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Glossary of Straddle Terms

This glossary is comprehensive and detailed, designed to serve as a valuable reference during your implementation of Straddle’s services. Use this as a reference guide throughout your integration process.

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A

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ACH (Automated Clearing House)

An electronic network for financial transactions in the United States, used by Straddle for processing certain types of bank transfers. See our ACH basics guide for detailed information.

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Account

A business entity that has entered into a contractual relationship with Straddle to utilize its services directly. Accounts can access the Straddle API Sandbox upon creation and need to complete an onboarding process for production access.

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Account Status

The current state of a Straddle account, which can be one of: created, onboarding, active, rejected, or inactive.

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Account-to-Account (A2A) Payments

Transactions that move money directly from one bank account to another. Straddle orchestrates A2A money movement via multiple payment rails so you don’t have to worry about the complexity.

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Address Risk

A component of Identity that provides a risk score for physical addresses.

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Adverse Media Screening

A component of Identity that identifies individuals associated with news items related to financial crimes.

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AML (Anti-Money Laundering)

Regulations and procedures that Straddle helps you comply with to prevent criminals from disguising illegally obtained funds as legitimate income.

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API (Application Programming Interface)

A set of protocols and tools for building software applications, specifically referring to Straddle’s API. The Straddle API allows developers to integrate payment and identity verification features into their applications.

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API Key

A unique identifier used to authenticate requests to the Straddle API. API keys should be kept secure and not shared publicly.

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API Version

The specific version of the Straddle API being used, which determines the available features and endpoints.

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Authentication

The process of verifying the identity of a user or system making requests to the Straddle API. Straddle uses Bearer tokens for API authentication.

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B

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Balance Check

A feature in Straddle’s platform that verifies the available balance in a customer’s account before initiating a charge. This helps prevent failed payments due to insufficient funds.

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Bank Account Verification

The process of confirming that a bank account is valid and belongs to the stated owner. Straddle offers multiple methods for bank account verification, including API-based verification and open banking connections.

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Bearer Token

A type of access token used for authentication in the Straddle API.

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Bridge

Straddle’s comprehensive suite of account connectivity endpoints that facilitate secure connections between users and their financial accounts. Bridge includes:

• A drop-in open banking widget
• Support for third-party tokens (e.g., Plaid, MX)
• API-based bank account verification

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Bridge Token

A JWT (JSON Web Token) used in the Straddle Bridge widget for secure account connectivity. Bridge tokens are generated using the /v1/bridge/initialize endpoint.

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Bridge Widget

A drop-in user interface component provided by Straddle for easy integration of bank account connectivity features. The Bridge Widget is a hosted UI component that you can embed on your website to allow customers to connect their bank accounts to your platform.

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Business Profile

A set of information about an account on the Straddle platform, including details such as legal name, business name, website, description, tax ID, address, and industry information.

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C

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Capability

A specific feature or permission granted to an account on the Straddle platform. Capabilities include payment_types, customer_types, and consent_types.

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Capability Request

A formal request to enable a specific capability for an account on the Straddle platform.

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Charge

A type of payment transaction where money is debited from a Customer. Charges correspond to ACH debit transactions and are created using the /v1/charges endpoint.

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Compliance Profile

A set of information in the Straddle API request when creating a Customer that triggers fully-compliant KYC validation.

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Consent Type

The method by which a customer provides authorization for a transaction. Straddle supports two consent types: internet and signed. Related to SEC codes.

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Correlation ID

An optional client-generated identifier passed in the request headers to trace and debug a series of related API requests.

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Correlation Score

A measure of the relationship strength between different elements of provided personally identifiable information (PII).

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Create Charge

The API endpoint and process for initiating a new charge transaction.

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Create Payout

The API endpoint and process for initiating a new payout transaction.

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Currency

The monetary unit used for transactions on the Straddle platform.

