transactions that require
special handling.
Excess Balances - A condition that exists when the average collected balance in a company’s
bank account is above that required for compensation by the bank; or the level that the
corporation has chosen to leave at the bank.
Execute Key - Used to perform a command or enter information into the system. Usually the
Enter key.
Existing Relationship - A written agreement is in place between the Originator and Receiver or
when the Receiver has purchased goods or services from the Originator in the past two years.
Expedited Funds Availability Act (EFAA) - Federal law that defines check availability time
periods, payable-through draft and check return procedures.
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FTP Industry Glossary
Expense Account - Account often used by salespersons or executives for travel and
entertainment expenses.
Exponential Smoothing - A time series forecasting technique that assigns declining weights to
past values.
Exposure - Quantity of light striking a photosensitive emulsion. The product of the intensity and
the duration of the light contacting the emulsion.
Exposure Limit - A maximum total limit established by an ODFI for each of its Originators
beyond which the ODFI is unwilling to process additional ACH files. This limit is established as
a fraud and error control under the ODFI’s risk managment program. NACHA rules require the
ODFI to monitor this limit across multiple settlement dates to ensure that a particular Originator
does not inadvertently exceed it.
Extended Binary Coded Decimal Interchange Code (EBCDIC) - See Code 2.
Extract - Extract refers to a function and a type of file: Function that collects information from
the posting database and stores it on a magnetic tape or in a file for transmission to the
mainframe. Performed on a batch or run basis. Can be performed by the supervisor several times
during the day. Must be run prior to EOD. The file that results from this process. This file is sent
to the host computer for further processing. Extract data can be retained for several days.
Extraction - 1. Removing an image fragment containing the only the contents of a field and
none of the background around it. 2. A selected string of data which is usually found in the print
data and is stored for future use. In the case of COM, this is usually information such as report
name which is needed in the eye-readable titling on the microfiche, or which is needed in the
index frame of the microfiche.
Extraneous Ink - Any spot appearing within the read area, but outside the image itself, caused
by streaking, smears or splatters. Extraneous ink spots can be caused either in the process of
forms manufacturing or while entering data. This can result in less optimum readability.
Extranet - The part of a company or organization’s internal computer network which is
available to outside users, for example, information services for customers.
Eye Readable Characters - Images recorded on microfilm that are large enough to be read
without magnification. Also depends on the eye as to whether or not they are readable without
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FTP Industry Glossary
-FFace - The printing surface of a piece of type.
Face value - The current principal balance on an income stream.
Faced - Mail arranged with the address and postage of each piece facing the same way.
Facestock - The printed surface of a bar code label, usually made of paper or a synthetic
material such as polypropylene, polyester, vinyl or mylar.
Facilitative Records - See Administrative Records.
Facing Identification Mark (FIM) - A barcode on certain mail pieces which signals a machine
of the absence or presence of a barcode or a stamp.
Facing Slip - Label on a package of mail that identifies the contents and destination of the
Facsimile (FAX) - Scanning device with integrated transceiver for communication of images
over common carrier facilities.
Factor - A funding source that specializes in funding accounts receivable.
Factoring - The sale or transfer of title of the accounts receivable to a third party (factor).
Factors - Independent variables.
Fair Credit Reporting Act (FCRA) - Federal law that dictates acceptable and non-acceptable
practices and procedures involved in the reporting of credit information related to a consumer.
Fair Debt Collection Practices Act (FDCPA) - Federal law enacted in 1977 to eliminate
abusive and deceptive debt collection practices and to ensure that debt collectors who refrain
from using abusive and deceptive debt collection practices are not competitively disadvantaged.
False Positive - A descriptor used to describe the situation when a condition (error, transaction
type, or identification) is identified incorrectly. An example: An coupon or statement is
identified as containing a address change notification when in fact no such notifiction or other
markings are present.
Fanfold - Paper or card forms attached trailing edge to leading edge for continuous feeding.
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FTP Industry Glossary
FAQ (Frequently Asked Questions) - A standard feature of most online help, software
tutorials, and computer-based training programs. Answers the five to twenty questions that
represent about 90% of all questions asked about a product or system.
FARC (Federal Archives and Records Center) - A superseded term. Now generally divided
into a National Archives regional unit and a Federal records center.
Fast Start - An abbreviated SF 1199A form used to enroll and/or make changes to Direct
Deposit information.
Fast Track - Method of promotion determination in which certain workers with exceptional
characteristics are singled out for rapid advancement.
Fastening - Device or technique for holding the elements of a continuous form set together;
normally performed on the collator or as a final bindery operation. Fastening is described in
terms of type (staple. glue, sew, crimp), by positioning (marginal, comer, perforation, sectional),
or by function (permanent, flexible, temporary).
FAT (File Allocation Table) - Data written to a magnetic disk is not necessarily placed in
contiguous tracks. It’s usually divided into many clusters of data in many locations on the disk
surface. The FAT is the special area on a disk that keeps track of where clusters of data have
been written for retrieval later.
Fax - Slang for facsimile. A collection of technologies, really. Facsimile first scans, then
digitizes a paper document. It then converts that digital image to analog form. The fax machine
then dials and arranges a data communications session -agreeing on speed of transmission and
protocol -with a remote machine. The analog version of the document is then transmitted.
Meanwhile, the receiving machine captures the analog data, reconverts it to digital form AND
finally prints a copy, or facsimile, of the original document. Facsimile technology is in its third
generation, called Group 3. Each step up has been an improvement in speed of transmission and
resolution. Group 3 transmits a page at 9600 baud (with data compression) in less than a minute.
Group 3 resolution is 203 x 98 dpi in standard mode and 203 x 196 dpi in fine mode. The
standards for Group 4 facsimile exist, but its use is restricted to private corporate application at
present, since it requires an entirely digital transmission network. When the public telephone
network is all-digital, general-use Group 4 fax machines will become commonplace. That date,
however, is anyone’s guess.
Fax Board - An add-on circuit board that fits in a PC, that sends computer files in fax format to
either a fax machine or another fax-board equipped PC. Quality of the image is better, since it
isn’t scanned. And when the output is directed to a laser printer, the image is even sharper and
comes out on regular paper (as opposed to the dubious quality of fax machine’s thermal paper).
Fax Server - A specialized interactive voice response system that sends facsimile messages to a
fax machine you designate by touchtoning in numbers. The fax machine you designate might be
the one you’re calling from, or another one.
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FTP Industry Glossary
Fax-Back - A service that lets a user call a phone number, hear voice prompts, conduct a
document search and have a document sent to his fax machine.
FCB (Forms Control Block) - This is information inserted at the beginning of a print data set
that is to be transmitted to an on-line printer such as a COM recorder. It contains report-specific
information such as lines per page and tabbing locations for setting up the printer. Some vendors
allow sites to use FCB’s in an extended format for the purpose of transmitting special COM
recorder setup commands before they print data sets.
FCC - Federal Communications Commission.
FDIC - Federal Deposit Insurance Corporation.
FDDI (Fiber Distributed Data Interface) - High bandwidth (100 Mbits/sec) fiber optic
network. Capable of transmitting data, image, and voice.
FDM (Frequency Division Multiplexing) - A technique in which the available transmission
bandwidth of a circuit is divided by frequency into narrower bands, each used for a separate
voice or data transmission channel. This means you can send many more transmissions on one
circuit. FDM is still the most used method of multiplexing long haul transmissions. It is typically
used in analog transmission.
Feature Extraction - A sophisticated optical character recognition technique. The software
keeps data regarding all characters’ features; i.e., the letter “A” has two diagonal lines; the lines
intersect at the top; it has a horizontal line that crosses from one of the lines to the other, etc. As
the OCR scans, it compares features of the character to its feature library. Feature extraction is
used to recognize handwriting, in certain constrained cases.
Fed - Federal Reserve Bank.
Fed Float (or Federal Reserve Float) - The time that elapses between the Federal Reserve
granting availability and the actual time it takes to clear the check to the drawer bank. For
Example, the Fed may, according to its published availability schedule, grant two day
availability on a particular check when in actuality it takes the Fed five days to clear the check to
the drawer bank. The three-day difference is absorbed by the Fed and referred to a Fed Float.
Fed Funds - Funds deposited by commercial banks at Federal Reserve banks, including funds in
excess of bank reserve requirements. Banks may lend federal funds to each other on an overnight
basis at the federal funds rate to help the borrowing bank satisfy its reserve requirements or
liquidity needs.
Fed Wire - A wire transmission service established by the Federal Reserve to facilitate the
movement of funds through debits and credits of member bank accounts at the Fed. The timing
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for the movement of funds within this system is impacted directly by the hours of operation
maintained by a Federal Reserve Bank.
Federal Agency Securities (Agencies) - Discount and coupon obligations of the federal agencies that were established by Congress to provide credit to specific sectors of the economy.
Federal Archives and Records Center (FARC) - A superseded term. Now generally divided
into a National Archives regional unit and a Federal records center (FRC).
Federal Deposit Insurance Corporation (FDIC) - Independent federal agency that insures
deposits in member banks. It has its own reserves and can borrow from the U.S. Treasury.
Federal Financial Institutions Examination Council (FFIEC) - The joint regulatory body
established to coordinate the efforts of all Federal financial institution regulators. This body is
composed of all the bank, credit union, savings bank and deposit insurance regulators at the
Federal level.
Federal Information Resources Management Regulations (FIRMR) - Regulations on
information resources management issued by GSA and applicable to Federal agencies.
Federal Payment - Any payment made by an agency. The term includes, but is not limited to: 1.
Federal wage, salary, and retirement payments; 2. Vendor and expense reimbursement payments;
3. Benefit payments; and 4. Miscellaneous payments including, but not limited to, interagency
payments; grants; loans; fees; principal, interest, and other payments related to United States
marketable and non-marketable securities, overpayment reimbursements; and payments under
Federal insurance or guarantee programs for loans.
Federal Property Management Regulations (FPMR) - GSA regulations. The part formerly
applying to records management has been superseded by the Federal Information Resources
Management Regulations and NARA records management regulations.
Federal Records - See Records.
Federal Records Center (FRC) - A records center operated by NARA. See Records Center,
Standard Form 135.
Federal Register - The publication of the Federal Government in which all public record
regulatory actions and procedures of the government are published, including requests for
comment and final regulations and actions. The date of publication in the Federal Register is
often considered the effective date of many regulatory actions.
Federal Reserve - The central bank of the United States. The Fed comprises a seven-member
Board of Governors in Washington, DC, twelve regional Federal Reserve Banks, and their 25
branches. The Fed carries out various system functions, including operating a nationwide
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payments system, distributing the Nation’s currency and coin, supervising and regulating
member banks and bank holding companies, and serving as banker for the U.5. Treasury.
Federal Reserve District – Geographic regions served by a Federal Reserve Bank.
Federal Reserve System (Fed) - An independent agency of the U.S. government that plays a
central role in monetary policy, domestic payments system, and the regulation of financial
FEDI - Financial EDI.
FedlineTM - A personal computer software program written by the Federal Reserve Bank which
allows access to the Federal Reserve Bank’s payment services. Many smaller financial
institutions use FedlineTM to originate and receive ACH items.
Fedwire - The real-time system operated by the Federal Reserve for funds transfer and supporting information.
Fee Compensation - Compensation for bank services by direct, explicit fee payment.
Feed Belt - A belt used to feed documents into a transport system to be read and sorted.
Feed Check - A feed check occurs when items are not properly fed by the feeder mechanism of
a document processor; can be caused by a double item, an over length item, or an under spaced
Feed Wheels - A pair of wheels, rotating in opposite directions, between which documents are
transported by friction.
Feeder – A device that automatically loads documents, one at a time, into the track of the
Feeder Hopper - See Autofeeder and Hopper.
Felt Side - Topside or smooth side of a sheet of paper-normally the side on which printing is
FEP - Acronym for front-end processor.
FFIEC - Federal Financial Institutions Examination Council.
FGCS - Fifth Generation Computing Systems.
FI - Financial Institution, a federally insured bank, thrift or credit union.
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Fiber Optic Cable - Cable made from thin strands of glass through which data in the form of
light pulses is transmitted. Excellent, but very expensive, for very high-speed transmission over
medium to long distances.
Fiber Optics - A technology that uses glass fibers instead of metal wires to transmit information.
Fiber-optic technology increases the volume of data that can be carried and eliminates
electromagnetic interference.
FICA - Federal Insurance Contributions Act.
Fiche - See Microfiche.
Fiche Break - A user-specified separation of recorded data frames. A break may include
insertion of blank frames, advancing to the next column, advancing to the next microfiche, etc.
Fictitious Name - A legal statement filed when a person uses a name other than his or her own
to operate a business.
Fiduciary - An individual or institution to whom certain property is given to hold in trust
according to a trust agreement.
Field - In a database, the individual items of related information - for example, policyholder’s
name, address, social security number, etc. Together the fields make up a record.
Field Labels - The words next to a field that explain what type of data should be entered in the
Field Locators - Preprinted, non-drop-out marks on a form that the recognition equipment uses
to know the exact starting position of a field on the document. Dollar signs, field labels, and
arrows can be used as locators
Field Mark - A mark or symbol printed in red ink used to identify field boundaries.
Field of View - The width of a document that can be read in one scan.
Field Separator - The prearranged code, typically a comma, which separates fields in a record.
Also called a delimiter.
Field Source - A contiguous string of data from which information can be extracted.
Field-Prepared Form - A data entry form prepared at multiple points, for optical reading at one
or more central locations.
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Fields - Strings of characters that are treated as single units of information by a data processing
system. Examples are a last name or an account number. Several fields may be combined to
create a larger field, or a large field may be broken into smaller units for ease of entry.
FIFO (First In, First Out) - Queue handling method that operates on a first-come, first-served
File - 1. A set of related records treated as a unit. 2. All the data that describes one document or
image, maintained under a single naming code and stored in a computer or in a storage medium.
3. A group of entries transmitted by originating institutions or to receiving institutions by ACH
operators; may contain one or more batches of entries.
File Break - See Cutoff.
File Codes - Numbers or symbols used to abbreviate lengthy file titles. See Coding 1.
File Copy - See Copy 1., Records.
File Cutoff - See Cutoff.
File Designation - A distinguishing symbol, subject, name, number, or date controlling the
placement of a document in a filing system. See Classification 1., Coding 1.
File Groups - See File Types.
File Header Record - The first record of an ACH file containing information necessary to route,
validate and track the ACH contained within the file.
File Hold Punching - A hold made near some edge of a form to permit it to be placed in a
collator or final bindery punched.
File Layout - See Record Layout.
File Plan - 1. See Filing System. 2. A plan designating the physical location(s) at which an
agency’s files are to be maintained, the specific types of files to be maintained there, and the
organizational element(s) having custodial responsibility. 3. A document containing the
identifying number, title or description, and disposition of files held in an office.
File Protection - Techniques for preventing the accidental erasure of data. There are physical
file protection techniques for storage media and usually work by preventing any further
recording. A 5 ¼” floppy disk is file-protected by covering the notch on the bottom of the disk
cartridge with tape. An 8” disk is protected by removing the tape, uncovering the notch (exactly
the opposite!). Mag tapes are file-protected by removing a plastic ring in the center of the reel.
There are also nonphysical, or logical file protection schemes that are part of the operating
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system or applications software. These prevent chosen files from being erased, or edited. See
Write Protect.
File Server - 1. Data storage component that enables the distribution and monitoring of data
throughout a network/ system. Each file server includes a server console, keyboard, tape drive,
and disk drive. 2. Local Area Networks (LANs) were invented to allow users on the LAN to
share and thereby conserve the cost of peripherals (printers, modems, scanners) and to likewise
share software. The file server is the machine on the LAN where the shared software is stored.
File Station - Any location in an organization at which records are maintained for current use.
File Structure - A logical method of organizing data into locations that can be quickly accessed.
File Trailer Record - The last record of an ACH file indicating termination of the information
within the file.
File Types - Categories or classes of files. Include case, case working, general correspondence,
reading, transitory correspondence, convenience, and technical reference files, along with vital
records and special records. Each of these types is defined in this glossary.
File-Oriented Backup - Any backup software which instructs the computer to store information
in files just as they appear on the originating computer, making restoration easier and more
Files - A collective term usually applied to all records and non-record materials of an office or
agency. See Documentary Materials, Master Files, Non-Record Materials, Recorded
Information, Records.
Files Custodian - The individual or office in charge of agency files. Often used interchangeably
with records custodian. See Custody.
Files Inventory - See Inventory.
Files Maintenance - See Files Management.
Files Management - Applying records management principles and techniques to filing practices
in order to organize and maintain records properly, retrieve them rapidly, ensure their
completeness, and make their disposition easier. See Records Management.
Files Manual - See Directive.
Files Operations - See Files Management.
Filing - Putting documents into their place in accordance with a plan, or filing system. See
Arrangement, File, Records Maintenance and Use.
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Filing Feature - A characteristic by which a document is filed and found, such as a number,
date, title, name, or subject. See Cross-Reference.
Filing System - A set of policies and procedures for organizing and identifying files or
documents to speed their retrieval, use, and disposition. Sometimes called record keeping
Film - A sheet, strip or roll of transparent plastic coated with a light-sensitive emulsion.
Film Master - A photographic film representation of a specific symbol from which a printing
plate is produced.
Final Disposition - The end of the records life cycle in which temporary records are disposed of
and permanent records are transferred to the National Archives. See Disposal 1., Dispose, Life
Cycle of Records, Permanent Records, Scheduled Records, Scheduled Transfer, Temporary
Records, Unscheduled Records.
Financial Accounting Standards Board (FASB) - An independent accounting organization
responsible for publishing the Generally Accepted Accounting Principles (GAAP). FASB is the
public accounting profession’s self-regulatory organization. It publishes Statements of Financial
Accounting Standards (SFAS).
Financial Agency Agreement - Agreement between Treasury and financial institutions who
offer ETAs. Outlines the duties of the financial institution.
Financial Electronic Data Interchange (FEDI) - The electronic transmission of payments and
payment-related in standard formats between company trading partners and/or their banks.
includes electronic format for invoices, initiation of payments, lockbox deposit rep remittance
information sent either directly to a trading partner or processed through a financial or
communications intermediary.
Financial Institution - Any bank, savings and loan, credit union or other institution organized
under either national or state banking laws capable of both accepting deposits and making loans.
Financial Leverage - The use of debt to finance a company.
Financial Management Services (FMS) - A bureau of the U.S. Treasury that is the
government’s financial manager and which manages the government’s payments and collections.
Financial Organization Master File (FOMF) - A list developed by the Financial Management
Service and maintained by the Federal Reserve Bank of all financial institutions receiving
government payments.
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Finder Pattern - A unique pattern, specific to each symbology that does not represent data,
whose purpose is to locate the symbol in the reader’s field of view.
Finding Aids - Indexes or other lists, whether manual or automated, that are designed to make it
easier to locate relevant files or retrieve information. See Index 2.
Fine Sort - A deposit option that requires a depository institution to sort its cash letter down to
individual routing transit numbers. It allows a depository institution to receive a lower price and
later deadlines from the paying bank than for a group sort or mixed cash letter.
Finger - An Internet software tool for locating people on other Internet sites. Finger is also
sometimes used to give access to non-personal information, but the most common use is to see if
a person has an account at a particular Internet site. Many sites do not allow incoming Finger
requests, but many do.
Fire Wall - A combination of hardware and software that separates a LAN into two or more
parts for security purposes. See Network, LAN.
FIRMR - Federal Information Resources Management Regulation(s). Issued by GSA.
Firmware - Prewritten programs stored in read-only memory (ROM) circuits. Used widely as a
method of implementing commonly used software in word processing and small computer
First Of Exchange - The original of the draft
First Read Rate - The percentage of correct readings that will be obtained in one pass of the
scanner over the symbol.
Fiscal Value - The usefulness of records in documenting an agency’s financial transactions and
obligations. See Administrative Value, Legal Value.
Fiscal Year - Any 12-month period used by a company or government as an accounting period.
FISS - Fiscal Intermediary Standard System (the former Florida Shared System, now called the
Fiscal Intermediary Standard System because it is the sole system for all Medicare
Fixed Beam Scanner - A stationary bar code scanner which uses a fixed (or stationary) beam of
light to read bar code symbols. The symbol must be moved through the light beam to be read.
Fixed Disk - Another name for hard disk. So-called because it is installed in a computer and not
meant to be removed.
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Fixed Fee - Paying a specific amount per collection, as opposed to a contingent fee. NRC offers
fixed-fee collection services. This is typically the most cost-effective way to recover delinquent
Fixed Fee Philosophy - NRC’s unique solution to accounts receivable management. The fixed
fee philosophy focuses on the early referral of delinquent accounts and the resulting highest
possible recovery ratios. The cornerstones of the NRC fixed fee philosophy are a low, fixed-feeper-account, preserving the creditor’s image, and assisting credit grantors to maintain a healthy
cash flow.
Fixed Field - A data segment of predetermined length and positioning within an electronic
Fixed Spacing - All characters take up the same horizontal space, regardless of their widths. An
“i” would take up the same space as an “M”. Opposite of proportional spacing.
Fixed Unit Cost - That portion of the total cost of a good, service or process that is fixed and
does not fluctuate with changes in volumes or components of the operation. An example of
fixed unit cost is the hardware depreciation. It is a fixed amount over the life of the hardware.
Fixing - A part of the photographic process which renders the developed image more permanent.
Flag - Any hardware or software indicator used to identify byte, file, or component of a graphics
Flame - Originally, flame meant to carry forth in a passionate manner in the spirit of honorable
debate. Flames most often involved the use of flowery language and flaming well was an art
form. More recently flame has come to refer to any kind of derogatory comment no matter how
witless or crude. See Flame War.
Flame War - When an online discussion degenerates into a series of personal attacks against the
debaters, rather than discussion of their positions. A heated exchange. See Flame.
Flat - A piece of mail that exceeds at least one of the dimensions for letter-size mail, but none of
the maximum dimensions for flat-size mail.
Flat File - This term usually refers to a file that consists of a series of fixed-length records that
include some sort of record type code.
Flextime - Work schedule in which the worker is required only to work a minimum number of
hours, and is given latitude in deciding when to report for and leave work.
Flip & Seal Envelope - An open side style with side seams and 2 small latex seal flaps, one in
the standard position and the other folded down from the throat. As the name implies, the lower
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flap is flipped up to seal. Available as a Regular or Window. Commonly used in the medical
Float - Refers to the status of funds in the process of collection. Float is experienced from the
time a sale is made until your account receives collected funds on your customer’s check. Float
has the dimensions of both time and money and thus is often computed as the product of the
funds being collected and the time involved to collect them. This product is expressed in Dollar
Days ($D).
Float (Availability Float) – The time measured from the banking day of deposit until the
banking day when collected funds are made available to the depositor. (A “banking day” is based
on the cut-off time for a deposit to receive credit for that day, usually 1:00 pm to 2:00 pm).
Float (Mail Float) – The time measured from the calendar day of mailing to the banking day of
deposit or the elapsed time from the postmark date to the deposit date stamp.
Float (Processing Float) – The time between the receipt of an item to the depositing of an item.
Float (Total Float) – The time measured from the calendar day of mailing until the banking day
when collected funds are made available to the depositor.
Float Allocation - The assignment of float or its imputed costs to the specific customers and/or
bank products responsible for its origination.
Floor Planning - Type of financing frequently used to support the inventory of dealers
specialize in high cost durable goods such as automobiles, trucks, farm equipment, and major
Florida - FL
Flow - The ability of an ink to spread over a surface or into a thin film.
Flow Chart - Graphic representation of a system, data flow, etc. using labeled symbols
connected by lines.
FLSA - Fair Labor Standards Act.
Fluctuations - Variances in data, which are caused by a large number of, minute variations or
Fluorescence - Optical brighteners added to paper to enhance its whiteness or brightness to the
human eye in normal lighting. Because they absorb and emit light energy at different
wavelengths, they can cause erratic reflectance values.
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Flying Spot Scanner - A device employing a moving spot of light over a document, a
microimage or along the contour of a character to read and convert the item being read to
electronic signals.
FMGT (Film Management) - Defines the format of the microimage; i.e., reduction ratio,
frames per column and row, number of index frames, number of title rows.
FMS - Financial Managment Service.
FOIA - Freedom of Information Act.
FOK - Fill-or-kill order.
Folder - One or more documents related to a workflow case. See Workflow.
Follow-Up Files - See Suspense Files.
FOMF - Financial Organization Master File.
Font - 1. A set of characters of specific style and size of graphic type. Some of the more
common fonts are OCR A, OCR B, and E13B. 2. All the characters and digits in the same style
and size of type.
Footprint - The physical area a machine occupies on your desk; the amount of square feet, or
real estate, devoted to a machine.
Foreclosure - A legal proceeding in court to seize property given as security for a debt that is in
Foreign Bonds - Bonds issued in the country of their currency by non-residents of that country.
Foreign Currency Swap - A transaction in which specific amounts of two different currencies
are exchanged, and the amounts are repaid over time.
Foreign Exchange (FX) Rate - The equivalent number of units of one currency per unit of a
different currency.
Forfaiting - Specialized form of export financing in which the seller accepts a note from the
buyer which can be discounted; useful where confirmed letters of credit are not available.
Form - A document containing data written in fields that are geographically stable on the
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Form Factor - The size of a mechanism, usually refers to units meant to be installed in a PC or
workstation. If a new hard drive is six inches deep, and your PC can only accept five inches, then
you say its form factor is too large.
Form Flash - See Form Slide.
Form Identifier - An identification in the form of a numeric, alpha, alphanumeric or graphic
that is unique to a particular type of document / form. The correct location and identification of
the identification results in the correct identification of the form being procesed.
Form Overlay - A process utilized in COLD systems to recreate the look of an original
document, by laying a form over the associated text. Examples include: invoice forms, purchase
order forms, and statement forms.
Form Slide - A piece of dark glass or film with clear lines that is used in exposing the form
drawing around the data. A form may be a border, which is a simple box, but some forms can be
very detailed and include logos, report title information, and lines for separating the data on each
page. Form slides are mechanical devices, subject to alignment error, and in some cases are now
being replaced by electronic forms capability on newer COM recorders. See Electronic Form.
Format - Refers to the layout of a microfiche, frame, title area, etc.
Format Identifier or Number - A character or series of characters that are usually preprinted,
but may be hand printed or machine printed, that are optically read to signify a reading pattern or
form identification which is under program control. These are normally repetitive data. For this
purpose a symbol (e.g., &, --, *, etc.) is classified as a character.
Formatted Data - This is a print data set which has passed through a program and contains all
necessary titling, indexing and job separation commands and data as printed pages in the data
Formatting - Preparation of a storage medium defining tracks, check for bad sectors, etc.
Formed Character - A printing method which uses a print wheel containing bars, letters and
numbers to create labels.
Forms Analysis - The art or science of resolving what goes on a form. More specifically, forms
analysis can be defined as a means of determining if a form is necessary and if so, what type of
form it should be, what physical characteristics it should have and what data it should contain.
Forms Control - Part of business management relating to analysis, standardization and
regulation for forms design and use; may include forms purchasing and inventorying as a
centralized function.
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Forms Design - The art or science of resolving how to best arrange and present the information
on a form.
Forms Handling Equipment - 1. Equipment used to process (or assist in processing) forms
after they have been written. 2. More specifically, machines to process continuous forms after
execution such as bursters and decollators.
Forward Foreign Exchange Contract - A contract to purchase or sell a specified quantity of a
foreign currency at an exchange rate established today for delivery on a specific date in the
Forward Foreign Exchange Rate - An exchange rate established today for a currency transaction that settles more than two days in the future.
Forward Rate Agreement - Forward contract in which two parties agree on the interest rate to
be paid at a future settlement date.
Forwards - Contracts that require some specific action at a later date and allow lock-in of a
future price or rate; forwards are typically used to provide a hedge against risk.
Four-Color Process - Means of printing color photos or art in which the original image and
colors are separated into the three primary colors (cyan, magenta, and yellow) and black. The
image is reproduced by superimposing the four colors on one another in the printing process.
FPM - Flexible-payment mortgage.
FPMR (Federal Property Management Regulations)- GSA regulations. The part formerly
applying to records management has been superseded by the FIRMR and NARA’s records
management regulations.
Fractional Availability - Adjustment to a customer’s availability to take into account missed
availability deadlines; extends availability by the resulting fraction or part of a day.
Frame - In microforms, the area of film exposed to light, along with the form, i.e., border, logos,
whatever. In computer graphics, the border of the text or picture box.
Frame Grabber - A device that changes a video picture into a digital computer graphics
Frame Relay - Frame relay is a protocol and method of connecting. It is a telecommunication
service designed for cost-efficient data transmission for intermittent traffic between local area
networks and between end points in a wide area network like the Internet Frame relay puts data
in a variable-size unit called a frame and leaves any necessary error correction (retransmission of
data) up to the endpoints, which speeds up overall data transmission. For most services, the
network provides a permanent virtual circuit (PVC), which enables the customer to see a conv112003
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tinuous, dedicated connection without having to pay for one. The service provider figures out the
route each frame travels and can charge based on an actual usage basis.
Framing - A printing phenomenon associated most commonly with chain and train printer in
which a carbon frame surrounds a printed character.
Fraud Risk - The risk that a payment transaction will be initiated or altered in an attempt to
misdirect or misappropriate funds.
FRB - Federal Reserve Bank.
FRC - Federal records center.
Free Alongside Ship (FAS) - Commercial term under which the sellers obligations are fulfilled
when the goods have been placed alongside the ship. The buyer has to bear all costs and risks
from that moment.
Free Form - A data-entry form in which data appear in variable length fields without the use of
preprinted symbols or guides.
Free Item - Item for which a corresponding Pass 1 record cannot be found during Pass 2.
Free on Board (FOB) - Commercial term under which the seller’s obligations are fulfilled when
the goods reach a point specified in the contract. For example, F.O.B., Seller’s Warehouse,
means that the buyer assumes all costs and risks in moving the goods from the seller’s
Free Text Scanning - A full-text retrieval search methodology that reads the entire text database
for each query submitted. Typically utilizes a Text Array Processor (TAP) to facilitate the text
scanning process.
Freight Payment Services - Specialized payment services offered by banks and third parties
that effect payment for the client directly to freight carriers and offer data bases that assist in
determining cost-efficient freight distribution methods.
Frequency Distribution- The pattern or shape formed by the group of measurements in a
Frequency Response - The measurement of an audio unit’s ability to reproduce, at equal
volume, each sound frequency.
Front Key Compression - A compression routine applied to the inverted index created by some
text retrieval systems. Front key compression uses the fact that the terms in an index are stored
alphabetically. The prefix redundancy from word to word is eliminated. Only the unique portion
of subsequent words along with the length of the common prefix from the preceding word are
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stored. Compression can typically result in an inverted index of 100% the size of the text in the
Frozen Records - In records disposition, those temporary records that cannot be destroyed on
schedule because special circumstances, such as a court order or an investigation, require a
temporary extension of the approved retention period.
FRS - Federal Reserve System.
FT1 - Fractional T1.
FTD - Federal Tax Deposit.
FTDP - Federal Tax Deposit Payment.
FTE (Full Time Equivalent) - Used to identify staff in ther terms of a full work day defined by
the total hours worked in a given day. While most equate an FTE to eight hours of labor some
operations use a smaller number of hours to define an FTE. A single staff member that works
eight hours a day is an FTE. Two staff members each working four hours per day are the
equivalent of one FTE.
FTP (File Transfer Protocol) - A very common method of moving files between two Internet
sites. FTP is a special way to login to another Internet site for the purposes of retrieving and/or
sending files. There are many Internet sites that have established publicly accessible repositories
of material that can be obtained using FTP, by logging in using the account name anonymous,
thus these sites are called anonymous ftp servers.
Fulfillment - Process of receiving orders and shipping and tracking goods sold through direct
Full Duplex - A data communications scheme that permits simultaneous transmission in both
Full Line MICR Utility - Allows the operator to encode with Magnetic Ink Character
Recognition (MICR) characters, audit trail, and endorse checks on a transport without capturing
information on disk or transferring information to the file server. Validates all MICR fields and
options, then generates a control or test document.
Full Matrix Scan - A scanning method wherein light reflected from a graphic shape is projected
upon a rectangular grid of photoelectric elements.
Full Reconciliation - Company supplies an electronic file of checks issued to its bank and the
bank matches checks paid against the file. Bank supplies a listing, either as a paper report and/or
electronic form, of checks paid and outstanding in check serial number order.
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Full-Service Collections - A third-party collection source that utilizes a full range of collection
tactics including written debtor contacts and multiple calls from professional collectors using
predictive dialing equipment (see also Predictive Dialer) throughout the collection cycle. Those
agencies that are not classified as full-service agencies may not make any phone calls to the
debtor whatsoever, or may make phone calls only at the end of the collection cycle (and often at
an additional fee).
Full Text Indexing - The process of pre-indexing data that does not have a specific format, such
as word processing documents. The full text index performs an extraction for every word that
exists in the document and creates an index file based on those values.
Full Text Search - The ability to search text files for occurrences of certain words, digits,
sentences or patterns of characters. Generally, a scanned document cannot be full text searched.
To do that, the document would have to be retyped or scanned with an OCR to create a text file.
Full-Text Retrieval (FIR) - A software or hardware process that retrieves textual documents
based on the words, phrases, or concepts contained in the documents. Also known as Text
Information Management Systems and Text Retrieval Systems.
Function - A computer operation that performs a defined task.
Function Keys - Keys on a keyboard that initiate capabilities of a computer system.
Functional Classification - The division of records into categories and subcategories to reflect
the programs, activities, and transactions carried out by the organization accumulating the
Funding Source - An individual investor or an investment company that buys income streams.
Funds - A vehicle for the storage of value. Usually refers to value on deposit at a bank.
Funds Availability - The time at which funds associated with paperless entries have been made
available to the customer.
FUTA - Federal Unemployment Tax Act.
Futures Contract - A standardized, normally exchange-traded contract for future delivery of a
financial or real asset.
Fuzz - Fibers projecting from the surface of a sheet of paper.
Fuzzy Logic - The application of generalized set theory logic. Fuzzy logic pen-nits partial
adherence to a criteria. In full-text retrieval, fuzzy logic often takes the form of Soft Boolean
Operators and is used in the process of relevancy ranking. See Soft Boolean Operators.
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FYI - For your information.
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FTP Industry Glossary
-GG&A - General & administrative.
GAAP (Generally Accepted Accounting Principles) - See Financial Accounting Standards
Gain - The increase in signaling power as an audio signal is boosted by an electronic device. It’s
measured in decibels (dB).
Gamma - The measure of a monitor’s brightness, or the contrast between black and white on a
Gantt Chart - A bar chart used to plan and track progress and resources necessary to
accomplish a project.
GAO - General Accounting Office.
Garbled - Corrupted data.
Garn-St. Germain Act - Federal law enacted in 1982 that extends the legal lending limit of
Gateway - A computer system that links two networks, allowing information to pass from one to
the other.
Gateway Operator - In cross-border payments, the Gateway Operator is the operating entity
which receives and converts a payment made in the currency and format of the originating
country into the currency and format of the receiving country. The functions of the Gateway
Operator on either side of the cross-border payment may be split between an Originating
Gateway Operator (for the country of origin of the payment) and the Receiving Gateway
Operator (for the country of receipt of the payment), or they may be performed by a single entity.
GATT (General Agreement on Tariffs and Trade) - An international agreement to encourage
trade by the reduction of tariffs and quotas on foreign goods and services.
GB (Gigabyte) - The equivalent of one billion bytes of information / data. One thousand
megabytes of information equals one gigabyte. See Giga and Gigabyte.
GBPS - Gigabits per second (billions of bits per second).
General Correspondence Files - Records arranged and filed according to their general
informational, or subject, content. Mainly letters and memorandums but also forms, reports, and
other material, all relating to program and administrative functions, not to specific cases. Also
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called central, correspondence, or subject files. See Administrative Records, Correspondence,
Program Records, Reading Files Transitory Correspondence Files.
General Obligation Securities - A form of municipal security backed by the issuer’s resources
and its pledge to levy taxes.
General Records Schedule (GRS) - A NARA-issued schedule governing the disposition of
specified records common to several or all agencies. See Records Schedule, Standard Form 115.
Generator Program - A tool for customizing item-processing applications that run under the
OS/2 operating system; part of the Application Base software package.
Geographic Information System (GIS) Records - See Cartographic Records, Electronic
Georgia - GA
Gesture Recognition - An OCR’s ability to read handwritten characters - check marks and
certain other symbols.
GIF (Graphic Interchange Format) - A common format for image files, especially suitable for
images containing large areas of the same color. GIF format files of simple images are often
smaller than the same file would be if stored in JPEG format, but GIF format does not store
photographic images as well as JPEG. See JPEG.
Giga - Meaning billion or thousand million. In computers, it is actually 1,024 times mega and is
actually 1,073,741,824. One thousand gigas is a tera. No one knows what a thousand teras is ...
Gigabyte - A billion (actually more) bytes of data, or a thousand megabytes. Presently,
gigabytes are in the stratosphere of storage capability, but imaging applications commonly take
up huge amounts of data. For example, it only takes ten 8-1/2” by 11” color pictures, scanned at
600 dpi, to fill a gigabyte. See Giga.
Gigaflop - This is an acronym for giga floating point operations per second or one billion flops.
Apple’s new G4 processor has supposedly surpassed the gigaflop barrier, but despite the
predictions of some Windows aficionados, it doesn’t necessarily describe Apple’s market
GIGO (Garbage In, Garbage Out) - If the input data is wrong or inaccurate, the output data
will be inaccurate or wrong. GIGO is often the problem with data entered by hand into computer
Giro Systems - Centralized payment systems, common in Europe, generally operated by the
postal service using direct debits and credits.
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FTP Industry Glossary
GIS - Geographic information system.
Glass-Steagall Act (Banking Act of 1933) - Federal law prohibiting commercial banks from
securities underwriting. It required the Federal Reserve to establish interest rate ceilings and
established the FDIC.
Gloss - A phenomenon related to the specular reflection of incident light as opposed to diffuse or
scattered reflection. The effect of gloss is to reflect more of the incident light in a specular
manner and to scatter less. Paper gloss is considered undesirable for optical systems since it will
change the effective brightness of the paper, thus affecting the print contrast signal.
GNP - Gross national product.
Gooey - Slightly derogatory slang for GUI Graphical User Interface.
Gopher - A widely successful method of making menus of material available over the Internet.
Gopher is a Client and Server style program, which requires that the user have a Gopher Client
program. Although Gopher spread rapidly across the globe in only a couple of years, it has been
largely supplanted by Hypertext, also known as WWW (World Wide Web). There are still
thousands of Gopher Servers on the Internet and we can expect they will remain for a while. See
Client, Server, WWW, and Hypertext.
GOSLP (Government Open System Interconnect Profile) - U.S. government set of standards
for WANs, LANs, E-mail, Documents, EDI, and FDDI.
Government Disbursing Office - A Federal government office, which issues payments on
behalf of an authorizing Federal agency.
Government-Based Income Streams - Cash flows paid by a government entity, either directly
or through an insurance company.
Grace Period - Permits repayment of principal beginning at some specified future date. For
example, an eight-year loan with a two-year grace period would mean that principal payments
would not commence until the third year of the loan.
Gradient - In graphics, having an area smoothly blend from one color to another, or from black
to white, or vice versa.
Grain Direction - the direction of the fibers in paper composition. Long grain means that the
long dimension of the document is parallel to the direction of paper stock movement through a
paper-making mill. Short grain denotes that the short dimension of the document is parallel to
the direction of paper travel through the mill.
Graphic Records - See Architectural and Engineering Records, Cartographic Records.
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FTP Industry Glossary
Graphical User Interface (GUI) - A screen design that makes software easier to use. A GUI
lets the operator perform tasks by pointing at objects on the screen with a device such as a
mouse, instead of having to memorize and type in commands.
Graphics - For the purposes of this glossary, graphics are one of the three types of data that can
be created, stored, retrieved and manipulated (the other two are text and documents). Graphics
are basically pictures and drawings, either created by computer or entered into the computer by
scanning or photographing. See Vector Graphics, Raster Graphics and Bit Map.
Graphics-Based - Representation of images that, rather than use characters, uses vector or raster
graphic techniques. An example is bit-mapped type. It is text, yes, but represented by graphic
means. See Text Based.
Gray Levels - A measure of the depth of an image in shades of gray. Although binary (black &
white) images are more common, 16 or 256 gray levels are sometimes used in check imaging
Gray Scale - The spectrum, or range, of shades of black an image has. Scanners’ and terminals’
gray scales are determined by the number gray shades, or steps, they can recognize and
reproduce. A scanner that can only see a gray scale of 16 will not produce as accurate an image
as one that distinguishes a gray scale of 256.
Gray Scale Image - An image in which variations in color and shading are represented in shades
of gray. Compared with binary (black-and-white) images, gray-scale images take up more space
on data-storage devices and take longer to transmit from one computer system to another.
However, they are better for those item-processing applications where it is important for users to
examine details of the document image.
Grayed-Out Choices - Some choices may be disabled (grayed out) when you have selected one
option that precludes another option. When the options become gray text, those choices are no
longer available for selection.
Grayscale Scanner - Scanners that can accurately sense, differentiate, and encode intermediate
shades between black and white in scanned images.
Green Book - A publication of the U.S. Treasury that specifies procedures for ACH transactions
originated on behalf of the Federal government. The Green Book implements the requirements
of Title 31, Code of Federal Regulations, Part 210 concerning government use of the ACH
Green Book - The specifications under development for the physical characteristics of CD-I
discs and players.
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FTP Industry Glossary
Grid - A defined array of horizontal and vertical lines that are used to locate pertinent data
frames with a microfiche reader.
Grid Location - Identifies the location of a specific data page; e.g., frame B01 refers to the data
frame located at row B, column 01.
Grid Notes - A type of bank credit arrangement in which a company signs a comprehensive
promissory note under which borrowing takes place and is recorded on the note.
Groove - A continuous channel cut or molded into the surface of a recording medium to guide
the reading device.
Gross - 1. Total amount prior to any deductions. For example, gross pay is an employee’s total
income before taxes and other deductions are taken out. 2. 12 dozen=144.
Gross National Product - Total final value of all goods and services produced in a nation in one
Ground Wood Paper - Economy grade of paper sometimes used for forms, most often
continuous stock forms; ground wood forms papers normally contain a mixture of mechanical
wood pulp (ground wood) and chemical pulp. Not to be used for OCR applications.
Group - See Transaction Type.
Group Erase - An OCR graphic shape used to delete a group or string of three or more
Group Sort - A deposit option in which a single cash letter may contain checks drawn only on a
specified group of routing transit numbers. Sorting cash items by group allows depositors to
receive better availability or to meet a later deadline, usually at a lower per item charge than for
a mixed cash letter.
GroupWare - Software which automates a single task among multiple workers.
GRS - General Records Schedule.
GSA - General Services Administration.
GTC - Good-till-canceled order.
Guam - GU
Guard Band - Can be the same as margin, clear band or border.
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FTP Industry Glossary
GUI (Graphical User Interface) - Computer control system that allows the user to command
the computer by pointing-and-clicking, usually with a mouse, at pictures, or icons, rather than
type in commands. Opposite of CUL
Guide Boxes - Preprinted reflective ink patterns used to control placement of hand printed
characters or marks on scanner forms.
Guide Edge - See Reference Edge.
Gulp - Slang for a group of bytes.
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FTP Industry Glossary
-HHacker - Slang for a skilled outlaw who breaks into computer systems for illegal fun or profit;
originally, slang for an ordinary programmer.
Half Duplex - Data communications mode which permits transmission in both directions, but
only in one direction at a time.
Halftone - A graphic, usually created from a photograph, in which dots are used to represent
continuous tones. Larger, densely placed dots that sometimes touch represent darker tones;
smaller, widely spaced dots with white areas between them represent light tones. Color halftones
use varying hues and combinations of the subtractive, or process, colors to represent hill
continuous tone images. Halftones allow continuous tone photographs to be printed by
conventional ink-on-paper processes. There is at present no way to print actual continuous tones.
Halftone Printing - See Screening.
Halftoning - Any of the shades of gray (or color) between the darkest and lightest parts of a
photographic or digitized image.
Hand-Drop - A device in the transport’s document feeder/hand-drop module. The hand-drop
lets operators drop documents into the transport track one at a time, for tasks involving reading
and keying. The hand-drop includes a padded armrest to maximize operator comfort and a plastic
guide to aid in accurate document placement.
Hand-Held Scanner - A scanner held and operated by a human operator, enabling the scanner
to be brought to the symbol.
Handle - A small square at the comers and sides of a computer graphic image that represent the
spot where the mouse cursor can be placed to manipulate (reduce, move, reshape) the image.
Handling Zone - The part of the optical disc that can be touched by a jukebox’s gripping
Handprint - In OCR, a set of characters, printed by hand, which conform to certain shape and
size specifications, and which can be recognized by an optical character reader.
Handprint Boxes - Guides used to control entry of hand printed characters.
Handprint Recognition - The recognition of handprinted characters using advanced scanning
techniques (statistical analysis, topological and statistical recognition, and curve tracing).
Handshaking - Exchange of signals at the beginning of a data communications session. During
this exchange, the two systems confirm each other’s specs, like parity, baud rate and speed, to
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ensure a proper link is set for the data transmission. As with humans, once the handshaking is
through, the business of communications begins.
