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The Latin American payments glossary

Clear definitions of the rails, account formats and payment terms you meet when you collect, pay out and convert money across the region — from Pix and SPEI to idempotency and rate locks.

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  • 266 terms
  • Rails and account formats
  • API and compliance terms

Rails by country

The local rails behind each market

A quick map of the systems you will see in this glossary. Open a country for methods, currencies and limits.

Account identifiers

Local account formats at a glance

Every market identifies bank accounts differently. These are the formats behind payouts and virtual accounts.

  • Argentina

    Identifier
    CBU
    Format
    22 digits
    Used for
    Bank accounts; COELSA transfers

  • Argentina

    Identifier
    CVU
    Format
    22 digits
    Used for
    PSP and wallet accounts; virtual accounts

  • Brazil

    Identifier
    Pix key
    Format
    Email, phone, CPF/CNPJ or random key
    Used for
    Pix pay-ins, virtual accounts and payouts

  • Colombia

    Identifier
    Bre-B key
    Format
    Key such as a phone or ID number
    Used for
    Bre-B pay-ins, virtual accounts and payouts

  • Costa Rica

    Identifier
    IBAN
    Format
    IBAN, in CRC or USD
    Used for
    SINPE virtual accounts and payouts

  • Mexico

    Identifier
    CLABE
    Format
    18 digits
    Used for
    SPEI transfers and virtual accounts

  • Peru

    Identifier
    CCI
    Format
    20 digits
    Used for
    Interbank transfers; virtual accounts in PEN and USD

Formats are shown for reference. Validate account data with the API before you send a payout.

A–Z

Every term, from 3DS to Yape

Jump to a letter, or link straight to a term: each one has its own anchor.

3

3D Secure (3DS)
An authentication protocol for online card payments: the issuing bank can ask the cardholder to confirm the purchase — with a code or an approval in the banking app — before authorizing it. Localpayment supports 3DS for cards in Colombia, Mexico and Peru.

A

Account statement
A periodic summary of an account’s opening balance, movements and closing balance. In the Business Portal you can export statements per currency and period and pull the same movements through the API, so finance teams can close the month against their own records.
Account takeover (ATO)
Fraud in which a criminal gains control of a legitimate user’s account — through stolen passwords or phishing — and uses the stored payment methods or balance. MFA, device recognition and alerts on changed payout details are key defenses for wallets and marketplaces.
Account validation (name match)
Checking, before a payout is sent, that the account identifier is well-formed, exists and belongs to the named beneficiary — via a key directory such as DICT, a bank lookup or format rules. It is the most effective way to avoid returns and recalls; Localpayment validates beneficiary data before executing payouts.
Account-to-account (A2A) payment
A payment that moves money directly from the payer’s bank account to the recipient’s, without a card network in between. Pix, SPEI, PSE and Bre-B are A2A rails; they are typically push payments that the payer approves in their bank app.
ACH
Automated Clearing House: a system that clears interbank transfers in batches rather than one by one. Localpayment pays out over ACH rails in Colombia, the Dominican Republic, El Salvador, Guatemala, Honduras (ACH Pronto) and Panama, typically same day or next business day.
ACH Colombia
The clearing house owned by Colombian banks that operates batch interbank transfers and the PSE online-banking payment button, and that launched TransfiYa for instant mobile transfers. Localpayment collects through PSE and pays out over ACH and Bre-B in Colombia.
ACH Guatemala
Guatemala’s interbank clearing system for electronic transfers between banks, processed in batches during business hours. Localpayment pays out in Guatemala over ACH, typically the same or next business day, and offers QR pay-ins.
ACH Panamá
Panama’s automated clearing house for electronic interbank transfers in US dollars, the country’s legal tender alongside the balboa. Localpayment pays out in Panama over ACH, typically the same or next business day.
ACH Pronto (Honduras)
The automated clearing house of the Honduran banking system, used for electronic interbank credits in lempiras. Localpayment pays out in Honduras over ACH Pronto, with same-day or next-business-day credit depending on cut-off times.
Acquirer
The financial institution that processes card payments on behalf of a merchant and settles the funds to it. The acquirer connects the merchant to the card networks and the issuing banks.
AES-256 (encryption at rest)
The Advanced Encryption Standard with 256-bit keys, used to encrypt stored data — databases, backups, files — so it is unreadable without the key. Localpayment encrypts data at rest with AES-256 and manages and rotates the keys through AWS KMS.
Alias (CBU/CVU alias)
A human-readable name that stands for a 22-digit CBU or CVU in Argentina, so payers can type “my.shop.ars” instead of the number. Aliases resolve to the underlying account; for payouts, Localpayment validates the account identifier before sending.
Allow-listed wallet
A wallet address that you have registered and verified in advance as a permitted destination for stablecoin withdrawals. Localpayment executes USDC and USDT Wire Outs only to allow-listed wallets, which prevents funds from being redirected if an account or API credential is compromised.
AML
Anti-money laundering: the laws, policies and controls that detect and prevent illicit funds from entering the financial system — customer due diligence, transaction monitoring, sanctions screening and suspicious-activity reporting.
API credentials
The username and password that identify your integration to the Localpayment API and are exchanged at POST /api/token/ for a short-lived bearer token. Stage and Production have separate credentials; keep them in a secrets manager, never in client-side code or repositories, and pair them with IP allow-listing.
APM
Alternative payment method: any way to pay other than international cards — bank transfers, real-time account-to-account rails, QR codes or digital wallets. In Latin America, APMs such as Pix, PSE or SPEI are often the preferred way to pay online.
Approval rate (authorization rate)
The share of payment attempts that are approved out of all attempts. It depends on the method, the issuer, the customer and the market. Localpayment reports approval rates above 99%.
Asynchronous payment
A payment whose final result is not known when the request returns — the customer still has to act in their bank app or at a collection point. Bank transfers, QR and virtual-account payments are asynchronous: wait for the signed webhook.
Audit trail
A tamper-evident record of who did what and when — logins, configuration changes, payout approvals, refunds. Auditors for PCI DSS and SOC 2 expect one; the Business Portal keeps activity logs per user and role, and double-signature approvals leave a two-person trail on every payout.
Authorization
The issuer’s approval of a card payment, confirming that the funds or credit line are available. An authorization reserves the amount; it is the capture that actually charges it.
Auto-matching
Pairing each incoming payment with the order or invoice it settles without human intervention, using a unique reference. Virtual accounts and dynamic QR codes make it possible by giving every expected payment its own identifier; Localpayment confirms the match by webhook with your externalId.
Available balance vs pending balance
Available balance is money you can use now for payouts, conversions or withdrawals; pending balance is money confirmed but not yet released — for example pay-ins awaiting the settlement terms of your agreement. The Business Portal shows both per currency.
AVS (Address Verification Service)
A check in which the issuer compares the billing address entered at checkout with the one on file for the card. Widely used in the United States; in most Latin American markets issuers do not support it, and local methods such as 3D Secure and bank transfers carry the authentication instead.

