Swap
Quick Answer
A swap is the exchange of one cryptocurrency for another. In payment processing, swaps convert the customer's token into the merchant's preferred settlement currency atomically.
Full Definition
A swap is the exchange of one cryptocurrency for another, executed on a centralised or decentralised exchange. In payment processing, swaps convert the customer's payment token (e.g., ETH) into the merchant's preferred settlement currency (e.g., USDC). Smart contract-based swaps on DEXs are atomic — they either complete entirely or revert, ensuring no funds are lost during conversion.
Related Terms
Same-Day Settlement
Same-day settlement means merchants receive fiat in their bank account on the same day a crypto payment is made — significantly faster than card payments' 2-5 day settlement.
Sanctions Screening
Sanctions screening checks wallet addresses and entities against OFAC, EU, and UN sanctions lists to prevent prohibited transactions — a legal obligation for all payment providers.
SDK (Software Development Kit)
An SDK is a collection of pre-built code libraries that simplifies payment integration — typically a few lines of code to add crypto payment acceptance to any website or app.
Self-Custody
Self-custody means holding your own private keys with sole control over your crypto — no third party can freeze or seize funds. Core to blockchain's 'not your keys, not your crypto' principle.
Settlement
Settlement is the final, irrevocable transfer of funds completing a transaction. Crypto settlement occurs in seconds to minutes versus 1-5 business days for traditional payments.
Slippage
Slippage is the difference between expected and actual trade execution price. In crypto payments, DEX aggregators and tolerance settings minimise slippage during settlement conversion.