Handwriting Recognition - 1. A system for reading handwriting data taken from a stylus pad or
directly from a computer screen and converting the data into machine-readable text. 2. The
ability of software to recognize and interpret hand print and script from a document or image of a
Hard Copy - 1. Recorded information copied from a computer onto paper or some other durable
surface, such as microfilm. To be distinguished from a temporary image on a display screen and
from the electronic information on a magnetic tape or disk(ette) or in the computer’s main
memory. See Output Records. 2. Recorded information copied from microfilm onto paper and
made readable without a special device. 3. A paper record that may later be filmed or digitized.
Hard Disk - A storage device that uses a magnetic recording material. Generally, hard disks are
fixed inside a PC, but there are removable cartridges versions. Hard disks store anywhere from
five to hundreds of megabytes.
Hard Error - An error in data communications that cannot be repaired by correction schemes.
Hard Read Error - Physical bits of data cannot be read by the user since they are usually
misplaced or absent from the data bit stream.
Hard Sectored - Sector boundaries on a magnetic disk that have been physically marked,
usually with a hole punched on the medium. Hard sectored disks are not very common these
Hard Space - A specially designated space bar character, which won’t allow two words to break
for justification.
Hardware - A computer system’s physical equipment, including the central processing unit
(CPU), control unit, memory, input/output devices, and storage devices. See Central Processing
Unit, Software.
Hardware Configuration - See Configuration.
Hardwired - Originally used to indicate a fixed, permanent hardware connection. Now
expanded to include a selected option - in hardware or software - which cannot be easily changed
(rewired or re-programmed) by the user.
Hash Algorithm Tables - A means to both distribute data and to locate data on a disk. The
tables consist of mathematical formulae, which show the location of data.
Hash Total - Adding up one or more information fields in order to provide a check number for
error control. The addition is not intended to have any meaning other than for checking.
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FTP Industry Glossary
Hawaii - HI
HCFA Common Procedural Coding System (HCPCS) - A medical code set that identifies
health care procedures, equipment, and supplies for claim submission purposes. It is maintained
by HCFA, and has been selected for use in the HIPAA transactions.
HDTV (High Definition TV) - A proposed standard for TV broadcast. Not agreed upon yet,
most proponents recommend the doubling of current 525 lines per picture to 1,050 lines, and
increasing the screen aspect ratio (width:height) from the current 12:9 to 16:9, which would
create a television screen shaped more like a movie screen. Today’s typical TV set in North
America contains 336,000 pixels. A high definition TV set will display at least two million
Head - The device that comes in contact with or comes very close to the magnetic storage device
(disk, diskette, drum, tape) and reads and/or writes to the medium. In computer devices, it
performs the same function as the head on a home cassette tape recorder.
Head Margin - The white space above the first line on the page.
Head Thrashing - A term for rapid back and forth movements of the disk head of a hard drive.
Header - That portion of a microfiche, usually the top row, used to record eyeball readable
Header Sheet - An instruction sheet for an optical character reader which informs it of the
format to expect on the following sheets which are to be scanned.
Headhunter - Firm engaged in the recruitment of executive-level management and professional
Health Care Code Maintenance Committee - An organization administered by the BCBSA
that is responsible for maintaining certain coding schemes used in the X12 transactions. These
include the Claim Adjustment Group Codes, the Claim Adjustment Reason Codes, the Claim
Status Category Codes, and the Claim Status Codes.
Health Informatics Standards Board (HISB) - A standards group that has developed an
inventory of candidate standards for consideration as possible HIPAA standards.
Healthcare Financial Management Association (HFMA) - An organization for the
improvement of the financial management of healthcare-related organizations. The HFMA
sponsors some HIPAA educational seminars.
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FTP Industry Glossary
Hertz - A measure of frequency or bandwidth; the same as cycles per second. The frequency of
an electric or electromagnetic wave in cycles per second, named after Heinrich Hertz who
detected such waves in 1883.
Heuristic Associations - A method for increasing the recall of a full-text query. Heuristic
association is an iterative process in which the documents identified through one query are
statistically analyzed to determine prevalent words and phrases not included in the original
query. These words are used to initiate a subsequent query.
Hex - Short for hexadecimal. Counting system using the base of 16 - 10 digits and six letters. In
hexadecimal notation, the decimal number numbers 0 through 15 are represented by the decimal
digits 0 through 9 and the alphabet digits A through F (A = decimal 10, B = decimal 11, and so
HFS (Hierarchical File System) - In DOS, the file management system that allows directories
to have subdirectories, and sub-subdirectories. In Windows, files my be placed into folders, and
folders to be placed within other folders.
HIBCC (Health Industry Business Communications Council) - A health industry
Hidden Line - In computer graphics, a line segment that is obscured in the two-dimensional
representation of a three-dimensional object.
Hidden Line Removal - A technique that removes hidden lines to decrease the number of bits
needed to display or store an image.
Hierarchical System - Any classification system in which records are arranged under primary
(first-level) categories and then, as necessary, under secondary (second-level) and further
High Density - Floppy disks which have been manufactured for high capacity. High-density 5
¼” floppy disks hold 1.2 megabytes; 3 1/2” floppy disks hold 1.4 megabytes.
High Dollar Group Sort - A deposit program implemented in April 1984 that offers accelerated
collection of checks drawn on selected institutions outside of cities in which Federal Reserve
offices are located. The program is intended to provide a more efficient check collection system
by giving depositors better availability for checks drawn on those endpoints.
High Dollar/Overpay Utility/Table - Allows the supervisor to establish and maintain dollar
limit tables used to flag transactions. Also allows the supervisor to establish and maintain an
overpay limit, which specifies the maximum amount allowed over one of the stub amount fields.
If the amount is over this limit, the item is rejected and sent to Interactive Balancing.
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High Resolution - Basically, any image that is displayed in better quality by increasing the
number of dots, or pixels, per inch than normal. Usually refers to better quality computer
displays, but can describe printer quality as well. Called high res, for short.
High Sierra Group - A working group of representatives from various CD-ROM companies
who are proposing a set of standards for CD-ROM beyond characteristics set forth in the World
Standards established by Philips and Sony.
High Speed Extractor - An automated mail opening and extraction machine that usually
operates at speeds of 8,000+ envelopes per hour.
High Speed Mail Extraction - Automated mail extraction that pre-qualifies mail and removes
and orients the remittance coupon and check from the envelope at speeds of 8,000 + envelopes
per hour.
High Speed Mirror - The device used for vertical scanning which receives reflections from the
low speed mirror and transmits the reflections to a photoelectric transducer.
Highlight - Brightest part of a photograph or halftone.
HIPAA - Health Insurance Portability and Accountability Act of 1996
HIPAA Data Dictionary or HIPAA DD - A data dictionary that defines and cross-references
the contents of all X12 transactions included in the HIPAA mandate. It is maintained by
Histogram - A bar-like graph showing the distribution of gray tones in an image.
Hit - As used in reference to the World Wide Web, hit means a single request from a web
browser for a single item from a web server; thus in order for a web browser to display a page
that contains 3 graphics, 4 hits would occur at the server: 1 for the HTML page, and one for each
of the 3 graphics. Hits are often used as a very rough measure of load on a server. Because each
hit can represent anything from a request for a tiny document (or even a request for a missing
document) all the way to a request that requires some significant extra processing (such as a
complex search request), the actual load on a machine from 1 hit is almost impossible to define.
HLS (Hue, Lightness, Saturation) - A color space based on these three qualities of color.
Hold - Specifies that the first valid occurrence of data extractions is to be held (and no further
extractions made for a specified data or film output interval).
Holding Area - Agency space assigned for the temporary storage of records after their cutoff
and removal from office space but before their destruction or their transfer to a Federal or agency
records center or to the National Archives. Also called staging area. See Records Center.
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FTP Industry Glossary
Holding Company - Firm that owns stock in and manages one or more other companies.
Holdover - Deposited items, qualified to attain a specified availability due to their time of
arrival, that have not been processed in time to be dispatched to the appropriate clearing agent.
Holiday Utility/Table - Allows the supervisor to establish and maintain the list of holidays for
proper setting of the processing date at End of Day.
Hollerith Card - A punched-hole 80-column card used for storing information for input into a
computer. They have fallen out of general use.
Hologram - The recording of an image on film as the result of splitting a laser beam. Holograms
can store enormous amounts of data.
Home Banking – Bank services that enable customers to obtain current information about their
accounts and initiate certain transactions, through a telephone or PC.
Home Page (or Homepage) - Several meanings. Originally, the web page that your browser is
set to use when it starts up. The more common meaning refers to the main web page for a
business, organization, person or simply the main page out of a collection of web pages. See
Browser, Web.
Hopper - Physical area of the transport into which documents are loaded for autofeed through
the transport. See Autofeeder.
Horizontal Mode - Frames of data recorded so that they can be read when the filmstrip is held
horizontally. Used to be called Comic Mode. Applies to 16mm and 35mm roll film. See Vertical
Horizontal Spacing - The space between the vertical centerlines of adjacent scannable images.
Horizontal Symbol - A barcode symbol displayed so that its bars resemble a picket fence.
Horizontal Table - In indexing, a table with entries that follow one another sequentially, i.e.,
entry number one is byte number one; entry two is byte two.
Host - 1. A common term used to refer to the mainframe computer on which print data
originates. 2. Client computer system that maintains account balances and to which is directed.
Uses the extract data (tape or transmission) to update account information. 3. Computer in
which an application or database resides or to which a user is connected. Sometimes used
generically as synonym for computer.
Hosting - An Internet Service Provider (ISP) that stores Web sites on a server. ISPs generally
charge a monthly fee to host a Web site.
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FTP Industry Glossary
Host Computer - In relation to the remittance system: 1. A computer that runs an
item/remittance processing application. 2. A mainframe computer to which the remittance
system communicates data files using a high-level communications protocol.
Host Processor - See Host.
Hot Card - A card used in an account on which excessive purchasing, indicative of unauthorized
purchasing is taking place - usually a lost or stolen card.
Hot File - A file of one or more records or transactions that is to be compared against during
processing to identify / match records or transactions for which a specific course of action needs
to be taken. In mortgage processing, the hot file is usually used to identify those accounts for
which a payment, when recieved, is not to be processed.
Hot Redundancy - A component or system runs in parallel with an identical twin. Should one
twin fail, the other is already running and provides service without interruption.
Hot Spot - The single pixel that is activated by clicking the mouse on it.
Hot Spot Carbonizing - Application of carbon ink to portions of the back of a form, as a
technique for obtaining selective write-through with interleaves.
Hot Standby - Backup equipment kept tamed on and running in case some equipment falls.
Hot Swap - Refers to the ability to change redundant disk drives in a RAID device, while the
device is still on-line and access to data is provided by a mirrored disk drive.
Housekeeping Records - See Administrative Records.
HP-GL (Hewlett-Packard Graphic Language) - Low-level graphics language originally
developed by Hewlett-Packard to draw graphics in a vector format on a pen plotter.
HSM (Hierarchical Storage Management) - An automated storage subsystem that moves
documents from on-line hard disks to lower cost storage media according to rules based on the
age of the document.
HTML (Hypertext Markup Language) - The coding language used to create Hypertext
documents for use on the World Wide Web. HTML looks a lot like old-fashioned typesetting
code, where you surround a block of text with codes that indicate how it should appear,
additionally, in HTML you can specify that a block of text, or a word, be linked to another file
on the Internet. HTML files are meant to be viewed using a World Wide Web Client Program,
such as Netscape or Mosaic. See Client, Server, and WWW.
http (Hypertext Transfer Protocol) - A protocol that tells computers how to communicate with
each other. You will notice most web page locations begin with http://.
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FTP Industry Glossary
Hue - That quality of color that refers to light of a certain wavelength (e.g., red, blue, orange,
etc.). What we usually think of as color.
Huffman Coding - A generalized compression routine that can be applied to an inverted index
and textual documents. Huffman codes can be generated at a word or character level. The text in
the database is surveyed in order to compile statistics regarding word or character usage. A tree
structure is built in which the more frequently a word or character is used, the further up the tree
structure it is located. Bit values are then assigned to the nodes of the tree by assigning a “0” to
all left branches and a “1” to all right branches. The paths to each individual word character or
word become the bit representation.
Huffum Tree - The tree structure built by the Huffman coding process.
Human-Readable Character - The eye readable equivalent of the machine-readable characters.
Hybrid - A combination of unlike items into single unit. Example: an acousto-optic (AO)
modulator is a merge (hybrid) of an electro-mechanical (piezo-electric) system for generating
sound waves through the volume of a crystal for optical purposes.
Hypermedia - 1. A software system protocol for delivering information via multiple connected
pathways through a collection of information. 2. A way of delivering information that provides
multiple connected pathways through a body of information. Hypermedia allows the user to
jump easily from one topic to related or supplementary material found in various forms, such as
text, graphics, audio or video. 3. An extension of the hypertext concept to non-text nodes (i.e.
images, graphics, audio, and video).
Hyperspace - A term used to express the disorientation experienced when using a poorly
authored hypertext system. Usually caused by an overabundance of links.
Hypertext - A text retrieval search methodology based on associative memory process.
Hypertext organizes textual information into sections known as nodes or chunks. The nodes can
be linked together via macros that are automatically built by the system, based on user input.
Hypothecation - Borrowing funds from a lender, investing those funds in a debt instrument, and
giving the lender a security interest in the debt instrument as the collateral for the loan.
Hz - Abbreviation for Hertz; cycles per second. Often used with metric prefixes, as in kiloHertz
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FTP Industry Glossary
-II/O (Input and Output) - Commonly used when referring to data transfers into and out of the
main memory of computer.
IBAC - Unhappy with the image quality of TIFF, IBM created its own proprietary check image
format. IOCA (Image Object Content Architecture) is the image format that resulted, and ABIC
(Adaptive Bi-level Image Compression) is the compression scheme. The result of IBM’s
approach produces a high-quality picture of the front and back for image statements plus a third,
much smaller image for archiving. The average resulting check size is about 42,000 bytes.
IBAL - See Interactive Balancing.
IBNR - Incurred but not reported.
IBOP (Internet Bill Delivery and Payment) - An Internet-based service that securely and
reliably delivers richly formatted bills, statements, invoices, notices and associated advertising to
any online consumer or business, and returns payment, remittance instructions and related
information to the biller and/or designated payee.
Icon - The basis of a graphical user interface, an icon is a picture or drawing of a device or
program which is activated, usually with a mouse, to access the device or run the program.
ICR (Intelligent Character Recognition) - Scanned reading of handwritten or printed
characters. A reliable means of high-speed automatic data entry and text recognition where
printed data is digitized and directly converted into a machine compatible language: i.e.
Signature Verification and Legal Amount Recognition.
ID - Short for identification. A code that represents an agent, vendor, operator, etc.
Idaho - ID
Idle - When the system stops for one of four different reasons. A feeder empty, double document
detection, Operator Pause, and a Stacker Full can generate an idle system.
Idle Funds - Available funds in an account in excess of the compensating balance requirement
that have not been invested or put to use.
Idle Time - This is the amount of time that has elapsed during an idle system (stop).
Idle Time % - The percentage of the total time that the idle time consists of (Idle Time / Elapsed
Time x 100).
IEEE - Institute of Electrical and Electronic Engineers.
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FTP Industry Glossary
If-Then Statement - Syntax used in many dialog boxes to specify conditions that will cause
certain parameters to be selected.
IFX (Interactive Financial Exchange) - A standard for the exchange of financial data and
instructions independent of a particular network technology or computing platform. It builds on
previous industry experience including OFX and GOLD, which are currently implemented by
major financial institutions and service providers to enable electronic exchange of financial data
between their customers and themselves.
Illegal Character - A character that is not contained within the equipment’s vocabulary.
(Character set and font).
Illinois - IL
Image - 1. The computerized representation of a character, graphics, or documents. An
electronic discrete image is called a bitmap. 2. The definition of an object created by optics, or
combinations of digital or analog electronic signals and ultimately intended to be visually
recognized by a person. Images are real when they are formed in a plane as on film in a camera;
they are virtual when viewed as in a telescope.
Image Applications - Software programs that display captured images at workstations. These
programs allow image operators to correct scanline information, identify unknown items, key
needed information, verify amounts, balance transactions, and print images.
Image Camera Module - Hardware component that contains one or two image cameras that
capture the front and/or back of each document processed in Pass 1 and sends the images to the
Image Management Subsystem (IMSS) for storage on disk. Once images are transferred from the
IMSS to the capture server they can be distributed to operator workstations.
Image Capture - The process of recording an electronic image of a document. See Imaging.
Image Dissector - A mechanical or electronic transducer that sequentially detects the level of
light in different areas of a completely illuminated sample space.
Image Lockbox - A third party remittance processing provider that uses image technology to
process payments / remittances. Collection mechanism in which mail containing payments
bypasses corporate offices, going directly to the bank of deposit, thereby reducing collection
float. After deposit of the check, remittance invoices, photocopies of the check, and other
supporting material are processed and generated using images of the physical documents prior to
being forwarded to the cooperated credit department.
Image Management - See Micro-Imaging Systems.
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FTP Industry Glossary
Image Map - One or more GIF or JPG images on the large image panel control in a GUI. If an
image panel contains more than one image map, the image maps are stacked one on top of the
other. Image maps may or may not contain hot spots.
Image Processing - 1. Any phases of capturing, transforming, and transmitting electronic
images in a computer system. 2. The use of computers to analyze, enhance, and interpret
discrete images. 3. Think of data processing: it refers to the manipulation of raw data to solve
some problem or enlighten the user in some way not possible without the manipulation. So it is
with image processing. Digitized images that have been acquired (scanned, captured by digital
cameras) can be manipulated. The purpose may be simply to improve the image - change its size,
its color, or simply to touch-up parts of it. But a more important application of image processing
is to compare and analyze images for characteristics that a human eye alone couldn’t perceive.
This ability to perceive minute variations in color, shape and relationship has opened up
applications for image processing in high-speed manufacturing quality control, criminal
forensics, medicine, defense, entertainment and the graphic arts.
Image Processor - Device that takes input data and changes it into the proper format for an
imaging device - printer, display, microform, or computer.
Image Replacement Document (IRD) - Also known as a Substitute Check. Paper printouts of
check images. Under proposed federal legislation, the Check 21 Act, IRDs would carry the same
legal status as the paper checks from which they are derived. They are processed in much the
same way as paper checks.
Image Reconciliation - Function that allows the image operator to review images of missing
and free items in a batch and make adjustments to the batch as required. The image operator
compares missing items from Pass 1 with images of free items from Pass 2 and reconciles them
as necessary. In most cases, free items correspond to missing items. Function is either manual,
on-line, or a combination of the two, depending on site-specific processing requirements.
Image Research - Using an imaging system to pull up a check or other imaged banking
statement by customer, name, check number, or other item in the image index. Image research
takes considerably less time than researching via microfilm or retrieving original documents
from file cabinets.
Image Resolution - The fineness or coarseness of an image as it was digitized, measured as
dots-per inch (DPI), typically from 200 DPI and greater.
Image Statement - A checking-account statement that contains not only a list of debits and
credits, but also reduced images of the checks themselves. The image-lift/reader module makes it
economical for financial institutions to offer their clients the benefits of image statements now.
Image Technology - The conversion of a paper document or film copy to digital computer data.
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FTP Industry Glossary
Image Viewer - Displays images of captured documents on the transport controller console.
Used to monitor image quality.
Image Workstation - See Workstation.
Image-Lift Camera - A video camera located on a transport and used to capture electronic
images of documents.
Images - Electronically captured representations of physical documents. Images can be stored,
printed, and displayed on a computer system, and also used for automated recognition.
Imaging - 1. Discrete representation of readable images - graphics and text into machine
processable discrete formats that can be processed as computer data. 2. Recording
human-readable images - pictures, images, motion, text, etc. - into machine-readable formats microfilm, computer data, videotape, OCR output, ASCII code, etc.
Imaging System - Collection of units that work together to capture and recreate images. At its
simplest, it has an acquisition device (scanner, camera), an image processor and an imaging
device (printer, microfilm, computer).
IMAP (Internet Message Access Protocol) - IMAP is gradually replacing POP as the main
protocol used by email clients in communicating with email servers. Using IMAP an email
client program cannot only retrieve email but can also manipulate message stored on the server,
without having to actually retrieve the messages. So messages can be deleted, have their status
changed, multiple mailboxes can be managed, etc.
Immediate Credit - Cash items deposited by a deposit deadline, which makes them eligible for
collected credit the same business day.
Impact Printer - Mechanical printer accepting computer data. Characters or images are formed
on the printing media by hammers or pins striking the media through an inked ribbon.
Imprest Account - 1. A technique for maintaining tight control over local unit disbursing. The
local unit must provide proof of legitimate disbursements before corporate headquarters will
refund its account. Balances in these accounts are maintained at a negotiated level. 2. An
account maintained at a prescribed level for a particular purpose or activity; it is periodically
replenished to the prescribed level.
Imprinter - A device that uses embossed cards to imprint data on a document via a carbon
Improper ACH Debit Entry - A Re-presented Check Entry or PPD Accounts Receivable
Truncated Check Debit Entry that does not meet the requirements or a stop payment order has
been placed on the item to which the entry relates.
IMS - Information Management System.
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In Balance - Where two totals that should be equal are equal.
In Clearing - The term that describes checks received by another bank or a clearinghouse. These
checks are usually all on-us items, or items drawn on your bank.
Inactive Records - See Non-Current Records.
Income Stream - A future payment or series of payments, or a debt that one party owes to
another party. Also known as a debt instrument or cash flow instrument.
Incoming Mail Float - The elapsed time from the time the payer of the bill has put the payment
into the mail system until the time the payment is received in the remittance processing
Incoming Wire Transfer - Charge for receipt of funds via wire transfer.
Incremental Backup - Backing up only files that have been changed since the last backup,
rather than backing up everything.
Incremental Spacing - The ability of a printer to move characters in very small amounts either
horizontally or vertically, generally for aesthetic or graphic design purposes.
Indemnity - Obligation of one party to reimburse another party for losses that have occurred or
which may occur.
Independent Variable - A controlled variable; a variable whose value is independent of the
value of another variable.
Index - At its simplest, it’s a descriptive set of data associated with a document for locating the
document’s storage location. In a more complex and demanding role, indexing can be used to
consolidate documents that may not be, at first glance, related, or that may be stored in different
locations, or on different media. Indexing stored documents is the great intellectual challenge in
document retrieval. Anyone can scan a piece of paper to microfilm. The hard part is devising an
indexing scheme that describes every possible parameter of each document for later searches,
comparisons and processing.
Index Frame - Usually the first or last frame of a series of images on a microform that records a
table of contents or index to facilitate the locating of information within the microform.
Index Term - A word or compound term stored and controlled in an inverted index. See
Inverted Index.
Indiana - IN
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FTP Industry Glossary
Indicia - A preprinted marking on each piece of a bulk mailing which shows that postage has
been paid by the sender.
Individual Identification Number - The number used in an ACH transaction by the Originator
to identify the Receiver.
Industrial Revenue Bonds (IRBs) - A special class of municipal bonds issued to provide funds
for a facility the municipality is trying to attract for the area.
Industry Server - A computer that facilitates electronic financial transactions and information
flows. Servers function either via private (Intranet) or public (Internet) communication networks.
Servers can have three potentially complementary sets of capabilities: 1. The gateway/switch
function manages the connection between consumers and their financial institution(s). It also
facilitates transfer of information between consumers and institutions. 2. The transaction
processor executes consumer requests for transactions by assembling information in an
appropriate form or actually conducting transactions. Electronic bill payment is a good example
of a transaction facilitated by servers. 3. The settlement facilitator enables banks to settle
transactions between themselves. Servers can prepare information for settlement as well as
conduct settlement activities. The facilitator may use existing payment networks (e.g., Fedwire,
ACH and ATM) or develop a new settlement approach.
Information - 1. Facts or data communicated or received. See Recorded Information. 2. In
electronic record keeping, processed data. See Data.
Information and Records Management - See Information Management, Records Management.
Information Copy - A non-record copy sent to individuals or offices interested in, but not acting
on, a matter. See Copy 1.
Information Float - The interval of time between the acquisition of information and its
availability to a user.
Information Management - The administration, use, and transmission of information and the
application of theories and techniques of information science to create, modify, or improve
information handling systems.
Information Resources Management (IRM) - The planning, budgeting, organizing, directing,
training, and controlling associated with the creation, maintenance and use, and disposition of
information and related resources. Includes data processing, telecommunications, and records
management. See Data Processing, Records Management, and Telecommunications.
Information Superhighway - A phrase coined by Vice President Al Gore to describe all the
new ways of communicating electronically.
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Information System - The organized collection, processing, transmission, and dissemination of
information in accordance with defined procedures. Often refers to a system containing
electronic records. Sometimes called a record system. See Computer System, Electronic
Records, Input, Output, and Series.
Information Technology (IT) - The technology of data processing / information management.
Informational Value - The usefulness of records in documenting the persons, places, things, or
matters dealt with by an agency, in contrast to documenting the agency’s organization, functions,
and activities. Considered by NARA in appraising records for permanent retention. See
Evidential Value, Permanent Records, Records.
Infrared Response (IR) - A type of optical system used in some optical devices, which operates
in the red-infrared region of the frequency spectrum.
In-House - Within the organization. Expression applied to work such as microfilming done
within an organization, as distinct from work done by a service company. Synonymous with
Initialize - Startup process in which a device or system is prepared - or, more accurately,
automatically prepares itself - for normal operation; usually returns all parameters to their default
Ink Bleed - The capillary flow of ink beyond the original edges of a printed image that can cause
rejects and misreads.
Ink Jet Endorser - A printing mechanism used to endorse documents with the required
information; sprays ink onto the document as opposed to using a ribbon.
Ink Smudge - The displacement of ink under shear beyond the original edges of a printed image
that can cause rejects and misreads.
Ink-Jet Printer - A printer that prints characters on documents by spraying a fine stream of ink
through an array of nozzles. Ink-jet printers are generally faster and more economical than
impact printers.
Input - Information or data transferred from an external storage or other source into the internal
storage of a computer or COM system.
Input Device-Optical Reader - This device optically reads printed and typewritten material and
directly converts it into a compatible format for direct entry into the computer.
Input Field - A blank text box in a GUI in which the user is able to type information or
parameters for the purpose of inputting data to a specified database.
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FTP Industry Glossary
Input Records - Non-electronic documents designed and used to create, update, or modify
records in an electronic medium; or electronic records containing data used to update a separate
computer file. Sometimes called source records or source documents. See Output Records,
Source Documents.
Input Workstation - The microcomputer or terminal at which paper or microform documents
are scanned and computer files are entered. This is also the place where the index is assigned to
the document.
Insert - To add a batch, payment, document, or transaction.
Insert Only - A field that cannot be modified once the record it is in has been entered.
Insider - Influential individual in a business that has the opportunity to profit from confidential
information on the company or from the actions of the company.
Inspection - See Evaluation 2.
Instability - Unnaturally large fluctuations in a pattern.
Institutional Lenders - Savings and loan associations, local and regional banks, mortgage
companies, finance companies, and commercial lenders.
Instrumentality Of Exchange - An instrument or vehicle of exchange, such as a draft.
Insufficient Funds - This term indicates that the drawer's account balance is smaller than the
amount of a check presented for payment; usually abbreviated NSF (not sufficient funds).
Insurance-Based Income Streams - Cash flows stemming from insurance companies and paid
to individuals or businesses.
Intangible Personal Property - Something that has value but is not a tangible asset, for
example, a trademark, copyright, patent, or trade secret.
Integrated Circuit - A miniature electronic circuit mounted on a semi-conducting substrate such
as silicon. Invented in 1958, the integrated circuit cut the Gordian knot of electrical wiring that
had held back the development of computers for a hundred years.
Integrated Document and Image Management - The coordinated management, use and
presentation of documentation by an organization.
Integrated Information System - An information system that combines two or more
technologies, e.g. CD-ROM and microcomputer.
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Integrated Mail Extraction - The marriage of a mail extraction workstation to a remittance
processing workstation or transport. Mail is extracted and fed directly to the remittance
workstation/transport without manual intervention.
Integrated or Comprehensive Payables - The outsourcing of accounts payable and/or disbursement functions to a third party.
Integrated Software Package - Software with several applications integrated into one package,
designed so that the user can move easily from one application to another, and transfer data
easily from one application to another within the software package.
Intelligent Character Recognition (ICR) - Recognition feature that reads, interprets, and
processes handwritten or machine-printed data from checks and makes it available to the rest of
the system. This process reduces the number of documents that need operator keying. It is an
automatic and continuous process that runs concurrently with the transport, requiring little
operator intervention.
Intelligent Software - A software routine that uses systematic intelligence to do an assigned
task; for example, searching through a document and reserving items related to a certain subject.
Intelligent Terminal - 1. A micro-processor controlled device that can function as a
self-contained microcomputer or as a terminal communication with a remote computer. 2. A
terminal device that is able to do more than send and receive data.
Interactive - Any computer-based system in which the user’s input directly affects the system’s
behavior and the resulting output is directly communicated to the user.
Interactive Balancing - Image function that allows operators to adjust out-of-balance batches
flagged in previous steps by moving, inserting, or correcting items, and rejecting all or parts of
transactions. Incomplete or incompatible items are also sent here for processing. The operator
can unreject any item that was previously rejected in the balancing process. After each record
change, the system tries to balance the transaction and the batch. If the operator is unable to
balance a transaction, it must be rejected. Once the batch is in balance, it is sent to Match
Interactive Disk - See Compact Disk-Interactive (CD-I).
Interactive Video - A graphics or video program, usually stored on CD ROM or laser disc, that
allows the user to manipulate the course of action.
Interactive Voice Response (IVR) - The process in which the voice processing system prompts
the caller for information, which can then be used as a search key to a database. The result of the
search is subsequently reported back to the caller. A typical and most common application of
IVR is in the banking system. A caller calls the bank’s IVR lines, enters an account number and
receives information such as account balance, last check cleared, etc.
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Intercept Point - An institution or computer service company designated to act on behalf of
another institution to receive and/or send ACH entries.
Interceptor (Intercept Agent) - An institution or computer service company designated on
behalf of another institution to receive and/or send ACH entries.
Interchange - The exchange of information, transaction data and money among banks.
Interchange systems are managed by Visa and MasterCard associations and are standardized for
use by banks and merchants worldwide.
Interchange Fee - A fee paid by the acquiring bank/merchant bank to the issuing bank. The fee
compensates the issuer for the time after settlement with the acquiring bank/merchant bank and
before it recoups the settlement value from the cardholder.
Intercharacter Gap - The space between the last bar of one symbol character and the first bar
of the next character in a discrete bar code symbology.
Interest - The cost of using money owned by another party. The interest rate is this cost
expressed in percentage terms of the amount borrowed over a certain period of time.
Interest Rate Cap - A ceiling on the maximum interest rate for a loan or variable-rate security.
Caps on investments limit the interest that will be paid to an investor.
Interest Rate Collar - Collars are combinations of caps and floors, giving the holders ranges of
minimum and maximum interest rates. A collar is less expensive than a cap.
Interest Rate Floor - Minimum interest rates for a loan or variable-rate security.
Interest Rate Futures - Legally binding commitments to sell financial instruments at a specified
future date and price.
Interest Rate Swap - A swap between two parties usually for one party to convert a fixed
interest rate payment into a variable-rate payment while the other party takes the opposite
Interface - The boundary between two modules or subsystems in a product (or between systems)
through which data or other signals are modified in some way to be compatible with the other.
Example: a circuit card that is the interface between a PC and its display monitor; an adaptor.
Interface Standards - Industry standard hardware, software, and bus configurations, data
transfer protocols, and data formats. Main standards are SCSI, parallel RS-232, and Centronics.
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Interlaced - Only every other line of pixels on a TV or computer terminal screen is refreshed on
each Pass (in American television, which is interlaced, every second line is refreshed 60 times a
second). Interlacing thereby saves half the signal information that non-interlaced screens use.
Interleaved - The system of writing to a hard disk that places data in non-contiguous tracks
because of the rapidly spinning nature of a disk drive. The operating system keeps a log of where
each sector of data is stored for retrieval later.
Interleaved 2-of-5 - A barcode symbology whose characters consist of five bars, two of which
are wide.
Interleaved Bar Code - A code in which both the bars and spaces carry data.
Interleaving - A multiprogramming technique in which parts of one computer program are
inserted into another program so that if there are processing delays in one program, parts of the
other program can be processed.
Interloper - An agent or party which intercepts, or inserts themselves between, the
communications from one party to another without permission of either of the original parties.
Internal Rate of Return (IRR) - The discount rate at which the net present value is equal to
International Incoming Wire - Charge for a wire transfer received from an account outside the
United States and credited to the customer account at the service bank.
International Outgoing Wire - Charge for the origination of a wire transfer where the ultimate
credit account is not in the United States.
International Standards Organization (ISO) - An organization, located in Geneva,
Switzerland, devoted to developing the OSI Reference Model - a framework for standards
allowing the open exchange of information among terminals, computers, networks, and
Internet - Originally called ARPANET after the Advanced Research Projects Agency of the
U.S. Department of Defense. This electronic network connects the hosts together so that you
may go from one web page to another efficiently. The electronic connection began as a
government experiment in 1969 with four computers connected together over phone lines. By
1972, universities also had access to what was by then called the Internet.
internet (lower case i) - Any time you connect 2 or more networks together, you have an
internet - as in inter-national or inter-state. See Internet, Network.
Internet Bill Delivery and Payment (IBDP) - An Internet-based service that securely and
reliably delivers richly formatted bills, statements, invoices, notices and associated advertising to
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FTP Industry Glossary
any online consumer or business, and returns payment, remittance instructions and related
information to the biller and/or designated payee.
Internet Check Acceptance - A payment system that allows consumers to enter their checking
information on-line; electronic items are created and processed through the Automated Clearing
House network.
Internet Commerce – A term that covers all commercial transaction activity on the Internet.
Internet-Initiated Entries (WEB) - A one-time or recurring debit entry initiated by an
Originator pursuant to an authorization obtained from the Receiver via a secure Internet session.
When a consumer authorizes a receiver or merchant to debit their account via the Internet. An
authorization obtained via the Internet is required to debit the consumer’s account via this type
of ACH transaction (WEB). Account information is transacted using a secure web portal.
Internet Portal - A gateway to the Internet, which may be a search engine or directory Web
Internet Service Provider - An organization or company that provides Internet access to
individuals or organizations.
Interpolation - The determination of a value that lies between two known values through a
mathematical calculation.
Interpreter - The postscript or postscript-compatible Interpreter is a software program that
converts the postscript language commands into specific codes to drive the output device.
Interregional Exchange - The exchange of ACH entries through more than one ACH, to
financial institutions throughout the United States.
Inter-Territory Item - A check initially deposited at a depository institution in one Federal
Reserve office’s territory that must be presented for payment at a location in another Federal
Reserve office’s territory.
Interval - Numeric categories with equal units of measure but no absolute zero point, i.e.,
quality scale or index.
Intranet - A private network inside a company or organization that uses the same kinds of
software that you would find on the public Internet, but that is only for internal use. As the
Internet has become more popular many of the tools used on the Internet are being used in
private networks, for example, many companies have web servers that are available only to
employees. Note that an Intranet may not actually be an internet -- it may simply be a network.
See internet, Internet, Network.
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FTP Industry Glossary
Intraregional Exchange - The exchange of ACH entries between two financial institutions
within the same Federal Reserve zone.
Intra-Territory Item - A check initially deposited at a depository institution in a Federal
Reserve office’s territory that must be presented for payment at a location within the same
Intrinsic Value - In archives administration, the value of those permanent records that should be
preserved in their original form rather than as copies.
Inventory - 1. A survey of agency records and non-record materials that is conducted primarily
to develop records schedules and also to identify various records management problems, such as
improper applications of record keeping technology. 2. The results of such a survey. 3. In archives administration, a type of finding aid for accessioned records. See Description 2.
Inverted Index - An index created from an inversion of all the words contained in all of the
documents in a text database, arranged in ascending alphabetical order.
Investment-To-Value Ratio - A measure of how secure a creditor’s position is and how likely
the creditor is to recoup all of his or her money in the event of a foreclosure.
Invoice - A request for payment issued by a provider of goods or services (vendor) itemizing
charges for goods purchased or services rendered.
Invoicing Float - The delay between the purchase of goods and services and the receipt of the
invoice by the customer.
Ion Deposition - A printing technology, similar to laser printing. Charges a drum with electrons
that attract the toner. Paper is then pressed against the drum, picking up the toner. Very fast, M
page printing technique, but the toner trends to smudge.
Iowa - IA
IP Number (Internet Protocol Number) - Sometimes called a dotted quad. A unique number
consisting of 4 parts separated by dots, e.g. Every machine that is on the Internet
has a unique IP number - if a machine does not have an IP number, it is not really on the Internet.
Most machines also have one or more Domain Names that are easier for people to remember.
See Domain Name, Internet, and TCP/IP.
IPL (Initial Program Load) - This is a reload and reset of the entire software system on a
computer. It is the software equivalent of turning the power off and then back on again. IPL is
sometimes referred to a Booting or Rebooting.
IPO - Initial public offering.
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IPS (Inches Per Second) - The measurement of speed of a tape system.
IRAC - Information Resources Administration Councils.
IRC (Internet Relay Chat) - Basically a huge multi-user live chat facility. There are a number
of major IRC servers around the world that are linked to each other. Anyone can create a channel
and anything that anyone types in a given channel is seen by all others in the channel. Private
channels can (and are) created for multi-person conference calls.
IRD (Image Replacement Document) - Also known as a Substitute Check. Paper printouts of
check images. Under proposed federal legislation, the Check 21 Act, IRDs would carry the same
legal status as the paper checks from which they are derived. They are processed in much the
same way as paper checks.
IRE - Interregional Exchange.
IRM - Information resources management.
IRR - Internal rate of return.
Irregulars - Imperfect goods whose flaws affect only appearance and not usefulness.
IRS - Internal Revenue Service.
ISDN (Integrated Services Digital Network) - A fully digital telephone line that can transmit
voice, image, and data over a single cable.
ISO - International Standards Organization.
ISO 9660 - The CD-ROM logical file format standard adopted by ISO in 1987. Describes a table
of contents, but not the format of the actual data. This has led to incompatibilities between
different computers. Based on a specification developed by the High Sierra Group (HSG) which
included Apple, Microsoft, 3M, Phillips, Hitachi, DEC. Also known as Yellow Book and High
ISP (Internet Service Provider) - An institution that provides access to the Internet in some
form, usually for money. See Internet.
IT - Information Technology.
Item - 1. A document. 2. A separately numbered entry describing records on an SF 115,
Request for Records Disposition Authority. Usually consists of a record series or part of an
information system. See Standard Form 115.
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Item Processing - The processing of financial instruments such as checks, deposit slips, and
remittance coupons. Item processing is a specialized branch of the more general activity known
as document processing.
Item Processing Application Software - Software that controls an item processing workstation
or transport in the performance of specific item processing tasks. Examples of item processing
applications include reading/sorting, remittance processing, and check power encoding.
Item Processing Proof - Application program for proof-and-encode and data capture operations.
Item Processing Sort - Application program that arranges documents in any of a variety of
IVR - Integrated (also intelligent) voice response unit.
IXC - Inter-exchange Carrier.
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-JJacket Film - A flat, transparent, plastic carrier with single or multiple film channels made to
hold single or multiple microfilm images. Synonymous with microfilm jacket.
Jam - Interruption in the flow of work through the transport, usually as a result of physical
condition of the document(s), maintenance problems, or problems with the software or hardware.
Java - A programming language that developers use to create applets, small programs that are
embedded in Web pages and that run when a user accesses the page or clicks on a certain area. If
you have visited sites that play sounds, have animated figures trotting across the screen, or
display scrolling text, you have already seen Java.
JavaScript - JavaScript is a programming language that is mostly used in web pages, usually to
add features that make the web page more interactive. When JavaScript is included in an HTML
file it relies upon the browser to interpret the JavaScript. When JavaScript is combined with
Cascading Style Sheets (CSS), and later versions of HTML (4.0 and later) the result is often
called DHTML.
JCL (Job Control Language) - This is a computer language which controls the execution of
programs on a mainframe computer. JCL is used to define input and output files, program
locations, printing devices, special forms needed, and all other job-related activities.
JDBC - Java Data-Based Connectivity.
JDK (Java Development Kit) - A software development package from Sun Microsystems that
implements the basic set of tools needed to write, test and debug Java applications and applets.
See Applet, Java.
JES (Job Entry Subsystem) - This is a system software package provided with all IBM OS
operating systems that controls and stages print data sets prior to delivery to a printer or COM
JES Restart - The process of stopping and restarting a printer through JES. The goal in such a
procedure is to eliminate any unnecessary reprinting of already printed data, and to simply print
that data which was not yet printed due to the printer interruption. It is not desirable for most
on-line users to leave print files in the JES queue for any substantial length of time due to the
valuable disk space which these files require; therefore, JES restarts are best used as soon as
possible after device failure. In many cases, where the device failure is prolonged, the JES file
may be deleted entirely and the entire job (including the application program that originally
created the report file) is rerun when the printing device is re-enabled. In such a situation, the
queued print files are sometimes written to tape from JES in lieu of purging and reprocessing.
Jitter - The flickering of a displayed image. Sometimes the result of interlacing.
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Job - A start-to-finish sequence of programs to perform a computer application to set up, record,
develop and complete a microfilming application.
Job Sharing - Arrangement in which the responsibilities and hours of one job position are
carried out by two people.
Jobber - Merchant who sells primarily to retailers.
Jobstream - This is a host computer file which contains JCL. The jobstream is created using an
editor, and is usually sorted permanently on disk for repeated usage.
Jogger - Mechanical device used to align the leading edges of documents prior to loading on the
Joint Venture - Two or more corporations working on a single project.
Journal List - A printed listing of the check amounts that are processed in a batch.
Journal Lister - A printer that prints a journal list.
Journal Printer - A thermal printer available as an option on some workstations and transports.
It can print out audit trails or other information as specified by the item processing application
Journal Tape - Normally, the output format of cash registers and calculators, usually a
continuous piece of paper.
JPEG (Joint Photographic Experts Group) - 1. A committee chartered by CCITT and ISO.
2. JPEG is also the name of the standard proposed by this organization for the compression of
color still images. 3. A file format used for high-resolution graphics files to be used on Web
pages. This format is supported in all Web browsers and in many image-editing programs.
JTPA - Job Training Partnership Act.
Jukebox - A storage and retrieval system and mechanism, usually for optical disk or similar
media, which function like and may resemble an automated 45rpm record player found in
restaurants and bars.
Jukebox Management Software - The software supplied with the device to manage its robotics.
Julian Date - A three-digit field that indicates the day count, beginning with January 1 as day 1
and ending with December 31 as day 365 (or 366 in the case of a leap year).
Junk Bond - Corporate bonds with high yields but poor credit ratings.
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FTP Industry Glossary
-KKansas - KS
KBPS (Kilobits Per Second) - Used to describe the speed of a network connection. Today’s
fastest modem operates at 53 kbps over an analog telephone line, i.e., thousands of bits per
Kbyte (Kilobyte) - One thousand bytes. To a computer, it’s actually 1,024. So 16Kbytes, or
16K, is actually 16,384 bytes; 64K is 65,536 bytes, etc.
Kentucky - KY
Kerning - The adjustment of the spacing between two letters. See Tracking.
Key - A word, number or phrase associated with a document to aid in its retrieval from storage.
Sometimes called descriptors. There are often many keys used together to fully locate a
document together they are called an index. Also called a retrieval key.
Key Information - The data in an index frame that identifies the data content of the data frames.
Key Managment - The administrative responsibility for the distribution of unique data security
Keyboard - The area of a machine on which the printing and functional keys are arrayed.
Keyboard Arrangement - The position of the keys relative to one another and the arrangement
of characters, and functions on them.
Keyboard Layout - The physical relationship of keys containing a character set on a keyboard.
Keyboard, Alphanumeric - The standard full-size keyboard.
Keycount - Number of digits keyed before the Image Workstation displays the next image.
Keying Amount Limits - The minimum and maximum amounts that can be keyed in for a
Keying Error Protection Algorithms - An amount entry validation that checks if an operator
might be incorrectly keying in an expected amount.
Keypad - A group of keys located together on a keyboard for rapid keying.
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Keypunch - 1. A device to record information on cards or tape by punching holes in the cards or
tape to represent letters, digits, and special characters. 2. To operate a device for punching holes
in cards or tape.
Keyword - A word you might use to search for a Web site.
Kill - The condition that all elements of a transaction are equal in total dollar amount. The act of
bringing all elements of a transaction into equality. Also known as balancing a transaction, or
transaction kill.
Kilobits - One thousand data bits. Often expressed as Kbits.
Kilobyte - Just as a kilometer equals 1,000 meters, a kilobyte is 1,000 bytes. Well, almost. It’s
actually 1,024 bytes, but rounding off makes little real difference in everyday life. By today’s
standards, this is a very small quantity of data, say, for example, the contents of a business
KnowledgeBase - The collection of models that defines the configuration of a particular set of
products or product features. A computer system that is programmed to imitate human
problem-solving by means of artificial intelligence and reference to a database of knowledge on
a particular subject.
KPI (Key Performance Indicators) - Measurements of a vital few metrics that reflect the
overall performance and operation of a process. KPI’s are a subset of the total production
metrics collected.