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Customer

An individual or business involved in a payment transaction with your business. All customers are automatically screened for fraud and watchlist compliance when they are created. The customer object is used to:

• Manage fraud and compliance
• Generate paykeys
• Relate payment activity
• Send notifications

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Customer Identification Program (CIP)

A government-mandated regulation that Straddle’s KYC process complies with. Related to AML (Anti-Money Laundering) compliance. Straddle Identity keeps you compliant with CIP requirements by:

• Screening customers for fraud
• Performing (optional) KYB and KYC
• Matching against watchlist databases
• Enrolling in ongoing watchlist monitoring

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Customer Review

An endpoint in the Straddle API that allows you to review a customer’s identity results.

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Customer Status

The current state of a customer in the Straddle system, which can be one of: pending, review, verified, inactive, or rejected.

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Customer Type

The classification of a customer as either an individual or a business. This determines the type of information required for verification and the available features.

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D

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Dashboard

The web-based user interface provided by Straddle for account setup, activity reporting, customer management, and more.

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Decision Engine

The core component of Straddle’s Identity that provides automated decisioning on fraud, synthetic ID, and PII matching.

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Deposit

A type of funding event where money is sent from Straddle to your business bank account for the settlement of charges.

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Device Info

Information about the device used by a customer during a transaction.

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E

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Email Risk

A component of Identity that provides a risk score for email addresses.

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Embed

A product offering by Straddle that enables deeply integrated payment infrastructure for platforms, marketplaces, and other PSP/PayFac providers. Embed simplifies the process of integrating bank payments and managing complex money movement scenarios within an app or service.

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Error Response

A standardized format for API responses when an error occurs.

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External ID

A unique identifier provided by the integrating application for cross-referencing purposes between Straddle and an external system.

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F

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Fraud Score

A score that assesses the risk of identity fraud associated with a transaction.

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Funding Event

Represents the movement of money between Straddle and an Account. Funding events are automatically generated as part of a payment and cannot be created directly via the API.

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Funding Event Type

The classification of a funding event, which can be charge deposit, charge reversal, payout return, or payout withdrawal.

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Funding Time

The time that it takes for a funding event to complete. Unlike other providers, Straddle initiates funding events within 24 hours.

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G

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Global Watchlist Screening

Straddle’s process for identifying risk by matching entities against sanctions and enforcement lists.

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H

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HTTP Status Code

A standard code returned with an API response to indicate the outcome of the request.

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I

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Identity Velocity

A factor considered in Identity that monitors the frequency and recency of identity usage.

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Identity Verification

The process of confirming a customer’s identity. Straddle uses a combination of techniques to verify customer identities.

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Identity-Linked Payment

Straddle’s core concept of connecting verified customer identities directly to payment methods. Paykeys are a new kind of payment token that contain both a customer’s identity and payment information.

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Industry

The business sector in which an Account operates.

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K

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Know Your Business (KYB)

The process of verifying the identity and suitability of business customers.

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Know Your Customer (KYC)

Straddle’s process of verifying the identity and suitability of customers. This process helps prevent fraud and ensures compliance with regulatory requirements.

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KYC Field Validations

Comprehensive checks performed by Straddle on provided PII fields.

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L

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Linked Bank Account

A bank account that has been connected to a Straddle Account. Funding events, like deposits and withdrawals, are transfers from Straddle to the linked bank account.

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M

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Metadata

User-defined key-value pairs that can be attached to various objects in the Straddle system. Metadata is useful for storing additional information about an object in a structured format.

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N

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Network Alerts

Notifications generated by Straddle’s consortium partners related to potential risks related to a Customer or Payment.

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O

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OAuth

An open standard for access delegation, used in Straddle’s authentication process.

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OFAC SDN List

One of the key watchlists that Straddle screens against as part of its Global Watchlist Screening process.

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Open Banking

A banking practice that provides third-party financial service providers open access to consumer banking, transaction, and other financial data.

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Organization

A centralized entity in Straddle that allows management of multiple accounts. Organizations provide features such as centralized dashboard, streamlined account onboarding and user management, and consolidated reporting.

