Clearing

Question 1

What is money transmission?

Answer 1

This offers a range of services such as cash, cheques, direct debits, standing orders etc.

Question 2

What is clearing?

Answer 2

This is a process where at the end of every business day, banks settle all money transfers such as cheques, direct debits etc.

Question 3

Who manages the clearing processes?

Answer 3

UK Payment Administration Ltd. Acts as the umbrella to the UK payment industry. It manages the payments through three operational clearing companies:

Cheque and Credit Clearing - oversees the clearing of cheques and paper credits on a three day cycle;

Bankers Automated Clearing Services Ltd (BACS) - oversees the bulk of electronic clearing;

Clearing House Automated Payment Systems (CHAPS) - same day automated interbank system for high-value wholesale payments.