GLOSSARY

The process by which a merchant deducts cash from his user mobile money account.
Depending from where the merchant is considering the transaction this can be also called PAY-OUT OR MERCHANT PAYMENT
(Also considered as WALLET TO BANK)

The balance of e-money, or physical cash, or money in a bank account that an HUB2 can immediately access to meet merchant demands to purchase (cash in) or sell (cash out) electronic money.

Short for “electronic money,” is stored value held in the accounts of users, agents, and the provider of the mobile money service. Typically, the total value of e-money is mirrored in bank account(s), so that even if the provider of the mobile money service were to fail, users could recover 100% of the value stored in their accounts.

Cross border fund transfer from one person to another person. This transaction requires an intermediary organisation such as Western Union.

A payment made from a mobile wallet via a mobile money platform to a retail merchant in exchange for goods or services.

An e-money account that is primarily accessed using a mobile phone that is held with the e-money issuer. In some jurisdictions, e-money accounts may resemble conventional bank accounts, but are treated differently under the regulatory framework because they are used for different purposes (for example, as a surrogate for cash or a stored value that is used to facilitate transactional services).

An active mobile money account is a mobile money account that has been used to conduct at least one transaction during a certain period of time (usually 90 days or 30 days).

Adjustments (reversals) on accounts refer to the correction or reversal of a previously recorded financial transaction in a fintech company’s accounts.
In the context of fintech, adjustments may be necessary due to a variety of reasons, such as errors in data entry, changes in market conditions, or customer disputes. Adjustments can be made to various types of accounts, including revenue, expenses, assets, and liabilities.

Adjustments can have a significant impact on a company’s financial statements, such as the income statement and balance sheet, as they can affect the accuracy of financial information presented to investors, lenders, and regulators. It is important for fintech companies to maintain accurate records and have effective processes in place for identifying and correcting errors or discrepancies in their accounts.

Adjustments following funds top-up refer to the process of correcting or reconciling discrepancies that may arise after a customer has added funds to their account in a fintech company.

When a customer adds funds to their account, the transaction is recorded in the fintech company’s system as a credit to the customer’s account. However, there may be instances where the credit amount does not match the actual amount received by the fintech company. For example, there could be a delay in the transfer of funds, or there could be additional fees or charges applied to the transaction.

Adjustments following funds top-up may involve correcting the credit amount to reflect the actual amount received by the fintech company or reversing the transaction entirely if it is deemed to be invalid. The adjustment process may require collaboration between different departments within the fintech company, such as finance, operations, and customer service.

Having a robust process for handling adjustments following funds top-up is crucial for maintaining accurate records and ensuring customer satisfaction. Failure to address discrepancies in a timely and effective manner could result in financial losses for the fintech company and damage to its reputation.

Adjustments following operation adjustments (increase) due to errors in processing refer to the correction or reconciliation of discrepancies that may arise when an operation is erroneously processed in a fintech company. This can include situations where a transaction was processed but ultimately did not go through, resulting in incorrect or inaccurate balances in customer accounts.

For example, a customer may initiate a transaction, but due to a technical error or other issue, the transaction may not be completed. However, the fintech company may initially record the transaction as if it had been completed, resulting in an overstatement of the customer’s account balance.

In this case, adjustments following operation adjustments (increase) may involve correcting the customer’s account balance to reflect the true state of the account after the failed transaction, or reversing the transaction entirely if it is deemed to be invalid. The adjustment process may require collaboration between different departments within the fintech company, such as operations, customer service, and finance.

It is important for fintech companies to have effective processes in place for identifying and correcting errors or discrepancies in their operations. This can help to ensure that customers are not unfairly impacted by errors, and that accurate records are maintained to support financial reporting and regulatory compliance.

Adjustments following operation adjustments (decrease) due to errors in processing refer to the correction or reconciliation of discrepancies that may arise when an operation is erroneously processed in a fintech company, resulting in an understatement of the customer’s account balance.

For example, a customer may initiate a payment, and the fintech company may reserve the necessary funds from the customer’s account to cover the payment. However, due to a technical error or other issue, the payment may not be processed as expected, resulting in the reserved funds being held in the customer’s account for an extended period.

In this case, adjustments following operation adjustments (decrease) may involve correcting the customer’s account balance to reflect the fact that the reserved funds were not actually used to complete the payment. The adjustment process may require collaboration between different departments within the fintech company, such as operations, customer service, and finance.

It is important for fintech companies to have effective processes in place for identifying and correcting errors or discrepancies in their operations. This can help to ensure that customers are not unfairly impacted by errors, and that accurate records are maintained to support financial reporting and regulatory compliance.