KQI (Key Quality Indicators) - Measurements of a vital few metrics that reflect the overall
quality of a process. KPI’s are a subset of the total quality metrics collected.
KSU - Key Service Unit.
KTS - Key Telephone System.
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FTP Industry Glossary
-LL/C - Letter of credit.
Label - The name of a hard disk, given to it immediately after high-level formatting.
Laminate - Protective films, such as polyester, that can be applied to label facestock.
LAN (Local Area Network) - High-speed transmissions over twisted pair, coax, or fiber optic
cables that connect terminals, personal computers, mainframe computers, and peripherals
together at distances of about 1 mile or less.
Land - The reflective area between two adjacent (non-reflective) pits on a CD-ROM surface.
Land and Groove - A physical feature of optical discs, applied during manufacture, which
defines track locations. The groove is recordable, the land separates the grooves and is not
Landscape - Page or monitor orientation in which the page width exceeds the page length. Also
called comic, after the shape of frames in comic strips. Contrast with portrait.
Languages - Combinations of words that are meaningful for information interchange. In
computers, sequences of words (e.g., key words, instructions, operands, etc.) which, after being
compiled, instruct the computer to perform a sequence of actions. Examples: FORTRAN,
COBOI, BASIC, “C”, PASCAL, Assembler.
LAPD - Link Access Protocol D (ISDN D channel signaling standard).
Laptop - A computer small enough to sit on your lap. The laptop computer’s small size allows
you to take it almost anywhere and access the Internet. Great if you travel a lot and don’t want to
go too long without your e-mail.
LAR (Legal Amount Recognition) - Automated reading of the hand written amount that a
check is drawn for.
Laser (Light Amplification by the Stimulated Emission of Radiation) - 1. A device for
producing an intense beam of monochromatic coherent light or other form of electromagnetic
radiation. 2. A device emitting a highly coherent beam of fight for burning and reading
information on optical disks.
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FTP Industry Glossary
Laser Disc - An optical disc with the same technology as a Compact Disc, except laser discs are
12” in diameter.
Laser Fax - A conventional laser printer that also can be used as a fax machine when combined
with an optional plug-in cartridge and used with a personal computer.
Laser Optical - System of recording on grooveless discs using a laser-optical-tracking pickup.
Laser Printer - Printer that uses a beam of light to charge a drum so that it attracts toner, which
is transferred to heated paper.
Laser Scanner - An optical scanning device that uses the intense monochromatic light beam
given off by a laser as its source of illumination.
Lasercard™ - Trademarked name for optical memory cards from Drexler Technologies.
Last Items Display - Transport Controller command that displays the last items captured by the
transport before the transport stopped. Used to assist in the resolution of jams or verify that
scanlines were captured properly.
LATA - Local Access and Transport Area.
Latency - The delay in accessing data which comes from waiting for a disk to rotate to the
correct location.
Latent Image - The invisible image produced by action of radiant energy on a photosensitive
material. It may be made visible by the process of development.
Latex Seal Envelope - A self-sealing pressure sensitive adhesive that does not require moisture.
Latex seal will only adhere to itself and therefore, two latex surfaces are required to obtain a
Layout Sheet - Form with printed horizontal and vertical grids compatible with the method of
writing used by the forms designer as a guide in drawing the form.
LBO - Leveraged buyout.
LD-ROM - A media format developed by Panasonic in 1991, which combines digital data on a
standard videodisc.
Lead - 1. A piece of information of possible use in the search for a prospective client. 2. A
senior more experienced staff member. Sometimes a supervisor.
Lead Screw - A highly accurate screw which is turned at a constant rate to move the optical
heads of some laser disc and CD recording machines to produce uniformly spaced spiral tracks.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Lead Ticket - Control document(s) immediately following a Batch Header Ticket. Identifies the
beginning of a group of transactions and the transaction types (Singles, Multis, Checks Only,
etc.). Lead Tickets may be used during data entry steps to signal the need for additional
operator-provided information. They may be audit-trail printed and imaged in the same way as
other documents in a run.
Lead Ticket Data Entry - Optional image application that allows the operator to key
handwritten data from image of a lead ticket, based on site-specific processing requirements.
Lead Time - Period of time required to prepare for a certain stage of a project. For example, the
lead-time in introducing a new product is the time it takes for research, development, market
research, and factory preparation.
Leader - 1. Film which is used to thread a camera or film processor. 2. Unrecorded tape at the
beginning of a roll of mag tape for threading into the tape reading machine. Also, the dots or
dashes use to guide the eye across a printed page to more associated text, like in a table of
Leading - The space between lines of printed text. OCRs have to be adjusted for the leading of a
document to read it properly.
Leading and Lagging - A technique for making cross-border payments from one subsidiary to
another either ahead of schedule (leading) or behind schedule (lagging) as a means of moving
liquidity from one unit to another.
Leading Edge - Usually, the edge of a form first entering the read area.
Leading Zeros - Zeros added at the left of a number to fill all required number positions.
Leased Line - Refers to a phone line that is rented for exclusive 24-hour, 7-days-a-week use
from your location to another location. The highest speed data connections require a leased line.
See T-1, T-3, DSL.
LEC - Local Exchange Carrier.
LED - A semiconductor device that produces a visible luminescence when a voltage is applied
to it. Acronym for light-emitting diode. Different from a laser diode which is a semiconductor
Ledger Balances - Bank balances that reflect all accounting entries that affect a bank account,
regardless of any deposit float.
Ledger Cutoff Time - The time after which deposits are credited as of the following business
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FTP Industry Glossary
Left Justified - Data is left justified when the left hand digit or character (or its sign) occupies
the left hand position of the space allotted for that data.
Legacy Application - An application that has been in use for along time, usually on a mainframe
or minicomputer.
Legal Amount of Check - The amount of a check written out in script (for example, Fourteen
dollars and 32 cents). Usually entered on the centerline of the check.
Legal Custody - See Custody.
Legal Incapacity - A legal declaration that an individual is unable to manage his/her affairs
Legal Value - The usefulness of records in documenting legally enforceable rights or
obligations, both those of the Federal Government and those of persons directly affected by the
agency’s activities. See Administrative Value, Fiscal Value.
Legibility - The ease by which a person recognizes the meaning of a symbol or image. For
example, black numerals on a white background are more legible than grey numerals on a lighter
grey background.
Length - The distance between the two edges of a form, measured perpendicular to a data line as
the form is fed through an optical reader.
Lens - See Reading Lens.
Letter of Credit (L/C) - A document issued by a bank, guaranteeing the payment of a customer’s draft up to a stated amount for a specified period if certain conditions exist.
Letter Sorting Machine (LSM) - A mechanized piece of equipment that read addresses of mail
and enter zip codes that send the mail pieces to a specific sorting bin. The read may be
performed manually or automated.
Letter Spacing - The spacing between each letter of a word.
Letterpress - Printing process that employs a relief or raised, inked image that comes into direct
contact with the material being printed. Letterpress printing can be performed from metal type or
plates, rubber plates, or plastic plates; using rotary, flatbed or platen press.
Lettershop - Company that labels, sorts, and stuffs envelopes and other mail in preparation for
bulk mailings.
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FTP Industry Glossary
Letter-Writing Plus Percentage Agencies - Collection sources that use only letters during the
service’s prepaid phase, and then, make telephone calls only when the account is being worked
on a contingent-fee basis - as opposed to NRC’s full-service collection strategy at all times.
Leverage - The ratio of debt to total assets.
Library - A collection of files that may be referenced via one main index A diskette full of
common type files is often referred to as a library.
Lien - Legal right to hold property of another party or to have it sold or applied in payment of a
Life Cycle of Records - The management concept that records pass through three stages:
creation, maintenance and use, and disposition. See Disposition 1., Final Disposition, Records
Creation, Records Maintenance and Use.
LIFO (Last In, First Out) - A queuing or inventory scheme whereby the most recent thing to
come in is acted on first.
Ligature - Certain letter combinations that appear frequently together in fonts are combined as
one character. Significant in OCR applications.
Light Pipes - Optical devices that carry light. Light pipes are sometimes used to carry reflected
character images to photo multipliers.
Limited Liability Amount - The sum of the account balance and the 45-day amount. The
limited liability amount is the financial institution’s liability for benefit payments if funds have
been withdrawn from the account after the death and the financial institution meets all
requirements for limiting its liability. This amount may not exceed the outstanding total.
Line Boundary - The smallest rectangle, with sides parallel and perpendicular to the reference
edge, which contains all images of a line of print.
Line Charts - Charts used to track the performance without relationship to process capability or
control limits.
Line Holes - Series of holes running parallel with the edge of the web used to control the paper
in a manufacturing machine (press or collator) form writing machine or forms handling
equipment. Nominal specifications for line holes of 5/32-inch diameter, 1/2 inch center to center,
and 1/4 inch center to edge of paper. Also marginal punching, sprocket holes, feed holes.
Line Item Index - A process used by some COLD systems to create an index of the details
contained within a report. Due to the nature of the line items, the indexed data may float on the
page, or it may be repeated on the same page, requiring each occurrence to be indexed
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Line of Credit - An agreement between a bank and a customer in which the customer can
borrow up to a specified amount during a year.
Line Printer - A device that prints an entire line at a time.
Line Separation - The vertical distance between the upper line boundary of a line of print and
the lower line boundary for the line immediately above.
Line Skew - A line of printed data, oblique to the reference edge of the document is skewed. A
skewed line is acceptable to the reader only if the line remains within the tolerance of the
machine design.
Line Spacing - The vertical distance between the average baseline of one line and the average
baseline of the next line.
Linear Symbol - A one-dimensional bar code symbol. It typically contains a leading quiet zone,
start character, data characters, check character, stop character, and trailing quiet zone.
Link - 1. A path between two points in a communication network. 2. The process of combining
several files of setup instructions or software program files into a single, usable unit. 3. The
connection from one node of text to another; depicted by a button.
Link Reference - The button representing the beginning of a link; the origin of a link.
Link Referent - The button representing the end of a link; the destination of a link.
Linux - A widely used Open Source Unix-like operating system. Linux was first released by its
inventor Linus Torvalds in 1991. There are versions of Linux for almost every available type of
computer hardware from desktop machines to IBM mainframes. The inner workings of Linux are
open and available for anyone to examine and change as long as they make their changes
available to the public. This has resulted in thousands of people working on various aspects of
Linux and adaptation of Linux for a huge variety of purposes, from servers to TV-recording
Liquidation - Sale of the assets of a business to pay off debts.
Liquidity - The ability to convert assets into cash or cash equivalents without significant loss;
the ability to pay obligations when they become due.
List Data Entry - Optional image application that allows operators to apply payments to a
customer account without processing a stub or check. Logical stub and check records are created,
and no images are displayed. Amount values entered by operators are maintained in a running
total that is compared to a control total. If the totals do not match, the operator is given options
for editing the batch.
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FTP Industry Glossary
List Price - Price at which manufacturers recommend retailers sell a good. The list price is often
reduced at the point of sale by the retailer to promote sales.
Lister Printer - Thermal printers are typically used to print detailed audit trails for each pocket
in a module.
Listserv® - The most common kind of mail list, Listserv is a registered trademark of L-Soft
International, Inc. 1. A computer discussion group focused on a specific area of interest. 2. An
automatic system for distributing mailing lists by computer. See BITNET, E-Mail, Mail List.
Literal - An explicit character string.
Lithography - Printing process in which the printing and non-printing area on the printing plate
are in the same plane (even surface). Works on the principle that oil and water do not mix.
Litigation - Using legal action to recover a debt. NRC’s Tandem Program offers full follow
through to litigation forwarding, when warranted. Litigation is most often used as the final
remedy after all other collection efforts have failed. Litigation is at NRC’s option and may not be
a cost-effective solution on low-balance accounts.
Live Entry (Live Dollar Entry) - An entry which creates a funds transfer as opposed to a
prenotification or other zero dollar item.
Live Posting - A banking transaction posting system where financial transactions are processed
and affect the account balance as they happen, rather than later.
Load - Refers to the act of transferring a program file to memory for execution.
Loan Participation - A bank agreement to share part of an existing bank loan with another
Loan Sale - A bank program where the bank makes a loan and sells all or a part of the loan to
Loan-To-Value Ratio - A measure of how heavily mortgaged a property is and how likely the
owner is to default on his or her debts.
Local Area Network (LAN) - A set of computers and other hardware devices, located in a
relatively small area such as a building, connected by communication cables, adapters, other
communication hardware, and special software that lets these devices share information and
provide services to each other.
Location - An Internet address. While you are in your browser you will see a section at the top
of the page that is titled location. If you type in the address of someone’s web page and hit enter,
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
your browser will take you to that page. However the address you type in the location bar must
be an exact match.
Lockbox - A third party remittance processing provider. Collection mechanism in which mail
containing payments bypasses corporate offices, going directly to the bank of deposit, thereby
reducing collection float. After deposit of the check, remittance ad vices, photocopies of the
check, and other supporting material are forwarded to the cooperated credit department. The
lock box is the most widely used service for accelerating the collection of remittances.
Lockbox (electronic) - An account established by a financial institution for the purpose of
receiving ACH payments to an agency.
Lockbox (paper) - A post office box established by a financial institution for the purpose of
receiving paper-based payments to an agency.
Lockbox Check Conversion – The process of converting checks received in the mail by a biller
into electronic items.
Lockbox Items Processed - Charge per item for basic processing of checks and invoices
received in a lockbox.
Lockbox Networks - Collection systems that offer multiple locations to receive customer
remittances through one organization.
Lockbox Photocopy - Charge for photocopy of check or invoice image received in a lockbox.
Lockup Space - Image-free or non-printed areas across a form. Lockup space is necessary to
lock the printing plate to the plate cylinder Lockup space normally needed is 1/2 or 3/8 inch.
Log - The process of writing a copy of a message to an output file and/or printer.
Log In - See Log On.
Log Off - Exit from the system.
Log On - The function by which the operator or supervisor enters the system and begins
processing activity. System validates user ID and password, and it gives access to appropriate
functions for operator authorization level.
Logic - The electronic components of optical recognition device wherein scan signal (analogues)
are converted into corresponding machine language signals.
Logical - 1. A feature that’s not physically present, but applied by software. Sectors on a hard
disk are physically arranged contiguously; logically, sectors may be placed anywhere on a hard
disk, requiring a software program to arrange them in the correct order. 2. A portion of a data
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FTP Industry Glossary
file, data record, disk sector, which has meaning as an integral unit. For example, logical records
in a file may be equivalent to print lines, but may not equate to physical blocks of data that are
transferred, or even to the boundaries of the physical transfers.
Logical Document - Unlike physical documents, logical documents are not paper items. They
are created by an operator after the capture process and used to provide missing information in
the makeup of a transaction. This information is later used to create the extract or to balance the
Logical Record - In electronic record keeping, a collection of related data elements, referring to
one person, place, thing, or event, that are treated as a unit and have either a fixed or variable
length. See Data Field, Record Layout, and Records.
Logic-Seeking Printer - Printer that skips over blank spaces to speed printing.
Login - Procedure used to gain access to the operating system.
LOGMARS (Logistics Applications of Automated Marking and Reading Symbols) Organization responsible for standardizing the bar code system for the Department of Defense.
Long-Term Goal - A goal that may be accomplished in a longer term, usually one to five years.
Long-Vertical Mark (LVM) - An OCR graphic shape used usually as a field delimiter. See
Field Mark.
Look Ahead - A processing feature in image data entry that displays the next item for
processing prior to the completion of keying the prior item. The look ahead feature is usually
based upon the requirment of a fixed number of keystroke completions prior to displaying an
image of the next item to be processed.
Loophole - Means of conforming to the letter of a law while violating its intent.
Lo-Res - Short for low resolution. Low quality reproduction because of a small number of dots
or lines per inch.
Loss Leader - Merchandise sold by a retailer at a loss in order to increase store traffic and sales
of other items.
Lossless - Image and data-compression applications and algorithms, such as Huffman Encoding,
that reduce the number of bits a picture would normally take up without losing any data.
Lossy - Methods of image compression, such as JPEG, that reduce the size of an image by
disregarding some pictorial information.
Louisiana - LA
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FTP Industry Glossary
Lower Case - The small alpha character type font, as distinguished from the large alpha
character or upper case.
Lower Control Limit - A horizontal dotted line plotted on a control chart, which represents the
lower process limit capabilities of a process.
Low Speed Item - An item that must be processed in some way other than on a high speed
document processor, usually entered manually.
Low-Speed Reader/Sorter - Typically defined as a transport with speeds of 500 documents per
minute or less.
LPI (Lines Per Inch) - Measure of resolution for halftones.
LPM (Lines Per Minute) - One of the parameters by which electronic printers and scanners are
LV-ROM - An acronym for a videodisc consisting of digital data stored as analog signals.
LZW (Lempel-Ziv-Welch) - A lossless data-compression algorithm.
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FTP Industry Glossary
-MMAC - Message Authentication Code.
Machinable - Refers to mail that has the proper shape, dimensions and weight to allow it to be
processed on automated equipment.
Machine Language - A language designed for use by a machine without translation.
Machine Print - A character that is in a typewritten font, for example OCR-A or OCR-B.
Machine Readable - Data that is in a format, such as ASCII, or on a medium, such as disks,
tapes, optical discs or punched cards that a computer can understand. Same as computer
Machine Transfer Entry (MTE) - ACH entries initiated by a consumer through direct contact
with an originator, including automated teller machines.
Machine-Readable Document - A billing document with data that can be read by a reader.
Machineable Item - An item that can be processed by automated reader/sorter equipment
because its magnetically inscribed characters can be fully read, captured, sorted, and reported.
Magnesium Oxide (MGO) - A standard of reflectance used to calibrate instruments for
measuring the whiteness or reflectance of paper; now superseded by barium sulphate (BaSO4).
See Barium Sulphate.
Magnetic Disk - A disk drive with fixed platters that rotate at high speeds to provide fast access
to data. Also referred to as a Fixed Disk or a Hard Disk.
Magnetic Ink - Ink that can be read by a magnetic scanner-, used on bank checks.
Magnetic Ink Character Recognition (MICR) - 1. The automatic recognition of characters
printed with ink that contains particles of magnetic material. The most common use of MICR is
to read the bank information printed on the bottom of checks. 2. Banking industry accepted
standard for printing scanline information on checks and other bank documents (deposit slips,
bundle tickets, etc.). By using magnetic ink, the scanlines may be read either magnetically or
optically. 3. Magnetic characters encoded at the bottom of a check to permit use of automated
equipment in the bank clearing process. A fully encoded MICR line may contain serial number
of check, payer bank transit/routing symbol, account number, and dollar amount of check.
Magnetic Ink Magnetic Character Reader - An input unit that reads, by means of magnetic
ink character recognition, characters printed with magnetic ink.
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FTP Industry Glossary
Magnetic Media - A storage medium for electronic information where the data is encoded as
changes in a magnetic field. Examples of magnetic media are magnetic tape, computer diskette,
CD-ROM platter or the magnetic strip on a plastic card.
Magnetic Recording - A technique of recording analog or digital signals or data on a medium of
specially prepared grains of iron oxide, good old-fashioned tape recording (although floppy and
hard disks use basically the same technology).
Magnetic Tape - Storage medium that uses a thin plastic ribbon coated with iron oxide
compound to record data with electrical pulses. Magnetic tape is a sequential storage medium the next bit of data is recorded after the last bit and in order to locate a specific bit of data, you
have to look through the whole tape till you find it. The standard for data recording is nine-track
magnetic tape - one byte (eight bits plus a parity bit) fits across the tape width-wise.
Magnetics - A form of computer memory in which data are stored in a magnetic oxide that coats
a plastic or metal disk. Data are recorded (written) and played back (read) by magnetic heads
that traverse the rotating disk under computer program control.
Magneto-Optic - A high-density, erasable recording method. Similar to magnetic disk and tape
recording, but the grains of ferro (iron) oxide matter are much smaller. A laser heats the grain,
which makes it susceptible to magnetic influence. The write head passes over the grain while it’s
still susceptible. The data can then be read by another laser, whose light is not hot enough to
change the grain’s polarity.
Mail - Remittances sent by customers through the mail and received at the processing site.
Mail Float - The time between the mailing date and the date the check is received at the
processing site. This is a component of collection float.
Mailbox - The server storage area where an Internet service provider puts your e-mail messages
so they can be downloaded when you want them.
Mailing List - 1. Compilation of names and addresses, usually for use in mailing. 2. Allows
people to join a group that sends and receives e-mail on a given topic. Members receive every
message that is posted to the group.
Mail Order/Telephone Order (MOTO) – Describes businesses that conduct sales via mail and
Mailing Statements - Forms completed and presented by mailers with each bulk mailing to
assist the postal service in verification and acceptance of bulk mailings.
Maine - ME
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Mainframe Computer - A large digital computer, normally able to process and store more data
than a minicomputer and far more than a microcomputer, designed to do so faster than a
minicomputer and much faster than a microcomputer, and often serving as the center of a system
with many users. Also called a mainframe. See Computer, Microcomputer, and Minicomputer.
Maintenance and Use - See Records Maintenance and Use.
MAN (Metropolitan Area Network) - Usually involves high-speed transmissions over fiber
optic cables that connect LANs together at distances of about 1 to 25 miles.
Management Information Services - Products used to provide banking information to clients to
allow them to monitor their cash position and make better business and investment decisions.
Mandatory Field - A mandatory field is necessary to ensure the proper routing and/or posting of
an ACH entry. Any mandatory field not included in an ACH record will cause that entry, batch
or file to be rejected by the ACH Operator before it ever gets sent to the RDFI.
Manifest Mailing System - System for entering non-identical pieces in a single bulk mailing to
qualify for postage discounts. All pieces must be of the same mail class and processing category.
Manifold - Adjective that in general forms industry usage denotes multiparts.
Manual Feed Mode – A mode where the items are hand-dropped into the transport rather than
using an automatic feed device.
Manual Retrieval - A microform system in which the user, without the aid of mechanization,
extracts the microform from a file by hand, inserts it in a viewer and scans the microform to find
data. This type of system can be supported by separate microform indexes to the filmed
Mapping - The process of putting data from one format into another or identifying which pieces
of information go into which fields of a payment and information transaction. A company’s
payroll file would be mapped into a NACHA formatted file to create ACH Direct Deposit
transactions, for example, or ANSI X12 820 data would be mapped into the addenda records of
the CTX format.
Maps and Charts - See Cartographic Records.
Margin - That border on the document in which printing will not be read by the scanner.
Marginal Cost - Additional cost associated with producing one more unit of output.
Mark - Same as blip. Small character printed or notched on microfilm for timing or counting
purposes. On an optical disc, it may take the form of a pit, hole, bubble or light-reflective area.
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FTP Industry Glossary
Mark Geometry - The size and shape of the mark made by a laser on an optical medium.
Mark Read - Method of optically reading pencil marks logically formatted on a form to be
scanned for further processing. Also known as OMR.
Mark Sense – The ability to detect a mark in a field on a document; normally used on a coupon
to denote things like a change of address (COA).
Market Share - Percentage of total industry sales of one company or product in that industry.
Market Value - The price at which a ready, willing, and informed person would buy something;
the price property would command in the current market.
Marketing - The process of identifying and communicating with qualified prospects.
Marking Position - The area designated to mark information on a mark read form. Also called a
response position.
Mark-Sense Fields - Boxes on a document in which a user registers a choice by placing a mark.
For example, the form may contain five different choices and the user selects one by marking
only one box. The boxes can be read using standard recognition equipment, and any mark (a
check mark or an X) within the box is treated as a yes.
Maryland - MD
Mask - Contains validation characters that indicate the characteristics that a field must have for
an extraction to occur. Also referred to as validation mask.
Mass Storage - A device that can hold very large amounts of information cheaply with
automated access on demand.
Massachusetts - MA
Master - A document or microform from which distribution or intermediate copies can be
Master Account - Account used to fund zero balance accounts automatically.
Master Files - Relatively long-lived computer files containing an organized and consistent set of
complete and accurate data. Usually updated periodically. See Documentation 3., Processing
Master Film - The film exposed in a COM recorder.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Master Notes - A form of borrowing between highly rated companies and the trust departments
of major banks. The amount loaned can fluctuate daily.
Mastering - The process of recording digital information (music or computer data) onto
Compact Disc media using a CD-R device.
Match - Specifies that the extraction is to occur if the contents of the examined field exactly
match the supplied literal value.
Matched Payment Only - An amount entry validation that rejects any customer’s payments that
do not pass the amount field comparison validation.
Matched Payments - Payments that equal the amount due. The amount due can be either a
minimum payment amount or a total balance due (e.g., in the case of a credit card account). This
term is typically used in retail lockbox processing. Also known as full payments.
Matching - Purchase of a security with a maturity on the date that funds are required to meet an
Matrix Endorser – A dot matrix printing device used to endorse documents with the required
information; uses a normal printer ribbon.
Matrix Matching - This technique stores the scanner signals in a digital register that is
connected to a series of resistor matrices. Each matrix represents a single reference character.
The other end of each matrix is connected to a second digital register, whose voltage outputs are
representative of what should be obtained if the reference character were present. Recognition is
based upon the resultant output voltage obtained from each matrix.
Matrix Symbol - An arrangement of regular-shaped modules where the center-to-center
distance is uniform. The arrangement of the modules represents data.
MAU - Multistation access unit (used in LANs).
Maximum Data Set - A framework envisioned under HIPAA whereby an entity creating a
transaction is free to include whatever data any receiver might want or need. The recipient of a
maximum data set is free to ignore any portion of the data not needed to conduct their part of the
associated business transaction.
MB - Abbreviation for megabyte. One million bytes of data.
MBPS - Megabits per second.
MBS - Maximum Burst Size.
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FTP Industry Glossary
MC RPPS - MasterCard Remote Payment and Presentment Service turns remote paper-based
consumer payments into electronically processed payments.
MCA - Micro Channel Architecture.
McFadden Act - Federal law enacted in 1927 that established the state as the foremost party in
determining geographic restrictions for commercial banks and prohibited banks from accepting
deposits across state lines.
MCI - An inter-exchange carrier (IXC).
MCR - Minimum Cell Rate.
Mechanical Disk Scanner - This type of scanner consists of a lens system, a rotating disk, a
fixed aperture plate, and a photo multiplier. The characters to be read are flooded with light,
which is reflected from the surface of the document onto a rotating disk via the lens system. The
disk has apertures extending from its center toward it periphery. As the disk rotates, the aperture
picks up light samples. A fixed aperture plate regulated the amount of light and directs the light
into a photo multiplier. The photo multiplier tube converts the light samples into a signal pulse.
By varying the voltage threshold, the photocell outputs can be adjusted for difference
background colors. The scanner senses a character of data at a time.
Mechanical Self-Contained Paper - A carbonless paper that forms an image on impact by
exposing a dark undercoating.
Mechanical Servoing - The process whereby a stepping motor moves the document being read
forward or backward if the line of text is not centered within the optical reading areas, as
determined by the recognition system.
Media - The paper, ink ribbons, ink bottles, and other expendable supplies.
Medical Code Sets - Codes that characterize a medical condition or treatment. These code sets
are usually maintained by professional societies and public health organizations.
Medicare Remittance Advice Remark Codes - A national code set for providing either claimlevel or service-level Medicare-related messages that cannot be expressed with a Claim
Adjustment Reason Code. This code set is used in the X12 835 Claim Payment & Remittance
Advice EDI transaction, and is maintained by the HCFA.
Medium - The physical form of recorded information. Includes paper, film, disk, magnetic tape,
and other materials on which information can be recorded. See Documentary Materials,
Recorded Information, Records.
Meg - Slang for megabyte.
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FTP Industry Glossary
Megabyte - Approximately one million bytes. Precisely, 1,024 kilobytes, or 1,048,576 bytes.
Megaflops - Millions of floating point operations per second. A measure of computer
Memo Posting - Posting an ACH credit or debit early in the day when the actual credit or debit
will not be posted until later in the day.
Memorandum - A written communication much like a letter but having no salutation or
complimentary ending. Usually used within or between offices of the same organization.
Memorandum of Understanding (MOU) - A document providing a general description of the
kinds of responsibilities that are to be assumed by two or more parties in their pursuit of some
goal(s). More specific information may be provided in an associated SOW.
Memory - The amount of information a computer is capable of storing. Memory is measured in
Menu - The display of a list or array of choices (i.e., on the screen of a personal computer) from
which the user makes selections. An alternative to prompts and key word commands or
command strings.
Merchant - In the context of on-line electronic payments, an account holder with a commercial
bank to whom a payment is made.
Merchant Acquirer - A member that has entered into an agreement with a merchant to accept
deposits generated by bankcard transactions; also called the acquirer or acquiring bank.
Merchant Fraud - Fraud perpetrated against other parties in a payment system by a card
Merchant Service Charge - The discount rate or other fees assessed by the acquirer.
Merchant Services - A suite of products to authorize and settle direct payment and credit card
transactions as well as authorize check-based transactions.
Merchant’s Processor - Service provider that has entered into an agreement with a merchant to
process credit card transactions. Also referred to as a merchant acquirer.
Merge - To combine two or more sets of items (e.g., data records, index entries, lists of names)
into a single set, usually interleaving the items in accordance to an appropriate sequence (i.e.,
alphabetical order).
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FTP Industry Glossary
Merge Feeder - Optional hardware component that holds control documents and automatically
feeds them into the transport path where required during Pass 2.
Merge Hopper - A type of automatic document feeder that feeds control documents (such as
cutslips and batch headers) into the transport track automatically for tasks such as
reading/sorting and encoding.
Merger - Legal combination of two or more companies by the transfer of assets to a single
Message Authentication - A digital signature used to protect the integrity of a message and
ensure that it is unchanged.
Message Authentication Code (MAC) - An algorithm used by both the sending and receiving
parties of an electronic data exchange to verify that the data has not been altered during
transmission. Both parties would independently calculate the message authentication code and
compare them; if the independent calculations differed, they would assume that the data had
been changed in transit.
Metacode - A standard created by Xerox for printing host generated documents containing
graphical content, such as invoices and statements. Provides functionality similar to the AFP
standard for graphical formatted output created by IBM.
Metered Mail - Mail whose postage has been paid through the use of a postage meter.
Metrics - A group of data relating information / measurements about a process. Common
metrics inlcude, but are not limited to, prodcutivity rates, quality, timeliness, uptime, recognition
rates, and unit cost.
MFJ - Modified Final Judgement (AT&T divestiture).
MHz (Megahertz) - 1 million cycles per second. The term is widely used to measure the internal
speed with which computers process data. In general, the more MHz, the faster the computer,
although other factors, such as disk speed and software capabilities, may also affect processing
Michigan - MI
Mickey - Unit of mouse movement typically set at 1/200th of an inch.
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FTP Industry Glossary
MICR (Magnetic Ink Character Recognition) - 1. Recognition of characters printed in special
magnetic ink, generally on the bottom of checks. 2. A data encoding technology that uses highly
specified font and character sets and magnetic ink to enable the data to be read by magnetic
scanning equipment. Two MICR standards exist E13-B, mostly used in the United States and
Canada and CMC-7 more commonly found in Europe and Latin America.
MICR Code Line – The code line printed at the bottom of a check. The general format is as
123456789012345678 0123456789 Amount
12345678901234567890: 123456789:
Auxiliary ON-US
R/T Number
(Check Serial Number)
ON-US Field
(Acct # & Check #)
(12 = FED District)
(3 = Main FED
Office, Branch
Office, or Special
(4 = Immediate Credit
or Not)
(5678 = Unique Bank
(9 = Check Digit)
MICR Database - A large group of records containing one or more fileds of data captured from
the MICR line of processed checks. MICR databases are used to process check only
transactions, process returned items and produce an all items list for research and investigation.
MICR Fonts - Specified sets of characters that can be read with a MICR reader. Two MICR
fonts exist E-13B font or the CMC 7. E-13B is used primarily in the United States while CMC7
is more commonly found outside the US.
MICR Line - Scanline on checks and control documents printed with magnetic ink. This line
consists of a Serial Number field (optional), a Routing and Transit Number field, an Account
Number field, and a Check Cumber or PC field (optional).The MICR encoded check information
line is printed according to the definitions of the American Banking Association (ABA). During
the Pass 2 Encode/Sort function the check amount is encoded on the right end of the MICR line.
See ABA and Magnetic Ink Character Recognition.
MICR Number Method - A check authorization procedure which uses the bank routing/transit
numbers, checking account numbers and check number encoded along the bottom of the check.
MICR Printer - A printer in a workstation that prints MICR characters.
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FTP Industry Glossary
MICR Reader - A magnetic reader device, hardware component, that identifies characters
encoded on documents in ink containing magnetizable particles. To perform MICR Magnetic Ink
Character Recognition), the reader device first magnetizes these particles, then senses the shape
of their magnetic fields.
MICR Repair - Image application that allows operators to view documents in order to correct
unreadable Magnetic Ink Character Recognition (MICR) lines on checks that failed
Pre-Validation, identify unknown items, and reject items. The operator must correct MICR line
data to complete the capture information for that item.
MICR Verifier - An optional module containing a type of magnetic reader device that works
like the single-fine MICR reader. This module reads documents after they have been encoded. It
verifies that the encoder is working correctly.
Microcard - An opaque card containing miniaturized pages photographically reproduced in a
grid pattern by rows, like the numbers on a calendar.
Microcomputer - A very small digital computer, normally able to process and store less data
than a minicomputer and far less than a mainframe while doing so less rapidly than a
minicomputer and far less rapidly than a mainframe. Includes desktop, laptop, and hand-held
models. Also called a personal computer. See Computer, Mainframe Computer, and
Microcopy - A photographic reproduction so small that a magnifying device is needed to read or
view the image. Also called a microphotograph.
Microfiche - 1. A 4” x 6” sheet of film containing reduced images of 270 or so pages of
documents in a grid pattern, usually with a title that can be read without magnification. 2. A film
card containing images in a two-axis coordinate system. Microfiche images are recorded by rows
or by columns. Microfiche are normally 105mm x 148mm (the ARM standard format) but may
be almost any size to fulfill special application requirements.
Microfiche Transmission/Tape Utility - Optional utility that allows reports to be formatted for
output to a microfiche processor. During EOD, each report selected for microfiche is written to
separate data files on disk. Each file is transmitted separately to the host mainframe.
Microfilm - 1. A film medium, in tape-like rolls, for recording reduced pages of documents
sequentially. A fine-grain, high-resolution film containing an image that is greatly reduced in
size as compared to its original paper form. The recording of microimages onto microfilm
utilizes numerous techniques and film types. Film widths of 16mm, 35mm, 82.5mm and 105mm
are used in COM. 16mm and 105mm film widths are the most common, and 105mm
predominates today. Camera film on which reduced pictures of the front and/or back of selected
documents are captured for archival and research purposes. Also, the act of capturing items on
this film. 2. (Verb) - To record a reduced photographic image of a document onto film. (Noun) The film used for this purpose.
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FTP Industry Glossary
Microfilm Camera - An optional device that can microfilm paper processed on the workstation.
Microfilm Jacket - See Jacket Film.
Microfilm Utility - Optional utility that allows the operator to microfilm items off-line.
Processes any document without regard to type. Documents all sort to one pocket. No audit trail
is printed, and no reports are generated.
Microfilmer Module - Optional hardware component containing the microfilmer unit that
microfilms the front and/or back of selected documents passing through the transport. Creates an
archive photo that can be used later for research.
Microfilming - The process of recording microimages on film.
Microform - Microfiche and microfilm.
Micrographics - The branch of science and technology concerned with the methods and
techniques for recording information on, and retrieving it from, microform. Those methods
include reducing and recording images by photographic means, or directly onto film by
computer (computer output microform, or COM); the location and retrieval of documents
through indexing and mechanical means; and the display and magnification on display screens or
paper output.
Microimage - An image too small to be read without a magnifying device or other special
Microimaging Systems - Systems constituting a bridge between traditional microforms and
electronic records. Include stand-alone micrographics, computer-assisted retrieval (CAR),
computer output microfilm (COM), electronic microimage transmission, and optical disk (OD)
systems. Also called image processing or image management systems. See Computer Output
Microfilm (COM), Optical Disk (OD).
Microphotograph - See Microcopy.
Microprocessor - 1. An integral piece of hardware, a microchip, which performs the logic
functions of a digital computer. 2. It is a piece of hardware that houses the computing parts of a
computer on one circuit board or in one set of integrated circuits. The microprocessor does not
contain the I/O interfaces and memory unit.
Microwave - A wireless technology that uses the high frequency band of the radio spectrum to
transmit analog and digital information. Microwave systems can have bandwidths up to 300
times greater than broadcast TV networks and several times greater than cable TV networks.
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FTP Industry Glossary
MIDI (Musical Instrument Digital Interface) - Hardware and software specification for
exchanging information between musical instruments and related devices (i.e. sequencers, light
controllers, mixers, etc.).
Mil - One one-thousandth (1/1000) of an inch; used to describe paper and tape thickness.
Milestone - A mark of a significant point in development.
Millisecond - One thousandth of a second. Expressed numerically as 0.001; abbreviated as ms or
MIME (Multipurpose Internet Mail Extensions) - The standard for attaching non-text files to
standard Internet mail messages. Non-text files include graphics, spreadsheets, formatted word processor documents, sound files, etc. An email program is said to be MIME Compliant if it can
both send and receive files using the MIME standard. When non-text files are sent using the
MIME standard they are converted (encoded) into text, although the resulting text is not really
readable. Generally speaking the MIME standard is a way of specifying both the type of file
being sent (e.g. a QuickTime video file), and the method that should be used to turn it back into
its original form. Besides email software, the MIME standard is also universally used by Web
Servers to identify the files they are sending to Web Clients, in this way new file formats can be
accommodated simply by updating the Browsers’ list of pairs of MIME-Types and appropriate
software for handling each type. See Browser, Client, Server, Binhex, and UUENCODE.
Minicomputer - A small digital computer, normally able to process and store less data than a
mainframe but more than a microcomputer while doing so less rapidly than a mainframe but
more rapidly than a microcomputer. See Computer, Mainframe Computer, and Microcomputer.
Minimum Scope of Disclosure - The principle that, to the extent practical, individually
identifiable health information should only be disclosed to the extent needed to support the
purpose of the disclosure.
Minnesota - MN
Minutes - Official record of proceedings at a meeting.
MIPS (Millions of Instructions Per Second) - 1. A measure of computer speed. 2. In
computers, shorthand for millions of instructions per second. A way of measuring relative
computer power.
Mirror - Generally speaking, to mirror is to maintain an exact copy of something. Probably the
most common use of the term on the Internet refers to mirror sites which are web sites, or FTP
sites that maintain exact copies of material originated at another location, usually in order to
provide more widespread access to the resource. Another common use of the term mirror refers
to an arrangement where information is written to more than one hard disk simultaneously, so
that if one disk fails, the computer keeps on working without losing anything. See FTP, Web.
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FTP Industry Glossary
MIS (Management Information System) - Management information that is provided by
computer processing. The storage and retrieval of documents is strictly speaking an MIS
function. Different political environments in some companies, however, may see it differently.
Mis-Applied - The action in which a transaction / credit / debit is applied to an account in error.
Mis-Key - The data entry action in which the characters being entered are keyed in error.
Mis-Post - The action in which a debit or credit is applied to the wrong account. Similar in
nature to Mis-Applied.
Mis-Reads - Mistakes made by a recognition system. Essentially, the system reads a character
incorrectly because its image looks more like a different character. For example, the image of a 5
can frequently look much like a 6. Sometimes referred to as errors or substitutions.
Missing Item - Check captured during Pass 1 but not detected in Pass 2 processing. Examples
include fly outs from Pass 1, an item dropped by an operator prior to Pass 2, or one that failed
data matching during Pass 2.
Mission-Critical System - A system that is critical to the functioning of an organization and the
accomplishment of its mission.
Mississippi - MS
Missouri - MO
Missort – The routing of a document to the wrong pocket; usually caused by a misread or
hardware failure.
Mixed Cash Letter - A type of cash letter for institutions depositing less than 5,000 items a day.
Mixed cash letters contain unsorted city items, RCPC items, drawn on depository institutions in
other Federal Reserve districts, U.S. Treasury checks, and U.S. Postal Money Orders (PMO's).
Credit for mixed cash letters varies according to the collection experience of the Federal Reserve
for each item classification.
MLS - Multiple listing service.
MNC - Multinational corporation.
Mnemonic Filing System - A classification system in which records are coded by symbols to
remind the user of the subject; for example, COM for communications and PER for personnel.
These symbols are usually arranged alphabetically.
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FTP Industry Glossary
Mode - A way something operates.
Model - A description, representation, or analogy that is used to help visualize something that
cannot be directly understood.
Modem - Short for modulator-demodulator. A device that allows digital signals to be transmitted
and received over analog telephone lines. Used to go from analog to digital signals and back
Modify - To change batch or remittance data.
Module - The single narrowest width in a bar code.
Modulus - A user-defined number divided into the result of the check digit calculation to
determine the check digit value; most common modulus is Mod 10 or Mod 11.
Moire - Pronounced MOR-ray. The undesired effect caused by overlaying dot patterns (usually
halftone representation of photographs) which are incompatible.
Money Market - Financial markets consisting of debt instruments that mature in one year or
Money Market Deposit Accounts - Short-term deposit accounts created by Garn-St. Germain
Act that pay an unregulated rate of interest determined by the bank and allow limited check
Money Market Yields - Nominal yield quoted on a 360-day basis.
Monospacing - Printers with monospacing allow the same horizontal space, called the pitch for
all letters, regardless of their actual width. Opposite of proportional spacing.
Montana - MT
Monthly Minimum - Minimum amount charged for the subscriber’s monthly service.
MOO (Mud, Object Oriented) - One of several kinds of multi-user role-playing environments,
so far only text-based. See MUD, MUSE.
Moonlighting - Working at a second job after a regular job.
Mortgage - A written instrument that creates a lien by pledging real property as security for a
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Mosaic - The first WWW browser that was available for the Macintosh, Windows, and UNIX all
with the same interface. Mosaic really started the popularity of the Web. The source-code to
Mosaic has been licensed by several companies and there are several other pieces of software as
good or better than Mosaic, most notably, Netscape. See Browser, Client, and WWW.
MOU - Memorandum of Understanding.
Mount - Extend the hierarchy of directories. Accomplished over a LAN by associating the root
of one computer with a directory of a mounted computer.
Mouse - A cursor positioning and switch device for computer and PC consoles, which is usually
used for graphic design or selection of options from lists. Hand-driven input and pointing device
for personal computers.
Moving Beam Scanner - A bar code scanner that uses a moving light beam to dynamically scan
and decode a bar code symbol.
MPEG - An image-compression scheme for full motion video proposed by the Motion Picture
Experts Group, an ISO-sanctioned group. MPEG takes advantage of the fact that full motion
video is made up of many successive frames, often consisting of large areas that don’t change like blue sky background. MPEG performs differencing, noting differences between consecutive
frames. If two consecutive frames are identical, the second doesn’t need to be stored.
MPP - Massively Parallel Processing.
MPS (Megabits Per Second) - Used to describe the speed of a network connection. Many
LANs operate at speeds of 10 mbps or more; a T-1 line WAN connection operates at 1.544
mbps. i.e., millions of bits per second.
MPX - Mid-America Payment Exchange.
MS-DOS - The basic command system, called disk operating system, or DOS - for IBM and
IBM clone personal computers.
MST - Mountain Standard Time.
MTBF (Mean Time Between Failures) - A measure of equipment reliability (the higher the
MTBF, the more reliable the equipment).
MTE - Machine Transfer Entry.
MTM - Methods-time measurement.
MTTR (Mean Time To Repair) - A measure of the complexity and modularity of equipment
(the higher the MTTR, the more complex or less modular - the equipment).
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
MUD (Multi-User Dungeon or Dimension) - A (usually text-based) multi-user simulation
environment. Some are purely for fun and flirting, others are used for serious software
development, or education purposes and all that lies in between. A significant feature of most
MUDs is that users can create things that stay after they leave and which other users can interact
with in their absence, thus allowing a world to be built gradually and collectively. See MOO,
Multi - See Transaction Types.
Multi-Bank Reporting - An arrangement by which one of a company’s financial institutions or
a third-party reporting service gathers and consolidates account balances and transaction activity
from each of the company’s financial institutions.
Multicurrency Accounts - An account that allows for the transfer of payments in any readily
convertible currency to and from one designated account.
Multi-Font Machine - An optical scanning device that can read forms containing intermixed
characters printed in a number of fonts. This approach eliminates the need to pre-batch the input
data by font prior to submission to the scanner.
Mutilated Item- An item damaged to the point it cannot be processed by an item processor.
Multimedia - Combining more than one media for the dissemination of information - i.e., using
text, audio, graphics, animation and full-motion video all together. Requires enormous amounts
of bandwidth and processing power.
Multimedia Extensions - Developed by Microsoft and IBM for DOS/Windows and OS/2. It
includes a Media Control Interface for devices such as CD-ROM and MIDI, and the Resource
Interchange File Format.
Multiple Drawee Checks - Checks that can be presented for payment at a bank other t drawee
bank; both bank names appear on the check. Also called payable-if-desired (PID) checks.
Multiple Endpointing - See Endpointing.
Multiples Transaction - A transaction consisting of at least three documents (more than one
check and/or more than one stub).
Multisync Monitor - A monitor that adjusts to the type of video signal it receives. MultiSync is
trademarked to NEC.
