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Stashfin Terms

  • FCP - Free Credit Period

    • vs Interest bearing loan

  • PTP - Promise to Pay

  • DPD - Days Past Due - https://www.investopedia.com/terms/p/past-due.asp

    • Ageing Schedule

      • Aging schedules are accounting tables companies use to see whether payments are being made or received in a timely fashion.
      • These schedules can be customized to include whatever time frame the company wants to track, but commonly include under 30 days, 1-30 days past due, 30-60 days past due, and more than 90 days past due.
      • Using aging schedules can help companies spot cash flow problems before they become an even bigger issue.
      • Aging schedules can help companies spot problems with their credit policies.

      https://www.investopedia.com/terms/a/aging-schedule.asp

  • Bucket X - Buckets

  • FOIR - fixed obligation to income ratio / debt-to-income ratio

  • Perfios - Bank verification using internet banking (Rs. 58 per customer)

  • Bureau - (Rs. 12 per customer)

  • DBR - Debt Burden Ratio, cut off 65%

  • NACH Process (National Automated Clearing House) - The process of auto deduction from payee's bank account

  • FLDG - First loan default guarantee

  • DST - Direct Sales Team

  • DSA - Direct Sales Agent / Associates

  • DMA - Direct Marketing Associates / Agencies

  • NIM - Net Interest Margin

  • Leverage

  • SPDC - Security Post Dated Cheques

  • IRR - Internal Rate of Return

  • POS - Principle outstanding

  • PAR - Principle At Risk

  • ALM - Asset liability mismatch

  • Suspense account - don't know who has repaid the money, directly paid via account no, ifsc, without details of loan

  • DRR - Daily Run Rate

  • MDR - Merchant Discount Rate

  • ATS - Average Ticket Size

  • TSO - Total System Outage

  • AOP - Annual Operating Plan

  • Cards

    • MCC - Merchant Category Code - MCC is a four-digit number listed in ISO 18245 for retail financial services. An MCC is used to classify a business by the types of goods or services it provides.

Fees​

Switching Fee​

While you swipe a card (probably within seconds) there’s a lot that happens at the back end. Out of it, one thing is, the card-issuing institution (VISA, Mastercard, AMEX etc.) levying a processing fee to card’s issuing bank (HDFC, AXIS, ICICI, SBI etc.)

This fee is what we call Switching Fee in the payment ecosystem. This fee can be called as the routing transaction fee between both the bodies and varies from 0.15% to 1.00%.

Interchange Fee​

An interchange fee is an amount that the issuing institutions collect from the acquiring bank. Usually, this fee is a percentage of the total transaction plus a fixed amount. And while the issuing institutions collect, assess and set this fee, they are paid to the issuing bank, who issue a particular card.  

Please note that the average interchange rate for a credit card is around 1.81% and for debit cards, it’s 0.3%.

Payment Service Provider Fee (PSP Fee)​

A Payment Service Provider or a PSP is usually a SaaS-based enabler that acts as an aggregator between businesses and the end customer.

https://razorpay.com/learn/what-is-mdr-psp-fee-switching-fee-interchange-fee/