B

Banco de la República (Colombia)
Colombia’s central bank. It designed and operates Bre-B, the interoperable instant-payment system launched in 2025 in which users pay with a key such as a phone number or document ID. Localpayment supports Bre-B for pay-ins, virtual accounts and payouts.
Bank code
The number that identifies a financial institution inside a national payment system — the first digits of a CBU or CLABE, the ISPB in Brazil, the bank code field in Colombian or Peruvian transfers. Payouts need the right code so the switch routes the money to the correct bank; in Argentina, CVUs of wallets use bank code 000.
Banxico (Bank of Mexico)
Mexico’s central bank. It owns and operates SPEI, the real-time transfer system behind CLABE payments, CoDi and DiMo. Payment licensing in Mexico sits with the CNBV; Localpayment is a Money Transmitter registered with the CNBV and connects to SPEI for pay-ins, virtual accounts and payouts.
Base URL (Stage vs Production)
The root address every API call is sent to. Localpayment uses https://api.stage.localpayment.com for Stage, where no real money moves, and https://api.v3.localpayment.com for Production. The endpoints and payloads are identical, so going live means switching the base URL, credentials, allow-listed IPs and webhook endpoint.
Batch payout (mass payout)
Sending many payouts in a single operation — for payroll, commissions, supplier payments or marketplace sellers. In Localpayment you can create them through the API or by uploading a file to the Business Portal.
BCB (Central Bank of Brazil)
Brazil’s central bank: it created and operates Pix, maintains the DICT key directory and licenses payment institutions. Localpayment is a licensed payment institution with the BCB, which is why it can offer Pix pay-ins, virtual accounts and payouts directly.
BCCR (Central Bank of Costa Rica)
Costa Rica’s central bank, operator of SINPE — the national payment system that includes SINPE Móvil, the instant transfer service by phone number — and of the IBAN-based account structure. Localpayment uses SINPE for payouts and IBAN virtual accounts in CRC and USD.
BCRA (Central Bank of Argentina)
Argentina’s central bank and payments regulator. It runs the rules for immediate transfers, CBU/CVU identifiers and interoperable QR, and supervises payment service providers. Localpayment’s status in Argentina is published on the licenses page.
BCRP (Central Reserve Bank of Peru)
Peru’s central bank. It regulates the payment system, mandated interoperability between Yape, Plin and bank apps, and oversees the CCE clearing house that runs immediate interbank transfers. Localpayment pays out in Peru over CCE to CCI accounts and wallets.
Bearer token (OAuth 2.0)
An access token sent in the Authorization header of each API request (Authorization: Bearer <token>). Localpayment issues a short-lived access token (5 minutes) and a refresh token (24 hours) through POST /api/token/, in an OAuth 2.0-style flow.
Beneficial owner (UBO)
The natural person who ultimately owns or controls a company, directly or indirectly. KYB asks you to identify beneficial owners, together with directors, so compliance can see who is behind the business.
Beneficiary
The person or company that receives a payout. A payout needs the beneficiary’s name, tax ID and destination account or wallet, formatted for the local rail (for example a CLABE in Mexico or a Pix key in Brazil).
Bill pay
Paying utility, tax, telecom or supplier invoices in a country through a payments provider instead of a local bank account. Localpayment’s bill pay lets businesses settle local invoices in Latin America from their balance, with the same reporting and controls as payouts.
Billing descriptor
The text a customer sees next to a charge on their card or bank statement. A recognizable descriptor — your brand, not a legal entity name — prevents “I don’t recognize this charge” disputes, the most common trigger of friendly fraud.
BIN
Bank identification number: the first digits of a card number, which identify the issuing bank, card brand and card type. BINs drive routing and risk rules; Localpayment offers BIN lookup and BIN allow-listing.
Blockchain network (Ethereum, Tron)
The distributed ledger on which a stablecoin is issued and transferred. The same token exists on several networks and they are not interchangeable: USDC or USDT sent on the wrong network is lost. Localpayment supports USDC and USDT on Ethereum and Tron for Wire In and Wire Out — always match the network shown for your deposit address.
BNPL (buy now, pay later)
Short-term consumer credit offered at checkout, repaid in a few interest-free installments to a third-party lender. In Latin America the long-established equivalent is card installments, which Localpayment supports in Colombia, Mexico and Peru.
Boleto bancário
A Brazilian payment slip with a barcode that the payer settles at a bank, a lottery outlet or through online banking. Confirmation is not instant, which is why many merchants now favor Pix for 24/7 payments that settle in seconds.
Bre-B
Colombia’s instant payment system, launched by Banco de la República in October 2025. It moves money account to account in seconds, 24/7, using keys such as a phone or ID number. Localpayment supports Bre-B for pay-ins, virtual accounts and payouts.
Business continuity and disaster recovery
Plans and infrastructure that keep payments running through outages — redundant systems, backups, failover across data-center zones — and restore them after a major failure. SOC 2 availability criteria and ISO 27001 cover them; Localpayment documents its controls in the Trust Center.
Business day
A day on which banks and clearing systems in a given country operate — excluding weekends and that country’s holidays, which differ across Latin America. Batch rails, FX desks and Wire Outs run on business days; real-time rails such as Pix, SPEI and Bre-B confirm every day of the year.
Business Portal
Localpayment’s web console for operations: reports, batch payouts and approvals, refunds, FX, Wire In and Wire Out, users and roles, webhooks and IP allow-listing. Sign-in uses email, password and an email verification code.

