Invoice and Banking Abbreviations: ACH, EFT, Net 30 Decoded

I’ve spent more than ten years knee-deep in receipts, invoices, and bank rails, and somehow I still get texts from friends that say, “Hey, what does this payment abbreviation mean?” So yes, I’m that person. The one who reads the fine print on bills and gets weirdly excited about ACH, EFT, wire transfer notes, POS slips, and Net 30 terms. In my experience, once you get the gist of these invoice abbreviations and banking abbreviations, you stop feeling like the bank is speaking in riddles. And you start feeling like you’ve cracked a code. A boring code. But still a code. I’ll keep it simple—you won’t need a finance degree. Or even a good night’s sleep. Let’s get into it.

Why do money people love short codes so much?

Because time is money, and also because humans like making simple things look fancy. I learned this early when I worked at a small ecommerce shop. Every email had a handful of short forms. COD. EFT. EOM. I thought it was gatekeeping. A secret club. Then I realized these codes actually save us from writing the same phrases again and again. Also, they help standardize stuff. Which matters when you’re juggling invoices, card settlements, and bank transfers at 9 PM on a Tuesday while eating cold noodles.

Abbreviations help teams move fast. They’re fast labels for big ideas: how and when you pay, who pays fees, what happens if the money bounces. When you see them every day, you stop noticing. Until someone new joins the team and asks, “What’s AVS?” and you realize, yeah, it looks like alphabet soup. I’ve been that person. On both sides.

Quick decoding for the real world

I’ve rounded up the ones that show up the most—for invoices, bank transfers, card payments, and random “wait, what?” moments. I’m not trying to be a dictionary. I’m trying to be your friend who replies fast.

On invoices and bills

• Net 30 — Pay within 30 days. Same idea for Net 15, Net 60. Here’s more on Net 30 if you enjoy long pages.
• COD — Cash on Delivery. You pay when the thing shows up. Not common for digital stuff. Great for plants and pizza. Less great for cloud software.
• EOM — End of Month. “Due EOM” means pay by the last day of this month. If it says EOM+15, you get 15 days after month-end.
• PO — Purchase Order. A number from the buyer that approves the spend. It’s basically “We promise we’re not just browsing.”
• PI — Proforma Invoice. A draft invoice. Not final. Don’t panic-pay these unless you know why.
• AR / AP — Accounts Receivable (money owed to you) / Accounts Payable (money you owe). In my head: AR makes me smile. AP makes me budget.
• Remit / Remittance — Where you send the money. Yes, it sounds old-timey. It still works.
• TT — Telegraphic Transfer. Old name for a bank wire. People still say it. No one is tapping wires with Morse code.

Bank transfers and wires

• ACH — Automated Clearing House. Bank-to-bank transfer inside the U.S. Usually cheap. Often slow-ish (a day or two). The CFPB explains what ACH is in plain language—worth a peek.
• EFT — Electronic Funds Transfer. Big umbrella name for electronic payments. ACH is one type. Wires are another. If someone says EFT, ask “Which kind?”
• Wire — A direct bank transfer. Fast. Not free. Good for big amounts when waiting hurts.
• SWIFT / BIC — Codes that identify banks across borders. Think of it like the bank’s email address for money.
• IBAN — International Bank Account Number. Your account’s long passport number. The length varies by country.
• SEPA — Single Euro Payments Area. If you’re in Europe, SEPA transfers are the cheap, simple way to move euros.
• RTP — Real-Time Payments (US). It’s fast. Like now fast. But not every bank supports it yet.