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P

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Pagination

The practice of dividing a large set of results into smaller, manageable “pages” in API responses.

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Pay by Bank

Straddle’s unified API flow for bank payments. Pay by Bank combines identity verification, open banking, and money movement into a single API.

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Paykey

A secure token that links a verified customer identity to a specific payment method. Paykeys are a core component of Straddle’s identity-linked payment system.

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Paykey Source

The origin of a Paykey, which can be a bank account, Straddle, or a third-party provider like Plaid or MX.

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Paykey Status

The current state of a Paykey in the Straddle system, which can be pending, active, inactive, or rejected.

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Payment

A transaction between a Customer and a business (Account) using Straddle’s payment services. Straddle supports two types of payments: charge and payout.

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Payment Date

The date on which a payment is scheduled to occur.

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Payment Rail

The specific method or network used to process a payment, such as ACH or RTP (Real-Time Payments).

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Payment Status

The current state of a payment transaction, which can include created, pending, paid, failed, or cancelled.

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Payout

A type of payment transaction where money is sent to a customer. Payouts correspond to ACH credit transactions and are created using the /v1/payouts endpoint.

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Phone Risk

A component of Straddle’s risk assessment that provides a risk score for phone numbers.

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Politically Exposed Person (PEP) Screening

A part of Straddle’s watchlist screening process to identify individuals who hold prominent public positions.

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R

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Rate Limiting

Restrictions on the number of API requests that can be made within a given time period.

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Real-time Monitoring

Straddle’s continuous process of monitoring existing customers for changes in watchlist status.

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Representative

An individual who has legal authority or significant responsibility within a business Account on the Straddle platform.

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Request Example

A sample API request provided in the documentation to illustrate proper usage.

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Request ID

An optional client generated header value that is returned in the API response. The request ID can be used to trace and debug individual API requests.

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Risk Score

A numerical value assigned by Straddle’s system to indicate potential risk associated with a transaction or customer.

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S

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Sandbox

A testing environment that mimics the live Straddle platform, allowing developers to test API integrations without affecting real accounts or transactions. The Sandbox is available to all Straddle accounts via the URL https://test.straddle.io.

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Sanctions and Enforcements Screening

Straddle’s process of screening consumers and businesses during onboarding against various sanctions lists.

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Status Details

Additional information about the current status of an object in the Straddle system.

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Status History

A record of status changes for an object over time.

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Straddle Account ID

A unique identifier for a Straddle account. This is the primary identifier for an account in the Straddle system. This value can be used by Platforms to originate API requests to Straddle on behalf of an Account by including the header X-Straddle-Account-Id.

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Straddle Identity

An all-in-one identity verification system that provides a risk score for physical addresses, email risk, phone risk, and more. Identity uses a combination of machine learning, big data, and predictive analytics to accurately verify identities and prevent fraud. See also KYC (Know Your Customer) and KYB (Know Your Business).

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Support Channels

The various methods provided by a business during Account onboarding for customer support, such as email, phone, or chat.

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Synthetic ID Detection

Custom models trained with consortium data to tackle fake and randomized synthetic patterns to produce highly accurate, real-time, actionable risk scores and reason codes, with 90% auto-capture in the riskiest 3% of users.

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Synthetic Identity Risk Score

A score that predicts the probability that provided PII corresponds to a fictitious person.

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T

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Terms of Service

The agreement that users must accept to use the Straddle platform.

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Third-Party Fraud

Also known as identity fraud, where an imposter uses a real person’s information for financial gain.

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Transaction

A financial operation processed through the Straddle platform, such as a charge or payout.

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W

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Watchlist Screening

The process of checking customer information against various sanctions and enforcement lists.

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Watchtower

Straddle’s transaction monitoring risk engine that provides built-in balance confirmation, real-time fraud detection, and risk assessment.

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Webhook

A mechanism for receiving real-time notifications about events in the Straddle system.

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Withdrawal

A type of funding event where money is pulled from an external bank account by Straddle, typically for payouts.