BZ Expert Academy
Money, payments and crypto in plain words: short lessons and a glossary.
IBAN (International Bank Account Number) is a standard format for writing a bank account number so that a payment can be addressed to any participating country. A Ukrainian IBAN has 29 characters and starts with the letters UA.
Example. A freelancer asks a foreign client to pay an invoice and sends them their IBAN (29 characters beginning with UA) and the name of the bank. One wrong digit can make the payment fail or send it to someone else’s account.
Glossary
3-D SecureIntermediate3-D Secure is a protocol for extra confirmation of an online card payment: the bank asks for an SMS code, an approval in its app or a biometric check.AcquiringBasicAcquiring is a payment service that lets a business accept payment by card and other payment instruments: the acquirer transfers the money to the merchant.AMLAdvancedAML (Anti-Money Laundering) is the set of rules and procedures aimed against laundering of proceeds of crime and terrorist financing.BlockchainBasicA blockchain is a distributed ledger of records (transactions) whose copies are stored on many computers in a network, with the records linked into a chain of blocks in which old data is practically impossible to change.CashbackBasicCashback is a refund by a bank or shop of part of the amount you spent, paid to a card or a bonus account.ChargebackIntermediateA chargeback is a return of money on a card payment started by the card-issuing bank after the cardholder has disputed the transaction.Cold walletIntermediateA cold wallet is a way of keeping cryptocurrency keys offline, without a permanent internet connection: a hardware device or a seed phrase written on paper or metal.Compound interestBasicCompound interest (capitalisation) means that interest is paid not only on the original amount but also on interest that has already been added.Consumer price index (CPI)IntermediateThe CPI shows how the cost of a fixed set of goods and services bought by households changes over time; inflation is calculated from it.Crypto exchangeBasicA crypto exchange is a platform where you can buy, sell and swap cryptocurrency and often also keep it on internal accounts.Crypto walletBasicA crypto wallet is an app or device that stores the keys to your digital assets and lets you send and receive them.CryptocurrencyBasicA cryptocurrency is a digital asset whose records are kept on a blockchain and whose owner’s right to dispose of it is proved by cryptographic keys. Examples: Bitcoin, Ether, stablecoins.Currency conversionBasicCurrency conversion is the exchange of one currency for another at the rate applied by a bank or service.DeFi (decentralized finance)AdvancedDeFi (decentralized finance) means financial services (swaps, lending, savings) built on smart contracts in a blockchain, where no bank or exchange acts as an intermediary.DepositBasicA deposit (bank deposit) is money that you place with a bank on set terms, and the bank pays interest for it.Deposit guaranteeIntermediateDeposit guarantee is a state system under which the Deposit Guarantee Fund for individuals reimburses depositors if a member bank becomes insolvent, up to a limit.DevaluationBasicDevaluation is a fall in the value of the national currency against foreign currencies: the hryvnia gets cheaper, and the dollar or the euro costs more hryvnia.Domestic government bonds (OVDP)IntermediateOVDP are domestic government bonds: debt securities under which the state, represented by the Ministry of Finance, undertakes to repay the face value and pay interest.EDRPOU codeBasicThe EDRPOU code is the identification code of a legal entity (and its separate subdivisions) in the Unified State Register of Enterprises and Organisations of Ukraine. For the tax authority it is the entity’s tax number.Effective annual interest rate (RRPS)AdvancedThe effective annual interest rate (RRPS in Ukrainian law) is the total cost of a consumer loan, expressed as a percentage per year of the total amount of credit granted.ERC-20IntermediateERC-20 is a technical token standard on the Ethereum network: a set of rules that lets wallets, exchanges and apps work with any such token in the same way.Financial monitoringAdvancedFinancial monitoring is the set of measures taken by the state and by reporting companies (banks, payment services, virtual asset service providers and others) to prevent money laundering and terrorist financing.Gas (network fee)IntermediateGas is the unit of computational work on the Ethereum network; the word is also used for the fee paid to execute a transaction or smart contract. More broadly, it means a network fee.Grace periodBasicA grace period is a period during which using the card’s credit money costs no interest, provided you repay the amount spent in time.HalvingIntermediateHalving is the scheduled cutting in half of the reward that miners receive for a new block on the Bitcoin blockchain (and on some other networks).IBANBasicIBAN (International Bank Account Number) is a standard format for writing a bank account number so that a payment can be addressed to any participating country. A Ukrainian IBAN has 29 characters and starts with the letters UA.InflationBasicInflation is a sustained rise in the general level of prices, so that money buys fewer goods and services than before.Interchange feeAdvancedInterchange is a fee paid for each card payment between the acquirer and the bank that issued the card. The Ukrainian law on payment services expressly allows the acquirer and/or the issuer to pay it to each other.Intermediary bankIntermediateAn intermediary bank (correspondent bank) is a bank on the route of an international transfer through which the money passes between the payer’s bank and the recipient’s bank when they have no direct relationship.InvoiceBasicAn invoice is a bill that a seller issues to a buyer (most often a foreign one) describing the goods or service, the amount, the currency and the payment details.KVED (classification of economic activities)BasicKVED is the Classification of Economic Activities (DK 009:2010): a list of codes that sole proprietors and companies use to say what they do.KYCBasicKYC (Know Your Customer) is a check of a customer’s identity by a bank, exchange or payment service: documents, a selfie and sometimes proof of the source of funds.LimitBasicA limit is the maximum amount or number of transactions that a bank or payment