Account Information Service Provider (AISP)
AISP is a very common term in Open Banking. An Account Information Service Provider or AISP, is a company or service that helps you securely access and manage your financial information from different banks and financial institutions in one place. This access to information is with your (the customer's) consent only. It allows you to view your account balances, transactions, and other financial details without the need to log in separately to each bank's website. This simplifies financial management and helps you have a better overall picture of your finances. Following are the examples of AISP:
1. Plaid
2. Yodlee
3. Perfios
4. OneMoney
Acquiring bank/ Acquirer
An Acquiring Bank, which is also known as an Acquirer, is a financial institution that partners with merchants (businesses) to facilitate electronic payment processing. It enables merchants to accept debit card and credit card payments from customers. When a customer makes a card payment at a merchant's store or website, the Acquiring Bank processes the transaction, verifies the payment details, and transfers the funds from the customer's card to the merchant's bank account. In essence, the Acquirer acts as the link between the merchant and the card networks to ensure secure and smooth payment transactions.
So in a nutshell, Acquiring bank links merchants with issuing banks for financial transactions by providing its infrastructure and financial backing.
Accounts Payable (AP)
Accounts Payable refers to the amount of money a company owes to its suppliers or vendors or creditors for goods and/or services that have been purchased on credit. It represents the short-term liabilities of the company and is considered a part of the company's overall liabilities on its balance sheet.
In other words, it's the money a company needs to pay to its suppliers or vendors for the products or services they have provided, but for which payment has not been made yet. These amounts are typically due within a specific period, such as 30 days(NET30) or 60 days(NET60), depending on the terms agreed upon with the suppliers. Good management of accounts payable is important for businesses to maintain good relationships with their suppliers and ensure smooth operations.
Accounts Receivable (AR)
Accounts Receivable refers to the amount of money which a company would receive from its customers or clients for goods or services that have been provided on credit. It represents the company's right to receive payment for the products sold or services rendered, but for which payment has not been received yet.
In other words, accounts receivable is the money that the company is yet to collect from its customers who were allowed to pay at a later date. It is considered an asset on the company's balance sheet because it represents the money that is expected to come into the company as a result of sales made on credit. Managing accounts receivable effectively is essential for maintaining a healthy cash flow and ensuring that customers pay their debts in a timely manner.
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