Payment Abbreviations Explained: Net 30, ACH, EFT, COD

I get asked about the abbreviation for payment a lot. Short forms like Net 30, ACH, EFT, COD, even PIF. You see them on an invoice or a receipt and your brain just goes, “Huh?” Been there. I work with payment terms and billing codes every day, and yes—these little letters matter. They tell you when to pay, how to pay, and if the money is already gone.

Why we even shorten money words (and why I kind of love it)

In my experience, people don’t shorten words just because they’re lazy. We shorten because there are a million details flying around—due dates, discounts, methods, approvals, exceptions. Abbreviations keep everyone moving. Faster emails. Cleaner invoices. And fewer mistakes. Usually.

I’ve always found that abbreviations act like speed bumps I actually want. You see “Net 30” and you immediately think, “Okay, 30 days from the invoice date.” No essay needed. You see “PIF”? Paid in full. No drama. Just done.

But I get it—if you’re new to finance, accounts payable (AP), accounts receivable (AR), or just running a small shop and doing everything yourself, it can feel like secret code. It’s not. It’s boring, human-made code. Luckily, I live in boring, human-made code. For over a decade. So let me help.

How “received” gets shortened (and why it always looks funny)

When I started, I kept seeing “RCVD” in emails. Then “RECD.” Then “RCPT.” All of them trying to say “received” or “receipt,” just trimmed like bad bangs. If you want a quick rundown of the receive-style codes that pop up on packing slips and payment logs, this guide on receive abbreviations like RCVD, RECD, RECV, RCPT, and Rx is useful and easy to skim.

Payment terms you’ll actually see on real invoices

I’ve seen everything printed on an invoice. From classic “Due on Receipt” to the spicy “2/10, Net 30” that makes you do math you didn’t agree to. Let me decode the ones I see weekly.

Time-based terms

• Net 7, Net 15, Net 30, Net 45, Net 60: You’ve got that many days to pay after the invoice date.
• EOM: End of month. Not spooky. Just a calendar trick.
• Due on Receipt (DOR or DUR): Pay now. As in, now-now.
• 2/10, Net 30: Pay within 10 days, get a 2% discount; otherwise, you owe the full amount by day 30.
• COD: Cash on delivery. You pay when the goods arrive. Old-school, but it still shows up.

Method-based terms

• ACH: Bank-to-bank via the clearing network in the U.S. Cheap. Reliable. Slow-ish.
• EFT: Any electronic funds transfer. Big umbrella term.
• Wire: Fast, but it costs more. Great for urgent or international payments.
• Card: Credit or debit. Quick, but merchants eat fees.
• Check: Paper thing. Takes forever. Still real.

If you want the fuller glossary for invoice and banking shorthands—especially ACH, EFT, and Net 30—this breakdown of ACH, EFT, and Net 30 keeps it straight.

Status and actions

• PIF: Paid in full. Bless.
• PPD: Prepaid. Money first, goods later.
• O/S: Outstanding. Still due.
• Bal Due: Balance due. Not done yet.
• Remit To: Where to send the money. Don’t guess. Check.

Discounts and extras

• Disc: Discount. Might be early-pay or promo.
• Freight Prepaid vs Freight Collect: Who pays the shipping, and when.
• Tax Exempt: Don’t charge sales tax. Usually has a number or certificate tied to it.

Payment methods: the short forms you’ll hear in the wild

In my day-to-day, “EFT” gets tossed around like it means the same thing as “ACH.” Kinda true in casual talk, not always in practice. EFT is the big category. ACH is a type of EFT in the U.S. If you want the official line, this page on Electronic funds transfer explains where card payments, wires, and ACH fit.

For the nerds (me, hi), the nuts-and-bolts of ACH—the network the U.S. uses for those batch bank moves—is documented here: Automated Clearing House. It’s not glamorous, but most payroll and vendor payments ride that train.

Weird abbreviations that trip people up

Ever see random letters on a text or PO comment and wonder if you’re in trouble? My favorite rabbit hole was “JP.” I saw it on a warehouse note next to a line item with a zero price. Thought it meant “Job Pending.” Nope. Months later, I laughed at myself reading this quick explainer on what does JP mean. Point is: check context, or you’ll pay with your pride.

Another common mess: placeholders. “N/A” on a due date line doesn’t always mean “never due,” it can mean “not applicable for this step.” Same with TBD, TBA, TBC—these scream “we haven’t decided yet.” There’s a nice roundup on abbreviations for unknowns like N/A, TBD, TBA, TBC, and John Doe if you want a sanity check.

