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Clearing HouseClearing and settlement process is one of the most crucial back office activities of any financial institution. Flexibility, cost reduction, regulation compliance and efficiency are all on the interchange system’s wish list. Although today’s electronic payment environment is ever so complex, it is still important to satisfy the interchange needs of financial institutions operating in interchange arrangements of different compositions. Compass Plus has developed a versatile system that can satisfy several clearing and settlement arrangements from confined to inherently complex, thereby providing not only flexibility but also an opportunity for incremental business growth.

Perhaps one of the more or less straightforward arrangements is clearing and settlement between a payment system and a bank – principal member of this payment system. In this case TranzWare Interchange can be configured to perform only automated file format converting function (transformation of clearing file formats), therefore fulfilling a clearing function with a payment system only.

A great majority of financial institutions operate in a multi-branch setting ranging from one branch to a complex network of several thousands. This environment demands efficient clearing and settlement between all the branches, head-office and payment systems. In addition to settling with various payment systems, in this case, TranzWare Interchange can perform automated internal clearing and settlement in a multi-branch financial institution and can even be implemented to facilitate effective interaction - collection, processing and distribution of clearing files between several different systems at one financial institution.

The most complex clearing and settlement arrangement is where an organisation performs functions of a clearing house and is a head of payment network. TranzWare Interchange is also capable of providing exceptional system performance in this environment. It supports automated clearing and settlement with different external payment systems, other clearing houses, member banks, agent banks, etc.)

TranzWare Interchange allows definition of business rules and logic of sponsor-agent and payment system member interactions. For example, each member of an interchange system (no matter how simple or complex) can be assigned their individual timetable for data clearing and settlement (including near real time settlement). The system also offers the following features:

  • Automatic reconciliation
  • Flexible commissioning, fee processing and currency conversion
  • Support of different data formats
  • Disputes processing and management (for example, a bank-sponsor can manage disputes on its agent banks’ requests)
  • Facilities for controlling risks associated with interchange (for example, in case if suspicious transactions occur a bank-sponsor can delay clearing and settlement with its agents)
  • Comprehensive set of reports
  • And many more

TranzWare Interchange allows each and every arrangement to be customised as per financial institution’s requirements yet ensures that all regulations are precisely followed in every case.

To discover more about clearing and settlement system options and for more detailed list of features please download TranzWare Interchange or contact us.

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