C

Capital controls
Government rules that limit or condition the purchase of foreign currency and the movement of money across borders — quotas, approvals, taxes, documentation. Argentina is the best-known case in the region. Operating under local licenses, Localpayment converts and repatriates within each country’s rules.
Card scheme (card network)
The network that sets the rules and moves authorization and clearing messages between acquirers and issuers — for example Visa, Mastercard, American Express or Diners. Localpayment supports Visa and Mastercard in Argentina, Colombia, Mexico and Peru, plus American Express, Diners Club, Naranja and Cabal in Argentina and American Express and Diners Club in Colombia.
Card testing
Fraud in which criminals run many small transactions to find out which stolen card numbers still work, often through a merchant’s checkout or donation form. Velocity checks, CAPTCHA-free bot detection and minimum amounts are the usual defenses.
Card-on-file
Storing a customer’s card credentials — as a token, never as raw data — so later purchases or subscription charges run without re-entering the card. Localpayment tokenizes cards in Argentina, Colombia, Mexico and Peru, and supports card subscriptions in Colombia, Mexico and Peru.
Cardholder data (CHD)
The card number (PAN) together with the cardholder name, expiry date and service code. PCI DSS protects it. Hosted checkout and Smart Fields keep it out of your servers, shrinking your compliance scope.
Cash voucher
A payment slip or code that a customer pays in cash or at a bank counter, at a collection point. It serves customers without cards or online banking; confirmation is asynchronous, so the final status arrives by webhook.
CBU
Clave Bancaria Uniforme: the 22-digit identifier of a bank account in Argentina, used to send and receive transfers.
CCE
Cámara de Compensación Electrónica: Peru’s electronic clearing house. Localpayment uses CCE for real-time bank transfers and direct wallet payouts in Peru, with LBTR for high-value amounts.
CCI
Código de Cuenta Interbancario: Peru’s 20-digit interbank account code. Localpayment issues CCI-based virtual accounts in PEN and USD.
CEP (Comprobante Electrónico de Pago)
The official electronic receipt Banxico issues for every SPEI transfer, retrievable with the tracking key, date, amount and accounts. It is the proof of payment Mexican beneficiaries expect; Localpayment exposes proof of payment for each payout through the API and the Business Portal.
Changelog
A dated list of what changed in an API or product — new endpoints, fields, payment methods, deprecations. Reviewing it before each release protects your integration; Localpayment announces breaking API changes in advance to integrated customers.
Chargeback
A card payment reversed by the issuing bank at the cardholder’s request — for example an unrecognized charge or an undelivered product. The merchant can dispute it with evidence; Localpayment lets you upload documentation for each chargeback.
Chargeback ratio
Chargebacks as a share of card transactions in a month. Card schemes monitor it and place merchants above their thresholds in programs with fines or termination. Local bank methods, which have no chargebacks, and direct debit help keep the ratio low.
Checkout conversion
The share of customers who start a payment and complete it. In Latin America it rises when the checkout offers the local methods people actually use — Pix, SPEI, PSE, Yape, installments — in local currency, with few fields and no redirect to a foreign-looking page.
CLABE
Clave Bancaria Estandarizada: Mexico’s 18-digit standardized bank account number, used for SPEI transfers. Localpayment issues CLABE virtual accounts to collect over SPEI.
CoDi (Mexico)
Cobro Digital: Banxico’s QR and NFC request-to-pay scheme built on SPEI, launched in 2019. The merchant presents a payment request and the customer approves it in their banking app; funds move over SPEI in seconds. Adoption has been modest compared with direct SPEI transfers.
COELSA
Compensadora Electrónica S.A.: Argentina’s electronic clearing house. Localpayment’s COELSA payouts reach CBU and CVU accounts — including CVU-based wallets — in real time, 24/7.
Collection account
A local bank account used only to receive customer payments in a country. Localpayment provides them as virtual accounts in seven countries, so a business can collect locally without opening its own entity and bank account in each market.
Compliance review (onboarding)
The step in which a provider verifies a new client’s identity, ownership, activity and risk before approving it — due diligence, or enhanced due diligence where required. At Localpayment it runs in parallel with Stage testing, so integration and compliance finish at about the same time.
Convertibility
How freely a currency can be exchanged for others. Fully convertible currencies trade without restriction; several Latin American currencies are partially convertible, with official channels, documentation and sometimes multiple rates. Local conversion through a licensed provider is how businesses turn such revenue into hard currency.
Credit card
A card that lets the holder borrow up to a limit and pay later, in one sum or in installments. In Latin America credit cards are the base for installment plans — a key sales driver in Colombia, Mexico and Peru, where Localpayment supports installments in local currency.
Cross-border acquiring
Processing a card through an acquirer in a different country from the cardholder. Issuers decline these transactions more often, cross-border and FX fees apply, and some local cards and installment plans are not available — the reasons many businesses move to local acquiring in Latin America.
Cross-border payment
A payment where payer and recipient are in different countries or currencies. It often involves currency conversion, local rails on both ends and compliance checks in each jurisdiction.
Currency pair
The two currencies in a conversion, written as base/quote — BRL/USD, MXN/EUR. Localpayment converts from local currencies into hard currencies (USD, EUR, GBP, CAD, AUD, NZD, CHF) and the stablecoins USDC and USDT; the direction is local to hard.
Customer due diligence (CDD / EDD)
The checks a regulated institution performs to know its customer and understand the risk. Enhanced due diligence (EDD) adds deeper review for higher-risk cases. Localpayment’s onboarding includes due diligence, or enhanced due diligence when required.
Cut-off time
The latest time of day a payment can be submitted to be processed on the same business day. Real-time rails such as Pix or SPEI run 24/7; batch rails such as TED in Brazil or ACH in Colombia have daily cut-offs.
CVU
Clave Virtual Uniforme: Argentina’s 22-digit account identifier issued by payment service providers and wallets, interoperable with bank CBUs. Localpayment issues CVU virtual accounts for collections.
CVV / CVC
The three- or four-digit security code printed on a card, requested in online payments to show the buyer has the physical card. Under PCI DSS it may never be stored after authorization — one reason to capture cards with hosted fields such as Smart Fields.

D

Data minimization
The privacy principle of collecting and keeping only the data strictly needed for a purpose. In payments it means asking a payer for the fields the rail and the regulator require — a tax ID for Pix or PSE, for instance — and nothing more, and never storing card data you do not need.
Data residency
Rules or contractual requirements about the country or region where data must be stored and processed. Some Latin American regulators impose residency or access conditions on financial data; ask our team about the hosting and controls that apply to your data, documented in the Trust Center.
Daviplata
A widely used Colombian mobile wallet tied to a phone number, popular for everyday payments and government disbursements. Like other wallets on Colombia’s instant rails, it can receive Localpayment payouts alongside bank accounts.
DCC
Dynamic currency conversion: converting an amount at the moment of payment so it is priced in one currency and paid in another. In the Localpayment API, FX on payment lets you price in a hard currency such as USD while the payer pays in local currency, with the applied rate returned in the response.
Debin
Débito Inmediato: an Argentine payment request that the payer approves in their banking app. With Localpayment, a Debin request expires after two days if it is not approved.
Debit card
A card linked to a checking account: the purchase amount is taken from the cardholder’s balance at once. Debit is the most widespread card type in Latin America, and some issuers require 3D Secure or restrict online use, which affects approval rates.
Decline code
The reason an issuer or rail gives when a payment is not approved — insufficient funds, suspected fraud, expired card, invalid account. Localpayment returns standardized error codes and messages so you can decide whether to retry, ask for another method or stop.
Devaluation
A fall in a currency’s value against others. For a business collecting in local currency it erodes revenue between the sale and the conversion, which is why many convert frequently, lock rates with quote tokens or settle in hard currency rather than hold local balances for long.
DICT (Pix key directory)
The Central Bank of Brazil’s directory that maps every Pix key — CPF/CNPJ, phone, email or random key — to a bank account. When a payer enters a key, the app shows the recipient’s name from DICT before confirming, which is why Pix payments and payouts need only a key, not full bank details.
Digital wallet
An app or account that stores a balance or payment credentials and lets people pay or receive money from a phone. Localpayment sends direct wallet payouts in Bolivia, Costa Rica (SINPE Móvil) and Peru.
DiMo (Dinero Móvil, Mexico)
Dinero Móvil: a Banxico service launched in 2023 that lets people send SPEI transfers to a mobile phone number linked to a bank account, instead of typing an 18-digit CLABE. It makes person-to-person payments easier and complements CLABE-based transfers for businesses.
Direct debit
A pull payment in which a business, with the customer’s prior authorization, debits the customer’s bank account directly. Compared with cards it means fewer disputes and no card expiry.
DOC (Brazil)
Documento de Ordem de Crédito: a legacy Brazilian interbank transfer for small amounts, credited the next business day. It was discontinued by the banking system in 2024 as Pix took over; TED remains for larger same-day transfers and Pix for everything else.
Domestic card vs international card
A domestic card can only be used in the country where it was issued; an international card is enabled for purchases abroad. In several Latin American markets a large share of cards are domestic-only, which is why local acquiring and local payment methods reach customers that foreign processing cannot.
Double signature (maker-checker)
A four-eyes control in which one user creates a payment and a different user authorizes it. Localpayment payouts support double signature with requireAuth in the API and approval queues in the Business Portal.
Dunning
The process of recovering failed subscription payments: notifying the customer, retrying the charge and, if nothing works, pausing or canceling the service. Smart retries and alternative methods such as direct debit reduce involuntary churn.

E

Embedded iframe checkout
Loading the hosted payment page inside a frame on your own site instead of redirecting the customer. The customer stays on your page while card data is captured on the provider’s PCI-validated domain. Localpayment offers it alongside WebCheckout, payment links, Smart Fields and the API.
Endpoint
A specific URL and HTTP method in an API that performs one operation — POST /api/payin/ creates a pay-in, POST /api/payout/ a payout, POST /api/virtual-account a virtual account, GET /api/transactions/{externalId}/status reads a status. The API reference at docs.localpayment.com documents every endpoint with request and response examples.
Ethics channel (whistleblowing)
A confidential, often anonymous channel through which employees, partners and customers can report misconduct — fraud, corruption, harassment, compliance breaches — to an independent party. Localpayment’s ethics channel is operated by a third party at https://www.contatoseguro.com.br/en/localpayment.
ETPay (Chile)
An account-to-account payment method in Chile: at checkout the customer selects their bank, authorizes a transfer in their own online banking and the merchant receives confirmation in real time. Localpayment offers it as a pay-in method alongside TEF transfers.
Exponential backoff
A retry strategy in which each attempt waits longer than the previous one (1s, 2s, 4s…). Localpayment retries undelivered webhooks this way, and your own API retries should do the same, together with an externalId to stay idempotent.
externalId
The unique identifier you assign to every Localpayment transaction. It lets you match webhooks and reports to your own records and protects against duplicates: reusing an externalId returns HTTP 409.

