Did you know
New Zealanders make more than six million payments daily, estimated to be worth more than $35 billion each day.
This system covers direct debits, automatic payments, bill payments, direct credits, and a few others.
For example; if you make a direct credit to a person/business, and they use a different bank/financial institution to you, the two financial institutions have to ‘talk’ to each other in order to pass the relevant information to each other regarding that payment (called interchange), and also to pass the money over from one financial institution to the other (called settlement).
BECS sets all the requirements (rules / standards) for how financial institutions actually make these transactions happen. This includes components like;
The same processes occurs between all institutions, irrespective of how the transaction was initiated by the customer (i.e. it does not matter if the customer initiated the transaction in a branch, on the phone, online banking, DD, etc)