Glossary of Subscription, Fintech & Money App Terms

Personal finance, fintech, neobanks and crypto all come with specific terminology that is not always obvious. This page breaks down the most common terms you will see across subscription management, recurring billing, virtual cards, open banking, and money apps.

Use these definitions to understand how each concept works and how it fits into your personal or business spending.

Subscription Basics

Subscription

A recurring payment for access to a service, billed monthly or annually. Subscriptions often include auto-renew by default, making them easy to forget or overlook.

SaaS (Software as a Service)

SaaS is business software or tools you pay for through a recurring subscription instead of buying outright. Examples include tools like Notion, Slack, Figma, and Canva.

Free Trial

A temporary period where a service is free before switching to paid. Many users forget to cancel before the trial ends, leading to unexpected charges.

Trial Conversion

When a free trial automatically switches into a paid subscription after the trial period ends. This usually happens if you don’t cancel in time, and many apps rely on trial conversions as a major part of their revenue.

Auto-Renew

When a subscription renews automatically at the end of each billing cycle. Most apps enable this by default, which can cause surprise charges if users aren’t tracking renewals.

Billing Cycle

The period between subscription charges, typically monthly or yearly. Understanding the billing cycle helps you better anticipate upcoming payments.

Cancellation Policy

The rules a service sets for canceling a subscription. Some allow same-day cancellation, while others require notice before the next billing date.

Annual vs Monthly Billing

Two most common subscription plans. Monthly billing offers flexibility, while annual billing is cheaper overall but locks you in for 12 months at once. Many users forget annual renewals and they get surprised by a bulk auto-renewal.

Renewal Reminder

A notification warning users that a subscription will renew soon. These reminders help prevent unwanted charges for services people no longer use.

Failed Renewal Payment

When a subscription cannot be renewed because the payment method declined or expired. Failed payments can cause interruptions to platform access or late fees.

Grace Period

Extra time given after a failed payment before the subscription is fully cancelled. Some companies offer several days or weeks to update your card before shutting off access.

Subscription Fatigue

The feeling of being overwhelmed by managing too many subscription payments. It can feel like mental clutter and it often leads to frustration, spending too much, and missed charges.

Money Leakage

The gradual loss of money to forgotten, unused, or unwanted subscriptions. It happens quietly over time and adds up significantly.

Hidden Subscription

A recurring charge that isn’t clearly labeled or is buried in transaction history. These are easy to miss without proper tracking tools.

Churn

When a user stops paying for or using a subscription. It’s a key metric for subscription businesses and often indicates dissatisfaction, lack of use, or choosing to use a competing service.

Involuntary Churn

When a subscription ends because of payment issues like an expired card or declined transaction. The user didn’t intentionally cancel, the system simply stopped billing successfully.

Proration

A partial charge or refund when you upgrade, downgrade, or cancel during a billing cycle. Instead of charging the full amount, the service calculates only the time you used.

Subscription Tracking & Data Terms

Bank-Connect

A feature that connects your bank or card to automatically detect subscriptions or transaction. Providers like Plaid securely pull transaction data to identify recurring charges or general expenditure.

Plaid

Plaid is a financial data provider that lets apps securely connect to your bank with your permission.
It pulls read-only transaction data so apps can detect subscriptions, show balances, or verify accounts, without ever seeing your bank login details.

Bank Aggregator

A service that securely connects apps to banks to read financial data with user permission. Examples include Plaid, Tink, Truelayer, and Basiq. These providers make it possible to automatically detect recurring payments and transactions.

Read-Only Access

A permission type where apps can view your financial data but cannot move or spend your money. Most subscription-tracking apps use read-only access through trusted providers.

Open Banking

A regulatory framework allowing financial apps to access banking data securely with user permission. It improves transparency and gives consumers more control.

Recurring Transaction Detection

A process that identifies repeat charges in your bank activity to flag subscriptions. It looks at frequency, merchant names, and transaction patterns to spot subscriptions accurately.

Transaction Scraping

Detecting subscriptions by analysing repeated patterns in bank transactions. This helps identify recurring charges even if users forget to add them manually.

