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Clearing Systems

Bulk Electronic Clearing System

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 and standards) for how financial institutions actually make these transactions happen. This includes components like:

  • how ‘cleared funds’ works;
  • the data format for transaction information;
  • how transaction data is exchanged;
  • timeframes for interchange and settlement – what has to happen by when;
  • how dishonours work – what information is exchanged, by when;
  • contingency;
  • operational contacts;
  • how settlement occurs and by when.

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).

The below Bank Branch Register (provided in .txt and .xls formats) contains New Zealand bank branch numbers and related details. The register is primarily used by our Participants and corporate organisations to keep branch details up to date in their systems. It is updated each month with any additions or amendments notified since the last publication.

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