1. Bank clearing, clearing, settlement, reconciliation
1. Settlement and settlement In the bank card internet network, due to the inter-bank nature of the transaction realization process, the payment settlement relationship between the card issuer and the cardholder has evolved into two levels of settlement and settlement.
There are two types of settlement relationships between network member banks, cardholders and special merchants :
The payment relationship between the agent bank and the cardholder, and the settlement relationship with the special merchant;
The settlement relationship between the issuer and the cardholder for real-time billing (for 02XX financial transactions), or the deduction of credit limit and subsequent settlement relationship (for 01XX authorized transactions). Between the network member banks and the network clearing bank (or clearing center, the same below), the clearing relationship between banks is formed.
Inter-bank clearing is carried out through the transfer of funds between clearing accounts of member banks and the transmission of clearing information within the clearing network. As the core exchange center of the Internet system, although it is also one of the components of the modern payment and clearing system, it is not a payment system in the strict sense, and generally does not have the function of fund clearing itself. Submit the clearing data, and the clearing bank will carry out the net settlement of the debit and credit transactions of the member banks after the netting, and complete the final payment.
Therefore, in the business operation of the entire network, there are actually two networks, namely the transaction network and the clearing network. The trading network runs continuously 24 hours a day, processing customers' online transactions in real time; the clearing network only transmits the fund transfer information of the net amount of the day's network transaction clearing between banks after the trading network is closed.
2. Clearing, reconciliation and liquidation
In this dual network system, the whole process of inter-bank transaction including final settlement should generally go through two stages: real-time transaction stage and daily settlement and settlement stage . In the real-time transaction stage, it is generally initiated by the cardholder on the terminal of the correspondent bank, and sent to the host of the issuing bank through the host of the correspondent bank and the exchange center. Correspondent Bank Trading Terminal. For financial transactions, the settlement between the issuing bank and the customer is generally completed at the transaction stage. However, there is no clearing between the issuing bank and the correspondent bank. in pending state . The information transmitted online is the transfer of funds between the cardholder and the bank. The clearing stage is carried out after the log switch, and is divided into clearing, reconciliation and clearing .
1. Clearing (Clearing) is the data preparation stage of clearing, which mainly refers to all the network transaction data of the day according to the current generation between each member bank , its generation, credit, debit, number of transactions, amount, rolling. Summarize, sort and classify the net difference, etc. Clearing is the main work of the network exchange center and the transaction host system of each member bank in the clearing stage, and three-level clearing data will be generated.
a. The net clearing amount of each member bank to the network exchange. ·
b. Various summaries of transactions between member banks. ·
c. Details of all online transactions on the current day.
The clearing of financial transactions can be carried out by the exchange center and the host of each member bank according to their respective transaction flow records. For authorized transactions, the customer account balance is not deducted during the day trading period, and the clearing and settlement are not carried out according to the transaction flow after the day closing. Generally, the agent bank uploads the transaction data in batches after the day closing, and then clears it. For example, according to INET, the clearing system of MasterCard International Organization, St. Louis Center will receive batch uploading of authorized transaction details data from member banks in three batches at 23:00, 5:00, and 9:00 the next day, and clear it to them at 10:00 after clearing. The bank (Chemical Bank of New York) submits the clearing data, and the clearing is carried out by the Chemical Bank. At the same time, at 5:00, 9:00, and 23:00 (a period later than the upload), the authorized transaction details data after being cleared by the center will be downloaded to the member banks in batches in three batches, so that the card issuing bank can debit the customer's credit card account.
2. Reconciliation (Reconciliation) is based on clearing. The exchange center and member banks pass the ISO 8583 reconciliation message 05XX, using the first-level clearing data (fill in the 97# field), the second-level clearing data Clearing data (fill in the 74#--89# fields) for a summary online reconciliation. When the online reconciliation is uneven, measures should be taken to retrieve the corresponding third-level data, that is, the transaction detail data, and conduct offline detailed reconciliation. What is transmitted online is the transaction record information, not the money transfer information between banks.
3. Settlement is carried out on the basis of clearing and reconciliation, and the exchange center submits the net settlement data between each member bank and the exchange center to the clearing bank (center), and the clearing bank (center) shall follow the pre-agreed agreement. liquidation method to initiate liquidation. Perform clearing and transfer between the clearing accounts of member banks, or transmit funds transfer instructions through the clearing network to complete inter-bank clearing. In order to ensure the correctness of clearing, after the clearing, the clearing system of each member bank will send the clearing data to the bank card system, and make a final reconciliation. The clearing network and process are shown in the figure. The clearing network is composed of the clearing center and the clearing system of each member bank, and the information of fund transfer between banks is transmitted online.