ACH: Automated Clearing House is an electronic network for financial transactions in the United States. It processes large volumes of credit and debit transactions in batches, including direct deposit, payroll and vendor payments. ACH transfers are commonly used for recurring payments, such as bills and subscriptions, and are similar to wire transfers but are more cost-effective for domestic transactions.
ACH Credit: An ACH credit is a type of electronic payment that allows funds to be deposited directly into a recipient's account. It is initiated by the payer and is commonly used for direct deposit of payroll, government benefits, and tax refunds, as well as for business-to-business payments. Think of this as pushing of money by the party (payer) initiating the action
ACH Debit: An ACH debit is a type of electronic payment that allows funds to be withdrawn directly from a payer's account. It is initiated by the payee and is commonly used for direct debit of bills, such as utility bills and mortgage payments, as well as for business-to-business payments. Think of this as pulling of money by the party (payee) initiating the action.
AR: Account Receivable is a term used to describe the outstanding balances due to a company from its customers for goods or services sold on credit. In other words, it represents the amount of money owed to a company by its customers for the sale of goods or services on credit. AR is considered an asset on a company's balance sheet, and is an important factor in determining a company's cash flow and financial health.
AP: Account Payable is the reverse process of AR. The company is due receiving funds from third parties.
Collaborator: references a contractor who can send and/or receive receive payments.
Client: represents the payer on an invoice. The client can reference a
collaboratorId if the collaborator is the payer of an invoice.
Instant Payouts: Funds are being advanced by Wingspan and paid out instantly to a member. This can happen to debit cards (push to debit) or to RTP enabled bank accounts.
Invoice: An invoice is a document that itemizes a transaction between a buyer and a seller. It lists the goods or services provided, the price, and the date of payment at a minimum. An invoice serves as a request for payment. It can be created by either the payer or the payee.
Invoice ID: Invoice ID is a UID in the database that is used for identifying an invoice
Invoice Number: This is a user friendly identifier for an invoice. It is alphanumeric string where the prefix consists of unique identifier assigned to a receiver of the payment in an invoice and last three characters represent the count of invoices created for this receiver.
KYC: Know Your Customer
Member: represents the payee or the person to whom money is to be paid. The member can reference a
collaboratorId if the collaborator is the payee of an invoice.
Payout: It refers to distribution of money. In our business context, it means transfer of money from Wingspan to an entity (Member). Note: The technical flow here is Payment (Wingspan receives funds) → Payroll (optional, i.e. Wingspan distributes funds) → Payout (Wingspan pays out funds)
Payer: A payer is the entity that makes a payment.
Payee: A payee is the recipient of a payment.
Payables: Payables refer to the bills or the amount of money a company owes to its creditors or suppliers for goods or services received but not yet paid for. It is a liability that represents the amount owed by a company to its suppliers or vendors for the purchase of goods or services on credit.
Payment: Transfer of money from an entity to Wingspan or from a client to a collaborator(s).
Payroll: Payroll refers to the total amount of money that a company pays to its employees for their work during a specific time period. This includes salaries, wages, bonuses, and other compensation earned by the employees.
RBAC: Role Based Access Control
RTP: Real Time Payments (Many banks accept Real Time Payments, the funds are transferred to a bank account)
Draft - The invoice is only visible to the creator of the invoice
Open - The invoice is visible to payor (client) and payee (member)
Overdue - The payment has not been made by the payor by the due date on the invoice, set by recurring job
Cancelled - Opened invoice that was cancelled
Pending - Invoice that is ready to be opened by member, but is missing a necessary condition. Currently happens in two cases: (1) client creates invoices via personal pay link, (2) member tries to open an invoice, but their payments aren't enabled yet
PaymentInTransit - Client marks that they've made a payment (e.g., via wire) - this invoice can't be paid anymore
Paid - Final state of an invoice -- either paid on platform, or marked paid by member
Updated 4 months ago