Author: Vellis Team

If your business handles online payments in Europe or serves customers who live there, you’ve likely heard of PSD2. 

AML stands for Anti-Money Laundering, and it refers to a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML compliance is essential for protecting the financial system from being misused by bad actors.

One of the most overlooked yet crucial decisions is choosing the right payment processing pricing model. Understanding the difference between interchange plus pricing vs flat rate can help you control costs, gain transparency, and prepare for future scalability.

When customers swipe a card or make an online payment, most people assume the money is instantly transferred. But behind the scenes, there’s a structured process that ensures security, accuracy, and control. This two-step system revolves around two key concepts: authorization vs capture.

If you’ve ever signed up to accept credit or debit card payments at your business, chances are you entered into something called a merchant agreement. 

When you make a financial transaction, two important processes quietly work behind the scenes: clearing and settlement. These steps are crucial to making sure your transaction actually goes through. While they’re often mentioned together, they serve very different purposes. 

When setting up your business to accept card payments, you’ll likely encounter the terms merchant acquirer and payment processor. They may seem interchangeable, but they play very different roles in the payments ecosystem. 

Capital calls are a core mechanism in private equity fund management. When Limited Partners (LPs) commit capital to a fund, they don’t pay the full amount upfront. Instead, General Partners (GPs) issue capital calls, and formal requests for LPs to transfer a portion of their committed funds as needed.

Carried interest is a central incentive mechanism in private equity, designed to reward general partners (GPs) for delivering strong fund performance. It gives GPs the right to earn a portion of the fund’s profits, usually after surpassing a predefined performance hurdle, aligning their interests with those of the limited partners (LPs) who supply the capital.

In private equity, an escrow account is a key financial mechanism used to hold funds or assets in a secure, neutral space until specific conditions are fulfilled. It helps manage risk and build trust between parties during critical moments like fund closings, acquisitions, or exits.