Cards and checkout

• POS — Point of Sale. Where the payment happens. Could be a card reader, a phone, a website, or a QR code taped to a lemonade stand.
• EMV — The chip in your card. It helps fight fraud. Also explains why you had to insert and wait.
• NFC — Contactless “tap to pay.” Easy. Magic. Half the time the terminal beeps and scares me anyway.
• CVV / CVC — Those 3 or 4 numbers on your card. A check to see if you actually have the card.
• AVS — Address Verification Service. Checks your billing ZIP and address. Stops some bad guys. Annoys the rest of us.
• 3DS — 3‑D Secure. That extra step where the bank asks you to confirm it’s you. Good for fraud. Bad for attention spans.
• Auth — Authorization. When your bank says, “Okay, this transaction looks fine,” and holds the money.
• Capture — When the money actually leaves your account. Auth is the nod. Capture is the action.
• Settlement — When the merchant gets the funds. Happens in batches. Usually next business day. Weekends play games.
• Chargeback — When a cardholder disputes a charge and the bank yanks the money back. Like a refund with attitude.
• Interchange — The fee networks take. Merchants don’t love it. Networks do.
• PCI DSS — Security rules for handling card data. Boring. Important. Non-optional if you like not getting fined.
• Tokenization — Turning card numbers into a token that’s useless to thieves. Like swapping your house key for a fake key that only works in your lock.

Online wallets and peer-to-peer stuff

• P2P — Person to person. Money from you to me, app to app.
• BNPL — Buy Now, Pay Later. Fancy name for “installments.” Useful if you’re careful. Dangerous if you’re not.
• KYC / AML — Know Your Customer / Anti-Money Laundering. ID checks to stop fraud and worse. Yes, the selfie was for a reason.
• A2A — Account to Account. Paying right from your bank. No card in the middle.

How the money sausage gets made (and why timing feels random)

I used to think card payments were instant. Tap. Done. But there are stages. First, authorization. Your bank says yes, maybe puts a hold. Then capture. The merchant completes it. After that, clearing. The networks sort everything. Finally, settlement. Money lands. It often happens overnight. Weekends and holidays slow it down. Because money needs rest, apparently.

For bank transfers, it depends on the rail. ACH moves in windows. Wires go fast. RTP goes faster. International stuff adds checks: sanctions, compliance, nested banks, currency conversion. This is why your transfer to your cousin in Berlin might vibe like a backpacking trip: it’ll get there, it just has to switch trains three times.

The abbreviations that can bite

Not all short codes are friendly. These ones cost time or money if you miss them.

• NSF — Non-Sufficient Funds. The account didn’t have enough money. Try again later, or maybe never.
• ACH Return Codes — R01 (Insufficient Funds), R03 (No Account/Unable to Locate), R10 (Customer Advises Not Authorized). When I see R10, I take a long walk.
• PCI DSS — If you store card data without following these rules, you’re in trouble. Fines. Audits. Headaches.
• CBK — Chargeback. If you get many, your processor might hold your money. Or close your account. Keep an eye on disputes.
• KYC Hold — When payouts pause because your ID or business docs aren’t verified. Annoying but common.

Little myths I hear in meetings

• “ACH is always free.” — No. It’s cheap, not always free. And returns have fees.
• “Wires are instant.” — Sometimes fast, not always instant. Cutoff times are real. So are bank holidays.
• “Contactless is less secure.” — Nope. EMV and tokenization make it pretty solid.
• “Chargebacks mean fraud every time.” — Not always. Sometimes it’s confusion. Or just buyer’s remorse.
• “EFT equals ACH.” — ACH is a type of EFT. Saying “EFT” is like saying “transportation.” Which one?

My quick lookup lists (aka fake tables)

I don’t love tables. But I love quick cheats. Here are my “table-ish” lists you can skim.

Invoice terms and what they actually mean

• Net 15 — Pay within 15 days. Good for small suppliers.
• Net 30 — Pay within 30 days. Classic. Play nice with cash flow.
• 2/10 Net 30 — Pay in 10 days and get 2% off; otherwise pay in 30 days. It’s a money math mini-game.
• EOM — Due at month end. EOM+15 adds 15 more days after that.
• COD — Pay when delivered. Old school. Solid for physical goods.
• Prepay — Pay before anything ships or starts. Normal for custom work.

Card flow in five lines

• Authorization — “Is this okay?” Bank says yes/no, money on hold.
• Capture — “Do it.” Money moves for real.
• Clearing — Networks sort and stack.
• Settlement — Merchant gets the funds.
• Reconciliation — Make sure reports match money. The part I do with coffee.