Multi-Threaded - An application’s ability to support multiple, independent users or sessions
within a single program, processing more than one transaction at a time.
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FTP Industry Glossary
Multi-Web Press - Press capable of printing, processing and collating two or more paper webs
and necessary carbons in one pass to produce a finished form.
Municipal Securities - Debt securities issued by state and local governments and their agencies
MUSE (Multi-User Simulated Environment) - One kind of MUD - usually with little or no
violence. See MOO, MUD.
MUX - Multiplexer.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-NNACHA (National Automated ClearingHouse Association) - The membership organization
that provides marketing and education and establishes rules, standards and procedures that
enable financial institutions to exchange ACH payments on a national basis.
NACHA Format - The ACH record format specifications described in the NACHA Operating
Rules and Guidelines, which are accepted and warranted payment format standards for payments
delivered through the ACH Network.
NACS - National Association for Check Safekeeping.
NAFTA (North American Free Trade Agreement) - The treaty between the United States,
Canada and Mexico which opened up trade relations between the three countries. In addition,
NAFTA mandated electronic collection of federal taxes for most US taxpayers.
NAGARA - National Association of Government Archives and Records Administrators.
Nanometer - A unit of measure- used to define the wavelength (and hence color) of light.
NARA - National Archives and Records Administration.
NARS - National Archives and Records Service. Now reorganized as NARA.
National Archives - See Archives.
National Information Infrastructure - The foundation that supports the Information
Superhighway by setting national standards that make networks and appliances compatible.
National Uniform Billing Committee (NUBC) - An organization, chaired and hosted by the
American Hospital Association, that maintains the UB-92 hardcopy institutional billing form and
the data element specifications for both the hardcopy form and the 192-byte UB-92 flat file EMC
format. The NUBC has a formal consultative role under HIPAA for all transactions affecting
institutional health care services.
National Uniform Claim Committee (NUCC) - An organization, chaired and hosted by the
American Medical Association, that maintains the HCFA-1500 claim form and a set of data
element specifications for professional claims submission via the HCFA 1500 claim form, the
Professional EMC NSF, and the X12 837. The NUCC has a formal consultative role under
HIPAA for all transactions affecting non-dental non-institutional professional health care
NAV - Net asset value.
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FTP Industry Glossary
NCUA (National Credit Union Administration) - The regulatory agency for federally
chartered credit unions. In addition, NCUA maintains the deposit insurance program for all
federally insured credit unions, whether they have a state or federal charter.
Near Line Storage - A description of data that is not immediately available, but can be retrieved
without human intervention, using devices such as CD-ROM discs in a CD jukebox, or Optical
Disks in an Optical Jukebox. Retrieval times for these devices range from a 5 to 30 seconds
depending on the type of media that must be robotically loaded.
Nebraska - NE
Negative - 1. A film image with light lines and characters with a dark background. A silver
negative image requires full reversal processing or use of an autopositive film. Approximately
65% of the original silver film generated by all COM recorders today is produced in the form of
a negative image. 2. Photographic print in which tone values are reversed -white for black,
lights for darks, darks for lights and black for white. Generally produced on film, for the purpose
of print or platemaking.
Negative-Appearing Image - Photo image with clear lines and characters on a dark background.
Negative Film - Film in which the dark portions of the original image appear light and the light
portions dark. Used as the master copy from which positive copies can be made.
Negative Float - Dollars deposited by customers in which the bank receives availability for the
items before it grants the customer use of the funds.
Negative-Appearing Image - Photo image with clear lines and characters on a dark background.
Negotiable Order of Withdrawal (NOW) - Bank accounts that offer unrestricted check writing
and pay unregulated rates of interest.
Negotiation Collection Strategy - The collection technique utilized by NRC wherein the
collector works with the debtor to get a debtor’s buy-in to the repayment plan. This is
comparatively different from the more conventional, confrontational collection strategy. The
negotiation strategy gets substantially higher numbers of fulfilled debtor payment commitments.
Net - 1. Gross amount less any deductions. 2. Short for Internet.
Net Settlement - The netting out by financial institutions of debits and credits owed to each
other to result in a single net amount for settlement.
Netiquette - The etiquette on the Internet. See Internet.
Netizen - Derived from the term citizen, referring to a citizen of the Internet, or someone who
uses networked resources. The term connotes civic responsibility and participation. See Internet.
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FTP Industry Glossary
Netscape™ - A WWW Browser and the name of a company. The Netscape browser was
originally based on the Mosaic program developed at the National Center for Supercomputing
Applications (NCSA). Netscape has grown in features rapidly and is widely recognized as the
best and most popular web browser. Netscape corporation also produces web server software.
Netscape provided major improvements in speed and interface over other browsers, and has also
engendered debate by creating new elements for the HTML language used by Web pages -- but
the Netscape extensions to HTML are not universally supported. The main author of Netscape,
Mark Andreessen, was hired away from the NCSA by Jim Clark, and they founded a company
called Mosaic Communications and soon changed the name to Netscape Communications
Corporation. See Browser, Mosaic, Server, and WWW.
Network - A means for interconnecting items (i.e., computers) so that data and other information
may be transmitted electronically between them.
Networking - Using contacts made in business for purposes beyond the reason for the initial
contact. For example, a salesman may ask a customer for names of others who may be interested
in his product.
Neural Network - A neural network is actually a set of mathematical equations which give an
output which varies in response to a particular set of input conditions. Neural networks have a
feedback loop giving the equations the ability to change their internal constants in response to
the accuracy of their result during a process called training. This adaptive capability is why the
word neural is used. In a primitive way neural networks behave like the brain-- they can be
taught and they can learn. A neural network is not programmed by someone to recognize
particular characters. Initially, a neural network can’t recognize a thing. It must be taught.
Nevada - NV
New Hampshire - NH
New Jersey - NJ
New Mexico - NM
New York - NY
Newsgroup - An electronic bulletin board that acts as a discussion group, allowing people to
share information on a given subject, ask questions, and provide answers.
NFS (Network File System) - A UNIX file sharing method which causes files on a UNIX
machine to appear as native files to the client. Often used to connect Windows PC’s to UNIX
machines, using the UNIX host as a file server.
Nibble - Informal term for half a byte; the first four or last four bits of a byte.
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NIC (Networked Information Center) - Generally, any office that handles information for a
network. The most famous of these on the Internet is the InterNIC, which is where new domain
names are registered. Another definition: NIC also refers to Network Interface Card that plugs
into a computer and adapts the network interface to the appropriate standard. ISA, PCI, and
PCMCIA cards are all examples of NICs.
Night Cycle - The second scheduled time for interregional transmission of data from Originating
ACHs to Receiving ACHs. Also referred to as nighttime window.
NLQ (Near Letter Quality) - A printer whose output is almost as good as a typewriter.
NNTP (Network News Transport Protocol) - The protocol used by client and server software
to carry USENET postings back and forth over a TCP/IP network. If you are using any of the
more common software such as Netscape, Nuntius, Internet Explorer, etc. to participate in
newsgroups then you are benefiting from an NNTP connection. See Newsgroup, TCP/IP, and
NOC (Notification of Change) - Information sent by an RDFI to notify the ODFI that
previously valid information for a Receiver has become outdated or that information contained in
a prenote is erroneous. These items have the Standard Entry Class Code COR.
Node - A point of connection into a network. In multipoint networks, it means it’s a unit that’s
polled. In LANs, it’s a device on the ring. In packet switched networks, it’s one of the many
packet switches which form the network’s backbone.
No-Document - A document without a corresponding slip of paper to be processed.
NOI - Net operating income.
Noise - Electronic variations in the scanner read head caused by miscellaneous non-reflective
spots other than data to be read, such as dirt, black ink spots, holes, etc.
NOL - Net operating loss.
Nominal - Denoting standard or ideal values of the elements that make up the characters of a
Nominal Dimension - The width of a narrow bar or space.
Nominal Yield - The quoted yield on an annual basis for most instruments is a simple annual
Non-Bank - In a payment system, a financial institution not offering retail banking services.
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FTP Industry Glossary
Nonconformity - A condition within a unit which does not conform to some specific
specification, standard, and/or requirement; often referred to as a defect; any given
nonconforming unit can have the potential for more than one nonconformity.
Non-Current Records - Records no longer required to conduct agency business and therefore
ready for final disposition. See Current Records, Permanent Records, Semi-Current Records.
Non-Freeze Carbon - One-time carbon paper designed for use in forms that are subjected to
temperatures of near freezing or below.
Non-Impact Printer - A printing device in which the paper is not struck, but imaged by noncontact means; e.g., ink jet, electrostatic.
Non-Intelligent - A device without a computer or equivalent electronics, and thus with limited
capabilities. In COM, non-intelligent COM recorders require host computer software to perform
COM formatting functions.
Non-Interlaced - Every line of pixels on a TV or computer terminal screen is refreshed on each
pass. In contrast, American television is interlaced, meaning only every second line is refreshed,
60 times a second.
Non-Official Papers - See Personal Papers.
Non-Par Item - A check that is collected at its face value less drawee bank charges. Non-par
banks’ checks clear through their correspondents because the Federal Reserve System does not
clear non-par items.
Non-Read - Lack of data output when a scan line is scanned due to a defective code, incorrect
orientation or speed of scan, scanner failure, or operator error. The decode algorithm succeeds in
detecting the error and rejects the data observed as invalid. Also called No-Read or Non-Scan
Non-Read Color (Ink) - Any printing with a sufficiently high reflectance measurement to
prohibit detection by the scanner. Non-read colors are used as visual guides that do not interfere
with data reading. See Dropout Color (Ink), Reflective Color (Ink) or Non-Scan Color (Ink) &
Blind Color (Ink).
Non-Record Copy - See Non-Record Materials.
Non-Record Materials - U.S. Government owned informational materials excluded from the
legal definition of records. Include extra copies of documents kept only for convenience of
reference, stocks of publications and of processed documents, and library or museum materials
intended solely for reference or exhibition. Also called non-records. See Disposition Authority
2., Disposition Instructions 2., Documentary Materials, Files, Personal Papers, Recorded
Information, Records, Technical Reference Files, and Working Files.
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FTP Industry Glossary
Non-Records - See Non-Record Materials.
Non-Reflective Color (Ink) - See Read Color (Ink), Scan Color (Ink).
Non-Recurring Payment Authorization – When an individual or company authorizes the debit
of their account for a varying period and/or amount. Notification must be sent 10 days before the
effective date, with the amount to be debited.
Non-Scan Color (Ink) - See Non-Read Color (Ink), Reflective Color (Ink) & Blind Color (Ink).
Non-Sufficient Funds (NSF) - Check return reason for checking account funds not available to
cover the check.
Non-Textual Records - A collective term usually applied to electronic, audiovisual,
cartographic, remote-sensing imagery, architectural, and engineering records, in contrast to
manuscript and typescript paper records. See Special Records, Textual Records.
Non-Transportable Item - A document that is not capable of being transported due to form size
or paper type. These items are input into the application through a manual data entry function or
by placing into document carriers.
No-Read - A scan attempt which does not result in a successfully decoded symbol.
Normal Distribution - A continuous, symmetrical density function characterized by a bellshaped curve, e.g., distribution of sampling averages.
North Carolina - NC
North Dakota - ND
Note - A written comment from a customer, written on a document or separate slip of paper.
Note Audit Document - An audit document that is processed on a workstation in addition to a
billing document that has a note on it. The note audit document takes the place of the billing
document so the note can be outsorted and handled.
Notice of Intent (NOI) - A document that describes a subject area for which the Federal
Government is considering developing regulations. It may describe what the government
considers to be the relevant considerations, and invite comments from interested parties. These
comments can then be used in developing an NPRM or a final regulation.
Notice of Pre-lien - A document notifying the owner of real property that materials or services
are being furnished to his real property, putting him on notice that the one sending it will look to
have a lien against the real property if those materials or services are not paid for.
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Notice of Proposed Rulemaking (NPRM) - A document that describes and explains regulations
that the Federal Government proposes to adopt at some future date, and invites interested parties
to submit comments related to them. These comments can then be used in developing a final
Notice of Reclamation - A Notice sent by electronic, paper, or other means by the Federal
government to an RDFI, which identifies the benefit payments that should have been returned by
the RDFI because of the death or legal incapacity of a recipient or death of a beneficiary.
NOW - Negotiable order of withdrawal.
NPV - Net present value.
NR - Not rated.
NRZI (Non-Return Zero Inverted) - A means of encoding digital information on reel to reel
magnetic tape (i.e., 9-track, 800 bits per inch). Now an obsolete format.
NSF - Not sufficient funds.
NTSC (National Television System Committee) - The broadcast standard used in North
America and Japan. Transmits at 30 frames per second.
Number of Jams - The total number of jams for the job.
Number System Character - The first, or left-hand, digit in a U.P.C. number that identifies the
purpose of the symbol. For example: 0 denotes a supermarket item; 3 is a drug-related item; 5 is
a cents-off coupon, etc.
Numeric - Denoting a character set that includes only numbers.
Numeric-Alphabetic Filing System - A classification system in which numbers are assigned to
main divisions and letters and numbers to succeeding subdivisions and the records are arranged
accordingly. For example, 1 might stand for administration, 1C for the subdivision personnel,
and 1C4 for the further subdivision retirement.
NW - Northwest.
NYSE - New York Stock Exchange.
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-OOACH - Originating ACH Operator.
OAR - Overall rate of return.
OASI - Old-age & survivors insurance.
O/B - Out of balance.
OBI - The Open Buying on the Internet (OBI) Consortium was formed out of a Fortune 500
roundtable in October 1996 to create an open, vendor-neutral, scaleable, interoperable and secure
standard for conducting business-to-business electronic commerce. General Electric, Ford Motor
and American Express are among the founders.
Object-Oriented (Files) - Draw files described mathematically and not as bitmaps.
OBR - See Optical Bar Code Recognition.
OCC (Open, Cooperative Computing) - A strategy for managing change. OCC seeks to
provide customers with a solid foundation for computing based on three major principles: focus
on the end user’s needs; develop networked, cooperative computing systems; adhere to open
systems standards in developing these systems.
OCC (The Office of the Comptroller of the Currency) - Grants charters to and regulates,
supervises and examines national banks. It monitors bank performance, issues supervisory
agreements and determines loan credit quality ratings.
OCR (Optical Character Recognition or Reader) - 1. The ability of a scanner with the proper
software to capture, recognize and translate printed alphanumeric characters into machinereadable text. Most OCRs work by using either Pattern Matching or Feature Extraction. With
pattern matching, the software is given a template of possible characters. When the scanner sees
a letter, it compares it to its library of pattern templates. If there is enough of a match, it safely
assumes it has recognized the letter and sends the ASCII equivalent of the letter to the output
file. Feature extraction is more sophisticated. Its library consists of groups of information
regarding a character’s features-, i.e., the letter A has two diagonal lines; the lines intersect at the
top; it has a horizontal line that crosses from one of the lines to the other, etc. As the OCR scans,
it compares features of the character to its feature library. Feature extraction is used to recognize
handwriting, in certain constrained cases. All OCR software further supports its guesses by
knowing a little something about the language. A digit is not likely to fall in between a group of
letters; the letter h frequently follows the letter t, etc. 2. A data encoding technology that uses
highly specified font and character sets to enable the data to be read by optical scanning
equipment. OCR encoding is highly readable for image-based recognition because of its limited
character set and stringent specifications. 3. A process in which an optical reader device
identifies characters encoded on documents in fonts (character sets) specially designed for this
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purpose, then outputs the results in a form that can be used by computers. OCR reading lets
documents be processed automatically. 4. Character recognition that uses optical and analytical
means to automatically identify written or printed alphanumeric and graphic characters and
convert them to computer useable form. The ability to scan, capture, recognize and translate
printed alphanumeric characters into machine-readable text.
OCR-A - OCR character set developed by ANSI and adopted as an American national standard
in 1966. This standard is documented in ANSI X3.17-1977, American national standard
character set and print quality for optical character recognition. The standard specifies three
sizes, size I, size III and size IV.
OCR-B - OCR character set originally developed by the European Computer Manufacturers
Association (ECMA) and adopted by that organization’s general assembly in 1965. OCR-B was
also adopted by the International Organization of Standardization (ISO) in 1969. This character
set as an American standard is contained in ANSI X3.49-1975, American national character set
for optical character recognition (OCR-B). This standard specifies three sizes, size I, size III, and
size IV.
OCR Fonts - Character sets specially designed so that their shapes can be recognized by an
OCR reader.
OCR Reader - Optically reads the scanline on documents to obtain information.
OCR Reader, Multi-Line - A device available installed on a transport used to identify OCR
OCR Repair - Image application that allows operators to view documents in order to correct
unreadable Optical Character Recognition (OCR) scanline information on payment stubs that
failed Pre-Validation, identify unknown items, and reject items. The operator must correct OCR
scanline data to complete the capture for that item.
OD - Optical disk.
ODBC - Open Database Connectivity.
ODFI - Originating Depository Financial Institution. The financial institution that deposits an
ACH origination file with an ACH operator, either directly or by way of a third party.
OEM (Original Equipment Manufacturer) - The maker of equipment marketed by another
vendor, usually under the name of the reseller. The OEM may only manufacture certain
components, or complete computers, which are then often configured with software and/or other
hardware, by the reseller.
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OF - Optional form.
OFAC - Office of Foreign Assets Control.
Off-Line - 1. A device that has data supplied to it from media that is transportable by a person
(e.g., magnetic tape or disk). Also, a device which is not electronically and physically connected
to a host computer. 2. Peripheral devices operating independently of the Central Processing
Unit. 3. Something not presently active or available for access in a system.
Offer - A term formerly used to describe the act of requesting NARA’s one-time approval of the
immediate transfer of unscheduled records to the National Archives (direct offer) or the act of
initiating the transfer to the National Archives of records already scheduled as permanent
(scheduled offer). Direct offers have been discontinued, and scheduled offers are now called
scheduled transfers. See Transfer, Scheduled Transfer.
Office Automation (OA) - The use of automated or electronic equipment, such as computers,
for office operations. See Computer, Local Area Network, and Word Processing.
Office of Foreign Assets Control (OFAC) - The agency of the United States Government
concerned with monitoring and controlling the assets and financial transactions of entities
deemed to be, or acting on behalf of, enemies of the United States. Certain OFAC regulations
affect both ACH and wire transfer transactions.
Office of Management and Budget (OMB) - The division of the Executive Office of the
President of the United States which establishes Government-wide policy for both management
and budget.
Office of the Comptroller of the Currency (OCC) - The agency of the federal government
which supervises banks and national charters.
Official Envelope - Open side style with diagonal seams. Available as a Regular or Window in
# 11, 12 & 14.
Official File Copy - See Copy 1., Records.
Official Files - See Records.
Official Record Copy - See Copy 1., Records.
Official Records - See Records.
Off-Line - 1. A device that has data supplied to it from media that is transportable by a person
(e.g., magnetic tape or disk). Also, a device that is not electronically and physically connected to
a host computer. 2. Peripheral devices operating independently of the Central Processing Unit.
3. Something not presently active or available for access in a system.
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Offline Debit - The processing of a bankcard that may or may not be authorized against the
cardholder’s current balance and a PIN is not required at the point of sale.
Off-Line Storage - A description of data that is not accessible without human intervention,
Examples include mainframe tape libraries not located in tape silos, and CD-ROMs and optical
disks that have data stored on them but are stored on the shelf.
Offset - A constant and steady state of deviation of the measured variable from the set point.
Offset Printing - A process where the image is transferred from the plate cylinder to a blanket
cylinder to the paper web. Offset lithography and dry offset of examples of offset printing.
Off-the-Shelf - Professionally produced, pre-packaged programs, usually of a generic nature.
The alternative to off-the-shelf is custom-produced materials such as software programs and
specially designed and produced databases.
OFX (Open Financial Exchange) - A standard for the exchange of financial data and
instructions independent of a particular network technology or computing platform. Major
financial institutions and service providers. Enables electronic exchange of financial data
between customers and themselves. Currently implement OFX.
OGO - Originating Gateway Operator.
Ohio - OH
OJT - On-the-job training.
Oklahoma - OK
OLE (Object Linking and Embedding) - A Microsoft standard for linking or embedding
external objects into a document. OLE 2.0 enables in-place editing where the application menus
and tool bars are changed in accordance with the currently active embedded document. The
network OLE recently announced by Microsoft is called ActiveX.
OLTP - On-line Transaction Processing.
OMB - Office of Management and Budget.
Omnifont - The ability of an optical character reader to recognize any typeface font without
having to learn (make a template in advance) that typeface. Omnifont character recognition uses
feature extraction techniques.
OMR - See Optical Mark Recognition.
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On Consignment - When goods are shipped for a demonstration, exhibit, testing or for a
potential sale. Payment to seller is only effected when the sale takes place.
On-Board Program Storage - The ability to store programs and parameters on the diskette or
disk storage that is a part of the peripheral device. Some COM recorders do not provide for
long-term storage of job setup information, thus requiring all parameters to be transmitted from
the host every time a report is to be printed.
One-Time Carbon - Carbon paper designed to be used within a form for just one writing, and
then discarded. One time carbon is now virtually standard for most business forms applications.
(Exception: most register forms and sales books).
One-Time Payment Authorization – An individual or company authorizes a one-time debit of
their account; usually a written authorization, but in some instances, a recorded telephone
authorization may be used.
Online - 1. A device which is attached to another device, especially a host computer, and where
the data is supplied by that connection. A COM device can be said to be online to the HOST
once communication between the two has been established. 2. Peripheral devices operating
under the direct control of the Central Processing Unit. 3. Something active or available for
access in a system. 4. Having access to the Internet.
Online Computer Systems - A system in which input data enters the computer directly from the
point of origin, and/or output data is transmitted directly to where it is used. The intermediate
stages such as writing magnetic tape, punching data into cards or paper tape, or off-line printing,
are largely avoided.
Online Debit - The processing of a bankcard that requires the card to be present, with the
cardholder entering a PIN to complete the sale. The sale is almost always authorized against the
available balance in the cardholder’s deposit account.
Online Service - An organization or a company that provides special proprietary services in
addition to basic Internet access.
On-Us and Affiliates - Charge for deposited checks drawn on service bank, its associated
branches and affiliates. As with Checks Deposited, this charge is for un-encoded checks and
includes the encoding fee.
On-Us Checks - Checks payable by the bank itself, as opposed to checks drawn on other
institutions. The term on-us is also used to describe a cash letter, consisting entirely of checks
payable by the clearing agent receiving items.
On-Us Entries - Entries on an ACH file that belong to the originating financial institution.
These entries may be stripped from the file and posted internally before a file is sent to the ACH.
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On-Us-Field - A section of the MICR line that identifies the account against which the check is
being drawn.
On-Us Transaction - Any electronic banking transaction in which the acquiring member and
the issuing member are the same institution or are within the same intermediate network facility.
OOB - Out of balance.
Opacity - The quality of paper that makes it impervious to light rays, measured as a percentage.
For imaging, the greater the opacity the better, since the intense light used by an image scanner
can shine through transparent papers and detect data on the reverse side.
Opaque Ink - An ink that covers nearly all color beneath it.
OPEC - Organization of Petroleum Exporting Countries.
Open Account (Open Book Credit) - Type of commercial trade credit in the U.S. in which the
seller issues an invoice, which is formal evidence of an obligation, and records the sale as an
account receivable.
Open at the Workstation Mail Extraction - Envelopes that have been top slit are delivered to a
remittance workstation where the contents of each envelope are removed and processed prior to
the processing of the next envelope.
Open End (Envelope) - The throat and seal flap are on the short side.
Open Financial Exchange (OFX) - A standard for the exchange of financial data and
instructions independent of a particular network technology or computing platform. Major
financial institutions and service providers, enabling electronic exchange of financial data
between their customers and themselves. Currently implement OFX.
Open Market Activities - The purchase and sale of securities from the Federal Reserve’s portfolio, respectively increasing or decreasing the money supply.
Open Side (Envelope) - The throat and seal flap are on the long side.
Open Source Software - Open Source Software is software for which the underlying
programming code is available to the users so that they may read it, make changes to it, and
build new versions of the software incorporating their changes. There are many types of Open
Source Software, mainly differing in the licensing term under which (altered) copies of the
source code may (or must be) redistributed.
Open System Architecture (OSA) - Method of configuring a system so that it is
application-independent and hardware-independent.
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Open System Interconnect (OSI) - The set of interface standards promoted by the International
Standards Organization.
Operating Rules - Rules and business practices meant to increase consistency and
interoperability among the various financial service providers that will interact with each other
and end-users.
Operating System - Software that controls the execution of computer programs and which may
provide scheduling, debugging, input/output control, accounting, compilation, storage
assignment, data management and related services.
Operational Risk - The risk that a transaction is altered or delayed due to unintentional error in
transmission, receiving or processing.
Operator - The name of the user running a job.
Operator Maintenance Utility (or Table) - Allows supervisor to establish and maintain
operator IDs, passwords, and system function authorization levels.
Operator Modifiable - Something that can be changed by an operator.
Operator Number - A number assigned to an operator that is keyed in to identify the operator.
Operator Panel - See Transport Operator Panel.
OPM - Office of Personnel Management.
Opportunity Cost - The price or rate of return that the best alternative course of action would
Optic - Of or relating to vision or the eye, or any of the lenses, prisms or mirrors of an optical
Optical - Acting by means of light or in accord with the principles of optics.
Optical Bar Code Recognition (OBR) - The recognition of valid machine produced binary
coding system consisting of bars and spaces that when read by optical equipment is converted to
machine language.
Optical Brightener - A material often added to paper during its manufacture to improve its
brightness or whiteness. These materials can cause erratic reflectance values when used with
optical scanners that are sensitive to the short wavelength portion of the spectrum. See
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Optical Character Recognition (OCR) - 1. Method of coding information on documents so
that it is visible to operators and processing equipment. The machine that reads the information
uses reflected light to decode the information into characters. 2. The technique by which a
document, that has been stored as an image, can be converted to ASCII or similar format.
Optical Disc - A direct access storage device that is written and read by laser light. Certain
optical discs are considered Write Once Read Many, or WORM, because data is permanently
engraved in the disc’s surface either by gouging pits (ablation); or by causing the non-image area
to bubble, reflecting light away from the reading head. Erasable optical drives use technologies
such as the magneto-optic technique, which electrically alters the bias of grains of material after
they have been heated by a laser. Compact discs (CDs) and laser (or video) discs are optical
discs. Their storage capacities are far greater than magnetic media, and are likely to replace
magnetic hard disks and tape in the near future.
Optical Disk - A class of machine-readable output media for data retention and distribution that
is not directly competitive with human readable COM output media. Optical disks come in sizes
from 3-1/2” to 14”, with a wide range of media types, and in a wide range of recording formats.
Optical Head - An assembly within an optical drive containing the components that reflect laser
light on the data surface of the disc and convert the reflected light into electrical signals that can
be interpreted as data. Components in the optical head are the laser, lenses, prisms, a focusing
mechanism and a photo detector.
Optical Mark Recognition (OMR) - The process of identification of marks by an optical
Optical Path - The path followed by light through an optical system.
Optical Reader - An information-processing device that accepts prepared forms and converts
data from them to computer output media.
Optical Scanner - Input device that translates human-readable or microform images to discrete
bit-mapped or machine-readable data.
Optical Scanning - A process whereby characters imprinted on documents can be read by
machine and transferred directly to magnetic tape. Often used by banks as a service in
conjunction with lock box to permit rapid credit file updating by corporations. Use of bank (or
in-house) optical scanning services permits corporations to up-date computer accounts receivable
files directly with this tape, thus, reducing their costs for clerical intervention.
Optical Scanning Device - A device that can view text or graphic images, sense the light
emitted, and thereby, the position of the images, and translate those findings into online graphic
data comprehensible to a computer graphics system.
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Optical Storage - The means of storing or archiving data on optical discs such as CDs or laser
Optical Throw - The distance from the face of the reading device to the beginning of the depth
of field.
Optical Type Font - Fonts that can be read by both people and machines.
Optics - That portion of a system that converts the light image to be printed to the correct
physical size required.
Optional - A model object that users can select if they so choose, but are not required to select in
order for the model to reach a solution.
Optional Field - The inclusion or omission of an optional field is at the discretion of the
Originator of an ACH transaction. While omission of optional fields will not affect the
processing of the item, the Originator must still fill optional fields with blanks or other characters
if they do not fill the field with actual information.
Optional Form (OF) - A form developed by a Federal agency for use by two or more agencies
and approved by GSA for non-mandatory use throughout the U.S. Government. See Form 1.,
Standard Form.
Optional Form 11, Reference Request-Federal Records Centers - A form that an agency may
use to obtain reference service involving records it has stored in a Federal records center.
Optional Form 21, Cross-Reference - See Cross-Reference.
Optional Form 22, Continuity Reference - See Continuity Reference Form.
Optional Form 23, Chargeout Record - See Chargeout.
Options - The holder has the right, but not the obligation to sell (put option) or buy (call option)
financial instruments at a specified price (strike price) within a fixed period of time.
OR - Operations research.
Oral History Materials - All documents, regardless of media, relating to interviews conducted
expressly for historical purposes by, or on behalf of, an agency.
Oregon - OR
Orientation - 1. Positioning with respect to a specific direction or plane. 2. The relative
direction of a display or printed page, either horizontal (called landscape orientation) or vertical
(called portrait orientation).
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Original - The part of a form set usually in contact with a printing device.
Originating ACH Operator (OACH) - The ACH Operator which receives entries from the
Originating Company - An organization or company that produces an ACH file and delivers it
to an ODFI for introduction into the ACH network.
Originating Depository Financial Institution (ODFI) - A member institution that is
responsible for the origination of ACH transactions. This institution may deposit items directly
with an ACH or may work through a processing center, which is the actual sending point.
Originating Gateway Operator (OGO) - The Gateway Operator receiving entries from
financial institutions in the country of origin of the transactions.
Origination - The process of creating ACH entries for submission through an ODFI to the ACH
Originator - The person or organization who had authorized an ODFI to transmit a credit or
debit entry to the account of a Receiver with an RDFI, or if the Receiver is also the RDFI, to
such Receiver. In some cases the ODFI may also be the Originator.
OSF - Open Systems Foundation.
OSHA - Office of Safety and Health Administration.
OSI (Open System Interconnect) - A set of interface standards being developed by the ISO.
OTB - Open-to-buy.
OTC - Over the counter.
Out of Balance - Where two totals that should be equal are not.
Outgoing Mail - Mail that is being handled for the first time at the Sectional Center Facility
serving the sending city.
Outgoing Mail Float - The elapsed time from generation of the statement until the time the
statement is delivered to the customer. Time frame includes the time to print, insert and mail the
statement as well as the time spent in the mail system.
Outgoing Wire Non-Repetitive Automated - Charge for outgoing wire transfer with a
non-repetitive or changing message content initiated by a customer in an electronic format.
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Outgoing Wire Non-Repetitive Manual - Charge for non-repetitive transfer for which the
customer provides information to the bank in a non-automated fashion.
Outgoing Wire Repetitive Automated - Charge for wire transfer with a repetitive or fixed
message content where information is provided in an electronic format.
Outgoing Wire Repetitive Manual - Charge for repetitive transfers for which the customer
provides information to a bank in a non-automated fashion.
Outline Font - A scalable font that creates characters by using mathematical formulas.
Output - In electronic record keeping, information transmitted from internal to external units of
a computer, or to an outside medium. See Information System, Input.
Output Device - Any device by which a computer transforms its information to the outside
world. In general, you can think of an output device as a machine that translates
machine-readable data into human-readable information. Examples: printers, microform devices,
video screens.
Output Records - In electronic record keeping, information generated by a computer and placed
on an outside medium, such as paper, microform, or an electronic storage medium. See Hard
Copy, Input Records.
Output Stackers - A mechanism that stacks documents or pages after they have passed through
a machine. See Stackers.
Outsort - To move paper processed on a workstation to predetermined destinations, depending
on the type of paper and the degree of processing.
Outsourcing - The act of engaging a third party to perform an operation, process or other
business operation that would have been performed inhouse.
Outstanding Total - The sum of all benefit payments received by an RDFI from an agency after
the death or legal incapacity of a recipient or the death of a beneficiary, minus any amount
returned to, or recovered by, the Federal government.
Over - See Transaction Flags.
Over and Under Code - A code where there are two horizontal rows of data, one over the other.
One row is normally a clocking track and the other row carries data.
Over Printing - Double printing, printing over an area that already has been printed.
Overcoat - A transparent protective layer for optical recording media intended to protect the
recorded surface from dust and scratches.
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FTP Industry Glossary
Overdraft - Debt owed by a check writer resulting from a checking account being overdrawn.
Overhead - 1. In data communications, some data is transmitted that is not part of the actual text
but has to do with control, addressing and error checking bits. This extra data is overhead. 2.
The part of a scan line required in addition to the encoded data to give the symbol a valid
structure. It may consist of start and stop characters and (for certain symbologies) check
characters. More common with MICR than OCR scan lines.
Overlay - See Form Overlay.
Overpayment - An amount entry validation that prompts an operator to accept or reject a
payment that meets criteria for being too large.
Overscan - The part of an image that falls outside the borders of the display screen, i.e., the part
you can’t see.
Over-the-Counter/Field Deposit - Collection system in which funds are received and deposited
by local operating units in the field in the form of cash, checks, or credit card vouchers.
Owner Financing - A type of financing in which the seller of a tangible item accepts a
promissory note as a portion of the purchase price. Also called seller financing.
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FTP Industry Glossary
-PP&I - Principal & interest payment.
P&L - Profit & loss statement.
P2P - Person to Person.
Pack - Another word for compressing data.
Packet - A group of bits, packaged together, for transmission purposes. Three principal
elements are included in the packet 1. Control information destination, origin, length of
packet-etc. 2. The data to be transmitted. 3. Error detection and correction bits. Sending data in
packets rather than continuous streams offers more efficient use of transmission lines.
Packet Switching - The method used to move data around on the Internet. In packet switching,
all the data coming out of a machine is broken up into chunks, each chunk has the address of
where it came from and where it is going. This enables chunks of data from many different
sources to co-mingle on the same lines, and be sorted and directed to different routes by special
machines along the way. This way many people can use the same lines at the same time.
Packing List - Document that states the contents and source of a container.
PAD - Packet assembly/disassembly (for packet switching networks).
Page Description Language - A computer language that describes the appearance of a page to
an output device like a printer or a monitor.
Page Printer - A printer that prints an entire page at a time rather than letter by letter.
Page Reader - An optical scanning device designed primarily to read pages with many lines of
data printed on a page.
Page Recognition - OCR software that can tell the difference between text on a page and other
items, such as pictures, artwork, etc.
Pager - Portable electronic device used to contact the person carrying it. Also known as a
beeper, because it emits a beep when it receives the special radio signal triggered by dialing the
carrier’s pager number on a phone.
Pagination - Refers to the sequence of recording data frames on a microform. Pagination can be
sequential from top to bottom of a column, or from left to right across columns; or from top to
bottom of the first column, bottom to top of the second column, top to bottom of the third
column, etc.
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FTP Industry Glossary
PAL (Phase Alternate Line) - A broadcast video standard used in Europe. Transmits at 25
frames per second.
Pantone Matching System - Color matching system for printing inks using color identification
numbers for specification and communication. In some cases OCR ink colors are specified by a
PMS number.
Paper - See Medium.
Paper Caliper - The thickness of a given sheet of paper. See Caliper.
Paper Grain - See Grain Direction.
Paper Jam - See Jam.
Paper Reflectance - See Reflectance.
Paper Smoothness - See Smoothness.
Paper Transport - The mechanism that moves paper along in a workstation. Also called the
Papers - See Personal Papers, Records.
Paper-To-Follow - Instances in which the paper check or other banking document must be
forwarded after an image or data detailing specifics about that check or document have already
been transmitted.
Paperweight - The weight of paper in pounds for a given number of sheets in a specified size.
Example: 20 lbs. paper (commercial) 500 17x22 inch sheets weight 20 pounds.
Paperwork Management - See Records Management.
Paralegal - Employee of a law office who is not a member of a bar and who performs legal
duties that do not require membership in a bar.
Parallel - The transmission of bits over multiple wires at one time. Accomplished by devoting a
wire for each bit of a byte. Parallel data transmission is very fast, but usually happens only over
short distances (typically under 500 feet) because of the need for huge amounts of cable. Most
often used in computer-to-printer, and scanner-to-computer applications.
Parallel Processing - Concurrent execution of one or more program functions within one
computer at one time.
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FTP Industry Glossary
Parameter - A constant defining a particular property of the density function of a variable.
Parameter Type - A property of parameters that determines the type of control presented to
users in the run-time model. Parameter types are Boolean, enumerated, numeric, and arbitrary.
Each parameter type is then further delimited by its characteristic of required, conditional, or
Parameters - Variable information which defines and makes a given job unique. Parameters are
definitions, such as how many lines per page are needed, what type of indexing data is to be
used, how many duplicate copies of the microfiche should be produced, etc. Parameters are
typically created, edited, tested, then stored in final form for repeated future use.
Pareto Diagram - A chart which ranks, or places in order, common occurrences.
Parity - A system for encoding characters as odd (having an odd number of binary ones in their
structure) or even (having an even number of binary ones in their structure), used as a selfchecking mechanism in bar codes. A parity bit (parity bar or module) can be incorporated into
an encoded character to make the sum of all bits always odd or always even, which acts a
fundamental check.
Parity Bar - Last bar of a bar code. Used to force odd parity on the total number of bars having
a value of one (excluding the SYNC Bar).
Parity Bit - Final binary digit added to a series of such digits and assigned the value required to
make the sum of all bits odd or even. See Check Bit.
Part Time - A term used to describe those employees that work fewer hours than full time
employees. Part time employees are normally engaged to work part of a work day or only
specific work days of a week. Part time employees are normally hired to add extra processing
capacity to meet increases in processing work load.
Partial - See Transaction Flags.
Partial Reconciliation - Checks paid are listed in numerical order by check serial number, or
date paid.
Participating Depository Financial Institutions - Any financial institution that is authorized to
originate/receive ACH entries.
Partnership - A common form of joint ownership of a business.
Pass 1 - First pass of documents through the transport. The transport automatically reads and
captures Optical Character Recognition (OCR), Magnetic Ink Character Recognition (MICR),
and image data for use by subsequent processes. May include microfilming and/ or audit trail
applications. See Capture Process and Sort Process.
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FTP Industry Glossary
Pass 2 - Second pass of documents through the transport. Automatically matches data captured
in Pass 1 and later modified in the image applications in order to correctly encode amounts on
checks. May include microfilming and/or audit trail applications. See Encode Process and Sort
Password - Assigned to operators and supervisors; restricts unauthorized use of the system.
Operator password restricts functions the operator can perform.
Pattern Matching - An OCR technique. With pattern matching, the software is given a template
of possible characters. When the scanner sees a letter, it compares it to its library of pattern
templates. If there is enough of a match, it safely assumes it has recognized the letter and sends
the ASCII equivalent of the letter to the output file.
Pattern Recognition - 1. A full-text retrieval search methodology in which patterns created by
the groups of letters in the document text are stored and indexed as bit vectors. User queries are
processed using the same pattern creation algorithms. The retrieval process looks for similarities
between the patterns in the query and in the text. 2. The identification of shapes, forms, or
configurations by comparing the shapes scanned to an electronic pattern.
Payable Through Draft (PTD) - 1. A payment instrument resembling a check that is drawn
against the payer, not the bank, and on which the payer has a period of time in which to honor or
refuse payment. 2. Legal, check-like instruments drawn on and paid by the issuer rather than the
bank. The bank serves only as agent in the clearing process with the drafts flowing through it to
the issuer for his examination and final payment authorization.
Payable Through Entry - An item destined to an account held at a credit union or savings
institution that receives items destined for its customers’ accounts through an intermediary
financial institution.
Payable-If-Desired (PID) - See Multiple Drawee Checks.
Payee - The party to whom a check is payable.
Payer Bank Services - An information service in which the Federal Reserve electronically
notifies controlled disbursement banks early in the morning of all checks that will be presented
that day.
Paying Agent - Agent, usually a bank, that receives funds from an issuer of bonds or stock and
in turn pays principal and interest to bondholders and dividends to stockholders.
Payment - An amount transferred with a transaction. See Customer’s Payment.
Payment Amount - See Payment.
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FTP Industry Glossary
Payment Amount Limit - An amount entry validation performed in order to not accept
payments that are too large.
Payment Concentration - The process of that takes payments from multiple banks and payment
networks and concentrates them into a single format (e.g. lockbox, EDI, and ACH).
Payment Due Date - The date by which the Biller requires payment from the Customer.
Payment Finality - The Federal Reserve’s guarantee of funds received. For example, on
Fedwire, the Fed guarantees the transferred funds to the receiving bank if the sending bank fails
to settle.
Payment Float - The delay between the receipt of an invoice and when payment is applied to
the customer’s account. It has two components: collection float and disbursement float.
Payment Instructions - The Instructions for routing/posting the payment (e.g. into the bank
account that the funds should be deposited).
Payment Instruments - The instruments required to initiate a payment (e.g. checks, credit
cards, debit cards).
Payments Mechanism – Systems designed for the movement of funds, payments, and money
between financial institutions throughout the nation.
Payment Method - Method used to facilitate and process payment.
Payment Posted Date - The date by which a payment is posted to an account.
Payment Processing - The manual or automated process for posting of accounts receivable
transactions to the proper accounts.
Payment Related Data - Information related to a particular payment sent along with the
payment through the banking system. Non-payment related data cannot be sent through the
banking system but must be delivered through other means such as by direct transmission or
through a Value Added Network.
Payment Risk - The risk of not receiving payment for funds due.
Payment Stub - See Stub.
Payment System - A communication system having the provisions to provide financial
settlement information.
Payment Transaction - See Transaction.
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FTP Industry Glossary
Payment Type - The form of payment, such as cash, check, money order, adjustment, etc.
Payment Voucher - See Stub.
Payer - The party who writes or draws a check.
Payer Bank Services - An information service in which the Federal Reserve electronically
notifies controlled disbursement banks early in the morning of all checks that will be presented
that day.
PBR - Consumer Cross-Border Entry.
PBX - Private Branch Exchange.
PC - Short for IBM Personal Computer. Used to indicate an IBM or compatible. Sometimes used
more generally to indicate any personal computer.
PC Print - the name of HCFA’s computer software that translates and prints an ERA, available
through VMS at no cost to the provider.
PCL - Hewlett-Packard’s popular print command language.
PCM - Pulse Code Modulation.
PCR - See Print Contrast Ratio.
PCS - Personal Communication Services.
PCS (Print Contrast Signal) - A measurement of the ratio of the reflectivity between the
characters in a scan line and blank spaces surrounding the scan line, commonly expressed in
PDF - Portable Data File, as in the code PDF417.
PDFI - Participating Depository Financial Institution.
PDN - Public Data Network.
PE - Price-Earnings Ratio.
Peel & Seal Envelope - A self-adhering seal strip on the seal flap with a protective strip
covering the adhesive. As the name implies, the protective seal is peeled away to expose the
adhesive and close the envelope. No moisture is required.
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FTP Industry Glossary
PEG (Prior Endorsement Guarantee) Stamp - A stamp that is a guarantee from each
processing bank that the check bearing the stamp is good.
Pen-Based Computing - Entering data into a computer with an electronic stylus or pen, and a
pad that accepts the stylus’ input.
Pending File - A file containing ACH entries for future release into the ACH Network according
to effective entry date.
Pennsylvania - PA
Per Diem - Daily allowance for employees who travel, entertain clients, or otherwise regularly
incur expenses in the course of business.
Percentage of Collected Balances - The percentage of monthly collected balances to which a
bank applies its earnings credit rate.
Percentage-of-Sales - A forecasting method in which financial statements are projected based
on future sales and the historical relationship between sales and balance sheet items.
Perforation - Series of cuts or holes entered into a form to weaken it for tearing or bursting.
Peripheral Equipment - Supplementary equipment that puts data into or accepts data from the
computer such as disk drives and printers.
Permanent Records - Records appraised by NARA as having sufficient historical or other value
to warrant continued preservation by the Federal Government beyond the time they are needed
for administrative, legal, or fiscal purposes. Sometimes called archival records. See Archives 1.,
Block 1., Evidential Value, Final Disposition, Informational Value, Non-Current Records,
Scheduled Transfer, Standard Form 258, Temporary Records.
Perquisite (Perk) - Employee benefits beyond regular wages and salary. Examples are company
cars, health insurance, and parking spaces.
Persistence - A way to overcome flicker in a CRT that has a slow refreshing rate. The phosphors
remain glowing, or persist, after they’ve been energized.
Personal Guaranty - A contractual agreement between a funding source and a seller, whereby
the seller assumes personal responsibility and liability for the obligations of the income stream.
Personal Identification Number (PIN) - A unique number assigned to an individual that is
used to determine that the person is authorized to execute the transaction.
Perturbation - A non-random disturbance.
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FTP Industry Glossary
PFM (Personal Finance Management or Manager) - Software used by a Customer to manage
his/her checking account, etc. Often includes categorization, reporting, and graphing capabilities.
pH - Negative logarithm of the concentration of hydrogen ions in a solution. A measure of
Ph.D. - Doctor of Philosophy.
Phase Change Recording - An optical recording technique. The laser strikes the medium and
causes it to crystallize in a controlled way, thereby reflecting light to the reading laser.