Merchant Descriptor

The text that appears on your bank statement for a transaction. Many are unclear or shortened, which makes it hard to recognise which subscription is charging you.

Transaction History

A record of all your financial activity. Subscription apps use this to detect recurring payments.

Payment Method

The card or account used for subscription charges. Tracking this helps prevent failed payments when cards expire or are replaced.

Email Parsing

A method where apps scan your inbox for digital receipts and subscription emails. It helps catch app-store subscriptions, trials, and renewal notices. This is useful for filling in the missing gaps missed by banking aggregators, or as an alternative solution.

App Store Subscriptions

Subscriptions billed through platforms like Apple App Store or Google Play. These often don’t appear clearly in bank statements, making them harder to track.

Spending Category

A label applied to a transaction (e.g., entertainment, utilities, software). Categorisation makes budgeting and subscription tracking easier.

Budgeting App

An app that helps users track spending, set budgets, and monitor subscriptions. Examples include YNAB, Emma, and Mint.

Tokenized Payment Method

When a card number is replaced with a secure digital token. Many subscription services use tokenized payments so they can keep charging even if the visible card number changes.

Billing Address Match (AVS)

A fraud check that compares the billing address you entered with the address on file with your bank. Some recurring payments require a successful AVS check to go through.

Webhook

A system used by apps to send real-time updates for events like renewals, cancellations, failed payments, or trial conversions. Subscription platforms rely on webhooks to stay synced.

Fintech & Money App Terms

Neobank

A digital-only bank offering financial services through an app instead of physical branches. Many neobanks provide features like virtual cards and spend controls.

Common neobanks include Revolut, Wise, Monzo, Nubank and more.

Crypto-based Neobanks also exist such as Etherfi, Avicii, KAST, Tuyo and others

Digital Wallet

Not to be confused with crypto wallet. an app that stores your cards digitally, such as Apple Pay or Google Wallet. These wallets can also be used for subscription billing.

Virtual Card

A digital card number used for online payments. Users often use virtual cards for travel and ease of use, but can also be used to separate subscriptions, smart budgeting and blocking unwanted charges.

Single-Use Card

A card number that works once and then expires. These are useful for free trials or merchants you don’t fully trust.

Merchant Blocking

A feature that stops specific merchants from charging your card. It’s commonly used to cancel unwanted subscriptions quickly.

Card Freeze

A temporary block on a card to prevent new charges without fully canceling it. Freezing helps avoid surprise renewals or payments and also useful when cards are misplaced.

Spending Limit

A cap you can set on how much a card can be charged. Limits help prevent overbilling, fraud and accidental charges.

Direct Debit

A payment method where a company pulls money directly from your bank account. Direct debits are common for utilities, insurance, and some subscriptions such as gym memberships.

Chargeback

A reversal of a transaction disputed through your bank. Chargebacks can be used when a subscription renews unexpectedly or when the service is fraudulent or misrepresented.
These can be inconvenient for many merchants.

Recurring Payment

A payment that automatically repeats on a regular schedule. Most subscriptions are recurring payments.

KYB (Know Your Business)

Verification for business accounts. It involves checking company documents, owners, and financial legitimacy. Required for offering cards or financial tools to teams and freelancers.

Open Loop vs Closed Loop Cards

Open loop cards (Visa/Mastercard) work anywhere. Closed loop cards only work with specific merchants or ecosystems. Virtual cards can be open or closed loop depending on the issuer.

Issuer

The bank or financial institution that provides your card. Even if you use a fintech app, the card is typically issued by a licensed partner institution behind the scenes.

Processor

The company that handles the technical side of card transactions. Examples include Stripe Issuing, Marqeta, and Checkout.com. They route payments between merchants, issuers, and networks.

Spend Analytics

A feature that categorises and visualises your spending. It helps users see where their money goes across subscriptions, bills, and everyday purchases.

Card, Billing & Payment Infrastructure

ACH

The Automated Clearing House network used for bank transfers in the United States. Many recurring billing systems rely on ACH because it’s cheap, but also slower than card payments.