Transfer types cheat

• ACH — Cheap, 1–2 days (or same-day if you pay more). Good for payroll and bills.
• Wire — Expensive, fast, final. Best when timing matters and you trust the receiver.
• RTP — Fast, modern, limited access. Feels like texting money.
• SEPA — Cheap euro transfers. Takes a day or two.

Real life: how I explain this stuff to teams

When I train new folks, I start with one page: “If you see these codes, here is what to do.” It calms the chaos. A few rules I push hard:

• Always read the terms on the invoice. Net terms matter for cash flow. Discounts can be real money.
• Ask which rail a transfer uses: ACH, wire, or something else. It changes speed and fees.
• Don’t store card numbers. Use tokens. Sleep better.
• Have a dispute playbook. Chargebacks love disorganized teams.
• Flag compliance tasks early (KYC/AML). Delays here block payouts later.

Jargon crosses fields, because of course it does

I write about abbreviations a lot, not just money ones. It’s funny how hospitals, banks, and even tech support all build their own code walls. If you want a bigger list beyond payments, I did a longer walk-through here: decoding abbreviations from bank transfers to medical jargon. Same energy. Less coffee.

Stuff I wish someone told me year one

• Cutoff times rule your life. A transfer at 4:58 PM might go today. At 5:02 PM? Tomorrow. Fridays before long weekends are chaos.
• Holds are normal. New merchants and big spikes in volume make processors nervous. They hold to manage risk. It’s not personal. Usually.
• Names on bank accounts have to match. If they don’t, expect returns.
• Keep reference numbers. SWIFT codes, trace numbers, confirmation IDs. They save you in support calls.
• Screenshots beat memory. Especially when the money is stuck in limbo.

Mini stories from my inbox

I once had a vendor send an invoice marked “Due on Receipt — EOM+15.” That’s two different instructions. We called. They laughed. Said their template was haunted. We paid Net 15 and everyone moved on.

Another time, a customer disputed a charge with “fraud” but later said, “Oh, that was my kid on the iPad.” We ate the chargeback anyway. Lesson burned into my brain: clear statements, good receipts, and a human reply go a long way.

And yes, I do keep a small glossary taped to my monitor. It’s dorky. It works. If someone judges you for that, they’ve never lost an afternoon chasing a missing settlement.

How I decode bank noise when something goes wrong

• Step 1: Identify the rail. Card? ACH? Wire? It narrows the problem fast.
• Step 2: Look for return or error codes (R01, R10, etc.). Those codes aren’t random. They point to the fix.
• Step 3: Gather IDs: authorization code, ARN (for cards), trace numbers (for transfers).
• Step 4: Call the right team. Issuer for cardholder issues, acquirer/processor for merchant issues, bank ops for transfer issues.
• Step 5: Don’t guess. Ask for the exact reason. Write it down. Update your cheat sheet.

Words that sound the same but matter a lot

• Authorization vs Settlement — The nod vs the money landing. If you only have an auth, no one got paid yet.
• Refund vs Chargeback — Refund is you sending money back. Chargeback is the bank pulling it back. One is friendly. One is not.
• ACH vs EFT — ACH is a type of EFT. Saying EFT alone is like saying “dessert.” Which one?
• Wire vs RTP — Both are fast, but wires are older and pricier; RTP is modern and instant where supported.

Writing better emails about money stuff

I’m not your boss. But I do have opinions. Clear emails speed things up. Here’s what I include when I ask for help:

• The payment type and date (“ACH on 8/2 morning” beats “I sent money last week”).
• Amounts and last 4 digits of the account or card (never the full number, obviously).
• Any reference codes (auth code, ARN, IBAN, SWIFT/BIC, trace ID).
• Screenshots of the error or message.
• What you already tried (saves the support person from repeating step one).

