Glossary

Beneficiary

The recipient of the wire funds. Key can only guarantee delivery to the beneficiary bank on the value date, not to the beneficiary. It is the responsibility of the receiving bank to credit the beneficiary’s account in a timely manner.

Beneficiary Bank

The final destination Bank where the Beneficiary maintains the account to be credited for the transfer. The Target Bank could be considered the Beneficiary Bank if the Target Bank is where the Beneficiary maintains such account. (see Target Bank for further Reference). In the Domestic Wire scene, there is an extra Field named Beneficiary Bank to be used "only" if the Beneficiary maintains their account in a bank other than the Target Bank (i.e.: KeyBank transfer funds to the ABC Bank where the XYZ Credit Union has an account with instructions to the latter to further credit ACME WIDGET COMPANY. ABC Bank credits XYZ Credit Union "in favor" of ACME WIDGET COMPANY. ABC Bank is the TARGET BANK and XYZ Credit Union is the Beneficiary Bank). In the International Wire scene, the Beneficiary Bank is also referred as the Destination Bank, as seen on the Create International Template screen.

CHIPS

The Clearing House Interbank Payments System is similar to SWIFT in that it is utilized to transfer funds. Key does not participate in CHIPS at this time.

CLABE

The CLABE (Clave Bancaria Estandarizada) is an 18-digit code for bank accounts in Mexico. The CLABE has been required for sending and receiving international payments since June 1, 2004.

Domestic Wire Transfer

A wire transfer sent within the U.S.

Drafts

Foreign drafts are legal, physical instruments that can be presented and paid at foreign banks in either U.S. or foreign currencies.

Drawdown

A request sent to initiate a wire transfer from an account. The party being debited must have appropriate agreements on file with their financial institution allowing drawdowns.

Effective Date

The date on which the transaction(s) on a batch is/are to be settled at the Receiving Financial Institution. In Key Total Treasury, the Effective Date can be no early than the next business day from today and future dated no greater than thirty days from today's date.

Fedwire

The fedwire system is an electronic funds transfer service. It links the 12 Federal Reserve Banks to depository institutions nationwide. Fedwires are used to transfer funds domestically. Fedwires can also be sent to correspondent banks for international transactions.

Foreign Wire Transfer

A wire transfer sent outside the U.S. Foreign wire transfers may be sent in either U.S. dollars or foreign currency.

HREF (hyperlink)

Underlined text that, when clicked, displays another Web screen or initiates an action.

IBAN

This European Standard provides an international standard account identifier for identifying an account held by a financial institution in order to facilitate automated processing of cross-border transactions through: • Automatic processing of foreign bank account information • Uniform validation of foreign bank account identifications • Easy routing of transactions

IBAN format

Up to 34 alphanumeric characters containing: • Country code – 2 letter country code • Check digits – 2 digits (calculated from the country code) • Basic Bank Account Number (BBAN – Up to 30 alphanumeric characters, which is derived from, but cannot always be relied on to be the actual domestic account number. The check digits are used for the validation of the complete IBAN. How to Obtain an IBAN: • Only the bank servicing an account can provide the correct International Bank Account Number (IBAN) of that account and the related Bank Identifier Code (BIC). • If you need an IBAN, you need to contact the owner of the account. If you attempt to generate the IBANs of your suppliers or other business partners, you risk having incorrect IBANs. • If you use an incorrect IBAN in your cross-border payment instructions, you risk making payment to the wrong account or incurring a delay in payment and higher processing fees.

Incoming Drawdowns

A message received by Key requesting that an account be debited and funds sent to another Financial Institution. Key requires that you have the necessary agreements in place allowing other parties to debit your account.

Incoming Wire Transfer

A Credit. Funds received electronically into an account.

Intermediary Bank

Bank that receives funds for those banks that are unable to directly receive payments.

Internal Wire Transfer

A wire transfer sent from one Key account to another Key account.

International Wire

Transfers funds to a bank in a foreign country.

Last Sent

Shows last time batch was processed.

MTS

The Money Transfer System is an AIX system used to transmit both Domestic and International payments for all Key wire transfer clients.

NACHA

National Automated Clearing House Association

Needs Secondary Authorization Status

Reflects a Wire or Foreign Draft awaiting authorization, triggered either when the amount of the transfer exceeds the maximum pre-established for the particular user who created the Wire or Foreign Draft, or triggered for security reasons when the user who created the Wire or Foreign Draft has not being granted the privilege of authorizing it regardless of the amount.

Outgoing Drawdowns

A message requesting a debit from an account held at another Financial Institution. This function requires the recipient of the request to have a drawdown agreement on file with their Financial Institution allowing drawdown requests.

Outgoing Wire Transfer

A Debit. Funds transferred electronically out of an account.

Pay Down

Funds given to be applied against outstanding principal of a line of credit.The amount needed to pay an obligation in full.

Repeat Code

A code assigned by the wire department to identify and initiate repetitive payments for which certain information remains constant. The message contains information including the destination bank, the transaction type, and the method of payment.

Returned Domestic Wires

If a wire is returned because of incorrect information, the Wire Transfer Department will credit your account for the amount of the wire, and phones the initiator, explaining the reason for the return. Charges for incoming wires still apply.

Returned Foreign Currency Wires

If a foreign wire is returned for less than the original amount due to an error by the initiator, the Wire Transfer Department will not make up the difference. The wire room will contact the initiator for better instructions and will attempt to resend a foreign currency wire at the same rate. In the event that the wire cannot be resent, exchange rates used by the foreign bank can result in a significant difference in the amount that is returned to you. Also, foreign banks can take a percentage of the wire or a set amount as their processing fee and will not refund that amount if a wire is returned.

S.W.I.F.T.

The Society for Worldwide Interbank Financial Telecommunication is utilized by banks and other financial institutions to securely exchange messages. Key utilizes SWIFT to transmit payment messages internationally.

SWIFT BIC

The Bank Identifier Code was developed by SWIFT to identify financial institutions involved in financial transactions. Components of a BIC: BANK CC LL • BANK = The four-digit Bank Code. This code is unique to each financial institution. • CC = The two-digit ISO country code identifies the country in which the financial institution is located. • LL = The two-digit location code provides a geographical distinction within a country.

Target Balance

Reserve requirement for sale of Fed Funds.

Value Date

The date in which the wired funds are going to be available to the receiving bank for their further credit to the beneficiary (availability of funds/day to pass entry: usually tied to the type of currency involved. Please refer to "International Wire Value Date Disclosure" on the Wires main screen).

Warehouse Status (Warehousing)

The ability for an originating institution to receive a file from a customer/company ahead of the effective date and hold it for release to the ACH on such effective date. Key Total Treasury allows for warehousing of batches with effective date thirty days from today's date.