F

FATF / GAFI
The intergovernmental body that sets global anti-money-laundering and counter-terrorist-financing standards — the 40 Recommendations — and lists jurisdictions with strategic deficiencies. Latin American regulators follow them through GAFILAT, and providers calibrate due diligence to FATF country risk.
FIU (Financial Intelligence Unit)
The national agency that receives and analyzes suspicious-activity reports from banks and payment providers — the UIF in Argentina and Mexico, COAF in Brazil, UIAF in Colombia. Regulated providers such as Localpayment are obliged to report to the FIU of each country where they are licensed.
Friendly fraud (first-party misuse)
A chargeback filed by the real cardholder for a purchase they did make — forgetting the charge, regretting it or trying to keep the goods. It is the largest share of chargebacks for digital goods; clear descriptors, delivery proof and strong evidence on representment are the response.
FX exposure and hedging
FX exposure is the risk that a currency moves against you between the moment you price or collect and the moment you convert. Hedging is reducing that risk, for example by converting promptly or locking the rate with a quote token.
FX margin
The difference between the exchange rate applied to a conversion and a reference (mid-market) rate. Together with fees, it makes up the total cost of a currency conversion.
FX market hours
The window in which a country’s interbank FX market trades and conversions can be executed at a live rate. Localpayment converts within local market hours — for example 10:00–12:30 in Brazil and 08:00–15:30 in Mexico, local time — so FX is not available around the clock even though real-time rails are.
FX quote
The rate offered for a specific conversion at a specific moment, with the amount, currency pair and expiry. In the Localpayment API a quote returns an exchangeRateToken; submitting the conversion or payout with that token before it expires guarantees the quoted rate.

G

Gas fee (network fee)
The fee paid to a blockchain network to process a transaction, which varies with congestion and is usually much lower on Tron than on Ethereum. It is one reason businesses choose the network for a stablecoin Wire In or Wire Out; the network fee is separate from any Localpayment fee.
GDPR
The European Union’s General Data Protection Regulation, the reference framework for personal-data rights, lawful bases and cross-border transfers. European businesses collecting in Latin America must reconcile it with local laws such as Brazil’s LGPD; Localpayment collects only the data needed to process payments and meet regulation.
Global treasury account
A single account that holds balances in several currencies, receives local collections, funds payouts and converts between currencies under one set of controls. Localpayment’s global treasury account keeps a balance per currency — local, hard and stablecoin — visible by currency in the Business Portal.
Go-live
The moment an integration starts processing real transactions in Production. With Localpayment it follows completed Stage testing, a security review and business verification (KYB); you then switch base URL, credentials, allow-listed IPs and webhook endpoint. Businesses typically go live in weeks and add markets afterwards by configuration.

H

Hard currency
A widely traded, relatively stable currency used for international settlement. Localpayment converts local currencies into USD, EUR, GBP, CAD, AUD, NZD, CHF and the stablecoins USDC and USDT.
HMAC-SHA256
A keyed hash used to sign messages so the receiver can verify their origin and integrity. Localpayment signs every webhook with HMAC-SHA256 of the raw body, sent in the x-Signature header.
Hosted checkout (WebCheckout)
A payment page hosted by the provider: your customer is redirected to it, chooses a local method and pays, and the sensitive data never touches your servers. It is the fastest way to start collecting, and it keeps your PCI scope small.
HTTP 409 Conflict
The status code returned when a request conflicts with existing state. In the Localpayment API, reusing an externalId returns 409 instead of creating a second transaction, so retries after a timeout are safe.
HTTP status codes (4xx / 5xx)
The standard numbers an API returns with each response: 2xx for success, 4xx for errors in the request — 400 invalid fields, 401 bad token, 409 duplicate externalId, 429 rate limit — and 5xx for server-side errors worth retrying with backoff. Localpayment adds an error code and message, and field-level details for validation errors.

I

IBAN
International Bank Account Number: a standardized account identifier used in Europe and a few Latin American countries. Localpayment virtual accounts can be identified by an IBAN where the market supports it, such as Costa Rica.
Idempotency
The property that repeating a request has the same effect as sending it once, which makes retries safe after a timeout. In the Localpayment API, idempotency comes from your unique externalId: a duplicate returns HTTP 409 instead of creating a second transaction.
Incident response
The documented process for detecting, containing, resolving and communicating security or availability incidents, including who is notified and when. It is a requirement of PCI DSS, SOC 2 and ISO 27001; customers can report incidents 24/7 to support@localpayment.com and follow them on the status page.
Installments
Splitting a card purchase into several monthly payments — known as cuotas in Spanish-speaking markets. Localpayment supports installments on credit cards in local currency in Colombia, Mexico and Peru.
Interchange
The fee an acquirer pays the issuer on each card transaction. It is one component of the total cost a merchant pays; the rest is made up of network fees and the processor’s own margin.
Interoperability (payments)
The ability of any bank or wallet to pay any other, regardless of provider, through shared standards — a key or QR that every app understands. Central banks in Brazil (Pix), Argentina (Transferencias 3.0), Colombia (Bre-B), Peru and Bolivia have mandated it, which is why one local rail reaches virtually every account.
IOF (Brazil financial transactions tax)
Imposto sobre Operações Financeiras: a Brazilian federal tax levied on credit, FX, insurance and securities operations, with a specific rate on currency conversions and international card purchases. It affects the cost of repatriating Brazilian revenue and of cross-border card payments; rates change by decree, so check the current one.
IP allow-listing
A control that accepts API calls only from server IP addresses you have registered. Localpayment requires it: IPs are managed in the Business Portal, and calls from other addresses are rejected.
ISO 27001
The international standard for an information security management system (ISMS): it requires an organization to assess risks, apply controls and keep improving them. Localpayment is certified to ISO 27001.
ISO 3166 country codes (ISO-3)
The standard two- and three-letter codes for countries. The Localpayment API uses the three-letter form — BRA for Brazil, MEX for Mexico, ARG for Argentina, COL for Colombia — in every pay-in, payout and virtual-account request, which selects the local rails, currency and validation rules for that market.
ISO 4217 currency codes
The three-letter codes for currencies — BRL, MXN, ARS, COP, PEN, CLP, USD, EUR — and the number of decimals each uses. Payment APIs express amounts with these codes; Localpayment reports every balance, pay-in and conversion with its ISO 4217 code and treats USDC and USDT as additional settlement currencies.
ISO 8601 (timestamps)
The international format for dates and times — 2026-10-01T14:30:00Z — that removes ambiguity about day/month order and time zone. Payment APIs and webhooks use it for creation, update and expiration times; always store the time zone, since cut-offs and FX hours are defined in each country’s local time.
Issuer
The bank or institution that issues a card or account to the consumer and decides whether to approve or decline each payment. Many declines are issuer decisions, not platform errors.

J

JWT (JSON Web Token)
A compact, signed token that carries identity claims. Localpayment’s POST /api/token/ returns an access token (valid 5 minutes) and a refresh token (valid 24 hours), both JWTs, sent as Authorization: Bearer.