Some math I actually enjoy (don’t tell anyone)

Discount terms like “2/10 Net 30” are small but powerful. If you can pay early and grab the discount, it’s often worth it. If you can’t, at least you know the trade-off.

• Example: Invoice is $1,000 with 2/10 Net 30.
• Pay in 10 days: $980. You save $20.
• If you wait until day 30: you pay $1,000. You kept your cash 20 extra days, but lost the $20 discount.
• Is it worth it? Depends on your cash needs. I do both, depending on the month.

The tiny glossary my friends ask for

• BIC — Bank Identifier Code. Same vibe as SWIFT code. It’s the bank’s unique ID.
• ARN — Acquirer Reference Number. A tracking number for card transactions. Useful when locating funds.
• BIN — Bank Identification Number (first 6–8 digits of a card). Tells you the network and issuer type.
• MID — Merchant ID. Your store’s ID with the processor.
• MCC — Merchant Category Code. Your business type. Affects fees and risk models.
• Descriptor — The text on the cardholder’s statement. If it’s weird, expect disputes.

If you only remember five things, remember these

• Ask what the code means before you act on it.
• Know your rails: ACH, wire, card, RTP. Each has rules and speed.
• Save your reference numbers. Future you will send present you a thank-you muffin.
• Use clear descriptors and receipts to cut disputes.
• Make a one-page cheat sheet for your team. Update it when something breaks.

A tiny rant about clarity

I’ve always found that people overuse shorthand when they’re unsure. It’s like hiding behind acronyms. Real pros explain things in plain words. If you’re sending a bill, write the due date in normal language too. If you’re asking for a transfer, say which rail, which currency, and when you expect it to land. Everyone breathes easier.

Cross-checking your terms with clients

Sometimes I send a short note like this: “We can accept ACH or wire. ACH takes 1–2 days. Wire is same day with a bank fee. Our invoice is Net 30, but 2% off if paid in 10 days.” That one paragraph has saved me hours of back-and-forth. And fewer oopsies later. People like choices with plain words.

When abbreviations change how you get paid

One more thought. These codes aren’t just trivia. They change cash flow. Net terms change when money arrives. RTP changes how fast refunds hit. PCI DSS affects your tech costs. A mislabeled descriptor can double your chargebacks overnight. In my experience, the small labels move big numbers.

Where the “alphabet soup” meets real life

I remember arguing about a “same-day ACH” transfer that showed up the next morning. The bank wasn’t wrong. We missed the cutoff, so it went into the next window. On paper, it’s still “same-day.” In practice, it’s the next day. So the lesson is, learn your bank’s windows. Write them down. Set calendar reminders. Not glamorous. Very effective.

Also, I have to say it: when people Google payment abbreviation in a panic, they usually just need a nudge. Is it an invoice term? A card code? A transfer type? Sort that out first. Then it’s just picking the right path. And yeah, maybe calling support. I do that too.

FAQ (the questions I actually get)

• Is ACH safer than a wire? — Both are safe when sent to the right account. Wires are faster and final. ACH is reversible for a short window.
• What’s the difference between a refund and a chargeback? — Refund: the merchant sends money back. Chargeback: the bank pulls it back after a dispute.
• Why did my “same-day” transfer land tomorrow? — You probably missed the cutoff time. Banks run transfers in batches. Ask for the schedule.
• Does “Net 30” start when I get the invoice or when it’s dated? — Usually from the invoice date. But ask. Some folks start from delivery.
• How do I cut down on chargebacks? — Clear product names, good receipts, fast support, and honest refund policies. And make your statement descriptor obvious.

If you’re still here, you’re my kind of person. You now speak money code better than most people at your bank. If you hit a weird code not on this list, send it my way. I’ll probably have a story. And if not, I’ll make coffee and find out. Anyway, if you bump into another payment abbreviation and it makes you roll your eyes—you’re not alone. I do that too, then I translate it and move on.

Lucas

Hey, I’m Lucas. My blog explores the patterns and connects the dots between tech, business, and gaming. If you’re a curious mind who loves to see how different worlds intersect, you’re in the right place.