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Banking, Finance + Payments

ACH Authorization

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Consent that gives the originator permission to electronically transfer money to/from your bank or prepaid card account. You can revoke this authorization.

Banking, Finance + Payments

ACH Credit

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A transaction pulling funds into an account (e.g., payroll direct deposit).

Banking, Finance + Payments

ACH Debit

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A transaction pulling funds from an external account (e.g., monthly mortgage payment).

Banking, Finance + Payments

ACH Operator

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The entity that processes transactions through the ACH network. Currently, in the U.S., there are two operators: the Federal Reserve Bank and the Electronic Payments Network (EPN).

Banking, Finance + Payments

ACH Return

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A credit or debit entry initiated by an RDFI or ACH Operator that returns a previously originated credit or debit entry to the ODFI within the time frames established by NACHA rules.

Banking, Finance + Payments

ACH Reversal

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A credit or debit entry that reverses an erroneous entry. Must be transmitted to or made available to the RDFI within five banking days following the settlement date of the erroneous entry.

Software + Technology

API Key

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An application programming interface (API) key is a unique identifier used to authenticate requests associated with your project for usage, and is required for every API call.

Banking, Finance + Payments

Accounts Payable (AP)

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Amounts due to vendors or suppliers for goods or services received that have not yet been paid for.

Banking, Finance + Payments

Accounts Receivable (AR)

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Amounts owed for goods or services delivered that have not yet been paid for.

Software + Technology

Algorithm

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A set of specific instructions for solving a problem or accomplishing a task.

Compliance, Risk + Fraud

Anti-money Laundering (AML)

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The process of preventing, detecting, and reporting money laundering, which is the illegal process of making money with criminal origins seem like it was obtained legitimately.

Software + Technology

Application Programming Interface (API)

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A computing interface that defines interactions between multiple software intermediaries. It defines the kinds of calls or requests that can be made, how to make them, the data formats that should be used, the conventions to follow, etc.

Banking, Finance + Payments

Automated Clearing House (ACH)

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An electronic network that coordinates electronic payments and automated money transfers. ACH is a way to move money between banks without using paper checks, wire transfers, card networks, or cash.

Credit

Balance transfer

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The entire or partial transfer of the balance of either money or credit in one account to another account, often over at another institution; most commonly used when talking about a credit card balance transfer.

Banking, Finance + Payments

Bank Identification Number (BIN)

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The initial four to six digits that appear on a payment card, identifying the bank or entity that issued the card, that issuer’s location, and the card type (e.g., credit, debit, gift). A BIN may also be referred to as an issuer identification number (IIN).

Banking, Finance + Payments

Bank Identifier Code (BIC)

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Also known as a SWIFT code, this is an 8-11 character code that identifies a bank’s location and particular branch for international transfers.

Banking, Finance + Payments

Bank Secrecy Act (BSA)

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The U.S. legislation aimed toward preventing criminals from using financial institutions to hide or launder money.

Software + Technology

Banking as a Service (BaaS)

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A modular approach to supplying complete banking processes that allows brands to easily embed financial services into their products without having to worry about building banking infrastructure or obtaining a license. BaaS utilizes APIs and webhooks to make integration seamless and cost-effective.

Crypto

Bitcoin

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Decentralized digital currency; without a bank or other institutions, bitcoin can be sent from user to user on peer-to-peer networks.

Crypto

Bitcoin wallet

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A digital wallet used to send and receive bitcoin currency; same as a physical wallet but, instead of storing physical dollars, the wallet stores the cryptographic information used to access bitcoin addresses and send transactions.

Miscellaneous

Blockchain

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A system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.

Banking, Finance + Payments

Bond OS

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Bond OS is the primary system of record for bank and brand partnerships, and provides the operating tools you need to build personal financial products seamlessly and simply.

Banking, Finance + Payments

Bond Studio

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Bond Studio is banking-as-a-service APIs and SDKs giving the developers the tools to build financial innovations with just a few lines of code, and the bank partners to make it a reality.