Teaching newcomers (aka, how I explain this without putting people to sleep)

What I think is: everyone should learn the difference between acronyms, initialisms, and contractions first. It makes the rest less scary. If you need a simple primer that I’ve actually sent to interns on day one, this abbreviation guide for kids is perfect. Yes, kids. If a fifth grader gets it, your new AP clerk will too.

“Received” vs “Paid”: tiny letters, big timing

In my experience, mixing up “received” and “paid” abbreviations is how payments go sideways. RCVD or RECD means goods or docs arrived. PIF or PAID means money left your account. If you see RCPT, that’s receipt (the proof). If you see REMIT, that’s the direction—where to send funds. This is the stuff that keeps disputes from spiraling.

Payment abbreviation “tables” (my cheat sheets)

Time and due terms

• Net 7 — Pay within 7 days of invoice date
• Net 15 — Pay within 15 days
• Net 30 — Pay within 30 days
• Net 45 — Pay within 45 days
• Net 60 — Pay within 60 days
• EOM — End of month (due at month-end)
• DOR/DUR — Due on receipt (pay right away)
• 2/10, Net 30 — 2% discount if paid within 10 days; otherwise due by day 30

Method and rails

• ACH — U.S. bank-to-bank via clearing network (cheap, common)
• EFT — Any electronic funds transfer (big umbrella)
• Wire — Fast, higher fee (domestic or international)
• Card — Credit/debit payment
• Check — Paper payment (slow, but still used)

Status and bookkeeping

• PIF — Paid in full
• PPD — Prepaid
• O/S — Outstanding
• Bal Due — Balance due
• CM — Credit memo
• DN — Debit note
• SOA — Statement of account

Receiving and documents

• RCVD/RECD — Received
• RCPT — Receipt
• PO — Purchase order
• INV — Invoice
• PID — Payment ID
• REF — Reference (usually the invoice or PO number)

Shipping & extras

• COD — Pay when goods arrive
• FOB — Free on board (where ownership transfers)
• Freight Collect — Buyer pays shipping at delivery
• Freight Prepaid — Seller covers shipping

How I read an invoice in 30 seconds

I scan top right for invoice date, vendor ID, and terms (Net 30, EOM, or Due on Receipt). Then I find “Remit To” and the payment method. If it says ACH with a routing number, great. If it says wire only, I check fees and timing. If there’s “2/10, Net 30,” I check cash on hand to grab the discount. I also look for credit memo notes (CM) that might reduce the balance due. Fast and boring. Effective.

If you want a simple refresher on text-style received abbreviations when reconciling orders, this explainer on RCVD, RECD, RECV, and RCPT has saved me from retyping the same explanations in emails. I know, thrilling stuff.

My unpopular opinion: wires get too much credit

People love wires because they’re fast. Same-day, done, dusted. But they cost more and they’re manual a lot of the time. ACH is the quiet hero for vendor bills, payroll, and rent. It’s cheap and predictable. If I’m not in a rush, ACH wins. If the vendor refuses ACH? Fine. Wire it and move on. Just don’t pretend the wire fee is “small.” It adds up.

Early payment discounts: small math, real money

I once worked with a client who ignored every “2/10, Net 30” note. We ran the math. Taking the 2% discount for paying 20 days early is basically a huge annualized return. The client changed their process the next day. The moment you do the numbers, these tiny codes stop being fluff and start being free money.

Remittance advice: the boring hero

When you pay, send remittance advice. Even if it’s a quick email. List invoice numbers, amounts, any credit memos, and the payment method (ACH, wire, card). It saves the AR person from guessing. And it keeps your account out of “mystery money” land.

My handy “how to not mess up” list

• Match the invoice number on your payment. Every time.
• Use the vendor’s preferred method (ACH, EFT, etc.). They put it there for a reason.
• Check terms: Net 30? EOM? DOR? Set reminders so you don’t forget.
• If you see PIF on a statement but your bank doesn’t show it, ask for the RCPT.
• Grab early-pay discounts when cash allows. It’s free yield.
• For international payments, confirm SWIFT/IBAN details twice. Then once more.

Story time: the day “N/A” cost a week

We had a PO with “N/A” in three fields. Nobody knew if that meant “not needed” or “we’ll update this later.” The shipment arrived, the invoice hit AP, and everyone waited for someone else to decide. It took a week. If the line had said “TBD by vendor” we could have chased the right person on day one. Letters matter. Even the dumb ones.

The simple way I coach small teams

I tell them to post a one-page cheat sheet above the printer. Net terms, method codes, status codes. If you’re not sure, look at the sheet. If you still aren’t sure, ask. Pride doesn’t pay invoices. Accuracy does.

If you want a broader quick read that ties ACH, EFT, and common terms together in plain English, I like this overview of invoice and banking abbreviations. It’s not a textbook. Thank goodness.

