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Payments NZ Clearing Systems
Payments NZ sets the rules and standards for the four clearing systems operated in New Zealand:
- The Bulk Electronic Clearing System (BECS) processes direct debits, automatic payments, bill payments, and direct credits.
- The Consumer Electronic Clearing System (CECS) processes all consumer payments, such as EFTPOS (Debit Card) payments and mobile payments.
- The Paper Clearing System (PCS) processes all paper payments instruments, which in today’s digital world is primarily cheques.
- The High Value Clearing System (HVCS) processes large payments quickly and ensures they can’t be reversed. The most common payment type used in HVCS is a same-day cleared payment, which is often used for house settlements.
BECS, CECS and PCS all use the Settlement Before Interchange (SBI) system to process transactions (called settlement and interchange).
HVCS uses a different system called NZClear, which is maintained by the Reserve Bank of New Zealand.
Each clearing system is governed by a Management Committee made up of subject matter experts from each of the Participants in that clearing system.