Sales + Marketing

Business-to-Business (B2B)

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Payments between two businesses, for example, between a manufacturer and retailer. Unlike in B2C, products and services are not for personal use, are usually sold in bulk, and often involve private price negotiations.

Sales + Marketing

Business-to-Consumer (B2C)

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Also known as direct-to-consumer, this refers to selling products and services directly to customers without a middleman.

Miscellaneous

Buy Now Pay Later (BNPL)

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Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them at a future date, often interest-free. Also referred to as "point of sale installment loans," BNPL arrangements are becoming an increasingly popular payment option, especially when shopping online.

Banking, Finance + Payments

Capture Date

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The date a payment transaction is processed by an acquirer on behalf of a merchant.

Banking, Finance + Payments

Card Verification Code (CVV)

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An authentication code added to a payment card for use during the authorization process. The purpose of the CVV is to verify that the cardholder making the transaction during a card-not-present transaction actually possesses the credit or debit card being used for the purchase. Credit card companies have their own name for the code. For Visa and MasterCard, the code appears as three digits on the back of the card. For American Express, the verification code appears as four digits on the front of the card.

Credit

Card issuer

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A bank or credit union that offers credit cards and extends credit limits to qualified cardholders.

Credit

Cash advance

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A short-term loan from a bank or another lender. Also a service provided by credit card issuers that allows cardholders to withdraw up to a certain amount.

Miscellaneous

Centralized Finance (CeFi)

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A financial practice that allows users to earn interest and get loans on their cryptocurrencies through centralized exchanges. To be able to process your desired transactions and crypto orders, private keys to the crypto assets that you own would be entrusted with your chosen third-party entity.

Compliance, Risk + Fraud

Consumer Identification Program (CIP)

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Financial institution procedures for proper KYC/KYB vetting. Required by the 2003 USA Patriot Act.

Sales + Marketing

Consumer-to-Business (C2B)

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A form of commerce that involves consumers providing a product or service to businesses. This is a rapidly growing model and often takes the form of brand sponsorships on social media.

Sales + Marketing

Consumer-to-Consumer (C2C)

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Payments that involve the transfer of funds between two different consumer accounts for goods or services, often through an online marketplace like eBay, Etsy, or Craigslist.

Banking, Finance + Payments

Contactless payments

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A secure method of purchasing items using a debit, credit, or other payment option by tapping a point-of-sale terminal equipped with contactless payment technology (usually by using radio frequency identification (RFID) technology); also referred to as “tap and go.”

Miscellaneous

Credit Score

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A number assigned to a person that indicates to lenders their capacity to repay a loan.

Credit

Credit inquiry

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A request by an institution for credit report information from a credit reporting agency.

Credit

Credit invisible

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A person who has no credit history at all and therefore can’t be “seen” by the credit bureaus; can sometimes be grouped in with “thin file.”

Credit

Credit report

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A detailed breakdown of an individual's credit history prepared by a credit bureau. Credit bureaus collect financial information and create credit reports that lenders then use with other details to determine creditworthiness.

Credit

Credit score

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Ranging between 300–850, depicts a consumer's creditworthiness; the higher the score, the better a borrower looks to lenders. Based on an individual's credit history: number of open accounts, total debt, and repayment history are main factors.

Miscellaneous

Crypto

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See cryptocurrency.

Miscellaneous

Cryptocurrency

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A digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.

Banking, Finance + Payments

Customer

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One of the Bond Studio Services handling a consumer's personal information.

Sales + Marketing

Customer Relationship Management (CRM)

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One of many different approaches that allows a company to manage and analyze its own interactions with its past, current, and potential customers.

Miscellaneous

Decentralized Finance (DeFi)

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An emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services.

Banking, Finance + Payments

Electronic Funds Transfer (EFT)

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Any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account. The term includes: Point-of-sale transfers; Automated teller machine transfers; Direct deposits or withdrawals of funds; Transfers initiated by telephone; and Transfers resulting from debit card transactions, whether or not initiated through an electronic terminal.

Banking, Finance + Payments

Electronic Payments Network (EPN)

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One of two Automated Clearing House (ACH) Operators in the U.S.