K

Kickoff (integration)
The first working session between your team and the provider’s technical team: confirming countries, methods and flows, sharing Stage credentials and documentation, agreeing on the test plan and go-live criteria. Localpayment’s integration support runs from the kickoff to go-live, alongside 24/7 customer support.
KMS (key management service)
A managed service that generates, stores, rotates and controls access to encryption keys inside hardware security modules, so keys are never exposed to application code. Localpayment uses AWS KMS for the keys behind its AES-256 encryption at rest, with automatic rotation.
KYB
Know Your Business: verifying a company’s identity, ownership, directors and beneficial owners before onboarding it as a customer. KYB is part of Localpayment’s onboarding, before production credentials are issued.
KYC
Know Your Customer: verifying the identity of individuals — for example payers or payout beneficiaries — to comply with anti-money laundering rules.
KYT (Know Your Transaction)
Monitoring the transactions themselves — amounts, frequency, counterparties, geography — rather than only the customer’s identity, to spot patterns consistent with money laundering or fraud. Regulated providers such as Localpayment run KYT as part of ongoing transaction monitoring.

L

LBTR
Liquidación Bruta en Tiempo Real: a real-time gross settlement system run by a central bank for high-value transfers. Localpayment uses LBTR for high-value payouts in Peru and the Dominican Republic.
Least privilege
The security principle that every user, service and API credential gets only the permissions it needs, for as long as it needs them. Applied to a payments integration: a dedicated API user per system, IP allow-listing, read-only roles for finance staff and approver roles separated from creators.
Ledger
The authoritative record of every debit and credit to an account, from which balances are derived. Your Localpayment account ledger records pay-ins, payouts, refunds, fees, conversions, Wire Ins and Wire Outs per currency; the Business Portal and the API expose it for reconciliation with your own books.
LGPD (Brazil data protection law)
Lei Geral de Proteção de Dados: Brazil’s data-protection law, in force since 2020 and modeled on the GDPR. It governs how payment data of Brazilian customers is collected, used and stored, and gives them rights of access and deletion. Localpayment processes personal data under its privacy policy and the laws of each country where it operates.
Liquidity
Having funds available in the right currency and country when a payment is due. Payout programs need enough pre-funded balance on each local rail; treasury tools help you fund balances and move money ahead of need.
llms.txt
A plain-text index that points language models to the most useful pages of a documentation site. The Localpayment docs publish one so AI assistants find the right reference quickly.
Local acquiring
Processing a card payment through an acquirer in the same country as the cardholder, so the transaction is domestic for the issuer. Domestic transactions are approved more often and avoid cross-border fees; Localpayment acquires locally for cards in Argentina, Colombia, Mexico and Peru.
Local card schemes (Naranja, Cabal, Carnet)
Card networks that operate in a single country alongside the international schemes, such as Naranja and Cabal in Argentina or Carnet in Mexico. Localpayment accepts Naranja and Cabal in Argentina, in addition to Visa, Mastercard, American Express and Diners — cards that cross-border processors typically cannot reach.
Local currency
The currency in which a country’s customers pay and receive money — BRL, MXN, ARS, COP, CLP, PEN and so on. Collecting in local currency raises conversion at checkout and avoids asking customers to pay in dollars.

M

Mandate (direct debit)
The customer’s standing authorization that lets a business debit their bank account directly, once or on a schedule. It is the legal basis of direct debit, which means fewer disputes than cards and no card expiry.
MCP (Model Context Protocol)
An open protocol that lets AI coding assistants read tools and documentation from a server. Localpayment publishes a public, read-only MCP server at docs.localpayment.com/mcp so assistants can work from the real API contract.
Merchant discount rate (MDR)
The all-in percentage a merchant pays on each card sale, covering interchange, network fees and the processor’s margin. It is usually quoted as a percentage of the transaction value, sometimes with a fixed fee.
Merchant of record (MoR)
The entity legally responsible for a sale to the end customer: it appears on the statement, charges applicable taxes and handles refunds and disputes. Whether you or a partner act as merchant of record changes tax, liability and reporting; confirm the model that applies to your flows with our team.
MFA (multi-factor authentication)
Requiring a second proof of identity beyond a password — a one-time code from an authenticator app, a hardware key — to sign in or approve sensitive actions. Localpayment protects Business Portal access with MFA, and PCI DSS v4.0.1 requires it for all access to cardholder-data environments.
Mid-market rate
The midpoint between the buy and sell prices of a currency pair in the wholesale market. It is a benchmark for comparing quotes; the rate a business actually receives includes the provider’s FX margin.
Money transmitter
A regulated non-bank company authorized to receive funds from one party and deliver them to another. In Mexico money transmitters are supervised by the CNBV; Localpayment is a Money Transmitter registered with the CNBV, the basis for its SPEI pay-ins, CLABE virtual accounts and payouts in Mexico.
MSB
Money Services Business: a regulatory category for companies that transmit money or exchange currency. In Canada, MSBs register with FINTRAC; Localpayment holds an MSB registration there.
Multi-currency balance
An account that holds separate balances in several currencies, so you can collect in local currency, keep funds in the market, convert when you choose and pay out from the right balance.

N

Nequi
One of Colombia’s most used digital wallets, identified by the user’s mobile number. Nequi accounts are reachable through Colombia’s instant rails, so Localpayment payouts can reach wallet users as well as traditional bank accounts.
Net vs gross settlement
Gross settlement pays you the full collected amount and invoices fees separately; net settlement deducts fees, refunds and chargebacks before paying. Each has reconciliation implications — gross is easier to match to sales, net to cash. Your agreement defines which applies and your reports itemize both.
Netting
Offsetting amounts owed in both directions so that only the difference moves. A business that both collects and pays out in the same country can use pay-in proceeds to fund payouts, reducing conversions and transfers; your agreement defines how balances are netted across flows and currencies.
Network token
A token issued by the card scheme itself, replacing the card number for a specific merchant and updated automatically when the card is reissued. Unlike a processor token, it travels through the network and can improve approval rates on recurring charges.

O

Ombudsman (ouvidoria)
An independent second-level channel for complaints that the regular support process did not resolve. Brazilian regulation requires licensed payment institutions to run one; Localpayment’s ombudsman for customers in Brazil is reachable at ouvidoria@localpayment.com.
On-chain confirmation
The inclusion of a blockchain transaction in a block, after which it is considered final once enough further blocks follow. Localpayment credits USDC and USDT Wire Ins automatically, usually 2–10 minutes after on-chain confirmation, and executes stablecoin Wire Outs as on-chain transfers to allow-listed wallets.
On-ramp / off-ramp
Services that convert fiat money into crypto (on-ramp) or crypto into fiat (off-ramp), typically for consumers. Localpayment does not offer consumer on- or off-ramps: stablecoins are a treasury tool for businesses — USDC and USDT fund the account via Wire In and are withdrawn to allow-listed wallets via Wire Out.
One-click payment
A checkout in which a returning customer pays with a stored, tokenized card in a single step. It raises conversion for digital goods, mobility and subscriptions, and depends on card-on-file tokenization and, where the issuer requires it, 3D Secure.
OpenAPI specification
A machine-readable description of an API — endpoints, parameters, schemas, errors — from which documentation, client code and tests can be generated. Localpayment’s API reference is built from it, and the same contract feeds the public MCP server and llms.txt index that AI coding assistants use.