Phoenix-Hecht Cash Management, Inc. - An independent cash management consulting firm
which specializes in mail time surveys, lockbox collection and clearing float analysis computer
Phosphor - Substance that glows when struck by electrons. The back of a cathode ray tube face
is coated with phosphor.
Photo CD - A format being developed by Kodak and Phillips especially for high-quality images,
but can also be used for data.
Photo Multiplier - An electronic device that converts light into electrical signals. Its current
increases as the amount of light energy (whiteness) received increases.
Photochromic - Compounds that become dark when exposed to light and can be made clear
again by removing the light, or exposing them to light of another wavelength. Proposed as
erasable optical storage media.
Photocomposition - The manipulation and transfer of graphic images and text, using
photographic means, to a light-sensitive paper or film.
Photoconductive Cell - Device for detecting or measuring electromagnetic radiation by
variation of the conductivity of a substance (called a photoconductor) upon absorption of the
radiation by this substance. Also referred to as a photo resistive call.
Photoconductor - A material capable of conducting and retaining electric charges.
Photodiode- A semiconductor diode in which the reverse electrical current varies with
illumination. Also referred to as a photoconductor diode.
Photoelectric Cell - A cell whose electrical properties are modified by the action of light.
Photographic Records - Records taking the form of pictures, or photographs, sometimes with
related textual records. See Audiovisual Records.
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FTP Industry Glossary
Photooptic Memory - An optical storage technique that uses a laser to record data on
photosensitive film.
Photoresist - See Photoconductive Cell.
Photosensor - The light sensitive reading device used in optical scanners.
Phototypesetter - Device that uses photographic techniques to reproduce machine-readable text
on light-sensitive paper and film.
Physical Custody - See Custody.
Pica - Unit of measurement used in typography and graphic design. Approximately 1/6 inch.
Currently, in most desktop publishing systems, a pica is defined as exactly 1/6 inch. To be
precise, a pica equals 12 points.
Pigment - Any substance, usually in the form of a dry powder that imparts color to another
substance or to a mixture. Most pigments are insoluble in organic solvents and water.
PIK - Payment in kind.
PIN - Personal Identification Number.
Pin Feed - Method of driving and controlling a form by engaging pins with line holes; in forms
writing or handling equipment, pin feeding is accomplished by a tractor mechanism (pins
mounted on a chain or belt), sprocket (toothed wheel), or pin feed platen.
Pin Holes - Extremely small clear areas in the opaque background of a film sample and are
usually caused by a film deficiency, mechanical abrasion or a film development problem.
Pincushioning - When a video screen is distorted -with the top, bottom and sides pushing in the screen is said to be suffering pincushion distortion.
Ping-Pong - The automatic changing between two (or more) devices when the media (or data)
supply on the current device is exhausted. Example: changing to read data from tape drive two
when the end of tape is reached on tape drive one; input from unit one is restored (if the next reel
has been mounted) when unit two reaches the end of tape.
Pit - Broadly used now for all the data-carrying marks in optical discs. Originally meant the
rimless troughs in the photo-resist layer of optical disc masters.
Pitch - 1. The number of characters per inch measured horizontally. Fixed spacing printers have
the same pitch for every letter, regardless of the letters’ widths. Proportional spacing has varying
pitch, depending on the letter. 2. The distance between grooves (measured center to center) on
an optical disc.
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FTP Industry Glossary
PITI - Principal, interest, taxes, & insurance payment.
Pixel - 1. An acronym for Picture Element. Also called a Pel. When an image is defined by many
tiny dots, those dots are pixels. On the printed page, each pixel is one, dot. On color monitors,
though, a pixel can be made up of several dots, with the color of the pixel depending on which
dots are illuminated, and how brightly. 2. The smallest unit of information that a scanner can
detect (also referred to as a dot). The size of the pixel determines the resolution of the resulting
Planetary Camera - A microform camera system in which the document is held still on a
copyboard while film is being exposed. Once the document is recorded, it is replaced with the
next document to be filmed, and the film in the camera is advanced. More accurate, but slower,
than a rotary camera.
Plasma Display - A display screen that works by energizing a gas sandwiched between two
panels. The panels are divided up into an array of dots; to illuminate a certain area all the dots in
its location in the x-axis (horizontal) and y-axis (vertically) are charged with electricity. This
makes the gas in those areas glow.
Platen - Part of a printout device or typewriter that supports the paper against the impact of the
type or print wires.
Platter - Another term for an optical disk.
Plug-In - A (usually small) piece of software that adds features to a larger piece of software.
Common examples are plug-ins for the Netscape browser and web server. Adobe Photoshop also
uses plug-ins. The idea behind plug-ins is that a small piece of software is loaded into memory
by the larger program, adding a new feature, and that users need only install the few plug-ins that
they need, out of a much larger pool of possibilities. Plug-ins are usually created by people other
than the publishers of the software the plug-in works with.
PMS (Pantone Matching System) - A means of describing colors by assigning them numbers.
Pocket Modules - Hardware component that receives and stacks the documents after they go
through the transport. The system sorts certain types of documents to specific pockets,
depending on site-specific processing requirements.
Pockets - Compartments into which documents can be sorted on a transport / scanner /
Pocket Cut - The totaling of document counts and dollar amounts for a specific pocket. Pockets
are generally cut at the end of a run or at the End-of-Day.
POD - Proof of Deposit.
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FTP Industry Glossary
Point - Unit of measurement in typography, approximately 1/72 inch. Currently, in most desktop
publishing systems, a point is defined as exactly 1/72 inch. See Pica.
Point-of-Purchase (POP) - A one-time debit entry initiated by merchants/retailers for the inperson purchase of goods and services, using the consumer’s check as a source document. This
method of ACH is used as a method of payment for the purchase of goods and services, in
person, by a consumer. Account information from the consumer check and a written
authorization by the consumer must be obtained from the consumer at the point-of-purchase. The
check is voided and returned to the consumer after routing & transit number, account number,
and check serial number have been obtained (usually scanned).
Point-of-Sale (POS) - A debit entry initiated at an electronic terminal as defined in Regulation E
to effect a transfer of funds from a consumer account to pay an obligation incurred in a point-ofsale transaction, or to effect a point-of-sale terminal cash withdrawal. These entries carry the
Standard Entry Class code POS or SHR.
Point-of-Sale (POS) Network – A network of banks, debit cardholders, and merchants that
permit consumers to electronically make direct payment at the place of purchase. The funds
transfer directly from the account of the cardholder to the account of the merchant.
Point-of-Sale System - An electronic system that accepts financial data at or near a retail selling
location and transmits that data to a computer or authorization network for reporting activity,
authorization and transaction logging.
Point-of-Sale Terminal - A device placed in a merchant location that is connected to the bank’s
system or authorization service provider via telephone lines and is designed to authorize, record,
and forward data by electronic means for each sale.
Point Size - Same as type size.
Polarity - The dark/light relationship of data images to their background. See Positive and
POP (Point of Presence, also Post Office Protocol) - Two commonly used meanings: Point of
Presence and Post Office Protocol. A Point of Presence usually means a city or location where a
network can be connected to, often with dial up phone lines. So if an Internet company says they
will soon have a POP in Belgrade, it means that they will soon have a local phone number in
Belgrade and/or a place where leased lines can connect to their network. A second meaning, Post
Office Protocol refers to the way e-mail software such as Eudora gets mail from a mail server.
When you obtain a SLIP, PPP, or shell account you almost always get a POP account with it, and
it is this POP account that you tell your e-mail software to use to get your mail. See SLIP, PPP.
POP - Point-of-Purchase Entry.
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FTP Industry Glossary
Population - A group of similar items from which a sample is drawn. Often referred to as the
Porosity - The property of paper that permits or resists the passage of air through a paper sheet.
A very important factor in the vacuum feeding mechanism in certain readers.
Port - The channel in a computer used for input and output to a peripheral device. Example:
LPT1 is a parallel (printer) port for a personal computer.
Portal - Usually used as a marketing term to described a Web site that is or is intended to be the
first place people see when using the Web. Typically a Portal site has a catalog of web sites, a
search engine, or both. A Portal site may also offer email and other service to entice people to
use that site as their main point of entry (hence portal) to the Web.
Portfolio - A group or package of income streams of the same type.
Portrait - Page or monitor orientation in which the page height exceeds the page width. Contrast
with Landscape.
POS - An abbreviation for point of sales data entry systems where actual transactions are
recorded by terminals operating on-line to a central computer. These systems frequently employ
optical scanning as a means of capturing data.
Positive - 1. Photographic print that accurately represents tone values. Contrast with negative. 2.
The printed film image appears dark and the background appears fight or clear. A positive image
is used extensively in generating COM master film where vesicular duplicators are used.
Positive Film - Film in which the dark portions of the original image appear dark and the light
portions light.
Positive Float - The dollar value of checks deposited by customers for which access to the funds
is granted before the bank is given access to the items by the paying bank. This is marketing
option used to attract corporate customers. The revenue from fees usually offsets the positive
float incurred.
Positive Pay Service - A service used for fraud control. A list of checks issued by a company is
transmitted to a financial institution that includes the serial number and the dollar amount. Only
those checks that match this register information are paid
Post Dated - The description used to define a financial instrument (check) that has been received
for payment on which the date is for some time in the furture. Legally post dated checks can not
be processed until the date on the face of the check.
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FTP Industry Glossary
Postage Meter - Machine that dispenses prepaid postage in the form of meter imprints. The
meter imprint is printed in special fluorescent ink and may substitute for postage stamps on all
classes of mail.
Postal Money Order - A negotiable instrument purchased from the post office.
Posting - 1. A data record containing information about a particular word’s usage in a document
database. Postings track where a word is used in the documents in a database. 2. Automatic
function that consolidates all data into a posting database. Report and extract data is derived
from the posting database. Recording payments to accounts receivable
PostScript - A software published by Adobe Systems that translates graphics created in a
computer to language a (Postscript-compatible) printer can understand. It’s called a page
description language. Postscript-compatible printers have interpreters in them that create the
proper dot patterns to recreate the screen image - text and graphics - to a page of paper.
POTS - Plain old telephone service, ordinary telephone lines.
Power Encoding - A method of processing checks and remittances. In power encoding, the
amounts to be encoded on documents are determined by automated methods, so that the
documents can be encoded at high speed, without operator intervention.
Power Supply - The device within a computer that converts external AC power to internal DC
PPD - Prearranged Payment or Deposit.
PPI - Producer Price Index.
PPP (Point to Point Protocol) - Most well known as a protocol that allows a computer to use a
regular telephone line and a modem to make TCP/IP connections and thus be really and truly on
the Internet. See IP Number, Internet, SLIP, TCP/IP.
Prearranged Payment or Deposit (PPD) - The automated consumer payment application by
which a consumer may authorize debits or credits to a personal account by a company or
financial institution.
Pre-Authorized Check (PAC) - A pre-printed, normally unsigned, instrument used to transfer
funds from an individual to a corporation on a regular basis, with the individual’s authorization.
Pre-Authorized Debit - A payment method in which the payer approves in advance transfer of
funds from the payer’s bank account to the payee’s bank account. The initiates the transaction.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Pre-Authorized Draft/Check – A transaction in which the payor authorizes the payee to draw a
draft/check against the payor’s account.
Pre-Balance 1 - Process that attempts to balance items after they are keyed by operators or
successfully processed by ICR. Process attempts to balance each transaction using the scanned
amount from the document and the ICR amount, if available. (If ICR is not installed, checks are
sent automatically to Amount Entry.) Balanced transactions are sent to Pre-Balance 2, and out-of
balance transactions are sent to Amount Verify. This process operates within the file server
without any interface to the workstations.
Pre-Balance 2 - Process that attempts to balance each transaction using the amount of the check,
the amount of the stub, the check amounts entered by the operator(s), and the ICR amount (if
available). Balanced transactions are sent to Pass 2; out-of-balance transactions are sent to
Interactive Balancing. This process operates within the file server without any interface to the
Pre-Canceled Stamp - Stamps that have been canceled before sale to mailers. A permit is
required to use pre-canceled stamps.
Precision - The measure of a text retrieval system’s ability to deliver only the relevant
documents to a user query. Precision is calculated as the ratio of relevant documents retrieved to
the total number of documents retrieved.
Pre-Coupling - When, because of age or storage conditions, a diazo film starts to develop while
still in its original package without having been exposed. This condition reduces the clarity of
the printed image.
Predictive Dialer - The newest generation of high-speed telephone dialing systems. The
predictive dialer, in addition to dialing calls, also monitors the length of each call and develops
an average call length. Once the system knows the average call length, the predictive dialer can
make the next call and hand it off to the collector as soon as the first call has ended. This system
maximizes the on-phone time of each collector, and the overall result is, more debtors are
contacted in a shorter period of time. All NRC facilities utilize predictive dialers.
Premastering - The phase of CD-ROM production in which machine-readable data is converted
to CD format. At this stage, error correction blocks (of 288 bytes each) are added to every user
block (2,048 bytes).
Prenotifications (Prenotes) - Zero-dollar entries that are sent through the ACH system at least
ten days prior to live entries to provide a verification function at the receiving bank before
entries for settlement are processed.
Pre-Printed Data - The entry of specified, recurring or fixed information on an OCR form at the
time of manufacture.
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Pre-Printed Form - A type of document on which preprinted information may be present. The
fields are fixed and line spacing need not be constant.
Presenter - Individual presenting a company check.
Presentment - The actual delivery of a negotiable instrument by a holder to the drawer for
payment or acceptance, or to the maker for payment.
Presentment Point - A location at which a depository institution agrees to accept for payment
checks drawn on accounts at that institution.
Preservation - 1. The provision of adequate facilities to protect, care for, or maintain records. 2.
Specific measures, individual and collective, undertaken to maintain, repair, restore, or protect
records. See Records Maintenance and Use.
Presidential Records - According to 44 USC 2201, the term means documentary materials, or
any reasonably segregable portion thereof, created or received by the President, his immediate
staff, or a unit or individual of the Executive Office of the President whose function is to advise
and assist the President, in the course of conducting activities which relate to or have an effect
upon the carrying out of the constitutional, statutory, or other official or ceremonial duties of the
President. Excluded are Federal agency records (called records in this glossary), personal papers,
stocks of publications and stationery, and extra copies of documents produced only for
convenience of reference and clearly identified as such. See Records.
Presort - The sorting of entries in a specified order by an ODFI or an ACH Operator prior to
processing the file.
Press - Any device used to perform printing. Presses may be described by their capability (as a
two color press), by their printing process (as an offset lithographic press), or by their mechanics
(as a flat-bed press, cylinder press, platen press, or rotary press) or paper handling capability
(sheet-fed press, roll-to-sheet press, roll-to-roll press).
Pressure Sensitive - Adhesive coating material on a carrier or backing sheet which when
removed, will stick to another object with moistening. Often used in label production.
Pre-Validation - Automatically identifies items processed on the transport as control
documents, stubs, checks, or unknowns. In addition this step performs a series of validations on
the Magnetic Ink Character Recognition (MICR) and Optical Character Recognition (OCR)
lines. These validations determine if the account number is valid and attempts to repair any
damaged MICR or OCR lines. Any document failing Pre-Validation (for example, a stub whose
scanline could not be read) is sent to a specific image function for correction; otherwise, the
document is sent to ICR for further processing.
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Prevention - The practice of eliminating unwanted variation a priori (before the fact), e.g.,
predicting a future condition from a control chart and then applying corrective action before the
predicted event transpires.
Preventive Maintenance - The concept of using NRC’s collection services early in the bad debt
delinquency cycle to prevent serious bad debts before they occur.
Pre-Write Defect - A defect in the groove of a pre-grooved optical medium. Measure in ratio to
the available total recording time on the disc.
PRI - Primary rate interface (ISDN standard).
Prime Pass - The first pass of checks on the capture function of the reader/sorter. Also referred
to simply as Prime.
Prime Rate - The interest rate banks charge to their most creditworthy customers; it applies
primarily to middle-market companies.
Print Area - That position of a form in which printed data may be placed for machine sensing.
See Clear Area.
Print Contrast - The difference in gray scale value between the pixels comprising the printed
characters and the paper background. For automated recognition the higher the contrast the
Print Contrast Ratio (PCR) - The ratio obtained by subtracting the reflectance at a data image
from the maximum reflectance found within a specified distance from that area, and dividing the
result by that maximum reflectance. Shown as (PCR).
Print Contrast Signal (PCS) - A measurement of the contrast between print and its background.
Print File - A report sent to an electronic spool or directly to a disk file. In either case, the report
is referred to as a Print File while it is available to the host as data, before it is sent to the printer.
Print Image Data - Output from an application program on a host computer which has been
prepared for printing on a line printer. COM recorders can print a print image data file, but COM
systems with reformatting capability can print from an unformatted data set.
Print Quality - The degree to which a printed optical symbol complies with the requirements
which are specified for it, such as dimensions, reflectance, edge roughness, spots, voids, etc.,
which will determine the performance of the scanner.
Print Queue - The disk space used by spooling systems (such as JES and POWER) to store print
image files which are waiting to be output to a printer or a COM recorder.
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Print Screen - The command that instructs a computer to send the image presently on the screen
to a printer.
Print Server - A shared computer in a network dedicated to queuing and sending printer output
from all the other networked computers to a printer.
Print Spooler - A separate cache of memory dedicated to accepting and sending print data to a
printer, allowing the user to run another program without interference.
Printed Records - Published materials, such as books and maps, or serial issuances, such as
directives and press releases, produced by or for a particular agency, in contrast to extra copies
kept in stock or distributed inside or outside that agency. See Publications, Records, Stock Copy.
Printer - A machine that prints out, onto paper, information from a computer.
Printout - Output produced by a computer printer, generally on continuous paper sheets. See
Print-Up - An increase in the background density of the master film when making duplicates.
Occurs when thermally processed silver film is used as the master.
Private Placement - An unregistered direct sale of securities by a company to institution
Privately Held - Owed to a private individual or business rather than to a bank or other financial
Probability - The chance of something happening; the percent or number of occurrences over a
large number of trials.
Probability Of An Event - The number of successful events divided by the total number of
Problem Solving - The process of solving problems; the isolation and control of those
conditions, which generate or facilitate the creation of undesirable symptoms.
Process - A sequence of multiple tasks among multiple workers.
Process Color - One of four colors (cyan, magenta, yellow or black) that combines with the
other three to print a wide range of colors.
Process Management - The cycle of continuous review, re-examination and renewal of
fundamental work processes that contribute to an organization’s performance and productivity.
Itself a continual process, process management must at all times challenge a process’ fit with
other processes, and may result in radical change to work methods and practices.
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Processed Documents - 1. Documents other than publications produced by electrostatic, stencil,
or other duplicating methods. 2. Documents prepared for use and/or storage.
Processing - Handling files to prepare them for use and/or storage.
Processing Date - Date on which documents are captured and balanced. Depending on time of
day that capture and balancing occur, the deposit date could be the following business day.
Processing Day - Any day that a member institution is open to the public to conduct business, or
that an ACH facility is being operated.
Processing Files - In records disposition, those data files comprising the life cycle of most
computerized records before the production of a particular master file. Include work files, test
files, input/source files, intermediate input/output files, valid transaction files, and audit trail
files. See Documentation 3., Master Files, Valid Transaction Files, Work Files.
Processing Float - The elapsed time from receipt of the payment in the remittance processing
operation until the financial instrument is placed into the collection system.
Processing Window - The amount of time allowed from time of receipt until the transaction has
been posted to the appropriate account or until the entire workflow process has been completed.
Processor - A machine that chemically modifies silver gelatin film that was exposed on a COM
Procurement/Purchasing Card - The use of credit cards by a company for routine purchases,
of goods and services.
Profit and Loss Statement - A financial statement that shows a historical record of a business’
income and expenses.
Profit Sharing - Compensation arrangement whereby employees receive additional pay or
benefits when the company earns or increases profits.
Program - A series of instructions expressed in a form that a computer system can accept and
Program Agency - The agency of record of the Federal Government responsible for determining
and initiating a payment to be made under one of its programs.
Program Manager - An official responsible for overseeing an agency function, especially a
unique function rather than a function common to many agencies. See Records Management
Officer, System Manager.
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Program Records - Records documenting the unique, substantive functions for which an agency
is responsible, in contrast to administrative records. See Administrative Records.
Program Review - See Evaluation 2.
Programmable Endorsement - One or more lines of characters printed on the back or front of a
document during processing.
Programmable Read-Only Memory (PROM) - A memory that is not programmed during
manufacturing and requires a physical or electrical process to program it.
Project Files - See Case Files.
Promissory Note - An unconditional promise to pay a specified amount plus interest at a
specified rate either on demand or on a certain date.
Prompt - Characters displayed on a screen to inform an operator to proceed or to enter a
Proof - See Item Processing Proof.
Proof Department - The department within an institution responsible for proving, listing and
MICR encoding items.
Proof and Encode - In proof and encode, the operator enters documents into the automatic
document feeder or into the hand-drop for processing. When the operator keys in any missing
information, the system encodes the keyed information and endorses the document before
sending it to a pocket.
Proof Machine - An operator-controlled machine that is used to encode MICR data, to endorse,
and to perform proof of deposit. Multi-pocket machines are also used to sort items according to
pre-specified patterns.
Proof of Deposit (POD) - A bank procedure for assigning availability to checks in the ACH
system based on time of deposit and endpoints. Also called item-by-item.
Proportional Spacing - Printers with proportional spacing allow the horizontal space, called the
pitch, to vary depending on the letters’ width. Opposite of monospacing.
Protest - In many countries it is a dishonored (not paid) draft, and has no standing in court
unless a formally notarized statement of facts, known as a protest, is attached. A formal
certificate, attested by a notary public confirming the fact that a draft was not paid when it
became due. This step constitutes the basis for a formal and legal suit for non- payment.
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Protocol - The coded standards that permit information to pass back and forth safely between
networked computers.
Provisional Credit - Credit given when a check is deposited, subject to final clearing; ledger
Provisional Settlement - The conditional settlement of debits and credits transferred via ACH.
Until declared final by the Federal Reserve Bank, provisional settlement may be reversed.
Proximity Search - A feature of full-text searching, in which every occurrence of a word within
a certain distance of another word is found. For example, finding every time the word budget is
mentioned within 20 words of the word Congress.
Proxy Server - A Proxy Server sits in between a Client and the real Server that a Client is
trying to use. Clients are sometimes configured to use a Proxy Server, usually an HTTP server.
The clients makes all of it’s requests from the Proxy Server, which then makes requests from the
real server and passes the result back to the Client. Sometimes the Proxy server will store the
results and give a stored result instead of making a new one (to reduce use of a Network). Proxy
servers are commonly established on Local Area Networks.
PRT - Port.
PS - Postscript.
PSA - Public service announcement.
PST - Pacific Standard Time.
PSTN (Public Switched Telephone Network) - The regular old-fashioned telephone system.
PTT - Post Telegraph & Telephone.
Public Records - 1. In general usage, records accumulated by Government agencies. 2. Records
open to public inspection by law or custom.
Public Use File - See Disclosure-Free Extract.
Publications - Documents printed or otherwise produced for wide distribution inside or outside
an agency. Include annual reports, brochures, pamphlets, books, handbooks, and maps. Also
include instructional and informational materials in audiovisual form. According to 44 USC
1901, a U.S. Government publication is informational matter which is published as an individual
document at Government expense, or as required by law. See Printed Records, Stock Copy.
Puerto Rico - PR
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Purchase Order - Written request by a buyer authorizing a seller to supply goods in a stated
quantity at a stated price.
Purging - See Screening 2.
Put Options - The holder has the right to sell foreign currency, or other financial instruments at
a given price.
PV - Present value.
PVC - Permanent Virtual Circuits.
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-QQBF - The test message “The quick brown fox jumped over the lazy dog.” It contains every
letter of the alphabet.
Qualified - Total dollar value of the items that can be read by an item processor and are included
in a qualified cash letter.
Query By Example - The ability to submit an existing body of text as a full-text query.
Query By Form - A text retrieval front-end query facility in which query construction is
facilitated through the use of fill-in-the-blanks screens and menus.
Query Language - A defined set of syntax and commands used to submit queries to a text
retrieval system.
Queue - A stream of tasks waiting in line to be executed.
Queue Stripper - A program which is used to pull print data sets out of the print queue disk area
and move that data into an area that allows file modification and output to a printer or other
Queued Memory - The process of recalling information through prompts or clues relating to the
information. Most text retrieval search methodologies are based on the queued memory process.
Quick$tart - The name given by the Social Security Administration to its automated enrollment
program using the ENR transaction to sign consumers up for Direct Deposit of their monthly
benefit payments.
Quiet Ride Jogger - A jogger first introduced by Robert Manna Associates that jogs and aligns
documents significantly quieter than conventional joggers on the market.
Quiet Zone - Clear area, Light margin. The area that must precede the start character and follow
the stop character of bar code symbol and surround OCR scan line, which contains no machinereadable markings or extraneous spots. It is quiet in terms of scanning signals.
QWERTY Keyboard - Standard keyboard arrangement, named after the sequence of characters
near its upper left comer. Contrast with Dvorak keyboard.
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-RR&D - Research & development.
R/T Number - See Routing & Transit Number.
RACH - Receiving ACH Operator.
Radial Acceleration - The rate at which a track on an optical disc accelerates toward and away
from the center, because it is not perfectly aligned or perfectly round.
Radio Buttons - A group of buttons on the GUI of which only one can be selected at a time (by
clicking on it).
Rag Content - The amount of rag (usually cotton or linen fiber) used in manufacturing paper. In
an optical reader, zero rag content is desirable.
RAID (Redundant Arrays of Inexpensive, or Independent, Discs) - A storage device that uses
several optical discs working in tandem to increase bandwidth output and to provide redundant
RAM (Random Access Memory) - The primary memory in a computer. Memory that can be
overwritten with new information. The random access part of its name comes from the fact that
all information in RAM can be located - no matter where it is - in an equal amount of time. This
means that access to and from RAM memory is extraordinarily fast By contrast, other storage
media - like magnetic tape - require searching for the information, and therefore take longer.
Random - Selecting a sample so each item in the population has an equal chance of being
selected; lack of predictability; without pattern.
Random Sample - One or more samples randomly selected from the universe (population).
Random Variable - A variable, which can assume any value from a set of possible values.
Random Variations - Variations in data, which result from causes, which cannot be pinpointed
or controlled.
Range - The difference between the highest and lowest values in a set of values or subgroup.
Ranks - Values assigned to items in a sample to determine their relative occurrence in a
Raster Display - The most common type of display terminal. Uses pixels in a column-and-row
array to display test and images.
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Raster Graphics - Images defined as a set of pixels or dots in a column-and-row format.
Raster Image - A scanned image consisting of multiple pixels.
Raster Scan - The process of displaying, reading, or printing data by generating dots instead of
by use of stenciled characters or vectors. This technique is similar to the method used to generate
images on television sets.
Raster Type Scanning - The method whereby the image is produced on a screen of luminescent
material at an end of a cathode ray tube, or kinescope.
Rated Throughput or Speed – The optimum speed that a transport can run, excluding jams and
other stoppages.
Ratio - Numeric scale which has an absolute zero point and equal units of measure throughout,
i.e., measurements of an output parameter, i.e., amps.
Raw Bit Error - Sent to the microcomputer as a data error, raw bit error rate refers to physical
data errors on the CD-ROM disc without the use of the CD-ROM drive’s decoding and
correction system.
RBOC - Regional Bell Operating Company (includes NYNEX, Bell South, Bell Atlantic,
Ameritech, Southwestern Bell, US West and Pacific Telesis).
RCK - Re-presented Check Entry.
RCPC Cash Letter - RCPC items are drawn on depository institutions located outside the city
but within the same zone as the processing Federal Reserve office.
RCPC Items - Checks drawn on banks served by a Federal Reserve regional check processing
center (RCPC).
RDBMS - Relational Database Management System.
RDFI - Receiving Depository Financial Institution. The financial institution receiving an ACH
file from an ACH operator.
Read - Mechanical interpretation of printed characters or marks. See Scan.
Read and Key – A transaction where the transport reads the scan line and the operator keys in
the amount of the check. If the amount keyed equals the amount in the scan line, the transaction
continues. If the amount keyed does not equal the amount in the scan line, the operator is
normally asked to re-key that amount.
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Read and Key Hopper - A hopper mechanically identical to the main hopper, except that it has
a portion of the cover cut away to enable reading of the courtesy amount while the document is
still in the hopper tray. See Document Feeder, Automatic.
Read Area - See Print Area.
Read Color (Ink) - Any markings to which an optical device is sensitive. See Non Reflective
Color (Ink) & Scan Color (Ink).
Read Error - Where a reader cannot read something on a document.
Read Only Memory (ROM) - Storage containing data that cannot be changed by computer
instruction, but required alteration of construction circuits; therefore, data that is non-erasable
and reusable, or fixed.
Read Station - The area in an optical system where reading is affected.
Read Zone - That portion of a document or sheet where printed information to be read by a
reader may be placed.
Read/Sorter - It will read and sort intermixed documents of various lengths, widths and
thicknesses. The equipment is designed to read and translate the various data. The sorter can
operate under control of the processor and is programmed to sort encoded items on a whole
number of block basis in any desired order. Images are read and transferred directly to the
memory of the processor. The documents read may be of intermixed size and thickness as is
typically encountered in check handling operations. The standard minimum length of the
document is 6 inches. Readers differ mainly in document reading rates. Type and speeds range
from 950 to 2,000 documents per minute.
Readable - Refers to mail whose address has been printed in the proper type, position, contrast,
and format to enable it to be recognized by an OCR.
Reader - 1. A device that converts coded information on a recording medium into a machinereadable form. 2. Equipment that projects enlarged microimages onto a screen for viewing.
There are basically two types of readers. Roll film readers are used for viewing 16mm, 35mm
and 105mm roll film. Microfiche readers are used for viewing cut 82.5mm and 105mm film
Reader/Printer - A machine which permits the image being viewed to be printed on paper.
Reader/Sorter - A device that reads the MlCR line, then sorts checks (usually by the bank
issuing them) into separate piles. For example, the IBM 3890/XP Reader Sorter.
Reading Accuracy - The ability of OCR equipment to accurately read valid OCR readable
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Reading Files - Outgoing correspondence records arranged chronologically, in contrast to those
arranged by subject. Sometimes called chronological (chron) or day files. See General
Correspondence Files.
Reading Lens - The device that focuses the images reflected from the form on the scanner. This
lens is usually used to magnify the reflected image size.
Real Property - Real estate.
Real-Time - An operating mode under which receiving and processing the data and returning the
results occurs so quickly that is guides physical processes in question or interacts instantaneously
with a user.
Real-Time Processing – The preferred choice for Internet-based merchants; describes the
processing of a credit card transaction immediately after the purchase has been made.
Ream - A specified quantity of paper, usually 500 sheets of specific sheet size. The U.S. Federal
Government uses 1000 sheets.
Recall - The measure of a text retrieval system’s ability to deliver all of the documents relevant
to a user query. Recall is calculated as the ratio of the documents retrieved to the total number of
relevant documents available.
Receipt Date - The date on which a remittance is recorded as being received.
Receipts and Disbursements Method - Basic method for short-term cash forecasting that uses
schedules of cash receipts and disbursements prepared on a cash basis.
Receivables Analysis - A service provided by CFSI account executives to determine the
collection needs of a prospective client. The receivables analysis includes an in-depth
examination of a credit grantor’s credit and collection policies, the development of a current
aged analysis, and making recommendations to enhance the creditor’s internal and external
recoveries. There is no charge for the analysis, and it is performed at the credit grantor’s place of
Receiver - An individual, corporation or other entity who has authorized an Originator to initiate
a credit or debit entry to a transaction account held at the RDFI.
Receiving ACH Operator (RACH) - The ACH Operator which passes entries to the RDFI.
Receiving Depository Financial Institution (RDFI) - A receiving financial institution is an
ACH transaction’s final destination. The receiving financial institution may receive the items
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directly from an ACH or may work through a processing center, which is the actual receiving
Receiving Gateway Operator (RGO) - The Gateway Operator receiving entries destined for a
financial institution in the country of receipt of the transaction.
Receiving Point - Any site where entries are received from an ACH for processing. This may be
the member financial institution, its data center, or a data processing service authorized to
receive entries on behalf of a member institution.
Recession - Period of economic downturn, generally defined as at least two consecutive quarters
of decline in a nation’s Gross National Product.
Recipient - An individual or business, other than the consumer, that receives bills or notices and
pays them, such as a family member.
Reclamation - A procedure to recover benefit payments from a financial institution which were
paid to that financial institution on behalf of a deceased or legally incapacitated beneficiary.
Recognition - The actual reading of individual characters after the field has been extracted and
the characters segmented.
Recognition Accelerator Board (RAB) - A coprocessor board included in a Recognition Unit
to allow the Courtesy Amount Recognition application run on it more efficiently.
Recognition Engine - The core software module or circuit board that performs the actual
character recognition process. Also refers to a computer dedicated to the recognition process.
Recognition Software - A general term that covers Recognition Unit software, plus the
Recognition/Multi-line OCR Configuration Tool and Recognition Unit Services API, which
support it.
Recognition System - That part of a system that determines the identity of the image being
scanned so as to generate a valid output code for computer use.
Reconcilement - A process that brings two different records into agreement by properly
accounting for all outstanding differences.
Reconciliation - The process of researching and reconciling missing and free items from batches
that have completed Pass 2. See Image Reconciliation.
Record - 1. Noun, pronounced RE-cord. In a database, a record is a group of related data items
treated as one unit of information - for example, policyholder’s name, address, social security
number, etc. Each item in the record is a field. Verb, pronounced re-CORD. To place
information on a storage medium. 2. A contiguous string of data that contains related
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information. A collection of records with similar structure, but different data, is often called a
file. Examples: (a) a print line, as part of a print file; (b) a database entry (e.g., name, address,
and phone number) in a database file; (c) a physical record (i.e., tape block) is part of a tape file.
Record Components - In records disposition, those elements of audiovisual, microform, and
certain other special records, needed for long term preservation and required or requested when
permanent records are transferred to the National Archives. For example, record components for
color photographs include the original color transparency or color negative, a captioned print,
and an inter-negative if one exists. See Audiovisual Records, Special Records.
Record Copy - See Records.
Record Elements - See Record Components.
Record Group - A body of organizationally related records established by an archival agency
after considering the organization’s administrative history and complexity and the volume of its
records. NARA uses record group numbers to keep track of agency records during and after the
scheduling process, including those transferred to Federal records centers and/or the National
Record Keeping - The act or process of creating and maintaining records. Assumes the need for
their proper disposition. See Records Management.
Record Keeping Requirements - Statements in statutes, regulations, or agency directives
providing general and specific information on particular records to be created and maintained by
the agency. Since each agency is legally obligated to create and maintain adequate and proper
documentation of its organization, functions, and activities, agency record keeping requirements
should be issued for all activities at all levels and for all media, and should distinguish records
from non-record materials for agency purposes. See Adequacy of Documentation, Records
Maintenance and Use.
Record Keeping System - See Filing System.
Record Layout - In electronic record keeping, a diagram or list of the contents of a logical
record describing each data field’s informational content, length, and position. Also called a file
layout. See Data Field, Logical Record.
Record Medium - See Medium.
Record Series - See Series.
Record Set - See Printed Records.
Record System - See Information System.
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Record Values - See Administrative Value, Appraisal, Evaluation, Evidential Value, Fiscal
Value, Informational Value, Intrinsic Value, Legal Value, Permanent Records.
Recorded Information - Information placed on a medium, such as paper, computer disk, or
microform, to be available for later retrieval and use. See Documentary Materials, Files,
Information, Medium, Non-Record Materials, Records.
Recorder - A machine that accepts computer generated information and records it as readable
characters on microfilm. Also called a COM recorder or computer output microfilmer.
Recording Zone - The ring-shaped area of an optical disc on which data can be recorded.
Records - Books, papers, maps, photographs, machine-readable materials, or other documentary
materials, regardless of physical form or characteristics, made or received by an agency of the
United States Government under Federal law or in connection with the transaction of public
business and preserved or appropriate for preservation by that agency or its legitimate successor
as evidence of the organization, functions, policies, decisions, procedures, operations, or other
activities of the Government or because of the informational value of data in them. Library and
museum material made or acquired and preserved solely for reference or exhibition purposes,
extra copies of documents preserved only for convenience of reference, and stocks of
publications and of processed documents are not included. See Documentary Materials,
Evidential Value, Files, Informational Value, Logical Record, Medium, Non-Record Materials,
Personal Papers, Presidential Records, Recorded Information.
Records Administration - See Records Management.
Records Center - A facility for the low-cost storage and servicing of records pending their
disposal or transfer to the National Archives. Includes NARA-authorized agency records centers
and NARA-operated Federal records centers. See Depository, Federal Records Center, Holding
Records Control Schedule - See Records Schedule.
Records Creation - The first stage of the records life cycle in which records are made (or
received) by an office. See Adequacy of Documentation, Life Cycle of Records, Record Keeping
Requirements, Records.
Records Custodian - See Files Custodian.
Records Disposal - See Disposal 1.
Records Disposition - See Disposition 1.
Records Disposition Authority - See Disposition Authority 1.
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Records Disposition Program - See Disposition Program.
Records Disposition Request - See Standard Form 115.
Records Disposition Schedule - See Records Schedule.
Records Liaison Officer (RLO) - A person responsible for overseeing a records management
program in a headquarters or field office in cooperation with the agency records management
officer. See Records Management Officer.
Records Life Cycle - See Life Cycle of Records.
Records Maintenance and Use - Any action involving the storage, retrieval, and handling of
records kept in offices by, or for, a Federal agency. This is the second stage of the records life
cycle. See Arrangement, Filing, Life Cycle of Records, Preservation, Record-Keeping
Requirements, and Records.
Records Management - The planning, controlling, directing, organizing, training, promoting,
and other managerial activities related to the creation, maintenance and use, and disposition of
records to achieve adequate and proper documentation of Federal policies and transactions and
effective and economical management of agency operations. Also called records administration.
See Files Management, Information Resources Management, and Record-Keeping.
Records Management Officer (RMO) - The person assigned responsibility by the agency head
for overseeing an agency wide records management program. Also called records officer or
records manager. See Program Manager, Records Liaison Officer, and System Manager.
Records Management Program - A planned, coordinated set of policies, procedures, and
activities needed to manage an agency’s recorded information. Encompasses the creation,
maintenance and use, and disposition of records, regardless of media. Essential elements include
issuing up-to-date program directives, properly training those responsible for implementation,
and carefully evaluating the results to ensure adequacy, effectiveness, and efficiency.
Records Management Program Directive - See Directive.
Records Manual - See Directive.
Records Officer - See Records Management Officer.
Records Retention Schedule - See Records Schedule.
Records Retirement - See Retirement.
Records Schedule - A document providing authority for the final disposition of recurring or
nonrecurring records. Also called records disposition schedule, records control schedule, records
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
retention schedule, or schedule. Includes the SF 115, the General Records Schedules, and the
agency records schedule, which when completed becomes a comprehensive records schedule
that also contains agency disposition instructions for non-record materials. See Comprehensive
Records Schedule, Disposal List, Disposition Authority, Final Disposition, General Records
Schedule, Scheduled Records, Scheduled Transfer, Scheduling, Standard Form 115,
Unscheduled Records.
Records Schedule Instructions - See Disposition Instructions 1.
Records Storage Facility - See Archives 3., Holding Area, Records Center.
Recovery - To restore lost data from another source.
Red Book - The specifications developed jointly by Philips and Sony for the physical
characteristics of CD-Digital Audio discs and players.
Reduction Ratio - The ratio of the linear measurement of a document to the linear measurement
of the reduced image of the same document. Expressed as 1:42 or 1:48, which are the most
popular reduction ratios for COM (1:72 is also in limited use). Used to be expressed as 42X, etc.
Reed-Solomon Error Correction - A linear, error-correcting, block code suited to the
correction of character errors that could be, in bar or matrix codes, the obliteration or removal of
part of the symbol.
Reel Tape - Refers to the round tapes (or 9 track tapes) used primarily with mainframe and minicomputers. Many systems have been updated to be able to use newer types of tapes, such as 3480
or 3490 square tapes.
Reengineering - The radical redesign of business processes, organizational structures,
management systems and values of a organization to achieve breakthroughs in business
Refer To Maker - Unbankable returned check due to reasons such as conflicting or missing
information on the check.
Reference Copy - See Information Copy.
Reference Edge - That edge of a form that is used for alignment so that the printed data will be
parallel to the direction of scanning. Same as alignment edge.
Reference Mark - A preprinted indicator on a document used as a base location point by a
reading device. Also known as a registration mark.
Reference Request-Federal Records Centers - See Optional Form 11.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Reflectance - 1. The ability of paper or ink to reflect light that is shone on it. Reflectance is
usually measured as a percentage and is correlated with color. Scanners measure the contrast
between paper reflectance and ink reflectance to determine what data should appear in the
image. The paper must have a high reflectance > 60% and the printed information must have a
low reflectance < 30%. 2. The amount of light of a specified wavelength or range of
wavelengths that is reflected from a substrate, ink, or other means to create the dark bars and
light spaces of a bar code symbol and the printed characters and background of OCR data.
Reflectance Diffuse - Reflected light whose angle of reflection varies from the angle of
incidence of the illuminating light, such as in reflection from a rough surface.
Reflectance Factor - Reflectance is measured on a scale of 0 to 1, at a wavelength or bandwidth
of light (spectral response) specified in the particular application specification. Barium sulfate of
magnesium oxide are used as near perfect reference white standards (a perfect standard of pure
white would have a reflectance of 1.00 at any wavelength of light). The absence of any light in a
vacuum is used as reference black standard. Samples such as substrates, inks, etc. are tested
against the standards under similar illumination.
Reflective Color (Ink) - See Non-Read Color (Ink), Blind Color (Ink), & Non-Scan Color (Ink).
Reflective Read - The type of optical medium where the laser to be read is reflected from the
Reformat - To change the internal structure or display presentation layout of data.
Refresh - The phosphors at each pixel of a CRT which are stimulated by a charge from an
electron gun glow only briefly. The must be renewed frequently in order for the image to appear
stable. This renewal is called refreshing.
Refresh Rate - Measure of how often the image on a CRT is redrawn; often expressed in hertz.
Typically 60 times per second, or 60 Hz, in the United States.
Refused Notification of Change - A Notification of Change entry which has been returned to
the ODFI because of erroneous information contained within the original Notification of Change.
Reg CC - Regulation CC of the Federal Reserve Bank, published to implement the law which
mandates the time limits for funds availability on deposited items.
Reg D - Regulation D of the Federal Reserve Bank, published regarding reserve requirements for
financial institutions.
Reg E - Regulation E of the Federal Reserve Bank, published to implement the Electronic Funds
Transfer Act mandating consumer rights and obligations with regard to electronic funds
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FTP Industry Glossary
Regional Bank - One of three possible classifications of financial institutions corresponding to
the three basic clearing programs operated by each Federal Reserve office (city, regional, and
country). A regional bank is a bank outside the Federal Reserve city area, but within the
boundaries covered by the Fed’s Regional Check Processing Center (RCPC).
Regional Check Processing Center (RCPC) - Processing centers whose operation is similar to
the check processing and collection system maintained at each Federal Reserve Bank and
branch, but intended to service a smaller group of banks within a given geographic area. The
main objectives are: faster presentation of checks to banks within the region; faster collection of
funds; faster return of dishonored items; reduction of commercial bank and Federal Reserve
District float; reduction in the number of times an item is handled and in the distance
transported; and a regional instrument’s transition between current check payment mechanisms
and future electronic fund transfer systems. An RCPC expedites collection and settlement of
checks within a designated area.
Registration - Correct geometric positioning of the scannable data to important factors of the
reader involved.
Registration Marks - Marks preprinted on a form to help the scanning software to ensure that
the form was correctly positioned in the scanner. See Skew.
Regression Analysis - A statistical technique that establishes the best linear relationship
between the variable to be predicted, the independent variable and one or more input or
explanatory variables.
Regular Envelope - A commercial envelope without a window.
Regulation E - Federal regulations governing electronic funds transfer.
Rehandle - The second or third time checks are passed on a sorter. The intent is to sort checks
down into more specific groups. This allows the bank to achieve better funds availability when
the checks are sent for collection because the receiving banks will have to spend less time
REIT - Real estate investment trust.
Reject - A character or document that cannot be read by a reading device such as a MICR
reader. Item processing application software typically includes special routines for handling
rejects (for example, stopping the transport to let the operator key in data, or sending the
document to a pocket assigned to rejects). Characters that the recognition equipment is unable to
find a match for. It may detect data as present, but it is not in a form that is recognizable. The
equipment gives up and flags the character as a reject.
Reject Character - A character is rejected if it cannot be read, or the form type cannot be
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Reject Document - A character is rejected if it cannot be read, or the form type cannot be
Reject Item - An item sent to the reject pocket; normally control tickets, items that fail the sort
pattern, or items that cannot be pocket-selected due to unreadable characters.
Reject Pocket - A pocket to which all control tickets, items that fail the sort pattern, unreadable
items, and items specifically selected by the sort pattern are sent.
Reject Rate - The percentage of the total documents scanned (rejects and accepted documents)
that were rejected. (Total Rejects / Total Documents x 100).
Reject Reentry - A process that allows rejects to be corrected and reentered into a system;
reentry can be performed at a terminal or on an item processing device.