service allows over a set period: cash withdrawals, transfers, online purchases, or the balance on an account.Memo (tag)IntermediateA memo (also called a tag or comment) is an extra field attached to an address when sending crypto, by which an exchange decides which account to credit when the address is shared.MFO (microfinance company)BasicMFO is the everyday name in Ukraine for a non-bank company that issues small short-term loans, most often online. The term in the law is a financial company holding the relevant licence. “MFO” was also the name of the bank code.Military levyIntermediateThe military levy is a levy that the Tax Code introduces temporarily, until Parliament decides that the reform of the Armed Forces is complete; individuals pay it on income, and sole proprietors on the single tax pay it too.MiningIntermediateMining is the process of confirming transactions and creating new blocks in blockchains that use proof-of-work, for which participants (miners) receive a reward.NBU exchange rateBasicThe NBU exchange rate is the official rate of the hryvnia against foreign currencies, which the National Bank of Ukraine sets and publishes every day.NBU key policy rateAdvancedThe NBU key policy rate (discount rate) is the rate on the National Bank’s operations with banks; changes in it affect the cost of short-term borrowing in the economy.OverdraftIntermediateAn overdraft is a negative balance that the bank allows on your account: you can spend more than you have, up to an agreed limit, and pay interest on the borrowed amount.P2P crypto tradingIntermediateP2P trading on a crypto exchange is a marketplace where users buy and sell crypto directly from each other, while the exchange guarantees the deal by temporarily locking the seller’s crypto (escrow).P2P transferBasicA P2P (peer-to-peer) transfer is a money transfer from one person to another, most often from card to card or by phone number through a bank app.Payment gatewayAdvancedA payment gateway is a service that securely passes payment details from a merchant’s page to the acquirer and returns the result of the payment.Payment invoiceBasicA payment invoice (rakhunok-faktura) is a document that a seller sends to a buyer as a request to pay for goods or a service: what, how much and to which details.Personal income tax (PDFO)IntermediatePersonal income tax (PDFO) is the tax on a person’s wages and other income, most often withheld by the employer or another tax agent.PhishingBasicPhishing is a fraud in which you are lured to a fake website, messenger chat or “bank” email so that your card details, passwords or confirmation codes can be stolen.Private keyIntermediateA private key is a secret digital key with which an owner signs transactions and proves the right to dispose of an address on the blockchain.ProcessingAdvancedPayment processing is the technical handling of payment transactions: authorisation and monitoring of a payment, collection and storage of the data and passing it on to the parties to the settlement.PRRO (software cash register)IntermediateAn RRO is a registrar of settlement transactions: a device or hardware-software system that registers payments at the point of sale. A PRRO is a software RRO whose fiscal functions run on the tax authority’s fiscal server and which can be used on any device.Seed phraseBasicA seed phrase (recovery phrase, mnemonic phrase) is a set of usually 12 or 24 words from which all the keys and addresses of a crypto wallet can be restored.SEPAIntermediateSEPA (Single Euro Payments Area) is a single area for euro payments: in the member countries a cashless euro transfer between accounts by IBAN follows the same rules as a domestic one.Single tax groupsIntermediateA single tax group is a category of payer under the simplified tax system. Sole proprietors can be in groups 1 to 3, which differ in the activities allowed, hired staff, the income ceiling and the rate; group 4 is for agricultural producers.Smart contractAdvancedA smart contract is a program in a blockchain that automatically carries out its built-in conditions when they are met.Sole proprietor (FOP)BasicA FOP (fizychna osoba-pidpryiemets) is a natural person registered to carry on business without forming a legal entity: the Ukrainian sole proprietor.SpreadBasicA spread is the difference between a buying price and a selling price: for example, between the rate at which a bank buys currency and the rate at which it sells.StablecoinBasicA stablecoin is a cryptocurrency designed to hold a stable value, most often pegged to the US dollar (USDT, USDC and others).StakingIntermediateStaking is locking up (pledging) cryptocurrency to help secure a proof-of-stake blockchain or to take part in an exchange or service programme; a reward is paid for it.SWIFTIntermediateSWIFT is a global network of secure messages between banks, used for most international bank transfers. The name is also used for the transfer itself and for the bank identifier code (BIC).Taxpayer registration number (RNOKPP)BasicThe RNOKPP is the registration number of a taxpayer’s account card: the tax number of an individual (10 digits). In everyday speech it is called the identification code, and it used to be called the IPN.TokenizationAdvancedCard tokenization replaces the real card details with a random digital substitute (a token) that can be used safely for payments in a phone or on a website.TRC-20IntermediateTRC-20 is a token standard on the TRON network: an analogue of ERC-20 used to issue tokens on TRON smart contracts (USDT among them).Unified social contribution (USC)IntermediateThe unified social contribution (ESV, or USC) is the contribution to compulsory state social insurance (the law calls it the “unified contribution”) paid by employers and self-employed persons.VATIntermediateVAT (value added tax) is an indirect tax included in the price of goods and services. The payer pays the budget the difference between the tax charged on sales and the tax paid to suppliers (input tax).Virtual assetAdvancedA virtual asset is a digital representation of value that can be traded or transferred in digital form and used for payment or investment purposes (as defined by the Ukrainian financial monitoring law).Virtual cardBasicA virtual card is a payment card with no plastic: it has a number, an expiry date and a CVV but exists only in an app or a bank’s online account.
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