P

Pay-in
A payment collected from a customer — by card, bank transfer, QR code or virtual account. Localpayment creates every pay-in through a single endpoint, POST /api/payin/.
Payment expiration
The deadline by which a pending bank transfer, QR code or voucher must be paid. If the customer does not complete it in time, the transaction closes with a final non-successful status, delivered by webhook, so you can release stock or cancel the order automatically.
Payment gateway
The technology layer that securely captures payment details at checkout and passes them to the processor or acquirer. A gateway transports the transaction; it does not necessarily hold licenses or settle funds.
Payment institution
A regulated non-bank entity authorized to process payments and hold customer funds under a central-bank framework. Localpayment’s status is published country by country — for example, Licensed Payment Institution with the Central Bank of Brazil (BCB).
Payment orchestration
A layer that connects a merchant to several providers, rails and methods through one integration and routes each transaction between them. Orchestration alone routes to others; combining it with licensed local rails, as Localpayment does in 14 countries, puts the rails under the same roof.
Payment processor
The company that moves a transaction between the merchant, the card network or bank rail and the issuer, and reports the result. Localpayment processes pay-ins and payouts over local rails and card networks in Latin America through one API.
Payment rail
The underlying network that carries money between accounts: a card network, a real-time system such as Pix or SPEI, a batch system such as ACH, or a blockchain. Each rail has its own speed, limits, hours and cost; Localpayment connects to local rails in 14 countries.
Payment reversal
Any operation that undoes a payment after it was approved. There are three kinds: a void before capture, a refund initiated by the merchant, and a chargeback or return initiated by the payer’s bank. Each has a different cost, timing and effect on your balance.
Payment switch
The central infrastructure of a payment system that receives each instruction, validates it and routes it to the receiving institution in real time — the role Banxico plays for SPEI, the BCB for Pix or a clearing house for ACH. Providers like Localpayment connect to these switches directly or through participant banks.
Payout
A disbursement from your balance to a third party’s bank account or digital wallet — sellers, drivers, freelancers or refund recipients, for example. Localpayment sends payouts over local rails in 14 countries.
Payout recall
A request to recover a payout already sent, typically because the beneficiary details were wrong. On real-time rails completed payouts are final; on other rails the recall is a manual, best-effort process coordinated with support and dependent on the receiving bank. Validating beneficiary data beforehand is the real safeguard.
Payout return
A payout that the beneficiary’s bank sends back after it was completed — because the account was closed, the holder did not match or the bank rejected it. On batch rails such as ACH this can happen days later; the amount is credited back to your Localpayment balance and reported by webhook.
PCI DSS
Payment Card Industry Data Security Standard: the security requirements for any organization that stores, processes or transmits cardholder data. The current version is PCI DSS v4.0.1. Localpayment is validated at PCI DSS v4.0.1, so card data captured through WebCheckout or Smart Fields stays inside a certified environment.
PCI DSS scope
The set of systems, people and processes that store, process or transmit cardholder data and must therefore meet PCI DSS. Using WebCheckout, payment links or Smart Fields keeps card data off your servers and your scope minimal; sending raw card data to the API puts your systems in scope and requires your own validation.
Penetration test
An authorized simulated attack on systems and applications by security specialists to find exploitable weaknesses before criminals do. PCI DSS requires regular internal and external tests; Localpayment runs penetration tests and security reviews as part of its PCI DSS, SOC 2 and ISO 27001 programs.
PEP
Politically exposed person: someone who holds or has held a prominent public function, together with close family members and associates. Under AML rules, PEPs require enhanced due diligence.
Phishing
Fraudulent messages that imitate a trusted party — a bank, a payments provider, a colleague — to steal credentials or trigger a payment. Localpayment never asks for passwords or API credentials by email; verify unexpected requests through official channels and enable MFA on every account.
Pix
Brazil’s instant payment system, operated by the Central Bank of Brazil. Payments settle in seconds, 24/7, using keys (email, phone, tax ID or a random key), QR codes or Copia e Cola codes. Localpayment supports Pix for pay-ins, virtual accounts and payouts.
Pix Copia e Cola
A text string that holds a Pix payment request. The payer copies it and pastes it into their banking app instead of scanning a QR code — handy on mobile, where the customer cannot scan the screen they are looking at.
Pix key
An alias registered in Brazil’s Pix directory — tax ID, phone, email or a random key — that identifies a bank account so payers do not need its branch and account numbers. Localpayment virtual accounts in Brazil are identified by a Pix key.
Pix MED (special return mechanism)
A Central Bank of Brazil procedure that lets a payer’s bank request the return of a Pix payment in cases of fraud or operational error, blocking the funds in the receiving account while the case is analyzed. It is not a card-style chargeback: ordinary Pix payments are final once confirmed.
Pix QR code (static vs dynamic)
A static Pix QR encodes a key and optionally a fixed amount and can be reused; a dynamic QR is generated per transaction with amount, identifier and expiration, so each payment reconciles automatically. Localpayment generates dynamic QR codes and the equivalent Copia e Cola string for every Pix pay-in.
Plin
A Peruvian mobile payment service built into several banks’ apps that lets users send money by phone number. Interoperable with Yape since 2023, it is part of the instant-payment landscape that Localpayment reaches in Peru through CCE and wallet payouts.
Polling vs webhooks
Polling means repeatedly asking the API for a status; webhooks mean the API tells you when it changes. Prefer webhooks as the source of truth and use the status endpoint as a fallback for reconciliation.
Postman collection
A ready-to-import set of API requests with environments and variables that lets developers call an API without writing code first. Localpayment’s docs include a Postman collection with Stage and Production environments, example requests for every endpoint and helpers that obtain and refresh the bearer token.
Pre-authorization and capture
A two-step card flow: the amount is first reserved on the card and captured later — when an order ships, for example — or released if the order is canceled.
Pre-funding
Depositing money with a provider before it is needed so payouts can be executed instantly from that balance. At Localpayment you pre-fund with a Wire In — a bank transfer or USDC/USDT — or with the proceeds of your pay-ins, and payouts debit the balance in local currency.
Prepaid card
A card loaded with funds in advance rather than linked to a bank account or credit line. Common among unbanked consumers and digital wallets in Latin America; prepaid cards often have lower limits and may be domestic-only.
Proof of payment
A document confirming that a payout or refund was executed, useful for customer support and audits. Localpayment makes proof of payment available through the API and the Business Portal.
PSE
Pagos Seguros en Línea: Colombia’s online bank payment method. The payer is redirected to their bank to approve a debit from their account.
PSP
Payment service provider: a company that lets businesses accept or send payments by connecting them to card networks, banks and local rails.

Q

QR Bolivia (interoperable QR)
Bolivia’s interoperable QR standard, promoted by the central bank and the financial regulator, lets a customer pay any merchant QR from any bank or wallet app by immediate transfer. QR has become the dominant digital payment in Bolivia; Localpayment offers QR pay-ins and wallet payouts there.
QR payment
Paying by scanning a QR code with a banking or wallet app. Localpayment supports QR pay-ins in Argentina, Bolivia, Guatemala and Peru; in Brazil, Pix can also be paid by QR code.

