Knowledge Hub

A ledger is a core financial tool used to record transactions and balances, but in today’s embedded finance landscape, businesses need more than traditional accounting.

Clearing accounts are temporary accounts used to hold funds in transit, making them essential for accurate reconciliation and transaction settlement.

This article explains how journal entries work in traditional accounting and how VoPay automates them within its ledger system to support real-time payments, digital wallets, and scalable financial infrastructure.

When an ACH transaction is unsuccessful due to issues such as insufficient funds, invalid account information, or unauthorized debits, a return code is generated to indicate why the transaction was rejected or reversed.

When an ACH transaction is unsuccessful due to issues such as insufficient funds, invalid account information, or unauthorized debits, a return code is generated to indicate why the transaction was rejected or reversed.

An ACH reversal occurs when a mistaken transaction occurs, and the transaction must be reversed and the funds returned to the sender.

A NACHA file is the standardized file format used to communicate ACH payment processing instructions between financial institutions.

Same Day ACH enhances payment speed by enabling same day settlement for eligible transactions. This service supports credit, debit, and return transactions, ensuring funds are processed within the same day when they meet the required criteria.

Customer due diligence is an essential part of risk management used by financial institutions and businesses to verify the identity of their clients and assess potential risks.

Know your customer (KYC) is the process of verifying the identity of customers and clients to ensure they are who they say they are.

Know your business (KYB) is similar to know your customer (KYC) and involves the collection and verification of key information about a company.

Identity verification is a critical procedure used by organizations to verify a person's identity and validate they are who they say they are.

Anti Money Laundering (AML) refers to the laws, regulations, and procedures put in place to prevent criminals from disguising illegally obtained funds as legitimate income.

A cross-border payments API is a particular type of payment API that allows businesses to access international payment methods.

Foreign exchange is the process of converting one currency to another, an essential part of cross-border transactions.

Cross-border fees are the costs associated with making international payments.

International SWIFT payments are a widely used method for transferring funds between banks across borders.

Originally developed to streamline cross-border payments and reduce errors, the IBAN provides a consistent format that banks and financial institutions use to ensure that funds are directed to the correct accounts.

An EFT return code occurs when an EFT payment is unsuccessful, and each specific code will refer to the reason for the failure.

EFT reversals are when a payment is reversed due to issues such as incorrect payment details or customer disputes.

Bulk EFT payments refer to processing Canadian bank account transactions in bulk in order to optimize payment operations at scale.

The EFT CPA 005 file format is a Canadian formatting standard for generating electronic funds transfer files.

EFT cut-off times refer to the deadlines set by financial institutions for processing EFT transactions.

An EFT API integration connects a business’s software infrastructure to an EFT payment gateway, enabling programmatic access to EFT payment processing.

EFT payments and wire transfers are two different types of electronic transactions, each with its own pros and cons.

Embedded finance allows software platforms to integrate financial services like payments, lending, and digital wallets directly into their user experience.

Fintech-as-a-Service (FaaS) is a modern approach that enables businesses to embed financial services, such as payments, compliance, and virtual accounts, into their existing platforms through API-based infrastructure.

Payments-as-a-Service (PaaS) allows businesses to integrate secure and scalable payment processing into their platforms without managing complex infrastructure.

Compliance-as-a-Service (CaaS) is a modern solution for managing regulatory requirements like KYC, AML, and transaction monitoring without building internal systems.

ISV payment integration allows software platforms to embed financial services like transfers, payouts, and reconciliation directly into their product via APIs.

A payment facilitator (PayFac) helps software platforms embed payments and onboard users without becoming a regulated payments company themselves.

While payment processors handle the technical movement of funds, payment facilitators offer a full-stack solution that includes onboarding, compliance, and fund orchestration.

Non-sufficient funds or NSF is the term used when a bank account lacks the necessary balance to cover a transaction.

Clearing and settlement refers to the steps that electronic payments follow in order to arrive at the receiving account.

Net settlement and gross settlement refer to the two main types of settlement methods used in electronic payment transfers.

Direct Deposit is a term used within the Canadian and U.S. payment landscape to describe an electronic transfer of funds from one account to another

PAD is a term commonly used in the Canadian payments landscape, and other terms used for this concept include direct debit, pre-authorized withdrawals, and pre-authorized payments.

ISO 20022 is a global, data-rich financial messaging standard that is becoming widely used by financial institutions.

Auto-deposit for Interac e-Transfer removes the Security Question stage of the payment process, allowing incoming funds to be deposited automatically.

Security questions are an additional layer of protection used when sending and receiving Interac e-Transfer payments.

Fraudsters exploit vulnerabilities in the Interac e-Transfer service in various ways to intercept funds and scam money from people and businesses.

Within the period of submitting an Interac e-Transfer payment and the funds being deposited, it is possible to cancel the transaction in some cases.

Interac e-Transfer for Business allows transactions up to $25,000, facilitating efficient, real-time payments. VoPay's integration enhances this service by enabling unlimited transactions and bulk processing, optimizing business payment operations.

Transaction monitoring involves the systematic review and analysis of financial transactions to detect anomalies, unusual patterns, or activities that may indicate fraud or money laundering.

Transaction fraud occurs when an individual or group exploits weaknesses in payment systems to initiate, modify, or intercept financial transactions without authorization.

A chargeback is the reversal of a payment, initiated when a cardholder disputes a transaction with their issuing bank.