Miscellaneous

Embedded Finance

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When non-financial companies offer their customers access to credit through their technology platform. The customers can be individuals or businesses, and the credit can be offered by the company or by a third party.

Miscellaneous

Embedded Fintech

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Integrating financial products tailored to the needs of specific sets of users within platforms where they already are. It's possible to offer tailored suites of products magically, at the point of need, with zero friction to adopt.

Software + Technology

Encryption

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The technique of scrambling sensitive data automatically in a terminal or computer before transmission for security/anti-fraud purposes using an algorithm and key. This is similar to tokenization.

Software + Technology

Extensible Markup Language (XML)

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Similar in appearance to HTML, this dynamic language lets you define your own tags within a standardized syntax rather than use predefined ones. It’s also used for transporting data, not displaying it.

Credit

Fair Isaac Corporation (FICO) score

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A person's calculated credit score.

Banking, Finance + Payments

Federal Deposit Insurance Corporation (FDIC)

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One of two agencies that provide deposit insurance to depositors in U.S. depository institutions.

Miscellaneous

Fintech

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Computer programs and other technology used to support or enable banking and financial services.

Miscellaneous

Gig Worker

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Independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers. Gig workers enter into formal agreements with on-demand companies to provide services to the company's clients.

Credit

Hard pull

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Alternative for “hard inquiry;” a credit information request that includes a full credit report and deducts points from an individual’s credit score. These inquiries are used in deciding credit or a loan and will cause a short-lived decreases in credit scores.

Software + Technology

Idempotent

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Has the same result when called multiple times with the same idempotent key.

Software + Technology

Inquiry

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A single instance of an identity verification check

Credit

Interchange

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A fee that a merchant pays with every credit and debit card transaction.

Compliance, Risk + Fraud

Know Your Business (KYB)

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The process is not so different from the most widely known and standardized Know Your Customer (KYC) process. The difference lies in the purpose and intentionality of the process, focused on identifying companies and suppliers in the first case and consumers or customers in the second one.

Compliance, Risk + Fraud

Know Your Customer (KYC)

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A standard banking risk assessment practice to prevent identity theft, money laundering, fraud, and terrorism by verifying customer identities and understanding their transaction habits. KYC is a mandatory requirement of legal compliance in the financial sector.

Sales + Marketing

Letter of Intent (LOI)

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A document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal.

Sales + Marketing

Master/Main Service Agreement (MSA)

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A contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements. A master agreement permits the parties to quickly enact future transactions or agreements, negotiating only the points specific to the new transactions and relying on the provisions in the master agreement for common terms.

Banking, Finance + Payments

Monthly statement

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A record prepared by a financial institution listing all transactions for an account including purchases, payments, and fees made on the associated card.

Banking, Finance + Payments

National Automated Clearing House Association (NACHA)

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A nonprofit that manages the ACH network and is composed of various depository financial institutions. NACHA’s role is to make rules and products for the ACH payment system and is not directly involved in transaction processing.

Miscellaneous

Neobank

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Also known as an online bank, internet-only bank, virtual bank or digital bank. A type of direct bank that operates exclusively online without traditional physical branch networks.

Sales + Marketing

Non-Disclosure Agreement (NDA)

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A non-disclosure agreement is a legally binding contract that establishes a confidential relationship. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others.

Miscellaneous

Non-fungible Token (NFT)

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A unique and non-interchangeable unit of data stored on a blockchain, a form of digital ledger. NFTs can be associated with reproducible digital files such as photos, videos, and audio. NFTs use a digital ledger to provide a public certificate of authenticity or proof of ownership, but do not restrict the sharing or copying of the underlying digital files.

Banking, Finance + Payments

Office of Comptroller of the Currency (OCC)

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An official US Government agency tasked with a safe and sound federal banking system for all Americans.

Banking, Finance + Payments

Open Banking

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The system of allowing access and control of consumer banking and financial accounts through third-party applications.

Banking, Finance + Payments

Originating Depository Financial Institution (ODFI)

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The banking institution that acts on your behalf to initiate an ACH transfer.

Banking, Finance + Payments

Overdraft protection

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Offered for bank accounts that prevents successful transactions and causing the account's balance to fall below $0 and then incurring an overdraft fee.

