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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 Same-day Cleared Payment feature of HVCS is commonly used for housing settlement payments.
BECS, CECS and PCS all use the SWIFT based Settlement Before Interchange (SBI) system to effect settlement and interchange of transactions between banks.
HVCS uses a separate SWIFT based system to effect settlement and interchange of payment information between banks.
Each clearing system is governed by a Management Committee made up of subject matter experts from each of the Participants in that clearing system.