R

Rate limiting
A cap on how many API requests a client can make in a given time, protecting the service from overload. Design your integration to back off and retry when it receives a limit response instead of hammering the endpoint.
Rate lock
Holding an exchange rate for a set period. With Localpayment you request a quote and receive a quote token (exchangeRateToken) with an expiration date; operations submitted with it before it expires use the locked rate.
RBAC (role-based access control)
Granting permissions by role — viewer, operator, approver, administrator — rather than user by user, so each person sees and does only what their job requires. The Business Portal supports custom roles and permissions, including who may create and who may approve payouts.
Real-time payment
A payment that is cleared and confirmed within seconds, around the clock, instead of in batches. Pix, SPEI, COELSA, TEF, CCE, Bre-B and SINPE Móvil confirm in seconds, 24/7, within each rail’s limits.
Reconciliation
Matching every transaction with its order, invoice or payout and with the funds received. Localpayment supports it with signed webhooks, balance, activity and reconciliation endpoints, and Business Portal reports.
Record retention
The legal obligation to keep transaction records, customer files and logs for a minimum period — typically five years or more under AML laws, and twelve months of audit logs under PCI DSS v4.0.1. It is why payment data cannot simply be deleted on request when a regulation requires it to be kept.
Recurring payment
A payment charged repeatedly on a schedule — a subscription, a membership or an installment plan — after the customer gives consent once. Localpayment supports card subscriptions in Colombia, Mexico and Peru.
Redirect URL (return URL)
The page where a customer lands after paying on a hosted page or in their bank app. Treat it as a UX step only: confirm the payment with the webhook or a status query, never from the redirect alone.
Refresh token
A longer-lived token used to obtain a new access token without sending credentials again. Keep it server-side only, and request a fresh pair when it expires.
Refund
Returning all or part of a completed payment to the payer. Localpayment supports refunds for card payments, virtual accounts and APMs.
Remittance
Money sent by a person, usually a migrant worker, to family or contacts in another country. Remittance companies use local payout rails and wallets to deliver funds to recipients in Latin America.
Repatriation of funds
Moving revenue collected in a foreign country back to the company’s home currency and bank account, complying with that country’s FX and tax rules. Localpayment handles it as conversion within local market hours followed by a Wire Out to your own account in hard currency or stablecoins.
Representment
The merchant’s formal response to a chargeback: submitting evidence — order details, delivery proof, communication with the customer — so the issuer reverses the dispute. Localpayment lets you upload the documentation for each chargeback through the API or the Business Portal within the scheme deadline.
Responsible disclosure
A process that lets security researchers report a vulnerability privately and gives the company time to fix it before any public disclosure. Localpayment publishes its responsible-disclosure policy in the legal section and receives reports at cybersecurity@localpayment.com.
REST API
An interface that uses standard HTTP methods and JSON over HTTPS to create and read resources. The Localpayment API follows this style, so any HTTP client works; there are no official server SDKs, and the docs include a Postman collection.
Restricted industries
Business activities a payments provider does not serve, or serves only after enhanced review, because of legal prohibition, scheme rules or elevated money-laundering and chargeback risk. Localpayment keeps such a list under its AML policy; share your business model with sales early to confirm eligibility.
Risk scoring
Assigning each transaction a fraud-likelihood score from signals such as device, geolocation, amount, history and velocity, then approving, challenging with 3D Secure or declining based on thresholds. It is one of the fraud controls Localpayment runs on card payments.
Risk-based approach (AML)
The FATF principle that compliance effort should match the risk of each customer, country, product and channel: simplified due diligence for low risk, enhanced due diligence for high risk. It is why onboarding documents and monitoring intensity differ between a local SaaS and a cross-border remittance company.
Rolling reserve
A percentage of card sales that a provider holds for a period to cover future chargebacks and refunds, releasing each tranche after the period ends. Whether a reserve applies, and its size, depends on industry risk and is set in the commercial agreement.

S

Sanctions lists (OFAC, UN, EU)
Official registers of people, companies, vessels and countries with which financial dealings are prohibited or restricted — the US OFAC SDN list, UN Security Council lists, EU consolidated list and local lists. Localpayment screens customers and beneficiaries against them at onboarding and on every payout.
Sanctions screening
Checking customers and transaction parties against official sanctions and watch lists to make sure a regulated institution does not deal with prohibited persons or entities. It runs at onboarding and, continuously, as part of monitoring.
SAQ (PCI self-assessment questionnaire)
The questionnaire a merchant completes to attest its own PCI DSS compliance. The shorter versions apply when card data is handled entirely by a validated provider through a hosted page or hosted fields.
Segregation of duties
The control principle that no single person should be able to initiate, approve and execute a sensitive operation alone. In payments it takes the form of double-signature payouts, role-based permissions and independent review of code and configuration changes.
Settlement
The step in which funds actually move between parties. Two meanings matter: rail settlement, when an interbank transfer completes (in seconds on real-time rails), and merchant settlement, when collected funds are paid out to your own bank account under your agreement.
Settlement currency
The currency in which collected funds are paid to you, as opposed to the processing currency the customer paid in. With Localpayment you can be settled in the local currency you collected or, after conversion, in USD, EUR, GBP, CAD, AUD, NZD, CHF, USDC or USDT, according to your agreement.
Settlement report
A statement listing every transaction included in a settlement — pay-ins, refunds, chargebacks, fees, FX — with the resulting amount paid to you. Localpayment provides settlement reports in the Business Portal and the underlying transaction data through the API, each record carrying your externalId.
SINPE / SINPE Móvil
Costa Rica’s national electronic payment system, run by the Central Bank of Costa Rica. SINPE Móvil lets people send money to a mobile phone number in real time, 24/7. Localpayment supports SINPE virtual accounts (IBAN, in CRC and USD) and payouts over SINPE and SINPE Móvil.
SIPAP
Sistema de Pagos del Paraguay, operated by the Central Bank of Paraguay. Localpayment pays out over SIPAP in real time for standard amounts, with a high-value flow above that.
SLA (service level agreement)
The part of a contract that defines measurable service commitments — availability, support response times, incident communication — and what happens if they are missed. Localpayment’s service levels are set in each commercial agreement rather than published; ask sales about the terms for your account.
Smart Fields
Localpayment’s hosted card fields with a JavaScript SDK. Card data is tokenized field by field in the browser and consolidated into a single-use token, so raw card numbers do not pass through your servers.
Smart retries
Re-attempting a declined recurring charge at a better moment or over a different route, based on the decline code — for example after payday for insufficient funds, never for a hard decline such as a stolen card. Combined with smart routing, retries recover revenue without annoying customers.
Smart routing
Rules and logic that decide which payment method or rail handles each transaction, based on country, amount, method availability and your own preferences. It lets one integration reach more customers without changing your code.
SOC 2 Type II
An independent audit report on how a service provider’s security controls operated over a period of time, based on the AICPA Trust Services Criteria. Localpayment has a SOC 2 Type II report; request it through the Trust Center.
Soft decline vs hard decline
A soft decline is temporary (insufficient funds, issuer unavailable) and may succeed if retried later; a hard decline is final (closed account, stolen card) and should not be retried. Reading the decline reason avoids pointless retries.
Source of funds
Evidence of where the money in a relationship or transaction comes from — sales revenue, investment, a bank statement. Compliance teams request it during KYB and may ask again for unusually large or atypical operations, as part of a risk-based approach to AML.
SPEI
Sistema de Pagos Electrónicos Interbancarios: Mexico’s real-time interbank payment system, operated by Banco de México. Transfers use a CLABE and settle in seconds, 24/7. Localpayment supports SPEI for virtual-account collections and payouts.
SPI (Paraguay instant payments)
Sistema de Pagos Instantáneos: the 24/7 instant-transfer service inside SIPAP, Paraguay’s central-bank payment system, that credits guaraní transfers between banks in seconds. Localpayment pays out in Paraguay over SIPAP rails.
SPID
Sistema de Pagos Interbancarios en Dólares: Mexico’s interbank system for US dollar transfers between domestic accounts. Localpayment offers USD virtual accounts in Mexico via SPID.
Split payment
Dividing one customer payment among several recipients — for example a marketplace keeping a commission and passing the rest to the seller. Splits are typically settled through payouts to each beneficiary.
Spot rate
The exchange rate for a currency conversion executed now, as opposed to a forward rate agreed for a future date. Localpayment quotes a spot-based rate that includes the margin in your agreement and lets you lock it for a short window with a quote token.
SSO (single sign-on)
Signing in to several applications with one corporate identity, through standards such as SAML or OpenID Connect, so access is granted and revoked centrally when people join or leave. It complements MFA and role-based access in enterprise security programs.
Stablecoin
A crypto asset designed to hold a stable value against a fiat currency, usually the US dollar. Localpayment accepts USDC and USDT on Ethereum and Tron to fund business accounts (Wire In) and allows withdrawals to allow-listed wallets (Wire Out).
Stage (sandbox)
Localpayment’s test environment (api.stage.localpayment.com). It mirrors production without real money and includes test cards, a virtual-account payment simulator and payout test scenarios. Credentials are issued at the start of the partnership.
Status page
A public page showing the live availability of a provider’s services and the history of incidents and maintenance. status.localpayment.com covers pay-in, payout and authentication services and each country’s rails, so your team can tell a local-rail incident from an issue in your own integration.
Suspicious activity report (SAR / STR)
A confidential report a regulated institution files with the national financial intelligence authority when it suspects money laundering, terrorist financing or fraud. By law, the customer concerned is not told.

