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appenDiX B - acH anD rtGs Basics

B.3

AcH PAyMent systeMs

as introduced above, the transaction processing for lower-value payments through the acH is separate to the higher-value processing
through the rtGs, which provides the funds settlement between the member banks of the acH.

this is illustrated below:

Net rTGS
Settlement
SETTlEMENT
INSTITUTION

ACH

ACH

BANK A BANK B

Net
Settlement

BANK C PAyEE

Account at
Bank C PAyEr

Figure 9: Typical ACH Payment System

the typical process for direct credits is (ignoring the agency bank in the diagram above):
• the payer send an instruction to their Bank to transfer money from their account to the account of the payee;

• the payer’s bank debits the payer’s account and sends the instruction to the acH;
• the acH determines that the payer’s Bank owes the payee’s Bank the appropriate amount, netting all transactions, and notifies
the payer’s Bank;
• the payer’s Bank pays the central Bank;
• the central Bank pays the payee’s Bank;

• the payee’s Bank credits the payee’s bank account.

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