SEPA

The European bank transfer system used for sending euro payments across EU countries. It supports recurring billing and is often used for financial apps in Europe.

FPS / NPP / Fast Payments

Instant bank transfer systems used in regions like the UK (FPS) and Australia (NPP). They allow real-time payments, making fintech apps feel more responsive.

Settlement Time

Settlement time refers to how long it takes for a payment to fully process and the funds to move between accounts. Card payments often settle in 1–2 days, while stablecoin payments can settle in seconds. This affects how quickly merchants receive money.

Issuer Decline Codes

Specific codes sent when a payment fails, that lets merchants know why the transaction was declined. Common reasons include insufficient funds, expired cards, or blocked merchants.

Authorization Hold

A temporary hold placed on your card to check availability of funds before final billing. Often seen in travel, hotels, and sometimes subscription free trials.

Card Scheme

The network powering your card such as Visa, Mastercard or Amex. Schemes define rules, fees, and where the card can be used.

Dunning

Dunning is the process subscription services use to recover failed payments. It includes retrying the charge, sending reminders, and asking users to update their payment method before access is cancelled.

Interchange

A fee paid between banks for every card transaction, and exists to compensate the cardholder’s bank (the issuer) for handling the transaction. Fintechs and neobanks earn revenue from interchange when their cards are used, which is why spending features are important to their business models.

Interchange fees are sometimes promotionally passed onto the user as cashback rewards.

Merchant Category Code (MCC)

A classification assigned to merchants. Some cards block or allow charges based on MCC, usually to combat fraud or chargeback risk, influencing subscription payments.

Prepaid Card

A card loaded with a fixed amount of money in advance. Prepaid cards can help limit subscriptions by only allowing fixed funds.

Crypto Neobanks & Payment Rails

Crypto Debit or Credit Card

A card that lets users spend crypto or stablecoins like normal money, usually by converting it at the time of purchase or spending against the crypto balance. Useful for crypto-natives who aren't heavy bank users or hold large crypto balances they do not want to sell.

Many of these cards are issued by third party providers in partnership with Visa or Mastercard and also support virtual card controls.

Stablecoin

A cryptocurrency designed to maintain a stable value, usually pegged to the US dollar. Stablecoins are commonly used for cross-border payments, decentralised finance and digital cards.

On-Ramp

A service that lets you convert regular fiat currency from your bank into crypto or stablecoins. Also often used when topping up balances for crypto card providers.

Off-Ramp

A service that converts crypto back into fiat currency. Useful for withdrawing funds from daily expenses and bills.

Exchange Card

A card provided by a crypto exchange like Binance, Bybit, or Crypto.com. It allows users to spend their crypto holdings directly without off-ramping and often come with perks such as cashback or other exclusive perks.

Crypto Neobank

A fintech app that blends traditional banking with crypto features. These apps often offer virtual cards, spending controls, DeFi yields and stablecoin accounts.
Many of these also are non-custodial, meaning you still retention complete control of your stablecoin balances.

Self-Custody (Also known as Non-custodial)

Self-custody means you control your own crypto and private keys instead of a company holding them for you. Only you can access or move the funds.

Payment Rail

The network or infrastructure that moves money from payer to payee. This can include traditional bank transfers, card networks (e.g. Visa/Mastercard rails), direct-debit networks, or newer systems like real-time payment networks or stablecoins. Rail providers ensure funds are routed, settled, and reconciled between accounts or institutions.

KYC (Know Your Customer)

A verification process required by financial apps to confirm a user’s identity. KYC is mandatory for most neobanks and crypto card providers.
It often includes a form of ID and a facial scan.

AML (Anti-Money-Laundering)

AML refers to rules and checks financial apps use to detect and prevent illegal or suspicious activity. It includes monitoring transactions, verifying users, and blocking high-risk behaviour. Often linked to combatting terrorism financing, sanctioned countries or individuals and fraud.

Custodial vs Non-Custodial Wallet

Custodial wallets are managed by a company that holds your crypto keys for you. Non-custodial wallets give you full control of your own keys and funds.