T

T+0 / T+1
Settlement timing conventions: T+0 means the same day as the transaction, T+1 the next business day. Real-time rails confirm transfers in seconds; when funds reach the merchant depends on the agreement.
Tax ID (CPF, CNPJ, CUIT, RFC, NIT)
The national tax identifier of a person or company: CPF and CNPJ in Brazil, CUIT/CUIL in Argentina, RFC in Mexico, NIT in Colombia. Many local rails and payout destinations require it, and it must match the account holder.
TED
Transferência Eletrônica Disponível: Brazil’s interbank transfer for same-day credit, subject to a daily cut-off. For real-time transfers 24/7, Pix is used instead.
TEF
Transferencia Electrónica de Fondos: electronic funds transfer. In Chile, TEF moves money between banks in real time, 24/7, for standard amounts; in Chile and Mexico it is also used for virtual-account collections.
TLS (encryption in transit)
Transport Layer Security: the protocol that encrypts data moving between your servers, the Localpayment API and the payer’s browser, so it cannot be read or altered on the way. Localpayment requires TLS 1.2 or higher on every connection, including webhook deliveries to your HTTPS endpoint.
Tokenization
Replacing sensitive card data with a token that can be stored and reused — for card-on-file payments or subscriptions — without keeping the card number itself.
Transaction limit
The maximum amount per operation, per day or per customer that a rail, a regulator or a provider allows. Limits depend on the payment method, local regulation, your verification level and risk assessment; Localpayment shares your default limits at onboarding and you can request changes.
Transaction monitoring
Ongoing analysis of payments to spot unusual patterns — sudden volume, structuring, unexpected counterparties — that could signal fraud or money laundering. Alerts are reviewed by compliance analysts.
Transaction status
The current stage of a pay-in or payout in its lifecycle, from creation to a final state such as Completed, Rejected or Refunded; payouts under double signature start at Pending Authorization. Localpayment pushes every change by signed webhook and exposes it at GET /api/transactions/{externalId}/status.
Transfer365 (El Salvador)
El Salvador’s instant interbank transfer system, operated by the central bank, that moves US dollars between banks and wallets around the clock. Localpayment pays out in El Salvador over local rails, including to digital wallets through their bank accounts.
Transferencias 3.0 (Argentina)
The BCRA framework that made QR payments interoperable in Argentina: any bank or wallet app can scan any merchant QR and pay by immediate transfer to a CBU or CVU. Localpayment offers interoperable QR pay-ins in Argentina, confirmed by webhook in seconds.
TransfiYa
A Colombian service for real-time transfers between bank accounts and wallets. Localpayment supports TransfiYa payouts in Colombia.
Travel rule
The FATF requirement that originator and beneficiary information travel with a transfer above a threshold, so each institution in the chain can screen it. It applies to wire transfers and, increasingly, to stablecoin transfers between regulated providers — relevant to Wire In and Wire Out in USDC or USDT.
Treasury
The management of a company’s cash, currencies and liquidity. In Localpayment, treasury covers multi-currency balances, FX conversion with rate lock, Wire In and Wire Out, and stablecoin funding and withdrawals.
Trust Center
A single place where a company publishes its security and compliance posture — certifications, policies, subprocessors — and where customers request audit reports. Localpayment’s Trust Center at trust.localpayment.com provides the PCI DSS, SOC 2 Type II and ISO 27001 documentation, some of it under non-disclosure terms.

U

Unmatched transaction
A payment that could not be paired with any expected order — wrong amount, missing reference, a transfer to a shared account. Unmatched items are the main cost of manual reconciliation; one virtual account per customer or invoice and unique externalIds reduce them to near zero.
Uptime (availability)
The share of time a service is operational, usually expressed as a percentage per month. For a payments API it matters per component — authentication, pay-ins, payouts — and per country rail, since a bank or switch outage affects only that market. Localpayment publishes live and historical availability on its status page.
USDC
A US dollar stablecoin issued by Circle. Localpayment supports USDC on Ethereum and Tron for account funding and withdrawals, and as a conversion currency for local balances.
USDT
A US dollar stablecoin issued by Tether. Localpayment supports USDT on Ethereum and Tron for account funding and withdrawals, and as a conversion currency for local balances.

V

VAT / IVA
Value-added tax, called IVA in most of Latin America, charged on the sale of goods and digital services. Many countries now require foreign digital-service providers to register and charge it, or have card issuers and payment intermediaries withhold it; invoices and reports must show it separately.
Velocity check
A fraud rule that counts how many transactions, cards or amounts come from the same customer, device or IP within a time window and blocks unusual bursts — a typical sign of card testing. Localpayment applies velocity checks and risk scoring on top of your own rules.
Virtual account
A unique local account number or key — CLABE in Mexico, CVU in Argentina, CCI in Peru, a Pix key in Brazil or a Bre-B key in Colombia — assigned to a customer, order or invoice. Incoming transfers are matched automatically and confirmed by webhook.
Void
Cancelling a card authorization before it is captured, so the hold on the cardholder’s funds is released and no money moves. Once a payment has been captured or settled, the way to return funds is a refund, not a void.

W

Wallet address
The public identifier of a blockchain account to which tokens are sent, specific to a network. Localpayment gives you a deposit address per supported network for USDC/USDT Wire Ins and sends Wire Outs only to wallet addresses you have allow-listed in advance.
Webhook
An HTTP notification sent to your server when something happens, such as a payment completing. Localpayment webhooks are configured in the Business Portal, signed with HMAC-SHA256 and retried with exponential backoff when your endpoint does not return 200.
Wire In
Funding your Localpayment account — by bank wire, notified through the API or the Business Portal, or with USDC or USDT, which are detected and credited automatically, usually 2–10 minutes after on-chain confirmation.
Wire Out
Withdrawing funds from your Localpayment balance to your own external bank account, or to an allow-listed USDC or USDT wallet. Wire Outs never go to third parties.
Withholding tax
Tax that a payer or intermediary must deduct from a payment and remit to the tax authority on the recipient’s behalf. Several Latin American countries apply withholdings to card sales, payouts to individuals or cross-border services; they appear as line items in your reports. Localpayment does not provide tax advice — consult your advisors per country.

Y

Yape
Peru’s most used mobile wallet: users pay by phone number or QR, and since 2023 Yape and Plin are interoperable under BCRP rules. In Peru, Localpayment collects through QR and virtual accounts (CCI) and can reach wallet users with payouts.

For developers

From vocabulary to your first API call

Terms like externalId, webhook and Stage map directly to how you integrate. The quickstart walks you through getting a token, creating a pay-in and verifying the signed webhook that confirms it.

  • Bearer tokens that expire after 5 minutes
  • One externalId per transaction
  • HMAC-SHA256 signature on every webhook
Start the quickstart

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