Reject Repair - The automated or manual repair of characters or documents that cannot be read
by one of the recognition technologies. Typically requires operator intervention to inspect and
re-enter the correct character.
Rejected Entry - An entry which has been returned by the ACH Operator because it cannot be
processed, usually because of a technical error in the entry, batch or file containing the entry.
Related Term - A term that bears greater insight to another term, but is not synonymous or a
broader/narrower definition of that term. Related Terms can be tracked in a thesaurus using the
Related Term operator.
Relevancy Ranking - Displaying retrieved documents in descending order of the level to which
they are pertinent to the query statement.
Remake - A replacement file generated upon request because an original file was unprocessable
for some reason.
Remit - See Stub.
Remittance - A payment; invoice stub and a check.
Remittance Data - Information accompanying payments and used by corporations to update
their accounts receivable.
Remittance Document - See Stub.
Remittance Envelope - An open side style with side seams and a large seal flap nearly the size
of the envelope itself.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Remittance Express (REX) - Remittance Express is a program designed to improve and
streamline the process by which private sector remitters initiate payments (ACH credits) to the
Federal government. REX allows a Federal agency to use the ACH network to receive payments
from its remitters.
Remittance From-the-Envelope Processing - In remittance from-the-envelope processing, the
operator removes checks and payment stubs directly from the payment envelopes and
individually hand-drops them. Any missing information is keyed in and encoded, and the
document is then endorsed
Remittance Information - The information required by the Biller to effectively post customer
bill payments.
Remittance Method - The method used to deliver funds and remittance information.
Remittance Power Encoding - In remittance power encoding, amounts are read from presorted
remittance coupons and encoded on the accompanying checks.
Remittance Processing - 1. The manual and automatic processes involved in reading and
storing remittance data; encoding, endorsing, and depositing remittance checks; and generating
reports from the data captured. Creates a bank deposit and a posting. 2. The timely and accurate
capture, posting and collection of funds and accounting data corresponding to accounts
receivable items.
Remittance Read and Key Processing - In remittance read and key processing, the operator
loads checks and stubs into the read and key hopper for automatic dropping. Any missing
information is then keyed in and encoded. The special read and key hopper enables the operator
to read the courtesy amount while the document is still in the hopper tray.
Remittance Stub - See Stub.
Remote Data Entry - Used to describe an operation where the data entry function is performed
in a location separate and apart from the main processing functions. In an image-based operation
the data entry function can be performed anywhere in the world providing adequate
telecommunications capabilities.
Remote Disbursement - Practice of a corporation drawing its checks on banks remote from the
receiving location for the purpose of delaying payment.
Remote-Sensing Imagery Records - Aerial photographs and other visual images of the surface
of the earth or other planets taken from airborne or space borne vehicles to evaluate, measure, or
map the cultural and/or physical features of the landscape. Also include related indexes. See
Cartographic Records.
REO - Real estate owned.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Repass - A pass that processes items that were processed during a prime pass.
Repass Pocket - A pocket required by the sort pattern for items that need further processing.
Repetitive Transfers – Repeated FedWire transfers where the debit and credit parties and
transaction description remain the same and only the amount and date of transfer changes.
Replevin - A legal proceeding in court to seize property (other than real estate) given as security
for a debt that is in default.
Report - A narrative, statistical, graphic, or other account of operations, conditions, or plans that
is recorded on any medium for submission by one person, office, or organization to another. See
Report Generation - Background process that occurs for all posted batches. Once a batch is
posted, batch-based reports are available for output. Once all batches in a Pass 2 run have been
processed, all Pass 2 run-based reports are available for output. This process minimizes operator
intervention and delay. Reports that relate current system conditions or statistics are generated at
the time that they are requested.
Repository - See Depository.
Re-Presented Check Entry (RCK) – The RCK entry is used to re-present a returned paper
check item (returned due to insufficient or uncollected funds) to the receiver’s bank through the
Automated Clearing House as an electronic item.
Representative Payee - A person or institution authorized by an authorizing Federal agency to
accept payments for the benefit of one or more other persons, such as legally incapacitated adults
or dependent children.
Representative Sample - A sample which accurately reflects a specific condition or set Of
Conditions Within The Universe.
Re-Presented Check Entry (RCK) - A debit entry initiated for the purpose of collecting a
paper check that has been returned for insufficient or uncollected funds.
Repurchase Agreement (REPO) - A transaction between a securities dealer and an investor in
which the dealer sells the security to the investor with an agreement to buy the security back at a
specific time and price that will result in a predetermined yield for the investor.
Request for Information (RFI) - A document used to confirm that use of a current provider of a
service is justified or to narrow the field of potential providers before issuing a Request for
Proposal. May also be used to solicit ideas from service providers on how to solve a particular
business or operational problem.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Request for Proposal (RFP) - A formal document used to place services out for bid. The
preparation of RFP’s is a strong suite of FTP Consulting Services, Inc.
Request for Records Disposition Authority - See Standard Form 115.
Required - A model element demanding input or selection before the model can proceed.
Required Field - The omission of a required field will not cause rejection of the entry at the
ACH Operator level, but may cause rejection at the RDFI level (for instance, omission of the
Receiver’s account number).
Rescan - The ability of a reader to automatically re-read an unrecognizable image.
Reserve - An amount a funding source holds in its account to cover potential payment defaults.
After a certain time period has passed, the funding source rebates the reserve to the client less
any fees or charges for delinquency. Also called a bad debt reserve.
Reserve Requirement - That portion of bank deposits that must be kept on deposit by member
banks at the Federal Reserve.
Reset - A button or menu option in a configurator applet that clears all user selections and allows
users to start over and make new selections.
Resolution - 1. Measure of imager output capability, usually expressed in dots per inch (dpi). 2.
Measure of halftone quality, usually expressed in lines per inch (lpi). The higher the resolution,
the greater amount of detail may be shown. If a resolution is agreed upon as a standard, ifs
called a graphics standard. 3. A measure of the ability to distinguish fine detail. 4. The degree
of sharpness of an image on a video display or printed output, measured in dots or pixels per
inch. The higher the number of dots or pixels per inch, the higher the resolution of the image.
Higher resolutions mean more detail in an image, but they also mean larger image file sizes.
RESPA - Real Estate Settlement Procedures Act.
Respondent - A financial institution which sends ACH entries to a correspondent bank for
Response Position - The area designated to mark information on a mark read form.
Responsiveness - The ability to respond to inquiries and problems in a timely manner and in a
way that meets customer expectations.
RET - Return Entry.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Retail Lockbox - Lockboxes characterized by a large number of relatively small dollar
remittances. Typical profile is payments from consumer to a corporation or government entity.
The billing party provides a return coupon (remittance document). Retail payments typically
have a high volume of transactions but are for a low dollar amount (<$1,000) as compared to
Retail Lockbox Monthly Maintenance - Fixed monthly charge associated with the
maintenance of a retail lockbox account.
Retail Remittance Processing - Consumer to corporate or government payments. Usually
contain the following characteristics: Large volume of transactions; low average dollar payment
amount; biller supplies an OCR remittance coupon; biller supplies a standardized return
Retained Records - In NARA’s usage, older records in an agency’s custody that are scheduled
as permanent but overdue for transfer to the National Archives.
Retention - See Preservation.
Retention Period - The length of time that records are to be kept. See Disposition 1.
Retention Schedule - See Records Schedule.
Retention Standard - See Retention Period.
Retirement - The term that describes the decision to throw away a recording medium (optical
disc or mag tape) when it has too many defects.
Retrieval Coding - Machine readable, coded images included on film and read by equipment
used for retrieving specific images or data from microfilm.
Retrieval Key - A word, number or phrase associated with a document to aid in its retrieval
from storage. Sometimes called descriptors. There are often many retrieval keys used together to
fully locate a document; together they are called an index.
Retrieval Mark - A line, blip or other mark recorded adjacent to the microimage and used for
counting images and for positioning images for display to the user.
Retrieval System - A system for locating and selecting on demand, specific documents or other
records from a file.
Return Entry (RET) - The automated item created by an ACH Operator generated from a paper
return item.
Return Code – See NACHA Return Codes at end of this document.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Return Item - A negotiable instrument sent to another bank for collection and payment, and
returned unpaid. Return items are sent back through the channels from which they came by
reading the various bank endorsements on the back of the item.
Returned Check - A check that was presented for payment, which was dishonored by the check
writer’s financial institution.
Reusable Envelope - An unusual style with an open side, open end, only a bottom seam and one
folded side. It has no seal flap. Commonly hole punched and used by financial institutions in
automatic teller machines or bank-by-mail.
Reversal - Any ACH entries or files sent within required deadlines to correct or reverse
previously originated duplicate or erroneous entries or files.
Reversal Film - Film designed specifically for developing processes that result in a reversed
image polarity.
Reverse - A printing technique that utilizes the inked background to create a non-inked image.
The image in reverse printing would usually be the color of the paper on which the background
is being printed.
Reverse Engineering - A comparison of product characteristics, functionality, and performance
with similar products made by competitors.
Reverse Positive Pay - Financial institution service that transmits to the issuing company a file
of checks presented for payment that the company matches to its register data for check fraud
control. The company contacts the financial institution if any items are to be returned. See
Positive Pay.
Reverse Repurchase Agreement (Reverse REPO) - The borrower/investor sells the securities
to a dealer with an agreement to buy back for a specific price at a specific time.
Reverse Video - Display in which characters are highlighted by inverting the normal display
mode; for example, if characters are normally bright against a dark background, a block of
reverse video text would be displayed as dark letters in a bright rectangle.
Reversing Entry - A file created by a sending point to completely cancel a previous file or entry
because the previous file or entry was in error for some reason. Used extensively with duplicate
Revocation - The process of canceling a previously authorized ACH transaction. The
revocation must be made directly with the Originator of the item in the manner specified in the
original authorization form signed by the Receiver, and cannot be done via other parties such as
the RDFI.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Revolving Credit Agreement (Revolver) - Multi-year bank credit facilities in which a borrower
can borrow, repay and re-borrow up to a defined amount.
Revolving Credit Terms - A form of trade and consumer credit in which credit is granted
without requiring specific approval for each transaction as long as the account is current and
below the maximum limit.
Re-Writable - Optical media from which data can erased and new data added. Magneto-optical
and phase change are the two main types of re-writable optical discs.
RFC (Request For Comments) - The name of the result and the process for creating a standard
on the Internet. New standards are proposed and published on line, as a Request For Comments.
The Internet Engineering Task Force is a consensus-building body that facilitates discussion, and
eventually a new standard is established, but the reference number/name for the standard retains
the acronym RFC, e.g. the official standard for e-mail is RFC 822.
RFPs (Request for Proposal) - A request to lockbox providers to submit a contract bid; lists the
company’s specifications and needs.
RGB (Red, Green, Blue) - The primary colors, called additive colors, used by color monitor
displays and TVs. The combination and intensities of these three colors cart represent the whole
RGO - Receiving Gateway Operator.
Rhode Island - RI
Right Justified - Data is right justified when the right hand digit or character occupies the right
hand position of the space allotted for that data.
Right Reading - Normal, left-to-right image reproduction. Contrast with wrong reading.
Rights-and-Interests Records - That type of vital records essential to protecting the rights and
interests of an organization and of the individuals directly affected by its activities. See Vital
RIP (Raster Image Processor) - The part of the printer that translates the bit-map instructions
to the print mechanism.
RISC (Reduced Instruction Set Computing) - A computer system with a special
microprocessor that processes fewer instructions, and thereby is much faster. A RISC system
depends on software to perform many of the functions that would normally be done by
microprocessors. RISC workstations are used in calculation-intensive operations such as those
performed by computer-aided design (CAD) and computer-aided manufacture (CAM) engineers.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Risk Management Alternatives (RMA) - NRC’s parent company. Headquartered in Atlanta,
Ga., RMA operates collection operations centers from more than 25 locations across the country
and is recognized as one of the top five collection organizations in the United States today (from
a field of more than 6,000 collection sources).
RLB - See Retail Lockbox.
RLO - Records liaison officer.
RMAI (Risk Management Alternatives International) - The NRC-RMA organization, located
in England that provides Pan-European collection services.
RMO - Records management officer.
RNAB - Routing Number Administrative Board.
Robinson-Patman Act - Federal law that prohibits price discrimination among customers when
a cost basis cannot be demonstrated as the reason for price differences.
ROC - Recovery Operations Center.
ROG - Receipt of goods.
ROI - Return on investment.
Roll Microfilm - Microfilm that is intended for storage and use on a reel, spool or core.
Roll-On Endorser - See Endorser.
Roll-On Stamps - Available to print logos onto documents. They print a custom-designed logo
onto each document. The back logo stamp endorser comes with every station (whether
high-speed or low-speed). The front bank stamp endorser is an option. Both use a rotary printing
action. If the station is not encoding or programmable endorsing (if it is in read-and-stamp
mode), the stamps can process up to 500 documents a minute.
ROM (Read Only Memory) - Data stored in a medium that allows it to be accessed but not
erased or altered.
Rosette - The pattern created when all four-color halftone screens are positioned at the
traditional angles.
Rotary Camera - A microform camera system in which documents are recorded on the fly; i.e.,
the documents are fed and the film is advanced simultaneously by synchronized transport
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
systems. Rotary cameras are faster than their planetary counterparts, but because of the
vibrations from the film and document motion, their resolution is lower.
Rotary Press - Press in which the plate is wrapped around, or in the form of a cylinder. In
common usage used to refer to presses used to produce unit sets and continuous forms. Rotary
equipment may print direct or offset, and may be shipped, roll-to-fold, roll-to-sheet or
Rotate - To manipulate an image by turning it on a chosen axis (such as its center or a comer).
Router - A special-purpose computer (or software package) that handles the connection between
2 or more networks. Routers spend all their time looking at the destination addresses of the
packets passing through them and deciding which route to send them on. See Network, Packet
Routing Code - A field in the MICR line of a check. Together with the transit field, it identifies
the bank on which a check is drawn.
Routing Number Administrative Board (RNAB) - The cross-industry board sponsored by the
American Bankers Association, which defines and administers all policies regarding
Routing/Transit numbers.
Routing Transit Number (RTN) - Numbers on a check or draft that facilitate routing for
collection of funds from the drawee bank. The RTN appears in the MICR line at the bottom of
the instrument, as well as in the fraction in the upper right hand comer. The number identifies the
Federal Reserve District of the drawee bank, the Federal Reserve Bank office or branch through
which the item should be cleared and the specific bank upon which it is drawn. It is printed in
the second field of the MICR line on checks, between the (optional) Serial Number and Account
Number fields. Control documents contain special coding that identifies the type of document
being processed. Also called R/T Number or ABA Number.
Row - Refers to the horizontal arrangement of data frames on a microfiche.
RPS (Remittance Processing Service) - An electronic routing and settlement service that
accepts previously captured and authorized payment transactions from members for delivery to
other financial institutions.
RTN - Routing/Transit Number.
Run Time - The moment during which a job is processed.
RVD (Re-writable Videodisc) - A non-standard magneto-optical disk format used by the
broadcast industry. There are two competing formats currently, developed by Pioneer and Sony.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-SS&L - Savings & Loan Association.
SAA - Society of American Archivists.
Saddle Stitch - Method of binding a publication using staples along the spine.
Safety Film - Film which meets the requirements of ANSI IT9.1. Acetate and polyester base
films used in COM meet this standard.
Same-Day Presentment - The Fed’s proposal for same-day payment of checks presented to
paying banks by private-sector collecting banks by 8:30 a.m.
Same-Day Settlement - Fed rule designed to improve competition in check collection services.
It requires a drawee bank to settle in same-day funds by the close of Fedwire on checks
presented by 8 a.m. local time.
Sample - One or more observations drawn from a larger collection of observations or universe
Sampling - Selection for retention of part of a body of similar records to serve as a
representation of the whole body. Usually associated with scheduling case files.
SAR (Storage and Retrieval Unit) - A micrographic device that houses up to 300 rolls of
microfilm. Through robotics, a SAR retrieves the correct film cartridge and scans the desired
Satellite - A wireless communication device that orbits Earth and relays video, voice, paging,
data, or fax messages from originating ground stations to other ground stations, which then
forward the messages to recipients.
Satellite Dish - A receptor capable of receiving transmissions from satellites directly, without
the mediation of a ground-station.
Satisfaction - The discharge of an obligation by paying a party what is due (i.e., the satisfaction
of an IRS lien or the satisfaction of a mortgage).
Saturated Recording - An optical recording device that causes the medium to stop absorbing
light when the mark is fully formed. Useful because of the variation in laser intensity from power
fluctuations and shifts in focus.
Saturation - That quality of color that refers to its grayness.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Savings Association Insurance Fund (SAIF) - A fund administered by the Federal Deposit
Insurance Corporation (FDIC). It insures the deposits of savings and loan associations.
Scaleable - The ability to increase the size of a system to meet increased demands that are being
placed on the system. Because of the architecture of PC based systems, most are scaleable by
incrementally adding or upgrading the hardware.
Scaling - Changing the resolution of an image object. Scaling reduces or increases the number of
pixels used to represent the picture. For example, an image scanned at 300 dpi can be scaled to
100 dpi to view the image on the screen (3:1). Process of uniformly changing the size of
characters or graphics.
Scan - To convert human-readable images into bitmapped or ASCII machine-readable code.
Scan Area - See Print Area.
Scan Band - An area across a form that is searched by a scanner in a single stroke or pass.
Scan Color (Ink) - See Read Color (Ink), Non Reflective Color (Ink).
Scan Head - The part of the mechanism of a scanner that optically senses the text or graphic as
it moves across a page.
Scan Line - A group of scannable characters; printed in OCR readable font.
Scan Rate - Number, measured in times per second, a scanner samples an image.
Scan Speed - The rate at which a scanner can search for information.
Scanline - Portion of a document (check, stub, control document, etc.) that contains the
information read by the system.
Scannable Document - A machine-readable document with OCR scannable characters.
Scanner - 1. An eleocro-mechanical device used to transport paper documents, coupons, checks,
remittances, etc pass one or more readers or image capture devices. Scanners are used as a
capture device to convert information from a paper to an electronic format in order to facilitate
processing. 2. An electronic device that converts optical information (e.g. a printed bar code or
OCR symbol) into electrical signals for subsequent decoding and transmission to a computer.
Originally used only for a laser scanner, the term is now used more generally for any optical
code-reading device for all automatic identification technologies.
Scanning Rate - The rate at which images are scanned, usually in terms of characters per
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Scanning Window - The whole area in front of the output port of a non-contact scanner in
which characters can be read. The scanning window increases in proportion to the distance from
the output port, up to the maximum depth of field of the scanner.
Scatter Diagrams - Charts, which allow the study of correlation, e.g., the relationship between
two variables.
Scenic Check - A type of check that portrays a scene or colorful pattern.
Schedule - See Records Schedule.
Schedule Instructions - See Disposition Instructions.
Schedule Item - See Item 2.
Scheduled Offer - See Scheduled Transfer.
Scheduled Records - Records whose final disposition has been approved by NARA. See
Disposition 1., Final Disposition, Records Schedule.
Scheduled Transfer - The act or process of moving permanent records to the National Archives
for preservation, as authorized by a NARA-approved records schedule and as implemented by
NARA’s approval of an agency-submitted Standard Form 258 and by NARA’s receipt of the
records. Formerly called a scheduled offer. See Final Disposition, Offer, Permanent Records,
Records Schedule, Standard Form 258, Transfer.
Scheduling - The process of developing schedules for the disposition of records, along with
disposition instructions for non-record materials. See Disposition, Records Schedule.
Scheduled Transfer - The act or process of moving permanent records to the National Archives
for preservation, as authorized by a NARA-approved records schedule and as implemented by
NARA’s approval of an agency-submitted Standard Form 258 and by NARA’s receipt of the
records. Formerly called a scheduled offer. See Final Disposition, Offer, Permanent Records,
Records Schedule, Standard Form 258, Transfer.
Scheduling - The process of developing schedules for the disposition of records, along with
disposition instructions for non-record materials. See Disposition, Records Schedule.
Schema - The W3C XML Schema Working Group is addressing means for defining the
structure, content and semantics of XML documents. In Internet Explorer 5, Microsoft is
providing a release of XML Schema as a technology preview that may be useful for developers
interested in building prototypes and gaining experience with schema. Microsoft is actively involved in defining the emerging W3C XML schema standard and will track this effort.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
SCOPE (Special Committee on Paperless Entries) - Formed in California in 1972 to explore
the feasibility of setting up an automated clearing house system.
SCORE - Service Corps of Retired Executives.
Scratching - See Deleting.
SCRD (Secondary Contingent Recovery Division) - The Secondary Phase of NRC’s Tandem
Program. It is a workout division specializing in second placement, hard-core debtors. NRC
charges a contingent fee when clients elect to transfer accounts that did not pay in the service’s
Primary Phase into this part of the Tandem Program. Litigation, when warranted, is offered as a
remedy in the Secondary Phase-at NRC’s option. NRC pays all court costs and filing fees (and is
reimbursed from the first monies received from the debtor).
Screen - Series of dots (may also be series of lines or other pattern) used to represent continuous
tone artwork.
Screen Angles - Angles at which halftone screens are placed to avoid moire patterns. Common
angles in four-color process are: black - 45 degrees; magenta - 75 degrees; yellow - 90 degrees;
cyan -105 degrees.
Screen Capture - To transfer what presently appears on a display screen to a computer file. See
Print Screen.
Screen Dump - Same as print screen. On a PC, the command is Shift-PrtSc.
Screen Font - A display-only type font that very nearly matches its companion printer font.
Required for true WYSIWYG.
Screening - A form of printing in which shades of color are represented by printing different
sized dots at different densities on the page. If the dot size is less than the resolution of the image
and the density is low enough, the data drops out of the scanned image. See Drop Out Print.
Scroll - To look at the parts of the page that fall below (or above) what you see on your screen.
The long bar at the far right of this screen is a scroll bar. The small square in it will allow you to
scroll through the rest of this page. Just place your mouse pointer over the square, hold down the
left click button on the mouse and slide the square up or down. You will see this page move.
Scrolling - The image constantly rolling (moving up or down) on the display.
SCSI (Small Computer System Interface) - Pronounced scuzzy. An industry standard for
connecting peripheral devices and their controllers to a microprocessor. The SCSI defines both
hardware and software standards for communication between a host computer and a peripheral.
Computers and peripheral devices designed to meet SCSI specifications should work together.
A single SCSI adapter card plugged into an internal IBM PS/2 micro channel PC slot can control
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FTP Industry Glossary
as many as seven different hard disks, optical disks, tape drives and scanners - without siphoning
power away from the computer’s main processor. Was formerly known as SASI, for Shugart
Associates Systems Interface. It was changed when the US government accepted the standard.
Scuzzy - See SCSI.
SDN - Software Defined Network (AT&T service).
Seal Flap (Envelope) - The extended portion of the envelope, which is scored so it can be folded
over the throat to seal the envelope.
Seams (Envelope) - Diagonal Seams - seams running diagonally from the bottom fold and
corner upward toward the throat of the envelope. Center Seams - seam running from the bottom
fold and seam up through the envelope and ends at the throat. Bottom Seams - the bottom fold
of an envelope, usually in a catalog envelope. Side Seams - envelope seams that run parallel to
the side flaps.
Search Engine - Any program that searches for information or locations on the World Wide
Web. The following are among some of the best-known search engines: Alta Vista, Excite,
Yahoo!, Hot Bot, Lycos, Magellan, Web Crawler, Info Seek.
Seasonal Dating - Credit terms that require payment near the end or after the buyer’s selling
Seasonality - Changes in business, employment, or buying patterns that occur predictably at
given times of the year.
Seasoning - The length of time payments have been made on a note or other debt instrument.
SEC - Standard Entry Class/Securities and Exchange Commission.
Second Generation Microfilm - A microfilm copy made from the camera film.
Second Of Exchange - The second copy of a draft.
Second Placement - Accounts assigned to a collection agency for collection that were
previously worked by another agency.
Secondary End of Microform - A term used in 16mm computer output microfilming that
designates the end of a roll in which a job was not completed; the job is to be completed on
another roll.
Secondary Market - The marketplace where individuals and businesses can sell privately held
income streams to funding sources for cash.
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FTP Industry Glossary
Secondary Start of Microform - A term used in 16mm computer output microfilming that
designates the beginning of a roll on which a job is continuing, the job having been started on
another roll.
Sectional Center Facility (SCF) - An area mail processing facility where mail is sorted, faced,
canceled and prepared for distribution and dispatch. The SCF encompasses a geographic area
(one of 465) defined by one or more three digit zip code prefixes.
Sector - The smallest addressable unit of an optical disc’s track. Contains 512 bytes.
Secure Electronic Transactions (SET) – A secure payment protocol, developed by VISA and
MasterCard, designed to ensure security for bankcard transactions over the Internet. In denying
merchants access to credit card information, details are secured between the shopper and the
Secure Socket Layer (SSL) – Used to encrypt and protect data usually on an order from an
online merchant’s Web site. Once the order has reached its destination, the encrypted data is
SET (Secure Electronic Transactions) - A secure payment protocol, developed by VISA and
MasterCard, designed to ensure security for bankcard transactions over the Internet. In denying
merchants access to credit card information, details are secured between the shopper and the
Securitization - A financing technique in which a company issues securities backed by selected
financial assets.
Security Certificate - A chunk of information (often stored as a text file) that is used by the SSL
protocol to establish a secure connection. Security Certificates contain information about whom
it belongs to, who it was issued by, a unique serial number or other unique identification, valid
dates, and an encrypted fingerprint that can be used to verify the contents of the certificate. In
order for an SSL connection to be created both sides must have a valid Security Certificate. See
Certificate Authority, SSL.
Security-Classified Records - See Classified Information.
Security Interest - An interest in property, other than real estate, which is given as security for a
debt or other obligation. A security interest is created by execution of a security agreement and
one or more financing statements under the Uniform Commercial Code.
Security Procedure - Under the Uniform Commercial Code Article 4A, a security procedure is
a procedure designed to authenticate the sender of the payment order and detect errors in the
transmission of the payment order. Signature verification alone is specifically excluded by
Article 4A from being a security procedure.
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FTP Industry Glossary
Seed Money - Funds used to start a new business or to finance a new venture by an existing
Seek Error - The inability of an optical drive to find the user’s request because of disc flaw or
vibration or the drive just doesn’t work right.
Segment - A set of logically related data elements in a defined sequence within a transaction set.
Segmentation - Separating the characters in a field into individual characters.
Self Assessment - The process by which a financial institution assesses its creditworthiness (to
the Federal Reserve Bank) and thereby establishes its ability to utilize Federal Reserve Bank
intraday credit.
Self Checking - Denoting a scan line or field using a checking algorithm (check digit) which can
be applied to each character in the code; substitution errors can then only occur if two or more
separate printing defects occur within one character. Fields in a scan line that are not selfchecking usually have a check character added to the encoded data.
Self-Checking Code - A method of encoding data that allows an invalid code to be detected but
not corrected, (e.g.. Error Correction Code: Error Detection Code).
Self-Checking Number or Digit - Value or digit associated with a number or numeric field
(usually suffixed), which is used for automatic checking for errors in transcription, transmission,
or in reading into the system. Weighted numbers and simple arithmetic systems are used. Also
called modulus numbers or check numbers (specific systems are named modulus-7, modulus-9,
modulus-11, or check-7, check-9, or mod-9, mod-11, etc.)
Self-Clocking - A machine-readable symbol designed for reading with a single aperture reader
over a range of velocities, with reasonable allowances for change in velocity after reading has
Self-Mailer - Any form of mail that is not sent in an envelope, sleeve, bag or box. The address
and postage are affixed directly to the item. Postcards, booklets and brochures are commonly
sent as self-mailers.
Seller - The person or company that is holding a debt instrument and wants to sell it.
Semi-Active Records - See Semi-Current Records.
Semiautomated Retrieval - A retrieval system in which the user receives mechanical assistance
in selecting the appropriate microform from the file and then manually positions the image for
viewing. These systems are usually supported by auxiliary indexes.
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Semi-Current Records - Records required so seldom to conduct agency business that they
should be moved to a holding area or directly to a records center. See Current Records, NonCurrent Records.
Sender Net Debit Cap - Limits set by the Federal Reserve and based on a bank’s self-evaluation. These limits set the maximum intraday overdraft that a bank can incur over all the
large-dollar payment systems.
Sending Point - A processing site that sends entries to an ACH. This may be a member
institution or a data processing service operating on its behalf.
Seniority - System in which promotions and layoffs are determined by the length of service an
employee has with a company.
Sensitive Layer - The layer in an optical medium where the data is recorded; it may be
composed of more than one layer or materials. It is sandwiched by protective and supporting
Sensitivity - Measure of the light dose needed to mark an optical medium.
Separator - A character used to separate data elements with a segment of a transaction set.
Sepia - A type of diazo film primarily used to make duplicates. It has a high optical density for
the actinic radiation used to expose diazo film.
Sequence Number - The number of a transaction within a batch, counting from the first
Sequential Retrieval Mark - A mark on film that enables frames to be located quickly at an
inquiry station or reader.
SER (Substitution Error Rate) - The rate at which a character in a code is improperly
substituted for another.
Serial - Data communications mode in which bits are sent in sequence. Contrast with parallel
Serial Number - See Auxiliary on Us.
Serial Numbering - The assignment of sequential numbers to documents, usually under
program control to assure against loss in processing.
Serial Printer - A print device that prints one character at a time throughout a print head moving
across the line.
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Series - File units or documents arranged according to a filing system or kept together because
they relate to a particular subject or function, result from the same activity, document a specific
kind of transaction, take a particular physical form, or have some other relationship arising out of
their creation, receipt, or use, such as restrictions on access and use. Also called a record series.
See Information System.
Serif - The short cross-lines at the end of the main strokes in Roman type faces.
Serpentine - Snake like. Used in describing film processors that increase the length of the film
path without increasing the length of the processor.
Server - 1. A computer which is dedicated to one task. A database or directory server would be
responsible for responding to a user’s search request, returning the fist of stored documents that
meets with the parameters of the request. 2. A program or device that provides services to
another program or device in a computer network. The other device is known as a client. In
recognition-based remittance processing, the recognition unit acts as a server, providing
amount-recognition services to a transport or scanner.
Server Application - The software used by a server in providing a service to a client.
Service Bureau - Company specializing in such computer services as mail list management and
merge/purge operations.
Service Initiation - The overall term encompassing registration, enrollment and activation.
Servicing - The collection of payments of interest and principal, and trust fund items such as fire
insurance, taxes, etc., on a note by the borrower in accordance with the terms of the note.
Servicing by the lender also consists of operational procedures covering accounting,
bookkeeping, insurance, tax records, loan payment follow-up, and delinquent loan follow-up and
loan analysis.
Servomechanism - Devices which constantly detect and adjust some variable. Optical drives
have focus and tracking servos.
Settlement - The process of accounting for dollar transactions processed through the ACH.
There is a daily settlement, which occurs directly in the case of Federal Reserve member
financial institutions unless those financial institutions designate other members to settle in their
behalf. Non-members of the Federal Reserve System must settle their accounts through a
member of the Federal Reserve System.
Settlement Account - An account established by a financial institution, either directly with the
Federal Reserve Bank or through a correspondent, for the funding of financial transactions.
Settlement Dates - Dates of transactions that determine the availability of funds.
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Settlement Transaction - Checks with correspondence attached that provides one stub or a list
of stub information to apply towards a check.
Setup - A collection of parameters that define a given job.
Severance Pay - Lump-sum payment to workers who are being laid off.
SF - Standard Form.
SFQL (Structured Full-Text Query Language) - A proposed standard for full-text databases.
The primary focus of the proposed standard is interoperability of CD-ROMs. SFQL is based on
the SQL (Structured Query Language) standard for relational databases.
SG&A - Selling, general, & administrative expenses.
SGML (Standard Generalized Markup Language) - A meta-language that describes the
language used by a text processing package to format the text. SGML preserves text features
such as font styles, underlining, indenting, and tabbing in a document when it is transferred
between machines and applications. ISO standard 8879.
Shared Network Transactions (SHR) - An automated consumer payment format used for
point-of-sale transactions within a shared network system in which the ODFI and RDFI have a
common operating agreement and in which the debit card is typically issued by the RDFI.
Shareware - Computer software supplied free of charge for a trial period. When the trial is over,
you pay a fee if you wish to keep using the software.
Shelf Life - In film, encoding ribbons and other supplies, the period of time before deterioration
renders the supply unusable.
SHFG - Society for History in the Federal Government.
Shift Register - A matrix of electronic flip flops used to temporarily store the quantized video
before recognition.
Shopping Cart Program – Software used to aid customers when ordering a number of
products/services from a merchant’s Web site.
Short-Term Goal - Goal that may be accomplished with a short time frame, usually less than
one year.
Show-Through - The property of a substrate or packaging material to allow light to pass
through, causing underlying markings or other matter to affect the reflectance of the substrate.
SHR - Shared Network Transaction.
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Shugart Associates Standard Interface (SASI) - A small computer disk drive interface.
SIC - Standard industrial classification.
Side-Seam (Envelope) - The permanent seam used to construct an envelope, running parallel to
the side fold from the bottom fold and corner to the throat.
Sight Draft - A draft that is payable when presented. Generally it must be accompanied by other
documents showing that the terms of a transaction have been met.
SIGMA - Sigma is a statistical unit of measure, which reflects process capability. The sigma
scale of measure is perfectly correlated to such characteristics as defects-per-unit, parts-per
million defective, and the probability of a failure/error. Meaning no more than 3.4 parts per
Signal - Visual or auditory information converted into electrical impulses.
Silver Film - A film composed of silver compounds, such as halides, which release free silver on
exposure to light and developer. Silver film prints a white image from black and black from
white. Silver film is used for both original negatives and duplicates. Known also as original film.
Silver gelatin film is a technically more correct descriptor.
Silver Recovery - The reclamation of silver from spent photographic fixing baths.
Simple Interest - Interest paid only on the principal of a loan. No interest is paid on interest
accrued during the term of the loan.
Simple Moving Averages - Extrapolative methods that base a forecast on a simple average of
past values of the variable to be predicted.
Single-Entry - A one-time ACH entry.
Single Pocket Proof Machine - A machine that enters MICR information on the bottom of the
check. Because this sort of machine has a single pocket, it cannot sort the checks into different
piles according to the banks on which they are drawn. Thus, they are either on-us checks or will
have to be passed to a reader/sorter for further processing.
Singles Transaction - A transaction consisting of only a single stub and a single check
Sinking Fund - Used to ensure that adequate funds are available to pay a bond issue at its
maturity. Periodic payments are accumulated in a separate custodial account that is used to
redeem the securities.
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Site - A place on the Internet. Every web-page has a location where it resides which is called its
site. And, every site has an address usually beginning with http://.
Site Audit Records - See Accountable Officers’ Accounts.
Six Sigma - Sigma is a letter in the Greek alphabet. The term sigma is used to designate the
distribution or spread about the mean (average) of any process or procedure. For a business or
manufacturing process, the sigma value is a metric that indicates how well that process is
performing. The higher the sigma value, the better. Sigma measures the capability of the process
to perform defect-free-work. A defect is anything that results in customer dissatisfaction.
Skew - 1. A condition of an image that has not been scanned parallel to the edges of the original
document. Vertical lines on the original are represented at a slight tilt, and horizontal lines run
slightly up or down hill. Skew is especially a problem for automated recognition. 2. When the
bit-mapped image is not square with the page. Generally this is caused by slippage or
mis-feeding during the scanning process.
Skew Tolerance - The allowable angular displacement.
Skewing - Physical or timing misalignment as compared to an intended reference. Examples: 1.
An image in a viewing station in which the edges of the image are not parallel to the borders of
the display is skewed. 2. In parallel data transfer, data bits which arrive at different times are
skewed to the extent they arrive before or after the standard time.
Skip Tracing - Finding hard-to-locate debtors known as skips (i.e., accounts submitted with
invalid addresses and/or telephone numbers). Skip tracing is included in the Tandem Program’s
Secondary Phase (SCRD). Accounts found to have invalid addresses or telephone numbers in the
Primary Phase will automatically be transferred to the Secondary Phase where skip tracing may
be employed.
Skirt - The tear off portion of a check that contains payment/invoice or other detail information.
See Stub.
SLA (Service Level Agreement) - An agreement between two parties (can be of the same
organization or different organizations) of the acceptable levels of performance that one party
will meet in proving services for the other party. SLA’s can be used to set levels of expectation
and performance for productivity, timeliness, quality, costs, etc.
SLIP (Serial Line Internet Protocol) - A standard for using a regular telephone line (a serial
line) and a modem to connect a computer as a real Internet site. SLIP is gradually being replaced
by PPP. See Internet, PPP.
Slow Through - The property of a substrate or packaging material to allow light to pass through,
causing underlying markings or other matter to affect the reflectance of the substrate.
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Small Business - Any business that has relatively few employees, relatively small revenues, and
is not dominant in its industry.
Smart Cards - Stored value cards. Plastic cards with embedded integrated computer chips and
capable of storing data, including monetary value, that can be electronically replenished.
SMDS (Synchronous Multi-Megabit Data Service) - A new standard for very high-speed data
SMFA - Specific management functional area (OSI network management term).
Smoothness - A measure of document’s surface resistance to airflow. As the resistance
decreases, the smoothness number increases. Low paper smoothness is a desirable quality in
optical scanning applications.
SMP - Symmetric Multi-Processor or Special Multi-Peril Policy.
SMTP (Simple Mail Transfer Protocol) - The main protocol used to send electronic mail on
the Internet. SMTP consists of a set of rules for how a program sending mail and a program
receiving mail should interact. Almost all Internet email is sent and received by clients and
servers using SMTP, thus if one wanted to set up an email server on the Internet one would look
for email server software that supports SMTP. See Client, Server.
Smudges - Dirty streaks or smears that may confuse the scanner, caused from slippage in a data
entry device, mishandling of the form, care less storage, etc.
SNA (Systems Network Architecture) - IBM’s very successful means of networking remotely
located computers. The quickest definition is that it is tree-structured architecture, with a
mainframe host computer acting as the network control center. Unlike the telephone network,
which establish a physical path for each conversation, SNA establishes a logical path between
network nodes, and it routes each message with addressing information contained in the
SNF - Shared Network Facility.
SNMP (Simple Network Management Protocol) - A set of standards for communication with
devices connected to a TCP/IP network. Examples of these devices include routers, hubs, and
switches. A device is said to be SNMP compatible if it can be monitored and/or controlled using
SNMP messages. SNMP messages are known as PDUs - Protocol Data Units. Devices that are
SNMP compatible contain SNMP agent software to receive, send, and act upon SNMP
messages. Software for managing devices via SNMP are available for every kind of commonly
used computer and are often bundled along with the device they are designed to manage. Some
SNMP software is designed to handle a wide variety of devices. See Network, Router.
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FTP Industry Glossary
Soft Boolean Operators - An application of fuzzy logic in which the Boolean AND is treated as
an OR for retrieval purposes. Soft Boolean operators are used by relevancy ranking routines;
documents that are retrieved by nature of the soft operators are ranked less relevant than those
that meet the exact Boolean criteria.
Soft Form - Electronically generated form overlays used in lieu of form slides. The content of
the form is based on parameters determined by the user.
Soft Hypertext - Functionality provided through the integration of a full-text retrieval engine
with a hypertext system. The full-text retrieval engine allows any word or phrase in the
document text to function as a button by automatically linking to 0 other occurrences of that
word or phrase in the system.
Software - All programs and documentation used in conjunction with a computer system.
Software Read Error - Sometimes errors occur because of reading problems as a result of poor
laser focusing and circuitry noise and can be corrected by re-reading the CD-ROM disc.
Solaris - A UNIX-based operating system and window system for Sun SPARC computers often
used for server operating systems.
Sole Proprietorship - A business owned and operated by an individual.
SONET - Synchronous Optical Network.
Sort - To rearrange paper or data into a particular sequence.
Sort Merge - The process of combining two or more groups of data (i.e., files) into a single
group (i.e., file) in which all of the resulting output is sorted into the specified sequence.
Sort Pattern - The instructions loaded into the reader sorter that control the physical sorting of
checks to specific pockets. Usually the items are sorted by bank routing transit number. By
isolating specific groups of checks by region and bank, better item pricing and funds availability
can be achieved by the sending institution.
Sort Pocket - See Pocket Modules.
Sort Process - Routes items to specific program-controlled pockets on the transport. Sort
patterns used for Pass 1 may vary significantly from those used during Pass 2. See Pass 1, Pass
2, Endpoint and Endpointing.
Sorter - The document processor that reads the magnetic ink (MICR) or optical characters
(OCR) and processes the documents based on the information read. Also known as
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Sorter Control - Task that controls the transport devices. Window from which the transport can
be placed on-line and transport features can be enabled and disabled.
Sorting - 1. In files management, the process of separating records into groups for filing
according to a classification system. 2. The arrangement of pieces in a bulk mailing in order of
ZIP Code.
Source Documents - Documents containing data entered into a microform or electronic records
system. Also called source records. See Input Records.
Source Records - See Source Documents.
South Carolina - SC
South Dakota - SD. Home of Mt. Rushmore, the Badlands, the largest gold mine in the US
and is the geographical center of North America. A northern territory that entered the Union
on November 2, 1889, as the 40th state. Located south of North Dakota and north of
Nebraska, it has a variety of terrain from rolling hills to Harney Peak, which is the highest
point east of the Rocky Mountains. South Dakota has fertile soils and extensive grazing lands,
and farming and ranching have always dominated its economy. The citizens are year round
outdoor enthusiasts and would rather participate in sports than watch them.
Space - 1. The lighter element of a bar code usually formed by the background between the bars.
2. A graphic shape that is a completely blank area.
Space Width - The thickness of a space from its front edge (closest to the start character) to its
rear edge.
Spacing - See Character Spacing.
Spam (or Spamming) - The Internet version of junk mail. Spamming is sending the same
message to a large number of users, usually to advertise something. E-mail address may be
collected using cookies or a mailing list from a newsgroup.
Special Records - Types of records maintained separately from textual/paper records because
their physical form or characteristics require unusual care and/or because they have nonstandard
sizes. Include electronic, audiovisual, microform, cartographic and remote-sensing imagery
architectural and engineering, printed, and card records. See Non-Textual Records, Record
Components and Textual Records.
Specific Text Indexing - The process of building indexes, based on formatted text, such as host
generated reports and documents. Because the data format is constant, pattern matching can be
used to locate specific data fields within documents. Specific Text Indexing can be used to create
multiple specific indexes from the same data - such as customer number, invoice number, and
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item number. This type of indexing is in contrast to Full Text Indexing that indexes all of the
contents on a page, without regard to the type of data contained.
Spectral Response - The sensitivity of a scanner or other device to light of different
wavelengths. Bar code scanners and OCR readers operate in a specified but limited part of the
visible or infrared spectrum, i.e. they can have different peak spectral responses, which affects
the colors that can be used to print scannable bar code symbols and OCR data - even the
suitability of some black colors.
Specular Reflection - Reflection of light from a surface at an angle equal but opposite to the
angle of incidence, for example as from a mirror or glossy surface.
Speculation - Purchase of an asset with the expectation of selling it quickly for a large gain.
Spreadsheet - Table of numerical data in which columns and rows are related by formulas.
Spindle - The center part of a disk (or disc) drive that maintains the axis of rotation and provides
the force to rotate the disk (or disc).
Spin-Up - The time during which a drive accelerates its disk/disc up to operating speed.
SPO - Stop Payment Order.
Spool - The print queue area in a computer used by scheduling software, such as JES (IBM’s job
entry subsystem).
Spooled Data Set - A data set written on an auxiliary storage device (disk drive or tape drive).
Spot - An ink or dirt mark or other area of low reflectance relative to the background reflectance
criteria within the space element of a scan line or the background of OCR characters. Spots can
touch the bar elements or OCR characters, distorting their shape, or they can be free standing.
Distorted OCR characters and large spots in the background might result in a misread or
Spreadsheet - Table of numerical data in which columns and rows are related by formulas.
SQL (Structured Query Language) - A custom-report generation language that can be used
with most industry standard databases.
SQL Database - A generic term for industry standard databases such as Oracle, Sybase, or
Microsoft SQL Server that use standard file server platforms (Novell Netware and Windows NT)
to provide database server functions. These are moderately priced database servers that range
from $5,000 to $50,000 for the database alone. High-end SQL servers are available that run on
UNIX for use as a data warehouse or for mission critical corporate databases. These high-end
servers are much more expensive, albeit much more capable.
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SSA - Social Security Administration.
SSL (Secure Sockets Layer) - A protocol designed by Netscape Communications to enable
encrypted, authenticated communications across the Internet. SSL is used mostly (but not
exclusively) in communications between web browsers and web servers. URL’s that begin with
https indicate that an SSL connection will be used. SSL provides 3 important things: Privacy,
Authentication, and Message Integrity. In an SSL connection each side of the connection must
have a Security Certificate, which each side’s software sends to the other. Each side then
encrypts what it sends using information from both its own and the other side’s Certificate,
ensuring that only the intended recipient can de-crypt it, and that the other side can be sure the
data came from the place it claims to have come from, and that the message has not been
tampered with. See Browser, Server, Security Certificate, and URL.
SSN - Social Security Number.
STA - Station.
Stacked Code Symbols - Barcode symbols made up of linear barcodes printed in a rectangular
shape to achieve the most efficient use of the label area.