Fiat On-Ramp Fees

The fees charged when converting traditional money like AUD, USD or EUR into crypto. These can vary widely depending on the provider, payment method, and region.

Stablecoin Yield

Earnings generated from depositing stablecoins into protocols that pay interest often through some form of transaction fees or lending and borrowing. Many users treat this as a savings alternative, though yields depend on market demand and protocol risk.

Gas Fees

Fees paid to process transactions on blockchain networks. Gas costs can vary from cents to dollars depending on network choice, congestion, and they can impact how often or where people transact.

Smart Contract Wallet

A wallet built on programmable smart contracts instead of a simple pair of keys. These wallets can automate payments, set permissions, or support advanced features like account recovery.

Crypto Card Settlement

How crypto transactions are finalised when using crypto virtual cards. Some crypto cards convert crypto into fiat instantly at purchase, while others batch and settle transactions on-chain later.

Account Abstraction

A way to make crypto wallets work more like smart apps instead of just key-based vaults. It allows features like password recovery, spending controls, and automatic payments.

MPC Wallet (Multi-Party Computation Wallet)

A type of digital wallet where private keys are split into encrypted fragments and shared between multiple parties or devices. This improves security because no single person or server fully holds the key. It’s commonly used by crypto fintech apps and teams to reduce hacks, support backups, and approve transactions safely without exposing the full private key.

X402 (Stablecoin Payment Protocol / Agentic Payments)

X402 is a new payment protocol built for the next generation of apps and ai- agents that can make payments automatically on your behalf. It uses stablecoins instead of traditional card rails or banking systems.

This is designed for agentic payments, where AI agents, bots, or apps can trigger and complete payments without needing manual approval each time. For example, an AI calendar might book and pay for your coworking space automatically, or a budgeting bot could move funds to savings based on your spending habits.

X402 is especially useful for pay-per-use or event-based payments.

Business & SaaS Spending Terms

402 (Payment Required)

402 is an HTTP status code meaning “Payment Required.” It was originally created for online payments but is rarely used today outside technical documentation.

Seat-Based Pricing

A SaaS pricing model where you pay per user or per account seat. Teams often overspend because unused seats are left active and adjusting them requires interaction with individual applications.

Usage-Based Billing

Usage-based billing charges based on activity such as API calls, storage, automations or credits. Many platforms charge variable amounts based on consumption.

Overages

Costs incurred when you exceed plan limits. Many SaaS tools charge extra when usage caps are reached.

SaaS Audit

A process where teams do a structured review of all active software subscriptions. The goal is to identify tools that are forgotten, unused, duplicated or no longer needed, as well as identifying seat-excess and adjusting access controls of ex-team members.

Shadow IT

Shadow IT refers to software subscriptions created inside companies without oversight from procurement, finance or IT teams, often leading to double ups. These often become untracked money leaks that grow as organisations scale.

Vendor Management

Vendor management is the process of tracking, renewing, negotiating or cancelling software tools, subscriptions and service providers inside companies. This includes monitoring contract terms, spend efficiency and recurring billing activity.

Deals, Discounts & Bundling Terms

Partner Discount

A special price offered through a partnership. Often cheaper than the public price and commonly included in deals marketplaces like Orbit.

Affiliate Offer

A discount or reward provided through an affiliate link. Many SaaS tools or subscription based companies use affiliate programs to distribute promo codes to partners, influencers or marketplaces to reach more users.

Cashback

Cashback refers to money returned after a purchase. Sometimes offered instantly, others paid monthly. Some fintech cards or apps reward spend with cashback. This is also prevalent in platforms such as Honey or Rakuten, where users can shop and receive cashback rewards.

Bundled Subscriptions

Subscription bundles combine multiple services into a single discounted recurring payment. Examples include Apple One, Amazon Prime or curated SaaS subscription packs. This is often managed as a singular payment rather than multiple.

Orbit Earn helps users manage subscriptions, prevent surprise charges, and get back in control of their money.
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