ACH (Automated Clearing House)
This is a way to move money between US to US bank accounts electronically. It's often used for things like direct deposits of paychecks and online bill payments. 80% of ACH payments happen same day, but can also take from 1-3 business days.
This refers to the electronic transfer of funds from one bank account to another, either within the same financial institution or across different banks. These transfers are typically secure and can involving the real-time movement of money through various intermediaries, but are often costlier than ACHs.
SWIFT (Society for Worldwide Interbank Financial Telecommunication)
SWIFT helps banks all over the world talk to each other securely, especially when sending money across different countries. They’re similar to wire transfers, but for international wires. Think of it like a special language that banks use to understand each other's transactions.
You can send money internationally using a “SWIFT” code that is associated with your bank account.
Please note that we do not readily provide SWIFT codes in Parallax, so international wire transfers aren't possible at this time.
KYC (Know Your Customer)
This is a regulatory process that financial institutions follow to verify information about their customers' identities, backgrounds, and financial activities.
When you open a bank account or use certain financial services, you might be asked to share some information about yourself. This helps the financial institution protect you and all users of the platform to prevent money laundering, fraud, and other illegal activities.
Account and Routing number
Both numbers are used for banks to send money to each other via ACH or wire transfer.
An account number is a unique identifier assigned to an individual's or entity's US bank account. It distinguishes one account from another and is used for various financial transactions.
A routing number, also known as an ABA (American Bankers Association) number, is a nine-digit code used in the United States to identify the specific bank or financial institution that holds the account. It's essential for routing funds during transactions.
Think of stablecoins as special digital money that keeps the value of real money you use every day, like dollars or euros. They're useful for buying things online and sending money to others without worrying too much about big price changes like other digital currencies have. They’re faster (near instant) and significantly cheaper when sending money internationally.
At Parallax, we use dollar-denominated stablecoins that keep the value of the dollar and are backed by trusted financial institutions.
Each USD bank account on Parallax is FDIC-insured up to $250,000.
FDIC insurance is a type of government-provided insurance that protects depositors in case their bank fails. This means that if a bank fails and a depositor has less than $250,000 in their account, they will be fully reimbursed by the FDIC. It was created by the Federal Deposit Insurance Corporation (FDIC), a United States government agency, in response to the Great Depression of the 1930s.
FDIC insurance does not cover anything under than USD in your USD account.