Stacked Codes - 16K and Code 49 are examples where a long symbol is broken up into sections
that are stacked one upon another similar to sentences in a paragraph. Very compact codes.
Stacker - A device for accumulating processed documents in optical scanners and card readers.
Staging Area - See Holding Area.
Stand-Alone - A device which can operate independently without connection to or control by
another device.
Standard - The ANSI Standard XX3.17-1974 character set for optical character recognition.
Defines the character shapes for OCR-A font.
Standard Deviation - A statistical index of variability, which describes the spread.
Standard Entry Class Code - A 3 character code within an ACH Company/Batch Header
Record to identify the payment types contained within an ACH batch, (e.g., CCD, CIE, CTP,
Standard Form (SF) - A form prescribed by a Federal agency and approved by GSA for
mandatory use throughout the U.S. Government. See Form 1., Optional Form.
Standard Form 115, Request for Records Disposition Authority - The form used by Federal
agencies to obtain disposition authority from NARA for records to which the General Records
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Schedules are inapplicable. See Disposal List, General Records Schedule Item 2., Records
Standard Form 135, Records Transmittal and Receipt - The form to be submitted by
agencies to a Federal records center before transferring records there.
Standard Form 258, Request to Transfer, Approval, and Receipt of Records to National
Archives of the United States - The form used by Federal agencies to transfer legal and
physical custody of permanent records to the National Archives. See Permanent Records,
Scheduled Transfer.
Standard Industrial Classification (SIC) - Statistical classification system for identifying
companies by industry.
Standard Industrial Classification (SIC) Code - A four (4)-digit number assigned to
businesses to identify their specific trade category.
Standing Order - Purchase order used when the order is expected to be repeated. Standing
orders allow the seller to ship and bill for goods at specified intervals without receiving
additional purchase orders.
Start / Stop Character - Typically a MICR character included in a scan line to indicate the
beginning (start character) and end (stop character) of a field or scan line to the scanner.
Start Time - The time that the batch and/or job started processing.
Statement - See Stub. In banking, a record prepared by an institution for a depositor that shows
all deposits made, checks drawn and paid, and the new balance and interest paid (if any) after
each posting. In remittance, the portion of the bill sent to a customer that is returned with the
check; has the customer account number and the amount owed on the document, normally, in the
scan line.
Statement of ACH Activity - The advice prepared by the ACH stating the number of items and
dollar value of an ACH file.
Statement of Work (SOW) - A document describing the specific tasks and methodologies that
will be followed to satisfy the requirements of an associated contract or MOU.
Statement Reconciliation - The process of verifying that all items are present for mailing for
each statement.
Statement Rendering - Creating a customer statement or a report that details transactions for a
fixed period, usually a month.
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FTP Industry Glossary
Statement/Notice - An electronic or paper document sent to a customer/agent that does not have
a payment due associated with it.
Statistical Control - A quantitative condition, which describes a process that is free of
assignable/special, causes of variation, e.g., variation in the central tendency and variance. Such
a condition is most often evidenced on a control chart, i.e., a control chart that displays an
absence of nonrandom variation.
Statistical Forecasting - Describes the relationship between the cash flow component to be
predicted and one or more input variables. Useful when there is a large population to be sampled.
Can be applied to the analysis of trends. Two of the more important statistical techniques are
time series forecasting and regression analysis.
Statistical Process Control - The application of statistical methods and procedures relative to a
process and a given set of standards.
Status - The state or condition something is in.
Status Reports to Credit Bureaus - On selected Tandem systems, non-responsive debtors will
be reported to national credit bureaus during the service’s Secondary Phase. Placing a notation in
the credit bureau report on a non-paying debtor can be an effective collection technique.
Step - An increment of a document or form being processed.
Stiffness - The stiffness of paper is a measure of its ability to support its own weight.
Stock Copy - An extra copy of printed records or of other published materials. See Copy 1.,
Printed Records, Publications, and Technical Reference Files.
Stock Form - 1. Any off-the-shelf form delivered to the user without further printing or other
manufacturing operations. Also a form which is not necessarily off-the-shelf, but which adheres
to predetermined specifications in all respects. 2. Stock continuous may be blank or pre-printed
with guide rules or screened bars.
Stop File - A file of one or more records or transactions that is to be compared against during
processing to identify / match records or transactions for which a specific course of action needs
to be taken. In mortgage processing, the stop file is usually used to identify those accounts for
which a payment, when recieved, is not to be processed.
Stop Payment - Charge for issuing an order to stop or not allow an item to be posted to an
Storage and Retrieval System - An imaging system implemented to allows users to search and
gather large numbers of documents. See Workflow System.
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FTP Industry Glossary
Storage Media - The physical device itself, onto which data is recorded. Mag tape, optical discs,
floppy disks are all storage media.
Store and Forward - The method by which the ACH system processes entries. This is also
known as a batch system because the entries are accumulated together in files and processed as a
group rather than each entry being processed as it is generated.
Stored-Value Card - A card that may contain either a magnetic stripe or a computer chip whose
principal use is for storing and debiting money electronically.
STP - Shielded twisted pair (cable).
Strategic Alliance - A strategic bond or connection between organizations with common
interests; an association to further the common interests of its participants.
Strategy - The plans and means to achieve the goal for a particular objective.
Streamer Tape Storage - Medium; 1/4-inch magnetic tape used to store backup copies of files.
String - A series of characters, usually the subject of a text search.
Stroke - One line segment in a vector graphic image.
Stroke Analysis - This scanning technique is based on the stroke or line formation for each
character. The characters are differentiated from each other by the number and position of
vertical and horizontal strokes. The formation of the unknown character is matched by a special
purpose computer against a character truth table, which indicates the stroke information for each
reference character.
Stroke Generator - A method of generating characters using short strokes to draw the
alphanumeric character in a manner similar to that used in ordinary handwriting. Some computer
output microfilm devices use this technique to draw the characters on the cathode-ray tube
Structured Data - Data that is fixed-length and stored in fixed-length fields. Typically that data
is managed by a traditional DBMS.
Stub - Usually the tear-off portion of the billing statement that is returned with a check when
payment is made by a customer. Also called billing document, coupon, voucher, payment
voucher, remit, remittance document, skirt, or statement.
Stubs Only Data Entry - Image application that allows image operators to enter required data
for payments made in cash or where no check is present for the transaction. All stubs in Stubs
Only batches are presented in Stubs Only Data Entry for keying.
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FTP Industry Glossary
Stubs Only Transaction - Transaction consisting of a stub without an accompanying check.
Stylus - Pen-like instrument used with a graphics tablet as an input device.
Sub-Doc - Short for substitute document.
Subject Classification System - A plan used for identifying and coding documents by topic to
provide an orderly and accurate way of filing and finding. Examples include alpha-numeric,
alphabetic-subject, decimal, duplex-numeric, mnemonic, and subject-numeric.
Subject Files - See General Correspondence Files.
Subject Outline - In files management, a list of topics arranged hierarchically (i.e., by. primary,
secondary, tertiary, and quaternary topics) and serving as the source for selecting file
designations for arranging, or classifying, the documents of a subject file. Normally includes file
Subject-Numeric Filing System - A subject classification system in which the main topics are
arranged alphabetically and the subdivisions are coded numerically. For example, Personnel 8
might stand for Hours of Duty. This system may be modified by combining it with the
mnemonic filing system so that, for example, Personnel 8 would become PER 8. See Mnemonic
Filing System.
Subordination - The act of a creditor acknowledging in writing that a debt due him or her by a
debtor shall be inferior to the debt due another creditor by the same debtor.
Sub-Sequence Number - If there is more than one payment or document in a transaction, the
sub-sequence number is the number of an item within the transaction, counting from the first
item. For single document, single payment transactions, the sub-sequence number is zero.
Subset - A well-defined group of items that is completely included in a larger group. Example:
microfiche formats are a subset of microfilm formats.
Subsidiary - Corporation that is majority-owned by another corporation.
Substitute Check - A paper printout of a check image.
Substitute Document - A document processed with an associated piece of paper for which all
required data must be keyed in. A substitute document is either a piece of paper that takes the
place of a damaged or missing machine-readable document, or a billing document designed
without machine-readable data.
Substitution - A character or mark that is incorrectly recognized as another character or mark in
the output machine signal.
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FTP Industry Glossary
Substitution Error - A character that is wrongly decoded when a scan line character (OCR,
MICR, ICR) is read.
Substitution Rate - The number of substitutions per given number of characters read expressed
as a percent.
Substrate - The material or medium upon which printed matter such as OCR characters, or a
coating is imposed.
Subtractive Color Formation - A complex process of producing different colors by subtracting
certain light waves from white light.
Sub-Doc - Short for substitute document.
Sub-Sequence Number - If there is more than one payment or document in a transaction, the
sub-sequence number is the number of an item within the transaction, counting from the first
item. For single document, single payment transactions, the sub-sequence number is zero.
Supertwist - An improved LCD display that provide a wider viewing angle and better contrast
by twisting the crystals.
Surfing - Exploring the Internet without a definite goal in mind, but ready to investigate
anything interesting that happens to come along.
Suspense Files - Files arranged chronologically to remind officials of actions to be completed by
a specific date. Also called follow-up files or tickler files. See Copy 1.
Sweep Account - A bank account that automatically transfers excess balances into an
interest-earning account with the same bank.
SWIFT (Society for Worldwide Interbank Financial Telecommunications) - An
international network that moves messages and funds transfer instructions among member
financial institutions across national borders. SWIFT does not, however, settle funds transfers
Swing Shift - Work shift beginning or continuing after the day shift.
Switch - An electronic mechanism that routes transaction data from a point-of-sale terminal to
the authorizing data processor for approval of the card-issuing institution.
Symbol - A combination of characters including start/stop characters, quiet zones, data
characters, and check characters required by a particular symbology, which form a complete
scannable entity.
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Symbology - A standard means of representing data in printed or mark readable form. Each
symbology specification sets out its particular rules of or symbol architecture.
Symptom - That which serves as evidence of something not seen.
Synchronize - To set the time an event occurs so that it matches the time of another event.
Syntax - In software, refers to the rules governing the structure of an initialization or command
Sysop (System Operator) - Anyone responsible for the physical operations of a computer
system or network resource. A System Administrator decides how often backups and
maintenance should be performed and the System Operator performs those tasks.
Sysout - A term which describes printed (or microfilmed) data that is generated internally by a
computer system. Examples of sysout data include: memory and file dumps, error logs, directory
listings, various computer usage reports and checkpointing of system software.
System Availability - The ability to obtain on-line information and transmission services for
customer access during established or agreed-upon time frames.
System Manager - The person responsible for overseeing the day-to-day operations of a
computer system. See Computer System, Program Manager, and Records Management Officer.
System Software - Programs that enable a computer to function and control its own operation as
opposed to application programs which accomplish user-specific tasks. The most common
example of system software is the group of programs described as the computer’s operating
Systemic Risk - The possibility that one or more financial institutions will face losses (and/or go
out of business) because of the inability of other financial institutions to settle their net debit
obligations at the time of settlement.
Systems Integration - Assembling complete systems out of many components, and integrating
them so that they all work together.
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-TT&E - Travel & Entertainment.
T-1 - A leased-line connection capable of carrying data at 1,544,000 bits-per-second. At
maximum theoretical capacity, a T-1 line could move a megabyte in less than 10 seconds. That is
still not fast enough for full-screen, full-motion video, for which you need at least 10,000,000
bits-per-second. T-1 is the fastest speed commonly used to connect networks to the Internet. See
Bandwidth, Bit, Byte, Ethernet, and T-3.
T-3 - A leased-line connection capable of carrying data at 44,736,000 bits-per-second. This is
more than enough to do full-screen, full-motion video. See Bandwidth, Bit, Byte, Ethernet, and
Tab - The action of moving to the next stop in a line to the right of the current position in a line.
Similar to the same function on a typewriter.
TAB - Tax anticipation bill.
Tab Stop - One or more positions across a printed page at which next character is printed after
an action is invoked.
Table - A list of data stored in a computer.
Tail - The payment stream and/or balloon payment of an income stream subsequent to another
party’s right and interest in the income stream. Usually the back half of the payments stream
when another party has purchased the front half.
Take-Up Reel - A reel that normally contains a spool onto which film is wound.
TAN - Tax anticipation note.
Tandem - The name of NRC’s two-phase collection program. The Tandem Program consists of
a primary phase collection program followed by an optional, secondary (or SCRD) phase.
Tandem Online - The Internet-based Tandem Program enables clients to place accounts directly
over the Internet, to update account balances and account statuses, and review their accounts on
the Internet 24 hours a day, seven days a week. The service eliminates the delays and expense
associated with telephone calls and mail, and generally, produces higher results.
Tangible Personal Property - Personal property other than real estate, such as cars, boats, or
other assets.
Tape - See Magnetic Tape.
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FTP Industry Glossary
Tape Backup - Making mag tape copies of hard disk and optical disc files, for disaster recovery.
Tape Drive - A device that reads information recorded on magnetic tape and transfers this data
to an off-line COM recorder or microfilmer. Some devices may also be able to write information
to tape.
Tape Dump - Printing out the raw contents of a tape storage with no attempt to format the
output into reports.
Tape Label - A record on a tape that can contain information about the tape as a whole.
Tape Mark - An area on a tape that indicates the beginning or end of data, or the end of the
Tape Transport - The part of the tape drive responsible for moving the tape over the read/write
heads at the correct speed and tension.
TAPPI (Technical Association of the Pulp and Paper Industry) - New York, New York. This
group has developed standard methods to measure and compare the physical characteristics and
performance of papers.
Tare Weight - Weight of an empty shipping container or truck. The weight of the shipped goods
is determined by subtracting the tare weight from the total weight of the container and goods.
Target Balance - Average collected balance that must be maintained to compensate a bank for
all the services provided to the company. Targets are often set monthly and monitored daily.
Target Concentration - All funds above a target balance level are transferred to the concentration account.
TAWPI - The Association for Work Process Improvement.
Tax Payment Convention (TXP) - An industry-wide convention (or agreement) for consistently
formatting tax payment information carried in the addenda records attached to ACH tax
payments. The TXP format for paying state and local taxes is slightly different from the IRS
Taxpayer Identification Number (TIN) - An identification number assigned by the Internal
Revenue Service to taxpayers. The TIN for individuals is their Social Security number, for
businesses it is their Employer Identification number.
TB - A terabyte of data. The equivalent of one trillion bytes of information or one thousand
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TCP/IP (Transmission Control Protocol/Internet Program) - A set of protocols developed by
the Department of Defense to link dissimilar computers across networks.
T-Commerce – The ability to order certain products/services directly from a television.
TDM - Time Division Multiplexing.
TDR - Transfer development rights.
Teaser - Advertising designed to stimulate curiosity by revealing only pieces of information
about the product and/or advertiser.
Technical Reference Files - Non-record copies of articles, periodicals, reports, studies, vendor
catalogs, and similar materials that are needed for reference and information but are not properly
part of the office’s records. See Convenience Files, Non-Record Materials, Stock Copy, Working
TEFRA - Tax Equity & Fiscal Responsibility Act of 1982.
TEL - Telephone-Initiated Entry.
Telecommunications - The preparation, transmission, communication, or related processing of
information by electrical, electromagnetic, electromechanical, or electro-optical means. See
Electronic Mail, Information Resources Management.
Telemarketing - Use of the telephone to market goods or services directly to prospective
customers and/or to receive orders and inquiries generated from other advertising and
Telephone Banking (Sometimes referred to as “Tele-banking”) – A service that provides
customers with banking facilities from their home or office, using a telephone.
Telephone Bill Payment - A service that permits a customer to pay bills electronically. The
customer gives a corporation the authority to debit his or her account for a specific amount or
within a specified range of amounts.
Telephone-Initiated Entry (TEL) - A one-time debit entry initiated by an Originator in
accordance with the Receiver’s oral authorization for the purchase of goods or services over the
Teller Helper (Envelope) - An open side style with side seams and a larger than normal seal
flap with a special latex seal tab. Commonly used by financial institutions.
Tellurium - The metal most commonly used in optical disks as a recording medium. To inhibit
oxidation, additives, dopants, and alloys are used.
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FTP Industry Glossary
Telnet - The command and program used to login from one Internet site to another. The telnet
command/program gets you to the login: prompt of another host.
Template - A guide, created from a sample document, showing the form recognition software
where each field to be read is located and other information about the expected field contents.
Temporal Risk - The risk or exposure that an institution has because of the time necessary to
complete certain transactions (say, from the extended period of time allowable for contested
dishonored returns.)
Temporary Records - Records approved by NARA for disposal, either immediately or after a
specified retention period. Also called disposable records. See Disposal, Final Disposition,
Permanent Records.
Tennessee - TN
Tenor - Type of draft, either a sight or time draft.
Terabyte - From tera, which means trillion, although it actually means 1,099,511,627,776 bytes
in a computer’s binary system. A terabyte is 1,024 gigabytes.
TERM - Terminal.
Term Loan - A loan for a fixed period of time, usually several years, often with a fixed
repayment schedule.
Terminal - A piece of equipment used for accessing a computer system which usually consists
of a keyboard and a CRT or hardcopy printer, and which may also include other devices such as
magnetic tape drive, disk drive, etc.
Terminal Server - A special purpose computer that has places to plug in many modems on one
side, and a connection to a LAN or host machine on the other side. Thus the terminal server does
the work of answering the calls and passes the connections on to the appropriate node. Most
terminal servers can provide PPP or SLIP services if connected to the Internet. See LAN,
Modem, Host, Node, PPP, SLIP.
Terminator - A special character at the end of a record or file which indicates the end of that
record or file.
Test Market - Process of conducting a small-scale promotion or introduction of a good in order
to gather information useful in a broader promotion or product introduction.
Texas - TX. Home of the Alamo, Dallas Cowboys and several other professional sports teams.
Texas entered the Union on December 29, 1845, as the 28th state. In the 19th century the
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FTP Industry Glossary
Texas economy was based on cattle breeding, cotton growing, and other agricultural activities.
Texas is hot and flat and has good barbeque. In the 20th century Texas is known for oil,
technology and politicians. It is the headquarter state for FTP Consulting. See FTP
Text File - A data file consisting of alphanumeric characters, defined by a text format such as
ASCII or EBCDIC. Entries in a text file are available for text searching.
Text Inversion - An automated process to extract from a database all words which should be
referenced and their locations within the database.
Text Management - All the techniques and technologies involved in creating, storing and
retrieving text files in an organized and logical manner.
Text Retrieval System (TRS) - See Full-Text Retrieval.
Text Search - A technique for examining text files for occurrences of specific sets of characters,
either in a string (a word or sentence) or in proximity (a certain word in the vicinity of another
word). A contextual search involves finding entire documents based on a string of characters that
appears in it.
Text/Image Retrieval - The ability to locate a page image by using a full-text search. See
Contextual Search.
Textual Records - The term usually applied to manuscript and typescript paper records, as
distinct from electronic, audiovisual, cartographic, remote-sensing imagery, architectural, and
engineering records. See Non-Textual Records, Special Records.
Thermal Printer - Type of small non-impact printer that uses special paper coated or
impregnated with material that reacts to heat applied by small electrical resistance elements to
form a dot matrix image.
Thermal Transfer - A printing system in which the print head applies heat to printer ribbons
that transfer ink to facestock to create a barcode symbol.
Thick Consolidator - One of four models of electronic bill presentment and payment (EBPP).
The biller sends all of its billing data to a central service provider that consolidates electronic
bills from different billers so that the consumer has a single site of access for viewing billing
information and making payments electronically. Other models include: Biller Direct, Thin
Consolidator and Customer Consolidation.
Thickness - See Caliper.
Thin Consolidator - One of four models of electronic bill presentment and payment (EBPP).
The biller sends summary billing data to a central service provider that consolidates electronic
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
bills from different billers so that the customer has a single site of access for viewing billing
information and making payments electronically. The customer may access full billing data
through the biller’s Web site. Other models include: Biller Direct, Thick Consolidator and
Customer Consolidation.
Third Party Payments - Another term for wire payments. Secure payment of very high dollar
amounts. The most commonly used method for international payments.
Third-Party Processor - A party that processes ACH files and/or items on behalf of one of the
participants in the ACH Network. Examples of third party processors are payroll processing
companies that create files for transmission to the ACH Operator on behalf of an Originator or
ODFI, a data processing company that receives incoming ACH files and processes them for a
RDFI, or a correspondent bank that processes ACH files for its correspondents. Under the ACH
Rules, third-party processors are essentially invisible; the party they are processing for bears
virtually all of the liability and risk for their third-party processor’s actions.
Third-Party Processing - Processing of transactions by service providers acting under contract
to card issuers or acquirers. First Data is a third-party processor.
This group maintains the X12 811 [generic] Invoice and the X12 820 [generic] Payment &
Remittance Advice transactions, although X12N maintains the associated HIPAA
Implementation Guides.
Third Party Supplier - any agent, clearinghouse or vendor (including a provider’s in-house
systems department) that electronically interacts with VMS to download and/or retrieve files,
including ERA
Thread - A topic on a Usenet group that you can explore in a newsgroup.
Three-Digit Zip Code - The geographic area consisting of all mail points with the same first
three zip code digits.
Threshold - A predefined level set into a scanner’s software to determine whether a pixel will be
represented as black or white.
Threshold Concentration - Depository balance levels are allowed to build up to a predetermined level. Then most or all funds are transferred to the concentration account.
Throat (Envelope) - The opening into an envelope that is covered by the seal flap when the
envelope is closed.
Throughput - 1. A measure of system performance; the rate at which data can be processed
through a system. 2. The volume of documents that an item processing system can handle in a
given period of time.
TIA - Telecommunication Industries Association.
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Ticket - Another name for the sales slip - or its monetary value - that results when a credit card
purchase is made.
Tickler Files - See Suspense Files.
TIFF (Tagged Image File Format) - A bitmap file format for describing and storing color and
gray scale images. An industry standard developed by Aldus for image file storage. Used for
image storage. A standard format that is used for FAX transmissions.
Tiling - Reproducing oversize artwork or documents by breaking the image area into parts
(called tiles). Adjacent tiles repeat a small portion of the image, and they may contain crop
marks as well. The repeated portion of the image (the overlap) and the crop marks aid in
reconstructing the overall image from the tiles.
Time Deposits - Deposits that must be held at a depository financial institution for a specified
time period.
Time Draft - A draft similar to a sight draft payable to a third party on a specified future date.
Time Series Forecasting - Forecasts a variable based only on past observations of that variable.
Primary types of time series forecasting are simple moving average and exponential smoothing.
Time Value of Money - Concept that addresses the way the value of money changes over a
period of time.
Timeliness - The ability to provide service within established or agreed-upon time frames and
Timely - The entry is considered to be timely if it was processed within a specified time frame or
as soon as possible thereafter if the delay in processing was due to excused circumstances.
Timing Mark - A printed indicator along the edge of some OCR forms used to synchronize the
form position with machine-scan cycles.
Timing Track - Equally spaced non-data bars normally at the bottom edge of a symbol to
compensate for changes in velocity when reading the code.
TIN - Taxpayer ID number.
Tint (Envelope) - A printed design on the inside of the envelope designed to provide security for
the contents.
Title Characters - Eye readable alphanumeric symbols, usually in the top row of a microfiche.
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FTP Industry Glossary
Title Commitment - A commitment on the part of the insurer, once a title search has been
conducted, to provide the proposed insured with a title insurance policy upon closing.
Title Frame - Contains title characters.
Title Frame Management - Defines the form of the title row: the number of frames, lines and
polarity for each segment.
Title Insurance - Title insurance can benefit either the payor or the payee. Should the
beneficiary suffer any damages due to clouded or false title to real estate, title insurance
recompenses the damaged party to the extent of the damages.
Title Policy - An insurance policy that insures a party against loss due to a defective title.
Title Segment - Consists of one or more adjacent title frames with the same number of lines,
characters and polarity.
Titling - An eye-readable, descriptive identification of the contents of a microfiche. The titling
information can be read without the aid of magnification and is usually placed either across the
top or bottom of the microfiche.
TL - Truckload.
TMA - Treasury Management Association.
Tolerance - Permissible degree of variation from a preset standard.
Token Ring - A form of local area network in which a special bit pattern called a token is
passed from one device to another in turn. To access other devices and services on the network, a
device must wait until it receives the token.
Toner - A dry ink powder that has been electrically charged. Used in printers, fax machines and
copiers. Generally, the image is translated into bit mapped charges of the opposite polarity on a
special drum in the printer. The toner is attracted to the charged areas, where it is transferred to
paper. The toner is then set, usually by heat. Sometimes, the toner is attracted directly onto the
Top Slitting Mail Extraction - The opening of a remittance envelope by cutting the top edge.
Cutting can be preformed manually using a letter opener or automated by a machine that slits,
cuts or grinds off the top edge of the envelope. The contents are removed from the envelope for
Topology - The physical layout of a network. Bus, star and ring are common topologies.
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FTP Industry Glossary
Total Accepted Chars - The total number of characters for the job (handprint and machine
print) read and accepted. (Total Characters - Total Rejected Characters).
Total Accepted Docs - The total number of documents for the job accepted by the system.
(Total Documents -Total Rejected Documents).
Total Batches - The total number of batches run for the job.
Total Characters - The count of all the characters for the job that were read or rejected by the
system. (Total Accepted Characters + Total Rejected Characters).
Total Documents - The count of all the documents for the job that passed through the system.
(Total Accepted Documents + Total Rejected Documents).
Total Handprint Accepted - The total number of handprint characters read and accepted. (Total
Handprint Characters - Total Rejected Handprint Characters).
Total Handprint Rejected - The total number of handprint characters unread and rejected.
(Total Handprint Characters - Total Accepted Handprint Characters).
Total Machine Print Accepted - The total number of machine print characters read and
accepted. (Total Machine Print Characters - Total Rejected Machine Print Characters).
Total Machine Print Rejected - The total number of machine print characters unread and
rejected. (Total Machine Print Characters - Total Accepted Machine Print Characters).
Total Quality - A customer-focused management philosophy and strategy management that
seeks continuous improvement in business processes using analytical tools and teamwork that
encompasses the participation of all employees.
Total Rejected Chars - The total number of characters (handprint and machine print) unread
and rejected. (Total Characters - Total Accepted Characters).
Total Rejected Docs - The total number of documents rejected by the system. (Total Documents
- Total Accepted Documents).
Total Time - The total amount of time that the job has been running.
TPI - Shorthand for tracks per inch, a unit measure of a media’s physical storage structure and
Trace Number - A number assigned to every ACH entry by an originating institution that
uniquely identifies that entry with a specific ACH file. First eight digits of the trace number are
transit/routing number of ODFI and last seven digits are sequence numbers assigned by the
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FTP Industry Glossary
Trace Request (FMS 150.1 or FMS 150.2) - A form sent by the Government Disbursing Office
to a financial institution reporting a non-receipt claim by a payee for an ACH payment.
Tracer - Attempt to determine the status of a lost or delayed shipment or order.
Track - The path which is to be followed by the read head or beam during the magnetic or
optical reading of a disk or disc; or the path to be followed by the recording head or beam during
the writing of a disk or disc. In an optical system, the track consists of the Groove (recordable)
and the Land (un-recordable).
Trailer - See Batch End Trailer.
Trained Font - A machine print recognition scheme where the OCR software is trained and
optimized for one specific character set. A trained font gives better accuracy when reading
degraded characters if it was trained with samples of the same degraded characters.
Transaction - A balanced credit and debit to the proper accounts. A transaction may be either a
payment or an adjustment. It contains debit and credit elements. It may consist of either physical
documents or electronic data.
Transaction Balances - Depository balances held by a company for collection and disbursement
Transaction Code - The two digit code in the ACH record that determines whether an entry is a
debit or a credit to a savings, demand deposit or FI general ledger account or a credit to a loan
Transaction Exposure - The exposure of balance sheet accounts to a change in foreign
exchange rates between the time a transaction is booked and the time it is paid.
Transaction Files - See Case Files, Valid Transaction Files.
Transaction Flags - Labels that indicate a status of a customer’s payment or an attribute of a
transaction. Transaction flags include:
• * - An asterisk indicates an amount that was assigned through the use of the auto assign
• Cash - A payment made in cash.
• OOB Multi Doc - An out of balance payment containing more that one document with a
single payment.
• OOB Multi Pay - An out of balance payment containing more that one payment with a
single document.
• OOB Multi Multi - An out of balance payment containing more that one payment and
more than one document.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Over - A customer’s payment that is more than the total due.
Partial - A customer’s payment that is less than the minimum amount due.
Transaction Kill - The condition that all elements of a transaction are equal in total dollar
amount. The act of bringing all elements of a transaction into equality. Also known as balancing
a transaction, kill.
Transaction Number - See Sequence Number.
Transaction Processing - Characterized by high volumes and workflow orientation, transaction
processing involves setting up automated procedures for handling commonly repeated tasks.
Work is passed automatically from worker to worker in assembly-line fashion. For example, in
check processing, one group of operators or automatic routines might process all checks, while
item repair and balancing occurs at a different stage of the game. This is contrasted to store and
retrieve where volumes are low and inquiries are random. Although relatively new to banks,
insurance companies have used transaction processing systems for years to process claims.
Transaction Risk - The possibility that a loss will be sustained due to the incorrect transfer of
funds. Transaction risk usually arises when a large dollar transaction is treated as if it were a
small dollar transaction without transferring all the procedures and security associated with the
large dollar transaction to the small dollar system. An example of this would be a transaction
which would normally be processed as a wire transfer, with all of the normal associated security
procedures for wire transfers, converting to an ACH transaction without having the same
security procedures in place.
Transaction Sets - The electronic equivalent of a paper business document or form.
Transaction Type - How payments and documents are combined when they arrive and when
they are processed. The transaction types are:
• Single - A single document with a single payment.
• Multi - A multi doc, multi pay, multi multi, or group.
• Multi Doc - Multiple documents with a single payment.
• Multi Pay - A single document with multiple payments.
• Multi Multi - Multiple documents with multiple payments.
• Group - Transactions from a remittance collection point outside the processing site,
processed in a batch with other groups.
Transaction Type Keys - Keys used to process different transaction types.
Transfer - 1. The act or process of moving records from one location to another, especially from
office space to agency storage facilities or Federal records centers, from one Federal agency to
another, or from office or storage space to the National Archives for permanent preservation. 2.
The records involved in such a relocation. See Accession, Block Disposition 1., Retirement, and
Scheduled Transfer.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Transfer Agent - Individual or company that keeps a record of the shareholders of a corporation
by name, address and number of shares.
Transfer Rate - The rate, usually expressed in bytes per second, at which information can be
sent from one device or component to another. The transfer rate of a CD-ROM has been
measured at 150,000 bytes per second.
Transit - The function specifically dedicated to preparing checks for dispatch and presentment
to the banks in which they are drawn. Checks must be bundled and matched with a printout that
lists their amounts. Cash letters are created by creating a printout that summarizes the bundles.
Transit Density - The average dollar amount of non-local items per document in a given group
of items. Transit density is computed by dividing the total dollar amount of non-local checks by
the total number of all items-including deposit slips, control documents, credit memos, debit
memos, on-us checks, and local checks-within a given group of items.
Transit Field - A field in the MICR line of a check. Together with the routing code, it identifies
the bank on which a check is drawn.
Transit Item - An item drawn against an institution other than the one at which it is currently
being processed.
Transit Routing Number - A nine-digit number (eight digits and a check digit) that identifies a
specific financial institution. These numbers are assigned by the Rand McNally Corporation and
are listed in its annual publication Key to Routing and Transit Numbers.
Transit Routing Symbol - A number on a check or draft which facilitates routing for collection
of funds from the drawee bank by the Federal Reserve. The Transit Routing Symbol (TR)
appears in the MICR line at the bottom of the instrument, as well as in the fraction in the upper
right hand corner. The number represents the Federal Reserve District of the drawee bank, the
Federal Reserve Bank head office or branch through which the item should be cleared, and
whether the item is available for immediate credit of funds.
Transitory Correspondence Files - Correspondence relating to matters of short-term interest,
such as acknowledgments for publications received, routine inquiries for publications, and
announcements of savings bond campaigns, in contrast to administrative and program correspondence making up the general correspondence files. Also called transitory files. See
Correspondence, General Correspondence Files.
Translation Exposure - The exposure of balance sheet accounts when a non-domestic
subsidiary’s financial statements must be translated into U.S. dollars to be incorporated into the
parent company’s financial statement.
Transmission - To move data from a computer to a device or other computer.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Transmit - See Transmission.
Transmitted Light Scanner - An optical scanner that operates by sensing light transmitted
through paper instead of reflected from its surface.
Transparent Inks - Inks that permit previous printing on the paper substrate to show through
and which are usually blind.
Transport - The transport is the initial point of data entry into the system. It is a high-speed
document processor equipped with an image camera. Paper documents move through it, the
OCR and MICR characters are read, electronic images are captured, and documents are sorted to
pockets. Microfilm and Audit Trail applications can also be processed on the transport.
Transport Controller - Controls transport operations and provides the interface between
transport applications and the transport. The controller console is used to enter the necessary
commands to configure and start up the transport and to perform other related functions.
Transport Operator Panel - Displays messages and allows operator to enter simple commands
for such things as job and maintenance control functions. Consists of display screen, keypad, and
Stop and Feed switches that control transport motors.
TRC - Truncated (Check) Entry.
Treasury Bills (T-Bills) - Discount instruments issued by the U.S. Treasury in original
maturities of 13, 26, and 52 weeks.
Treasury Bonds (T-Bonds) - Coupon securities issued by the U.S. Treasury with interest p
semi-annually in original maturities of ten to 30 years.
Treasury Direct - Treasury Direct is a book-entry securities system in which investors’
accounts of book-entry Treasury marketable securities are maintained. It is designed for
investors who purchase Treasury securities and intend to hold them until maturity.
Treasury Financial Manual - The manual issued by the Financial Management Service
containing procedures to be observed by all agencies, Federal Reserve Banks, and financial
institutions with respect to payments, collections, central accounting, financial reporting, and
other government-wide fiscal responsibilities of the Treasury.
Treasury Management Information System (TMIS) - Configurations of hardware, software,
and information sources designed to assist in the collection and formatting of information and
routine calculations.
Treasury Notes (T-Notes) - Interest-bearing securities issued by the U.S. Treasury with original
maturities of two to ten years.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Treasury Securities - Full faith and credit obligations of the U.S. Government issued by sale at
periodic auctions, delivered and cleared electronically. There are two types: register and bearer.
Treasury Tax & Loan (TT&L) Account - An account maintained at Federal Reserve member
banks for deposit of tax payments made by corporations.
Treasury Tax & Loan Depository - A financial institution that has been designated by the
Treasury Department as eligible to receive federal tax payment deposits from taxpayers on
behalf of the Federal Government. Under the Electronic Federal Tax Payment System, all
financial institutions will be able to make and process federal tax payment transactions on behalf
of their customers, but only those institutions specifically enrolled as Note Option depositories
will have the subsequent use of tax investments until the Treasury calls for their funds.
Treasury Workstation - Typically a PC that has software that gathers information from both
internal and external sources, then compiles the data for purposes of analysis and decision-making. It can be a stand-alone or part of a Local Area Network (LAN) or Wide Area
Network (WAN).
Tree-Structured Directories - A familiar name for hierarchical file management, used by both
DOS and Macintosh operating systems. So-called because sub-directories can be thought of as
branching away from the main, root directory.
Trial Balance Printout - A spreadsheet that lists all loans in a portfolio and their payment
schedule. Usually required for a portfolio transaction.
Trim Marks - Guides that show where a document will be cut to fit the specifications of a final
printed product.
TRN - Transit/Routing Number.
TrueType - Font scaling technology developed by Apple and Microsoft.
Truncated - Terminated or cut off, such that all remaining actions or data are discarded.
Truncated Check Entry (TRC) - An entry that originally represented a check, in which the
actual check is safekept by one of the financial institutions in the chain of deposit and the MICR
information is converted to an electronic entry and processed through the ACH Network back to
the issuing institution. These items carry the Standard Entry Class code TRC.
Truncated (Extended) Check Entry (TRX) - A series of TRC entries put together as addenda
records with the payment item representing the total settlement of the TRC entries for that batch.
Truncation - Terminating further physical handling of an item or set of items.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
TSR (Terminate and Stay Ready) - A software program which can be loaded into RAM and is
available for use at any time, usually triggered by a special combination of keystrokes known as
a hot key combination. Some scanner software is TSR
TT&L - Treasury Tax & Loan.
Turnaround - The elapsed time between submission of a job to a computing center or COM
center and the return of results.
Turnaround Document - A form produced by an EDP system intended for future re-entry,
possibly with added data, via an optical scanner.
Turnkey System - An integrated configuration of pre-selected hardware and prewritten software
designed to accomplish a particular information processing task. The term is most often applied
to dedicated computer systems that use minicomputers or microcomputers.
Twisted Pair - Type of cable consisting of only two wires. Used mainly for telephone lines, it is
excellent and inexpensive for high-speed transmissions over short distances.
Two-Dimensional Symbol - A barcode symbology whose symbols are composed of rows of
characters displayed in a rectangular or square pattern.
Two-Pass Workflow – An imaging workflow that utilizes two passes to process transactions.
The first pass serves to capture data and images to be distributed to various workstations (PC’s)
for keying. Once all transactions in a batch are keyed, balanced, and any additional data has been
entered, only the checks are sent through the transport for a second pass to be power encoded.
Two-Way Remittance Envelope - A remittance envelop with a perforation on the flap. The
remitter removes the perforated flap and sends the remittance in the same envelope.
TXP - Tax Payment Convention.
Type and Scan - An optical scanning application in which input data having an unsuitable
format or quality is retyped on machine readable forms.
Type Font - Same as font. All the characters and digits in the same style and size of type.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-UUBR - Unspecified Bit Rate.
UCC (Uniform Code Council) - The organization which administers the UPC code and other
retail standards, such as the Uniform Container Symbol (UCS) and the Universal Product Carton
Code (UPCC).
UCC 4A - Uniform Commerical Code Article 4A.
UDP (User Datagram Protocol) - One of the protocols for data transfer that is part of the
TCPAP suite of protocols. UDP is a stateless protocol in that UDP makes no provision for
acknowledgement of packets received. See TCP/IP.
UHF - Ultra-high frequency.
Ultrafiche - Microfiche that can hold 1,000 document pages per sheet. Normal microfiche holds
270 pages.
Ultraviolet Response - A scanning system that reacts to light in the extreme blue region of the
visual color spectrum.
Unallocated Float - The amount of deposited funds that are made available to customers on the
same day or before the day the bank receives good funds. This may apply to internal departments
as well. General ledger and internal accounts are usually not charged with the time value of
offsetting debits that are not immediate funds.
Unauthorized - An ACH item is unauthorized if it was never originally authorized, if it clears
for more than was originally authorized or if it settles earlier than was previously authorized.
Unbundled - Services, programs, software and training sold separately from the hardware.
Unbundling - Trend in banking toward costing and pricing separately for services provided.
Uncollected Funds - That portion of a deposit balance not yet collected by the depository bank.
Underscan - The part of an image that’s inside the borders of the display screen - the part you
can see.
Undistributed Funds - See Out of Balance.
UN/EDIFACT - The United Nations body chartered to develop international standards for the
electronic exchange of business information. UN/EDIFACT standards are different from ANSI
X12 standards.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Unerase - An MS-DOS command for getting back files you’ve accidentally erased.
Unfragmented - A hard disk that has most of its files stores in consecutive sectors, rather than
spread out all over the disk in an interleaved fashion.
Unicode - A two-byte character set used to represent characters for languages that have more
symbols than the ASCII character set can represent. Because it is a two byte code, Unicode can
represent up to 65,536 characters. The storage overhead is twice as large as it is with ASCII,
which uses one byte per character. Unicode is generally only used in international applications
that require more than 255 characters.
Uniform Commercial Code (UCC) - A uniform set of laws governing commercial transactions
enacted separately in each state. It defines the rights and duties of the parties in a commercial
transaction and provides a statutory definition of commonly used business practices.
Uniform Commercial Code Article 3 - The portion of the Uniform Commercial Code that
deals with the negotiable instruments. This law outlines what a negotiable instrument is and
what it means.
Uniform Commercial Code Article 4 - The portion of the Uniform Commercial Code that
deals with bank deposits and collections. This law outlines the collection process of negotiable
Uniform Commercial Code Article 4A - The portion of the Uniform Commercial Code that
deals with certain funds transfers, including ACH credit transactions not subject to the Electronic
Funds Transfer Act or Regulation E. This law outlines the protections and responsibilities given
to the parties to wholesale credit transactions and sets the legal standards for commercially
reasonable security procedures to be used in conjunction with those transactions.
Uniform Operating Circular (UOC) - The standard operating procedures of the Federal
Reserve Bank for the processing of ACH transactions.
Uniform Resource Locator (URL) - A unique address that specifies the path where a particular
Web page is stored. It usually begins with http://.
Unique Zip Code - An individual zip code assigned to one entity. Large volumes of mail must
be received to qualify for a unique zip code.
Unit Cost - The sum of all fixed and variable expenses associated with the processing of a single
unit of work.
Unit of Work - See Batch.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Unit Set - A form which is provided with a multiply assembly attached by one or more edges to
assure registration of plies during data entry. Such forms are single units as contrasted to
continuous forms.
United States Code (USC) - See Code 3.
UNIV - University.
Universal Camera - A special microfilm camera that handles 16mm, 35mm, 82.5mm and
105mm film formats.
Universal Commerce (U-Commerce) – The ability to conduct secure commerce anywhere,
anytime, with any type of device.
Universal Product Code (UPC) - A specialized bar code developed by the grocery industry to
allow scanner-equipped checkout terminals to capture product information optically.
UNIX - A general purpose, multi-user, multitasking operating system invented by AT&T. UNIX
is powerful and complex, and needs a computer with a large amount of RAM memory to support
its power. UNIX allows a computer to handle multiple users and multiple programs
simultaneously. And it works on many different computers, which means you can often take
applications software and move it - with little changing - to a bigger, different computer, or to a
smaller, different computer. This process of moving programs to other computers is known as
Unknown Item - Item that could not be identified either as a document (Optical Character
Recognition - OCR) or check (Magnetic Ink Character Recognition - MICR) during Pass 1. Does
not contain OCR-readable scanline. These items are presented to an image operator for
Unload - The process of preparing a machine-readable media for removal and storage by an
operator. Example: unloading a tape drive permits the operator to remove the reel of tape for
Unmatched Payments - Payments that differ from the amount due. The amount due can be
either a minimum payment amount or a total balance due (e.g., a credit card account). This term
is typically used in retail lockbox processing. Also known as partial payments or unequal
Unqualified - Total amount of a cash letter consisting of unreadable (unqualified) items.
Unscheduled Records - Records whose final disposition has not been approved by NARA. See
Disposition 1., Final Disposition, and Records Schedule.
Unseasoned - A lease or note that has had few, if any, payments made.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Unstructured Data - Data that is of variable length and subject to a change in size. Data that
cannot be stored in a fixed-length field without an element of distillation.
Unzip - To decompress a file using the popular compression software called PKUNZIP.
UOC - Uniform Operating Circular (of the Federal Reserve Bank).
UOW (Unit of Work) - See Batch.
UPC (Universal Product Code) - A standard machine-readable bar code, when it’s applied to
retail products for inventory and pricing management purposes.
Upload - The process of transferring information from your computer to another computer
through the Internet. Every time you send e-mail to someone you are uploading it.
Upper Case - The large character, or capital letters, in a type font, as distinguished from the
lower case characters or small letters.
Uptime - A unit of caluculation that indicates the reliability of a piece of hardware. The total
amount or percentage of time that a device or piece of hardware is avaiable for use.
URI (Uniform Resource Identifier) - An address for resources available on the Internet. The
first part of a URI is called the scheme. The most well known scheme is http, but there are many
others. Each URI scheme has its own format for how a URI should appear.
URL (Uniform Resource Locator) - A unique address that specifies the path where a particular
Web page is stored. It usually begins with http://.
URN (Uniform Resource Name) - A URI that is supposed to be available for along time. For
an address to be a URN some institution is supposed to make a commitment to keep the resource
available at that address.
USC - United States Code.
Usenet - A collection of so-called news groups that have nothing to do with news. Usenets are
ongoing discussion groups among people on the Internet who share a mutual interest.
User ID - This is the unique identifier (like your logon name) that you use to identify yourself on
a computer. You probably typed your User ID (and password) when you logged onto the Internet
USPS - United States Postal Service.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
USS (Uniform Symbol Specification) - The current series of symbology specifications
published by AIM.
Utah - UT
Utility - A program that performs general computer functions that are not directly related to a
specific data processing or printer application. Utilities most commonly used are disk handling
routines (such as deleting and renaming files), editors, and report writing programs.
UTP - Unshielded, twisted pair (cable).
UUENCODE (Unix to Unix Encoding) - A method for converting files from Binary to ASCII
(text) so that they can be sent across the Internet via e-mail. See Binhex, MIME.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-VVAB - Value Added Bank.
VAD - Voice Application Developer.
Valid - Having the specified characteristics that will allow an extraction to occur from a string of
characters. A key word in reference to setting break conditions; the break condition is satisfied
when the field has the specified characteristics.
Valid Transaction Files - In electronic record keeping, files containing new data to be
processed together with master files to create updated master files. See Processing Files.