Yes, sometimes the “abbreviation for payment” isn’t what you think

I’ve seen COD written on a sales order that was actually PPD in the invoice. I’ve also seen “Pmt” written in emails meaning “please make this,” not “payment.” Context is everything. If I’m ever unsure, I ask the sender to spell it out. Saves time. Saves face.

Mini “table” of confusing look-alikes

Looks the same, not the same

• ACH vs EFT — ACH is a type of EFT (U.S. network). EFT is the big category.
• RCVD vs PIF — RCVD means goods received; PIF means invoice paid.
• Due on Receipt vs Net 0 — Both mean basically “now,” but DOR is the common label.
• Credit Memo (CM) vs Refund — CM reduces what you owe; refund sends cash back.

Same letters, different habits

• COD — Some use it as “collect on delivery,” others “cash on delivery.” Either way, pay at delivery.
• PPD — In shipping circles it can mean prepaid; in banking, it can be an ACH standard entry class code. Context saves you.

How I set up my email and spreadsheet to be less annoying

• I keep a text snippet for “Remit To” with our ACH info and the remittance template.
• I add a column in my tracker for Terms (Net 30, 2/10, EOM) and one for Method (ACH, wire, card).
• I color code: green for PIF, yellow for O/S, red for overdue.
• I put vendor names next to their preferred payment rails so I don’t guess on Fridays.

Okay, but which abbreviations should you actually memorize?

• Net terms: Net 15, Net 30, Net 45
• Discount terms: 2/10, Net 30
• Method: ACH, EFT, wire
• Status: PIF, O/S, Bal Due
• Docs: PO, INV, RCPT

If you ever forget whether “JP” means anything in your payment context, you aren’t alone. I’ve seen people panic over random letters in notes. I’d keep this short explainer on what JP means handy for your sanity.

Do abbreviations make things faster or just more cryptic?

Both. They speed up teams who share the same map. They confuse teams who don’t. So build your map. List the codes you actually use. Toss the rest. This is not school; there’s no test on every possible initialism.

One more quick “table”: what to put on your remittance advice

• Invoice numbers — all of them
• Amounts — show partials if any
• Credits — list CM or discounts you applied
• Payment method — ACH, wire, etc.
• Date paid — today’s date is fine
• Contact — who to call if they can’t match it

Random bits I wish someone told me in year one

• “EFT” in one country might include card rails; in another, it’s strictly bank-to-bank.
• ACH batches aren’t instant; build a buffer so you don’t pay late.
• Wires cut off early. “End of day” is a fairy tale. Call your bank.
• “Due on Receipt” doesn’t mean “we’ll forget by Friday.” Vendors track this stuff.

By the way, if your kid asks why grown-ups write like robots at work, hand them this kid-friendly abbreviation guide. Then steal it back for your office. Win-win.

Why I still write full words sometimes

I like clarity more than coolness. If I’m emailing a customer I’ve never met, I’ll write “Paid in full” instead of PIF. If I’m sending bank info, I’ll say “Automated Clearing House (ACH)” once, then use ACH. It builds trust. People don’t want to decode my hobby language.

When someone uses the wrong code—how I handle it

I reply with kindness and a little translation. “Got it—so you want to pay by wire (not ACH). Here’s the routing info.” That way I don’t turn it into a vocabulary test. Money is the goal, not the spelling bee.

If you’re mapping your own internal cheat sheet, it can help to group terms the same way those common explainers do for accountants—think method (ACH, EFT), time (Net 30), and status (PIF, Bal Due). This invoice and banking abbreviations guide is a solid template to mimic.

The one time “abbreviation for payment” saved our month-end

We had a pile of invoices marked “2/10, Net 30.” We built a tiny rule in our system: flag any invoice with “2/10.” Paid them early, took discounts, smoothed cash flow. That label—just a few characters—saved thousands. Small letters. Big outcome.

FAQs I get all the time

• What does Net 30 actually mean? — Pay within 30 days of the invoice date. If the invoice says January 1, pay by January 31.
• Is ACH the same as EFT? — ACH is one type of EFT in the U.S. EFT is the big category that includes ACH, wires, and more.
• Does “Due on Receipt” mean I have to pay the same day? — Yep. As soon as you get the invoice. People still take a day or two, but that’s the rule.
• What’s PIF? — Paid in full. No balance due. You can stop refreshing your bank app now.
• Is a wire better than ACH? — Wires are faster but cost more. ACH is cheaper and fine for most bills if you have a few days.

Alright, that’s plenty. If you made it this far, you probably care about getting paid on time and not looking lost. Same. I’m off to chase an O/S from last month and pretend I love reconciliations. Which, annoyingly, I kind of do.

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.