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Payments system
Payments systemCollective term for mechanisms (both paper-backed and electronic) for moving funds, payments and money among financial institutions throughout the nation. RELATED TERMS-------------------------------------- Term The period of time during which a contract is in force. Money A means of payment, especially coins and banknotes, although some definitions also include bank deposits, checks, etc. Institutions Insurance companies, pension funds, trusts, foundations, mutual funds, funds managers, bank investment departments. SIMILAR TERMS-------------------------------------- Payment The amount required to repay a loan, including interest and fees. Payment date The date on which shareholders of record will be sent a check for the declared dividend. Payment float Company-written checks that have not yet cleared. Payment in kind The use of a good or service as payment, instead of cash. Payment in kind (PIK) bond A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds. Payments netting Reducing fund transfers between affiliates to only a netted amount. Netting can occur on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together). Payments pattern Describes the collection pattern of receivables. The pattern might describe the probability that a 72-day-old account will still be unpaid when it is 73 days-old. PREVIOUS AND NEXT TERMS-------------------------------------- Payment float Company-written checks that have not yet cleared. Payment in kind The use of a good or service as payment, instead of cash. Payment in kind (PIK) bond A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds. Payments netting Reducing fund transfers between affiliates to only a netted amount. Netting can occur on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together). Payments pattern Describes the collection pattern of receivables. The pattern might describe the probability that a 72-day-old account will still be unpaid when it is 73 days-old. Payments system Payoff diagram In option pricing, a graph of the value of the option position at expiration as a function of the underlying asset price. Payoff profile The slope of a line graphed according to the value of an underlying asset on the x-axis and the value of a position taken to hedge against risk exposure on the y-axis. Payout period The time period during which withdrawals from a retirement account or annuity are paid. Payout phase The phase in an annuity during which payments are made to the annuitant. Payout ratio Generally, the proportion of earnings paid out to the common stockholders as dividends. More specifically, the firm's cash dividend divided by the firm's earnings in the same reporting period. We thank you for using the Financial Dictionary to search for Payments system. If you have a better definition for Payments system than the one presented here, please let us know by making use of the suggest a term option. This definition of Payments system may be disputed by other professionals. Our attempt is to provide easy definitions on Payments system and any other medical topic for the public at large.
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