Banking, Finance + Payments

Payment Facilitator (PayFac)

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A master merchant account that services sub-merchants as an underwriter, simplifying and speeding up the merchant enrollment process. This eliminates the need for sub-merchants to establish a direct relationship with an acquiring bank. Onboarded sub-merchants do not need to register a merchant ID (MID) and will instead fall under the PayFac’s master MID.

Compliance, Risk + Fraud

Payment card industry (PCI) compliance

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Required by credit card companies to ensure the security of credit card transactions in the payments industry; refers to both technical and operational standards that companies observe to secure and protect cardholder data transmitted through transactions.

Miscellaneous

Personal Identification Number (PIN)

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A specific number provided to an individual and used to validate electronic transactions.

Banking, Finance + Payments

Point-of-Sale (POS)

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The specific time and place where a retail transaction is completed.

Banking, Finance + Payments

Primary Account Number (PAN)

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Numerical code, up to 16 digits, uniquely identifying a credit cardholder’s account, created when the account is opened. The first six numbers identify the card network, the next set of digits signifies the cardholder, and the remaining digits are used for security purposes. A primary account number starts with the bank identification number (BIN).The specific time and place where a retail transaction is completed.

Software + Technology

Radio-frequency identification (RFID)

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Technology that uses radio waves to identify objects; used in several different areas like keeping track of items checked out from a library.

Banking, Finance + Payments

Receiving Depository Financial Institution (RDFI)

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The banking institution that acts on behalf of the recipient of the transfer in context of an ACH transaction.

Sales + Marketing

Search Engine Optimization (SEO)

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The process of maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of results returned by a search engine.

Credit

Secured credit card

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A credit card that is backed by a deposit (stock, bond, crypto, etc.) from the cardholder. Acting as collateral, this provides the card issuer with security in case the cardholder can’t make their payments. With a secured credit card, the deposit amount put down becomes the credit limit on your credit card.

Credit

Soft pull

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Initiated by you or a company but does not affect your credit score; an inquiry into your credit history that is primarily used to screen for pre-approval on financing offers.

Software + Technology

Software Development Kit (SDK)

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A set of tools for third-party developers to use in producing applications using a particular framework or platform.

Software + Technology

Software as a Service (SaaS)

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A software licensing and delivery model in which software is licensed on a subscription basis and centrally hosted. It is sometimes referred to as “on-demand software.”

Banking, Finance + Payments

Sponsor Bank

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A licensed financial institution that handles funds transmission and may provide additional banking services for a company’s customers within a BaaS model, which lets the company avoid having to obtain a license themselves.

Credit

Subprime credit

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When a credit score is lower than required to get the best, or “prime,” interest rates.

Miscellaneous

Super App

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A mobile application that provides multiple services including payment and financial transaction processing, effectively becoming an all-encompassing self-contained commerce and communication online platform that embraces many aspects of personal and commercial life.

Miscellaneous

Terms and conditions

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The document(s) in control of the contractual relationship between a user and the provider of a service.

Credit

Thin file

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A credit report of someone with little or no credit history — usually consumers who are just starting to build a credit profile and may never have taken out a loan or had a credit card.

Miscellaneous

Top of wallet

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Your favorite card; your “go to” card; the card you reach for first and most often in your wallet.

Compliance, Risk + Fraud

Two-factor authentication (2FA)

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A security system that requires two distinct forms of identification for access.

Credit

Unsecured credit cards

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A "regular" credit card; debt on the card is not backed or secured by collateral.

Sales + Marketing

Vertical SaaS

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A type of Software as a Service cloud computing solution created for a specific industry such as retail, insurance or auto manufacturing.

Miscellaneous

Web3

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A vision of the future of the Internet in which people operate on decentralized, quasi-anonymous platforms, rather than depend on tech giants like Google, Facebook or Twitter.

Software + Technology

Webhooks

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Automated messages sent from an app when an event occurs. The vendor will send an HTTP POST request containing desired data to a URL provided by the customer. The customer should refer to vendor documentation for payload format information.

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