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a2a interoperaBility makinG moBile money scHemes interoperate
Appendix B -
AcH and Rtgs Basics
B.1
oveRvIeW
this appendix discusses the potential use of banking a sector central settlement system (e.g. an acH) for the processing and settle-
ment of transactions between mmo schemes – providing a2a interoperability between schemes. automated clearing house (acH) is
the american term for a central Bank service that provides bank account to bank account payment transaction clearing and settlement.
typically, an acH is used for lower-value payment transactions for the retail bank market, although not necessarily as low as commonly
occurs in mmo schemes.
the appendix discusses the typical arrangements for lower-value direct credit transactions (i.e. a sender initiated transfer from one bank
account to another) using an acH, with the objective to provide background information for its potential use for the processing and set-
tlement of a2a transactions.
it is worth noting that in some markets an acH may not be used and that lower-value direct credits between banks may be carried out
using direct connectivity under bilateral agreements between banks. this highlights that the need for a payment network for lower-value
payments is very dependent on local market conditions.
the source of material relating to general central bank activities is the Bank of international settlements report ‘the role of central bank
money in payment systems’ and ‘principles for Financial market infrastructures’ .
17
18
17. Bis, committee of payments and settlement systems, the role of central bank money in payment systems, http://www.bis.org/publ/cpss55.pdf
18. Bis, committee of payments and settlement systems, principles for Financial market infrastructures
44
Appendix B -
AcH and Rtgs Basics
B.1
oveRvIeW
this appendix discusses the potential use of banking a sector central settlement system (e.g. an acH) for the processing and settle-
ment of transactions between mmo schemes – providing a2a interoperability between schemes. automated clearing house (acH) is
the american term for a central Bank service that provides bank account to bank account payment transaction clearing and settlement.
typically, an acH is used for lower-value payment transactions for the retail bank market, although not necessarily as low as commonly
occurs in mmo schemes.
the appendix discusses the typical arrangements for lower-value direct credit transactions (i.e. a sender initiated transfer from one bank
account to another) using an acH, with the objective to provide background information for its potential use for the processing and set-
tlement of a2a transactions.
it is worth noting that in some markets an acH may not be used and that lower-value direct credits between banks may be carried out
using direct connectivity under bilateral agreements between banks. this highlights that the need for a payment network for lower-value
payments is very dependent on local market conditions.
the source of material relating to general central bank activities is the Bank of international settlements report ‘the role of central bank
money in payment systems’ and ‘principles for Financial market infrastructures’ .
17
18
17. Bis, committee of payments and settlement systems, the role of central bank money in payment systems, http://www.bis.org/publ/cpss55.pdf
18. Bis, committee of payments and settlement systems, principles for Financial market infrastructures
44