Validation - The checking of data for compliance with applicable rules or standards.
Value-Added Bank (VAB) - A bank that performs many of the functions of a Value-Added
Value-Added Network (VAN) - Third-party communications provider that play a major role in
EDI processing and serve as intermediaries between trading partners.
VAN - Value-added network, a communications network originally dedicated to enabling EDI
transactions, now provides community networking services and translation for Internet
commerce methods.
Vaporware - A semi-affectionate slang term for software which has been announced and
perhaps even demonstrated, but not delivered to commercial customers.
VAR/VAD (Value Added Reseller/Dealer) - Essentially, VARs or VADs are companies that
buy equipment from computer or telephone manufacturers, add some of their own software and
possibly some peripheral hardware to it, then resell the whole computer or telephone system to
end users.
Variable Data - Information entered on the form during the course of its use (as opposed to
constant data, preprinted data).
Variable Length Field - A data segment within an electronic message with a variable length,
offset from other data segments by the use of delimiters.
Variable Length Record - A file in a database containing records not of uniform length and in
which the distinctions between fields are made with commas, tabs or spaces (called delimited).
Records become uniform in length either because they are uniform to start with or they are
padded with special characters.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Variable Unit Cost - That portion of the unit cost that changes in relationship to the amount or
volume of work to be performed. Supplies are a variable unit cost in that their usage and
expense are controlled by the amount of volume or work processed.
Variation - Any quantifiable difference between individual measurements; such differences can
be classified as being due to common causes (random) or special causes (assignable).
VAT - Value-added tax.
VCR (VideoCassette Recorder) - A magnetic recording and playback machine. Generally used
for recording and viewing full-motion video, but useful (when adapted) as a data backup device.
VDT (Video Display Terminal) - Generic, slightly inaccurate, name for any display terminal.
Vector Generator - A method of generating graphical information using origin, direction and
line length.
Vector Graphics - A process that represents graphics by drawing line segments from one point
to another.
Vector Image - An image represented by a series of graphical instructions, such as draw a line,
draw a box, or draw a circle.
Vendor - In all cases, from a single-individual to a multi-national corporation, the provider of
goods or services can be correctly referred to as a vendor. However, the vendor may not do its
own billing. The business of providing print and electronic delivery of bills, statements, etc. is
increasingly indirect. In many cases, the vendors have vendors who send out bills on their
behalf. The originating vendor is sometimes referred to as the biller or payee.
Vendor Express - The U.S. Department of the Treasury program to pay government agency
vendors electronically through the ACH.
Vendor Payment - The electronic transfer of funds and payment-related information used by the
Federal government for payments to businesses that provide goods and services to Federal
agencies and other payment recipients, such as State/local governments and educational
Verifier - A device that measures the bars, spaces, quiet zones and optical characteristics of a
barcode symbol to determine whether it meets the requirements of a specification or standard.
Verify - 1. To check, usually with an automatic technique, to minimize the number of human
errors or mistakes in the data transcription. 2. To make certain that the data prepared for the
computer is correct.
Vermont - VT
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Veronica (Very Easy Rodent Oriented Net-Wide Index to Computerized Archives) Developed at the University of Nevada, Veronica is a constantly updated database of the names
of almost every menu item on thousands of gopher servers. The Veronica database can be
searched from most major gopher menus. See Gopher.
Vertical Field Separators - A vertical line separating data fields.
Vertical Mode - Frames of data recorded so that they can be read when the filmstrip is held
vertically. Used to be known as Cine Mode. Applies to 16mm. and 35mm roll film. See
Horizontal Mode.
Vertical Symbol - A barcode symbol displayed so that the bars and spaces resemble a ladder.
Vesicular Film - A film in which the light sensitive component is suspended in a plastic layer.
On exposure, the component creates optical vesicles (bubbles) in the layer. These imperfections
form the latent image. The latent image becomes visible and permanent by heating the plastic
layer and then allowing it to cool. Similar to diazo film (it uses diazo salts instead of silver),
vesicular film is used to make duplicates of microfilm which are the opposite polarity of the
Vesting - Granting to employees entitlement to a pension at retirement.
VGA (Vector Graphics Adapter) - An industry color graphics display standard. Standard VGA
is 640 by 480 pixels.
VHF - Very high frequency.
Video - Pertaining to the bandwidth and spectrum position of the signal resulting from television
Video Camera - Camera capable of acquiring and deliver to a recording device full-motion
video. Converts the moving image into a series of horizontal lines, which are further broken
down into continuously varying pixels for display. Most often analog, but digital video cameras
that use charge coupled devices (CCDs) are becoming common.
Video Codec - The device that converts an analog video signal into digital code.
Video Digitizer - Same as frame grabber. A device that changes a video picture into a digital
computer graphics language.
Videoconferencing - The use of a network to provide audio and video communication between
a number of sites.
Videodisc - Read-only, direct access optical disc that holds up to two hours of analog video data.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Virgin Islands - VI
Virginia - VA
Virtual Reality - A real-time interactive graphics and animation technology that immerses users
in alternate worlds intended to be as real as possible.
Virus - A computer program, modeled on biological viruses, which replicates itself by attaching
to other computer programs and then demonstrates its presence either harmlessly or in a
damaging way.
Visible Response - A particular type of optical response system used in some scanners. There
are very few reflective inks for this type system.
VISIT - Visual Interactive Technology (Northern Telecom desktop video conferencing).
Vital Records - Records essential to the continued functioning or reconstitution of an
organization during and after an emergency and also those records essential to protecting the
rights and interests of that organization and of the individuals directly affected by its activities.
Sometimes called essential records. Include both emergency-operating and rights-and-interests
records. Recommended that these be duplicates, or extra copies, located off-site. See
Emergency-Operating Records, Rights-and-Interests Records.
VLSI (Very Large Scale Integration) - Semiconductor chip with several thousand active
elements or logic gates - the equivalent of several thousand transistors on a single chip. VLSI is
the technique for making the so-called computer on a chip.
Vocabulary - The characters and fonts that a particular optical device is capable of recognizing.
Voice Mail - A system that stores and provides access to telephone messages in mailboxes.
Voice Messaging - A system that allows the broad distribution of information via telephones and
voice mail.
Void - An area within an OCR character, which is of high reflectance relative to the dark
reflectance criteria, i.e. the character is poorly inked. Large voids might result in a non-read or
Volatile Memory - Memory whose contents are lost when the power is switched off.
Volatile Storage - Computer storage that is erased when power is turned off. RAM is volatile
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Volume Label - A name assigned to a floppy or hard disk in MS-DOS. The name can be up to
11 characters in length. You assign a label when you format a disk or, at a later time, using the
LABEL command.
Voucher - See Stub.
VP - Vice president.
VPN (Virtual Private Network) - Usually refers to a network in which some of the parts are
connected using the public Internet, but the data sent across the Internet is encrypted, so the
entire network is virtually private. A typical example would be a company network where there
are two offices in different cities. Using the Internet the two offices merge their networks into
one network, but encrypt traffic that uses the Internet link. See Internet, Network.
VRM - Variable-rate mortgage.
VRU - Voice Response Unit.
VSAT - Very Small Aperture Terminal (satellite communication methodology).
VTAM - Virtual Telecommunications Access Method.
VTOC (Volume Table of Contents) - The portion of a CD-ROM (or any other disk) containing
basic labeling, including name of the disc, copyright data, volume number (if part of a larger set
of discs), version number, pointers to data blocks, etc.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-WWAIS (Wide Area Information Servers) - A commercial software package that allows the
indexing of huge quantities of information, and then making those indices searchable across
networks such as the Internet. A prominent feature of WAIS is that the search results are ranked
(scored) according to how relevant the hits are, and that subsequent searches can find more stuff
like that last batch and thus refine the search process.
Wallclock Throughput – The actual number of items or transactions that can be completed in a
specific time period; includes the time an operator has to deal with jams, emptying pockets, and
loading more transactions. This is the throughput that is most critical in determining the number
of processing units (PC’s/transports/printers, etc.) or FTE’s (Full Time Equivalents) that are
Wallet Flap (Envelope) - An open side style with a choice of diagonal or side seams and a
square seal flap about ½ the size of the envelope itself. Available as a Regular or Window.
WAN (Wide Area Network) - Refers to a network that links two or more Local Area Networks
between remote sites, operating effectively as a single addressable network.
Wand - Light pen. A bar code or OCR contact scanning device held in the operator’s hand and
moved across the symbol. Wands are contact or near-contact devices.
Warehousing - The ability of an originating institution to receive one file from a
customer/company ahead of the effective date and hold it for release to the ACH on the effective
date or for a receiving financial institution to receive entries ahead of the effective date and hold
them without posting until the effective date has been reached.
Washington - WA
WATS (Wide Area Telephone Service) - Special long-distance calling plan offered by
telecommunications companies which offer reduced-rate long-distance calls for commercial
Wave - A pattern inherent in certain types of energy, including light and sound. Waves have
several characteristics, including amplitude (height of the wave), wavelength (width of the wave)
and frequency (number of times it cycles in a given period of time). Frequency is measured in
hertz, or cycles per second.
Waybill - Document which accompanies goods in shipment and which details the cost and route
of shipment.
Web - A hypermedia-based system for browsing Internet sites. It is named the Web because it is
made of many sites linked together; users can travel from one site to another by clicking on
hyperlinks. Also called the World Wide Web (WWW).
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
WEB - Internet-Initiated Entry.
Web Browser - The tool (program) that allows you to surf the web. You probably used your
Web Browser to locate this page. The most popular Web Browsers right now are Netscape
Navigator and Internet Explorer.
Web Hosting - A Web hosting company leases server space and Web services to companies and
individuals who wish to present a Web or E-Commerce presence but do not wish to maintain
their own servers.
Web Page - Every time you are on the Internet, you are looking at a Web Page. Yes that
includes this page.
Weeding - See Screening 2.
West Virginia - WV
Wet-Ink - Printing techniques such as letterpress, offset lithography, flexography, rotogravure
and inking wheels. The basic wet-ink technique is to create a photographic image or film master
of the label, make a printing plate from the master, and apply ink to the plate to transfer the
image to label facestock or the item itself.
Wet Processing - Treatment of film carried out by using chemicals in liquid or vapor form.
White Collar - Employee in a clerical, administrative, managerial, or professional occupation
not performing manual work.
White Line - In film images, the opposite polarity from black line; having white characters with
an opaque or dark background. Preferred polarity for use in a microfiche reader. See Black Line.
White Mail - Remittances received in an envelopes that are not your return envelopes.
White Space - See Quiet Zone.
White Standard - A substance that reflects 100% light and is used in calibrating test
instruments. See Barium Sulfate.
Who Is - A searchable directory of people and their e-mail address.
Wholesale Credit - A credit transaction originated or received by a non-consumer, i.e., a credit
transaction to a business account.
Wholesale Credit Transactions - Under the Uniform Commercial Code Article 4A, wholesale
credit transactions are defined as electronic credit transactions between commercial entities, such
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
as businesses and their financial institutions. This term includes individual commercial ACH
credit transactions and certain payment orders such as wire transfers and internal transfers, these
transactions are subject to the provisions of Article 4A. An ACH file that is composed of
individual consumer transactions is considered to be subject to UCC4A as well because, in
aggregate, the entire file is a transaction between a corporate entity and the ODFI.
Wholesale Lockbox - A low volume, high dollar lockbox operation that works with corporate
Wholesale Lockbox Monthly Maintenance - Fixed monthly charge associated with the
maintenance of a wholesale lockbox account.
Wholesale Remittance Processing - Corporate to corporate payments with the following
characteristics: low transaction volume compared to retail; high dollar payment amount
compared to retail; documents vary is size and format, no standardization among payments;
payments are received in a variety of envelopes varying in size, format and color.
Wholesaler - Individual or company that buys goods in bulk for resale to retailers.
Whole-Tail Lockbox - Processes both wholesale and retail lockbox payment types; useful for
companies that have both consumers and businesses as customers, and small and large
remittances. Characterized by customized processing and data capture requirements.
Wholetail Remittance Processing - A hybrid transaction between retail and wholesale having
some the characteristics of each. Characteristics include, but are not limited to: Corporate to
corporate payments; average volume of envelopes but with a high volume of transactions; high
dollar payments compared to retail; contains machine printed detail accompanying the check or
financial instrument.
Wide Area Bar Code Reader (WABCR) - New barcode readers capable of reading barcodes
printed by mailers outside of the Barcode Clear Zone (bottom right comer of the envelope).
Wide/Narrow Ratio - The ratio of the widths of wider elements in a symbol to those of the
narrow elements.
Widget - Hypothetical product used to illustrate marketing or manufacturing concepts.
Width - The distance between the two edges of a form, measured along a nominal data line as
the form is fed through an optical reader.
Width Table - The part of the publishing software that keeps a listing of the widths of a font’s
characters; used for proportional spacing.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Wildcard - A character in a text search that stands for other characters. For instance, a search for
GEO* (with the asterisk being the wildcard) would find all occurrences of words starting with
the letters GEO - geography, geostationary, geology, etc.
Wildcarding - The use of characters known as wildcards in a query term which signify that any
group of characters can be used to complete the term.
Winchester Disk - The common version of the sealed hard disk. Invented by IBM. Winchester
was the code name during its development, because the name of the system it was designed for
(3030) reminded somebody of the Winchester rifle. A Winchester hard disk drive consists of
several platters of metal stacked on top of each other. Each of the platter surfaces is coated with
magnetic material and is read and written to by heads which boat across (but don’t touch) the
Windfall Profit - Sudden profit resulting from events not controlled by the individual or
company profiting from them.
Window - The part of a GUI that provides the user with a frame through which an application, a
file, or part of a program’s contents can be seen. Standard on Apple computers since 1984, and
featured on IBM personal computers since 1985.
Window Envelopes - Envelopes that have an opening through which an address printed on an
insert is visible.
Windows - 1. A Microsoft operating system that features multiple screens and a graphical user
interface (GUI). 2. Areas on a CRT screen (usually rectangular) which are used to select, control
or observe the status of a function, job or process that is of interest to the user. Use of a window
allows the remainder of the CRT screen to continue the display of other information.
Windows NT - Microsoft’s advanced 32-bit operating system. Available in a Windows NT
Server version for network servers and in a Windows NT Workstation version for client PC’s.
Wire Payments - Another term for Third Party Payments. Secure payment of very high dollar
amounts. The most commonly used method for international payments.
Wire Side - The side of a paper sheet next to the wire carrier in the manufacturing process;
opposite from the felt side.
Wire Transfer - A term used generically to refer to large dollar, instantaneous electronic funds
transfers. Examples of domestic payment systems offering financial wire transfer services
include the CHIPS of the Electronic Payments Network and FedWire of the Federal Reserve.
Wireless - The transmission of data by non-cable technologies such as microwave, satellite, and
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Wireless LAN - A local area network connected by wireless technology.
Wireless Transmission - The transmission of data without cables, using microwave, satellite,
and cellular technologies.
Wisconsin - WI
WLB - See Wholesale Lockbox.
Word Processing (WP) - Creating and modifying documents by using a computer, along with
other hardware and related software, instead of using a typewriter. See Office Automation.
Work Files - In electronic record keeping, temporary files in auxiliary storage. Sometimes
called working files. See Processing Files.
Work Permit - Document given to aliens that demonstrates to employers that the individual is
legally allowed to work in the U.S.
Workflow - The automation of a business process or procedure. Based on pro-active
management of electronic documents. The order in which the items are routed through the
various applications attached to the file server. Workflow can also mean the order in which work
is performed on items in the file server.
Workflow System - An imaging system that concentrates on automating the processing of
documents - scheduling processing, routing documents automatically among departments and
tracking document status. See Storage and Retrieval System.
Working Capital - Refers to a company’s investment in short-term assets such as cash,
inventories, marketable securities, and accounts receivable. The amount these short-term assets
exceed short-term liabilities is known as Net Working Capital.
Working Files - Documents such as rough notes, calculations, or drafts assembled or created
and used to prepare or analyze other documents. Also called working papers. See Case Working
Files, Convenience Files, Non-Record Materials, Records, Technical Reference Files.
Workstation - 1. Used by operators to display digital images of documents for data entry or
correction. In addition, the supervisors can use these workstations to monitor the system. 2. A
set of equipment and software designed for access to a computer to perform a user function such
as software development, computer aided design (CAD), accounting, etc. Includes all of the
attributes of an on-line computer terminal, with additional hardware or software or special
modifications directed to the user’s primary work activity
Workstation Mail Extraction - The opening and removal of an envelopes contents at a semiautomated workstation. The workstation cuts the envelope on one, two or three sides and
presents the contents to an operator for extraction, identification, orientation and sorting.
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FTP Industry Glossary
World-Class - Leading performance in process independent of industry, function, or location.
World Standard - Refers to the Philips/Sony World Standards for Compact Discs. Three
documents (the Red Book, Yellow Book and Green Book) describe physical characteristics of
CD-type discs and players.
World Wide Web - A full-color, multimedia database of information on the Internet. Like the
name implies the World Wide Web is a universal mass of web pages connected together through
links. Theoretically, if you clicked on every link on every web page you would eventually visit
every comer of the world without ever leaving your computer chair. Of course you would also
have to live until you were about a million years old and computers were antiquated technology.
WORM (Write Once Read Many) - Optical storage device on which data is permanently
recorded. Data can be erased, but not altered, and no additional data can be added.
WP - Word processing.
WPI - Wholesale price index.
Write Protect - Using various hardware and software techniques to prohibit the computer from
recording (writing) on storage medium, like a floppy or hard disk. You can write protect a 5 ¼”
diskette by simply covering the little notch with a small metal tag (physical write protect). You
write protect a hard disk file with software (logical write protect).
Write Test - Preliminary run of a proposed new form through the writing machine that will
execute the final forms, normally to check image legibility.
Wrong Reading - Reversed, right-to-left image reproduction. Negatives are often wrong
reading. Contrast with right reading.
WWW (World Wide Web) - Frequently used (incorrectly) when referring to The Internet,
WWW has two major meanings - First, loosely used: the whole constellation of resources that
can be accessed using Gopher, FTP, HTTP, telnet, USENET, WAIS and some other tools.
Second, the universe of hypertext servers (HTTP servers), which are the servers, that allow text,
graphics, sound files, etc. to be mixed together. See Browser, FTP, Gopher, HTTP, Internet,
Telnet, URL, and WAIS.
Wyoming - WY
WYSIWYG (What You See Is What You Get) - One of the acronyms the computer industry is
famous for. Pronounced wizzy- wig, it refers to a graphics or publishing program that displays
images on the screen (nearly) exactly the way they will appear on paper.
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FTP Industry Glossary
-XX9 - ANSI Accredited Standards Committee for Banking.
X12 - ANSI Accredited Standards Committee for Electronic Data Interchange.
X12 148 - X12’s First Report of Injury, Illness, or Incident EDI transaction.
X12 270 - X12’s Health Care Eligibility & Benefit Inquiry EDI transaction.
X12 271 - X12’s Health Care Eligibility & Benefit Response EDI transaction.
X12 274 - X12’s Provider Information EDI transaction.
X12 275 - X12’s Patient Information EDI transaction.
X12 276 - X12’s Health Care Claims Status Inquiry EDI transaction.
X12 277 - X12’s Health Care Claim Status Response EDI transaction.
X12 278 - X12’s Referral Certification and Authorization EDI transaction.
X12 811 - X12’s Consolidated Service Invoice & Statement EDI transaction.
X12 820 - X12’s Payment Order & Remittance Advice EDI transaction.
X12 831 - X12’s Application Control Totals EDI transaction.
X12 834 - X12’s Benefit Enrollment & Maintenance EDI transaction.
X12 835 - X12’s Health Care Claim Payment & Remittance Advice EDI transaction.
X12 837 - X12’s Institutional Health Care Claim or Encounter EDI transaction.
X12 837d - X12’s Dental Health Care Claim or Encounter EDI transaction.
X12 837p - X12’s Professional Health Care Claim or Encounter EDI transaction.
X12 997 - X12’s Functional Acknowledgement EDI transaction.
X12F - A subcommittee of X12 that defines EDI standards for the financial industry.
X12J - A subcommittee of X12 that reviews X12 work products for compliance with the X12
design rules.
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FTP Industry Glossary
X12N - A subcommittee of X12 that defines EDI standards for the insurance industry, including
health care insurance.
X.25 - A standards recommendation from CCITT, the term X.25 has come to represent a
common reference point by which mainframe computers, word processors, mini-computers,
microcomputers and a wide variety of specialized terminal equipment from many manufacturers
can be made to work together over a type of data communications network called a packet
switched network.
X.25 Packet Switching - A data communications standard developed by the European CCITT
committee and beginning to become popular in the U.S. as well. Involves routing and controlling
of data packets.
XCK - Destroyed Check Entry.
XGA (Extended Graphics Adapter) - IBM’s graphics standard that includes VGA and
supports higher resolutions, up to 1,024 pixels by 768 lines interlaced.
XMIT - Transmit.
XML - Extensible Markup Language, a World Wide Web Consortium standard that makes it
easier for two computers to exchange data with each other. XML tells what is in the enclosed
tags, and enables users to create unique document description tags. XML makes it easy to send
structured data across the Web. If another partner or supplier teams up with an organization, new
code doesn’t have to be written to exchange data with their system. XML doesn’t replace
HTML, though; they’re designed for different purposes. XML is the Web’s language for data
interchange and HTML is the Web’s language for rendering.
X-On/X-Off - A flow control protocol for asynchronous serial transmission. Flow control is a
method of adjusting information flow. For example, in transmitting between a computer and a
printer, the computer sends the information to be printed at 9600 baud. That’s several times
faster than the printer can print. The printer, however, has a small memory. The computer dumps
to the memory, called a buffer, at 9600 baud. When it fills up, the printer signals the computer
that it is full and please stop sending. When the buffer is ready to receive again, the printer
(which also has a small computer in it) sends a signal to the desktop computer (the one doing the
printing) to please start sending again. X-OFF means turn the transmitter off.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-YYear Basis - A factor affecting pricing is the lender’s use of either a 360-day or 365-day year
basis in calculating interest cost. Certain methods of borrowing have traditionally used one-year
basis over the other.
Yellow Book - The specifications developed jointly by Philips and Sony for the physical
characteristics of CD-ROM discs and players.
Yield Curve - The relationship between current market interest rates (or yields) and time to
Yield - Income divided by principal, adjusted to be expressed as an annual percentage rate of
Yottabyte - Yeah, you could say this is a lot of yotta, yotta, yotta. Actually, it’s one septillion
bytes (that’s one followed by 24 zeros). You’ll never need this much space, at least until the
release of MS Office 2015.
YTD - Year-to-date.
YTM - Yield to maturity.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
-ZZ39.50 - An ANSINISO standard query language which controls the retrieval of information
(including text) in an interconnected environment.
Z39.58 - ANISO proposed standard text retrieval query language. See CCL.
Zap - Informal for wipe out, as in to zap a file by accidentally overwriting it.
ZBA Master Account Maintenance - Monthly fixed charge associated with the maintenance of
a zero balance account, structured in a transfer of funds hierarchy. Funds move to and from a
central account while transaction accounting is reflected in each individual account.
ZBA Sub Account Maintenance - Monthly fixed charge for each of the zero balance sub
ZBB - Zero-based budgeting.
Zero - The numeral is often written with a slash through it to distinguish it from the uppercase
letter O.
Zero Balance - An effective method of data verification when both detail items and their
summary are processed together. Each detail item is accumulated minus and the summary plus.
The result is zero balance if both are correct.
Zero Balance Account (ZBA) - A disbursement bank account on which checks are written even
though the balances in the accounts are maintained at zero. Debits are covered by a transfer of
funds from a master account at the same bank.
Zero Balance Account Disbursing (ZBA). A unique type of corporate checking account
companies employ for disbursement control. The maintenance of a zero balance at all times is its
differentiating characteristic. As checks drawn against a ZBA clear, the total dollar amount
accumulates and results in a debit total. At the close of the business day, a transfer of funds is
made from a master account of the corporation to cover) this debit total and to return the account
to a zero balance. ZBA’s are typically used by corporations that wish central cash control while
allowing decentralized disbursing operations.
Zero Dollar Item - A non-dollar item typically generated in context of an ongoing payment
relationship between two trading partners where the Originator is letting the Receiver know that
no money is owed for that particular billing period. Other uses of this term refer to entries that
send information rather than payments through the ACH system, such as Death Notification
Entries or Automated Enrollment Entries.
Zero Suppression - The technique used to shorten a U.P.C. symbol by omitting certain zeros
from the bar code symbol.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
Zip - To compress a file using the popular program PKZIP.
Zip+Four Code - Adds four digits to an existing zip code, enabling a finer sort by the post
office or by the mailer’s own sorting machines.
Zoom - To enlarge a portion of an image in order to see it more clearly or make it easier to alter.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
NACHA Return Codes
R01 Insufficient Funds - The available and/or cash reserve balance is not sufficient to cover the dollar value of the
debit entry.
R02 Account Closed - A previously active account has been closed by action of the customer or the RDFI.
R03 No Account/Unable to Locate Account - The account number structure is valid and it passes the check digit
validation, but the account number does not correspond to the individual identified in the entry, or the account
number designated is not an open account. [The account number structure is valid and it passes the check digit
validation, but the account number does not correspond to the individual identified in the entry, or the account
number designated is not an open account. (Note: This Return Reason Code may not be used to return POP entries
that do not contain an Individual Name.) ]
R04 Invalid Account Number - The account number structure is not valid. The entry may fail the check digit
validation or may contain an incorrect number of digits.
R05 Reserved
R06 Returned per ODFI's Request - The ODFI has requested that the RDFI return the ACH entry. If the RDFI
agrees to return the entry, the ODFI must indemnify the RDFI according to Article Five (Return, Adjustment,
Correction, and Acknowledgment of Entries and Entry Information) of these Rules.
R07 Authorization Revoked by Customer (adjustment entries) - The RDFI's customer (the Receiver) has revoked
the authorization previously provided to the Originator for this particular transaction. The Receiver may request
immediate credit from the RDFI for an unauthorized debit. The request must be made in writing within fifteen (15)
days after the RDFI sends or makes available to the Receiver information pertaining to that debit entry. The
Receiver must also provide the RDFI with an executed affidavit declaring and swearing under oath that the
authorization for the debit entry has been revoked by the Receiver. The RDFI must return the rescinded transaction
to its ACH Operator by its deposit deadline for the adjustment entry to be made available to the
ODFI no later than the opening of business on the banking day following the sixtieth calendar day following the
Settlement Date of the original entry. This code and related Operating Rule provisions apply to Consumer entries
only. [(Note: This Return Reason Code may not be used for POP entries) ]
R08 Payment Stopped or Stop Payment on Item – (1) The Receiver of a recurring debit transaction has the right to
stop payment on any specific ACH debit. A stop payment request should be handled in accordance with the
provisions of Article Seven (Recall, Stop Payment, Recredit, and Adjustment) of these Rules. The RDFI should
verify the Receiver's intent when a request for stop payment is made to ensure this is not intended to be a revocation
of authorization (R07). A stop payment order shall remain in effect until the earliest of the following occurs: a lapse
of six months from the date of the stop payment order, payment of the debit entry has been stopped, or the Receiver
withdraws the stop payment order. (2) The RDFI determines that a stop payment order has been placed on the item
to which the PPD debit entry constituting notice of presentment or the PPD Accounts Receivable Truncated Check
Debit Entry relates. [The RDFI determines that a stop payment order has been placed on the item to which the PPD
Accounts Receivable Truncated Check Debit Entry relates.] An RDFI using this Return Reason Code must transmit
the return entry by its ACH Operator's deposit deadline for the return entry to be made available to the ODFI no
later than the opening of business on the banking day following the sixtieth calendar day following the Settlement
Date of the PPD debit entry to which the item relates.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
R09 Uncollected Funds - Sufficient book or ledger balance exists to satisfy the dollar value of the transaction, but
the dollar value of transactions in the process of collection (i.e., uncollected checks) brings the available and/or cash
reserve balance below the dollar value of the debit entry.
R10 Customer Advises Not Authorized; Item Is Ineligible, Notice Not Provided, Signatures Not Genuine,
or Item Altered (adjustment entries) – (1) For entries to Consumer Accounts that are not PPD debit entries
constituting notice of presentment or PPD Accounts Receivable Truncated Check Debit Entries in
accordance with Article Two, subsection 2.1.4(2), the RDFI has been notified by its customer, the Receiver,
that the Originator of a given transaction has not been authorized to debit his account. [For entries to
Consumer Accounts that are not PPD Accounts Receivable Truncated Check Debit Entries in accordance
with Article Two, subsection 2.1.4(2) (Authorization/Notification for PPD Accounts Receivable Truncated
Check Debit Entries), the RDFI has been notified by its customer, the Receiver, that the Originator of a
given transaction has not been authorized to debit his account.] The Receiver may request immediate credit
from the RDFI for an unauthorized debit. The request must be made in writing within fifteen (15) days after
the RDFI sends or makes available to the Receiver information pertaining to that debit entry. The Receiver
must also provide the RDFI with an executed affidavit declaring and swearing under oath that the debit entry
was not authorized by the Receiver. For purposes of this code and related Operating Rules provisions, a debit
entry was not authorized by the Receiver if (1) the authorization requirements of Article Two, subsection
2.1.2 (Receiver Authorization and Agreement) have not been met; (2) the debit entry was initiated in an
amount greater than that authorized by the Receiver; or (3) the debit entry was initiated for settlement earlier
than authorized by the Receiver. An unauthorized debit entry does not include a debit entry initiated with
fraudulent intent by the Receiver or any person acting in concert with the Receiver. The RDFI must return
the rescinded transaction to its ACH Operator by its deposit deadline for the adjustment entry to be made
available to the ODFI no later than the opening of business on the banking day following the sixtieth
calendar day following the Settlement Date of the original entry. This code and related Operating Rule
provisions apply to Consumer entries only. (2) For PPD debit entries constituting notice of presentment, the
RDFI has been notified by its customer, the Receiver, that (1) the item to which the PPD debit entry relates is
ineligible as provided for within Article Two, subsection 2.8.2 (Eligible Item), (2) the required notice was
not provided by the Originator in accordance with Article Three, subsection 3.5.2 (Notice Obligation), (3) all
signatures on the item to which the PPD debit entry constituting notice of presentment relates are not
authentic or authorized, or (4) the item to which the PPD debit entry constituting notice of presentment
relates has been altered. The Receiver may request immediate credit from the RDFI for a PPD debit entry
constituting notice of presentment for the reasons described above. The request must be made in writing
within fifteen (15) days after the RDFI sends or makes available to the Receiver information pertaining to
that debit entry. The Receiver must also provide the RDFI with an executed affidavit declaring and swearing
under oath that (1) the item to which the debit entry relates is ineligible, (2) the required notice was not
provided, (3) all signatures on the item to which the PPD debit entry constituting notice of presentment
relates are not authentic or authorized, or (4) the item to which the PPD debit entry constituting notice of
presentment relates has been altered. An RDFI using this Return Reason Code must transmit the return entry
by its ACH Operator's deposit deadline for the return entry to be made available to the ODFI no later than
the opening of business on the banking day following the sixtieth calendar day following the Settlement Date
of the PPD debit entry to which the item relates. [Effective September 15, 2000, with the implementation of
the RCK format, the PPD Standard Entry Class Code will no longer be available for use for re-presented
check entry transactions. This paragraph will be removed as it will no longer be relevant to the description
of Return Reason Code R10.] (3) For PPD Accounts Receivable Truncated Check Debit Entries, the RDFI
has been notified by its customer, the Receiver, that (1) the item to which the PPD debit entry relates is
ineligible as provided for within Article Two, subsection 2.9.2 (Eligible Item), (2) the required notice was
not provided by the Originator in accordance with Article Three, subsection 3.6.1 (Notice Obligation), (3) all
signatures on the item to which the PPD Accounts Receivable Truncated Check Debit Entry relates are not
authentic or authorized, or the item to which the PPD Accounts Receivable Truncated Check Debit Entry
relates has been altered, or (4) the Receiver has provided notice to the Originator not to truncate the item to
which this entry relates in accordance with Article Two, subsection 2.1.4(2) (Authorization/Notification for
PPD Accounts Receivable Truncated Check Debit Entries). The Receiver may request immediate credit from
the RDFI for a PPD Accounts Receivable Truncated Check Debit Entry for the reasons described above. The
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
request must be made in writing within fifteen (15) days after the RDFI sends or makes available to the
Receiver information relating to that debit entry. The Receiver must also provide the RDFI with an executed
affidavit declaring and swearing under oath that (1) the item to which the debit entry relates is ineligible, (2)
the required notice was not provided, (3) all signatures on the item to which the PPD Accounts Receivable
Truncated Check Debit Entry relates are not authentic or authorized, or the item to which the PPD Accounts
Receivable Truncated Check Debit Entry relates has been altered, or (4) the Receiver has provided notice to
the Originator not to truncate the item to which this entry relates. An RDFI using this Return Reason Code
must transmit the return entry by its ACH Operator's deposit deadline for the return entry to be made
available to the ODFI no later than the opening of business on the banking day following the sixtieth
calendar day following the Settlement Date of the PPD debit entry to which the item relates.
R11 Check Truncation Entry Return (Specify) or State Law Affecting Acceptance of PPD Debit Entry
Constituting Notice of Presentment or PPD Accounts Receivable Truncated Check Debit Entry [Check
Truncation Entry Return (Specify) or State Law Affecting Acceptance of PPD Accounts Receivable Truncated
Check Debit Entry] - To be used when returning a check truncation entry. This reason for return should be used
only if no other return reason code is applicable. The RDFI should use the appropriate field in the addenda record to
specify the reason for return (i.e., "exceeds dollar limit," "no match on ARP," "stale date," etc.). - For PPD debit
entries constituting notice of presentment or PPD Accounts Receivable Truncated Check Debit Entries, either [For
PPD Accounts Receivable Truncated Check Debit Entries, either]
(1) The RDFI is located in a state that has not adopted Revised Article 4 of the Uniform Commercial Code
(1990 Official Text) and has not revised its customer agreements to allow for electronic presentment. (2) The
RDFI is located in a state that requires all canceled checks to a specific type of account to be returned to the
Receiver within the periodic statement.
A PPD debit entry constituting notice of presentment of an eligible item as defined by Article Two, subsection 2.8.2
(Eligible Item) or a PPD Accounts Receivable Truncated Check Debit Entry as defined by Article Two, subsection
2.9.2 (Eligible Item) returned using this Return Reason Code must be transmitted by the RDFI to its ACH Operator
no later than midnight of the second banking day following the banking day of receipt of the presentment notice. [A
PPD Accounts Receivable Truncated Check Debit Entry as defined by Article Two, subsection 2.9.2 (Eligible Item)
returned using this Return Reason Code must be transmitted by the RDFI to its ACH Operator no later than
midnight of the second banking day following the banking day of receipt of the presentment notice.]
R12 Branch Sold to Another DFI - A financial institution may continue to receive entries destined for an account
at a branch that has been sold to another financial institution. Because the RDFI no longer maintains the account
and is unable to post the entry, it should return the entry to the ODFI.
R14 Representative Payee Deceased or Unable to Continue in that Capacity
The representative payee is a person or institution authorized to accept entries on behalf of one or more other
persons, such as legally incapacitated adults or minor children. The representative payee is either deceased or unable
to continue in that capacity. The beneficiary is not deceased.
R15 Beneficiary or Account Holder (Other Than a Representative Payee) Deceased – (1) The beneficiary is the
person entitled to the benefits and is deceased. The beneficiary may or may not be the account holder; or (2) The
account holder (acting in a non-representative payee capacity) is an owner of the account and is deceased.
R16 Account Frozen - The funds in the account are unavailable due to specific action taken by the RDFI or by legal
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
R17 File Record Edit Criteria (Specify) - Some fields that are not edited by the ACH Operator are edited by the
RDFI. If the entry cannot be processed by the RDFI, the field(s) causing the processing error must be identified in
the addenda record information field of the return.
R20 Non-Transaction Account - The ACH entry destined for a non-transaction account, as defined in Regulation D,
would include either an account against which transactions are prohibited or limited or a pass-through where the
entry is for a credit union or thrift organization and Regulation E descriptive requirements cannot be met.
R21 Invalid Company Identification - The identification number used in the Company Identification Field is not
valid. This Return Reason Code will normally be used on CIE transactions.
R22 Invalid Individual ID Number - In CIE and MTE entries, the Individual ID Number is used by the Receiver to
identify the account. The Receiver has indicated to the RDFI that the number with which the Originator was
identified is not correct.
R23 Credit Entry Refused by Receiver - The Receiver may return a credit entry because one of the following
conditions exists: (1) a minimum amount required by the Receiver has not been remitted; (2) the exact amount
required has not been remitted; (3) the account is subject to litigation and the Receiver will not accept the
transaction; (4) acceptance of the transaction results in an overpayment; (5) the Originator is not known by the
Receiver; or (6) the Receiver has not authorized this credit entry to this account.
R24 Duplicate Entry- The RDFI has received what appears to be a duplicate entry; i.e., the trace number, date, dollar
amount and/or other data matches another transaction. This code should be used with extreme care. The RDFI
should be aware that if a file has been duplicated, the Originator may have already generated a reversal transaction
to handle the situation.
R29 Corporate Customer Advises Not Authorized - The RDFI has been notified by the Receiver (non-consumer) that
the Originator of a given transaction has not been authorized to debit the Receiver's account.
R31 Permissible Return Entry (CCD and CTX only) - The RDFI has been notified by the ODFI that the ODFI
agrees to accept a CCD or CTX return entry in accordance with Article Seven, section 7.3 (ODFI Agrees to Accept
CCD or CTX Return).
R33 Return of XCK Entry - The RDFI determines at its sole discretion to return an XCK entry. This return reason
code may only be used to return XCK entries. An XCK entry may be returned up to sixty days after its Settlement
Codes to be Used by Federal Government Agencies Returning ENR Entries:
R40 Return of ENR Entry by Federal Government Agency (ENR only) - The Federal Government Agency
determines at its sole discretion to return an ENR entry. This return reason code may be used only to return ENR
R41 Invalid Transaction Code (ENR only)- Either the Transaction Code included in Field 3 of the Addenda Record
does not conform to the ACH Record Format Specifications contained in Appendix Two (ACH Record Format
Specifications) or it is not appropriate with regard to an automated enrollment entry.
Example: Transaction Code '28,'Prenotification of Demand Debit Authorization, for an ENR sent to Social Security
Administration pertaining to a direct deposit enrollment.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
R42 Routing Number/Check Digit Error (ENR only) - The Routing Number and the Check Digit included in Field
3 of the Addenda Record is either not a valid number or it does not conform to the Modulus 10 formula.
R43 Invalid DFI Account Number (ENR only) - The consumer’s or company’s account number included in Field 3
of the Addenda Record must include at least one alphanumeric character.
R44 Invalid Individual ID Number/Identification Number (ENR only) - The Individual ID Number/Identification
Number provided in Field 3 of the Addenda Record does not match a corresponding ID number in the Federal
Government Agency’s records.
R45 Invalid Individual Name/Company Name (ENR only)
The name of the consumer or company provided in Field 3 of the Addenda Record either does not match a
corresponding name in the Federal Government Agency’s records or fails to include at least one alphanumeric
R46 Invalid Representative Payee Indicator (ENR only) - The Representative Payee Indicator Code included in
Field 3 of the Addenda Record has been omitted or it is not consistent with the Federal Government Agency’s
Examples: The Representative Payee Indicator Code is “zero,” and Social Security’s records indicate that payments
should be sent to a representative payee on behalf of an entitled beneficiary; or
The Representative Payee Indicator Code is “one,” and Social Security’s records indicate that there is no
representative payee and the beneficiary may receive payments directly.
R47 Duplicate Enrollment (ENR only) - The entry is a duplicate of an automated enrollment entry previously
initiated by a participant in the ENR automated enrollment program.
[Codes to be Used for the Return of RCK Entries R50 State Law Affecting RCK Acceptance - (1) The RDFI is
located in a state that has not adopted Revised Article 4 of the Uniform Commercial Code (1990 Official Text) and
has not revised its customer agreements to allow for electronic presentment. (2) The RDFI is located within a state
that requires all canceled checks to a specific type of account to be returned to the Receiver within the periodic
An RCK entry that is returned using this Return Reason Code must be transmitted by the RDFI to its ACH Operator
no later than midnight of the second banking day following the banking day of receipt of the presentment notice.
R51 Item is Ineligible, Notice Not Provided, Signature Not Genuine, or Item Altered (adjustment entries) - An
entry may be considered to be ineligible if (1) the item to which the RCK entry relates is not an item within the
meaning of Revised Article 4 of the Uniform Commercial Code (1990 Official Text); (2) the item is not a negotiable
demand draft drawn on or payable through or at a Participating DFI, other than a Federal Reserve Bank or
Federal Home Loan Bank; (3) the item is in an amount of $2,500 or more; (4) the item does not indicate on the
face of the document that it was returned due to “Not Sufficient Funds, "NSF", Uncollected Funds, ” or comparable
language; (5) the item is dated more than 180 days from the date the entry is being transmitted to the RDFI (i.e., the
item to which the RCK entry relates is stale dated); (6) the item is drawn on a non-Consumer Account; or (7) the
item has been previously presented more than two times in its physical form, or more than one time in its physical
form and more than one time as an RCK entry.
The Originator did not provide notice as provided for within Article Three, subsection 3.5.2 (Notice Obligation).
All signatures on the item to which the RCK entry relates are not authentic or authorized, or the item to
which the RCK entry relates has been altered.
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
An RDFI using this Return Reason Code must transmit the return entry by its ACH Operator’s deposit deadline for
the return entry to be made available to the ODFI no later than the opening of business on the banking day
following the sixtieth calendar day following the Settlement Date of the RCK entry to which the item relates.
R52 Stop Payment on Item (adjustment entries) - The RDFI determines that a stop payment order has been placed
on the item to which the RCK entry relates. An RDFI using this Return Reason Code must transmit the return entry
by its A CH Operator’s deposit deadline for the return entry to be made available to the ODFI no later than the
opening of business on the banking day following the sixtieth calendar day following the Settlement Date of the
RCK entry to which the item relates.
Codes to be Used for the Return of CBR and PBR Entries
R80 Cross-Border Payment Coding Error -The cross-border entry is being returned due to one or more
of the following conditions:
invalid Foreign Exchange Indicator;
invalid ISO Originating Currency Code;
invalid ISO Destination Currency Code;
invalid ISO Destination Country Code; or
Invalid Transaction Type Code.
R81 Non-Participant in Cross-Border Program - The cross-border entry is being returned because the
Originating Gateway Operator does not have an agreement with the ODFI to process cross-border entries.
R82 Invalid Foreign Receiving DFI Identification - The reference used to identify the Foreign Receiving
DFI of an outbound cross-border entry is invalid.
R83 Foreign Receiving DFI Unable to Settle - The cross-border entry is being returned due to settlement
problems in the foreign payment system.]
Codes to be Used by the ODFI for Automated Dishonored Return Entries:
Misrouted Return - The financial institution preparing the return entry (the RDFI of the original entry)
has placed the incorrect Routing
Number in the Receiving DFI Identification field (positions 04-12, including Check Digit, of the Entry Detail Record).
Incorrect Trace Number - The Trace Number found in positions 07-2 1 in the Addenda Record of the return entry
is different from the trace number of the original entry.
Incorrect Dollar Amount
- The dollar amount in the Entry Detail Record of the return entry is different from the dollar amount of the original entry.
R64 Incorrect Individual Identification - The Individual Identification Number reflected in the Entry Detail Record
of the return entry is different from the Individual Identification Number/Identification Number used in the original entry.
R65 Incorrect Transaction Code - The Transaction Code in the Entry Detail Record of the return entry is not the
return equivalent of the Transaction Code in the original entry. (See list of Transaction Codes in Appendix Two
(ACH Record Format Specifications). All entries must be returned as received: e.g., credit as credit, debit as debit,
demand as demand, savings as savings.)
R66 Incorrect Company Identification - The Company Identification number used in the Company/Batch Header
Record of the return entry is different from the Company Identification number used in the original entry.
R67 Duplicate Return- The ODFI has received more than one return for the same entry.
R68 Untimely Return - The return entry has not been sent within the timeframe established by these rules.
R69 Multiple Errors - Two or more of the following fields—Original Entry Trace Number, Amount, Individual
Identification Number/Identification Number, Company Identification, and/or Transaction Code—are incorrect.
R70 Permissible Return Entry Not Accepted - The ODFI has received a CCD or CTX return entry identified by
the RDFI as being returned with the permission of the ODFI, but the ODFI has not agreed to accept the entry.
This code may be used only to dishonor a return containing an R3 1 return reason code.
Codes To Be Used by ACH Operator: (See Appendix Three, section 3.6 (Automatic Entry Detail Return Entry)
for a full explanation of each of these Return Reason Codes.)
Copyright 1999 FTP Consulting Services, Inc.
FTP Industry Glossary
RDFI Not Qualified to Participate
Improper Effective Entry Date
Amount Field Error
Addenda Error
Mandatory Field Error
Trace Number Error
Routing Number Check Digit Error
RDFI Not Participant in Check Truncation Program R32 RDFI Non-Settlement
Limited Participation DFI
Return of Improper Debit Entry
Return of Improper Credit Entry
Copyright 1999 FTP Consulting Services, Inc.
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