Treasury Management - All about U.S. Flashcards
How many clearing system do the American have? and what are they?
They have 4 clearing systems:
- On-Us
- Federal Reserve
- Clearing Houses
- Courier
What is a Federal Reserve wires (FED wires)
Federal Reserve wires are guaranteed by the FED. The payment is final and irrevocable.
ex: Bank A sends money to Bank B but bank A goes bankrupt….Federal reserve will cover.
What is ACH (Automated clearing house) and what does the ACH payment include?
is the national automated clearing house system that provide for the interbank clearing of electronic payments for participating financial institutions with same value day.
ACH payments include:
Direct Deposit of payroll, Social Security and other government benefits, and tax refunds
Direct Payment of such consumer bills as mortgages, loans, utility bills, and insurance premiums
Ex: this is a product where you either put directly money in somebody’s account, or you take money from your account to pay.
Tell me about CHIPS: Clearing House Interbank Payments System
CHIPS delivers wire transfer payments – in real time with finality. It processes over 95% of the USD cross-border payments and an increasing volume of U.S. domestic payments.
CHIPS is operated by The Clearing House, which also provides ACH, paper check and check image exchange for financial institutions of all sizes.
Tell me about SWIFT (IT IS NOT A FUND-TRANSFER SYSTEM) : Society for Worldwide Interbank Financial Telecommunication (is a language that was developed after ww2)
Swift provides the proprietary communications platform, products and services that allow customers to connect and exchange financial information securely and reliably.
SWIFT enables its customers to automate and standardize transactions.
What is Swift Gpi?
is the new standard in global payments – banks are now sending and receiving funds quickly and securely to anyone, anywhere in the world, with full transparency and traceability.
