The Ultimate Glossary of Cross-Border Mass Payment Terms
If you're responsible for paying people across borders, freelancers, affiliates, or partners, then you know how complex the language of mass payouts can get.
This glossary breaks down the most important terms in the world of cross-border payments in 2025, helping you understand the jargon, stay compliant, and speak the same language as your partners, developers, and regulators.
Whether you're new to international payouts or scaling your payment operations, use this guide as your go-to reference.
A–Z of Global Payout Terminology
API (Application Programming Interface)
A set of protocols and tools that allow different software systems to communicate. In payouts, APIs are used to trigger transactions, retrieve account info, and automate compliance workflows.
AML (Anti-Money Laundering)
A set of laws and procedures designed to prevent financial crime. Payment providers must screen users and transactions to meet AML obligations globally.
Beneficiary
The person or entity receiving the payout, typically your freelancer, affiliate, or contractor.
Cross-Border Payments
Payments made between entities in different countries. These often involve foreign exchange (FX), multiple banking networks, and regulatory requirements.
FX (Foreign Exchange)
The process of converting one currency to another. FX rates and fees affect how much the beneficiary actually receives in local currency.
IBAN (International Bank Account Number)
A standardized format for identifying bank accounts across borders, widely used in Europe and other countries.
KYC (Know Your Customer)
A process used to verify the identity of the payout recipient. KYC is essential for preventing fraud and meeting compliance rules.
Local Payment Rails
The domestic infrastructure used to process payments within a specific country (e.g., ACH in the US, Interac in Canada, SEPA in Europe).
Mass Payments
A payout model where a business sends payments to many recipients simultaneously, often through a centralized platform or API.
Multi-Currency Support
The ability to pay out in different currencies depending on the recipient’s country. Important for giving users local control and reducing FX friction.
OFAC
The Office of Foreign Assets Control, a U.S. agency that monitors sanctions lists. Platforms must ensure they’re not sending payments to sanctioned individuals or regions.
Prepaid Card
A reloadable payment card that allows users to instantly access funds. Often used as a payout method for gig workers or unbanked recipients.
Real-Time Payments
Instant transaction processing that enables recipients to access funds within seconds. Becoming increasingly important in the gig economy.
Settlement Time
The time it takes for funds to move from the sender to the recipient’s account. Varies by payment method and geography.
SWIFT Code
A bank identifier used in international payments to ensure funds reach the correct institution. Required for most wire transfers.
Tax Withholding
The process of deducting tax from payouts based on a recipient’s country and status. Platforms need to manage tax forms like W-8BEN or 1099s
W-8BEN / W-9 / 1099-NEC
Standard U.S. tax forms required when paying independent contractors or foreign freelancers. W-9 is for U.S. workers; W-8BEN for foreign individuals; 1099-NEC is issued to eligible U.S. freelancers at year-end.
White-Label Payment Platform
A customizable payout system branded under your company’s name but powered by a third-party provider like i-payout.
Why This Glossary Matters
Whether you’re a founder, product manager, finance lead, or support team member, understanding the language of payouts helps you:
- Make smarter decisions when evaluating payment partners
- Improve communication between departments
- Stay compliant across borders
- Build trust with your payees
Bookmark this page, or better yet, share it with your team. When everyone speaks the same language, things move faster.
Redefine the Payout Experience
Global payments don’t have to be complicated, if you know what you’re working with.
i-payout gives you the tools to automate cross-border payouts with ease, including real-time payments, FX optimization, compliance workflows, and multilingual support.
