Category: EBA

Who are EBA Clearing?

EBA Clearing, https://www.ebaclearing.eu/, are a European clearing house. They own and operate payment infrastructure in euro payments in Europe.

It processes over 17 billion transactions per year. EBA Clearing owns and operates a number of payment systems such as EURO1, STEP1, STEP2 and RT1. STEP2 and EURO1 are Systemically Important Payment Systems (SIPS).

EBA Clearing

EURO1

EURO1 is a high value RTGS style net settlement system for single same day euro transactions. Payments are settled in real-time and with finality.

It is a high value payment system whose purpose is to provide provide an efficient, secure and cost-effective net settlement infrastructure, with immediate finality for all processed EURO payments.

STEP1

STEP1 processes same-day single payments for retail and commercial transactions. and are for amounts that will not introduce risk into the clearing system. Both the sending and receiving bank have a limit imposed for each transaction.

STEP1 Participants settle their daily balances via a EURO1 Participant of their choice, which acts as their settlement bank.

STEP1
How EURO1/STEP1 works

STEP2

STEP2 is a Pan-European Automated Clearing House for processing payments in euro.

It facilitates SEPA payments to over 4,800 financial institutions and is one of the key euro mass payment systems in Europe.

It also routes, clears and settles SEPA credit transfers for banks using SEPA Credit transfers

RT1 Instant Payments

The RT1 System is a real-time gross settlement payment system for the execution of SEPA Instant Credit Transfers. European banks can use RT1 for any payment in euro that is fully compliant with the SCT Inst Scheme.

Who are The Clearing House?

The Clearing House (TCH) , www.theclearinghouse.org, are a US financial institution that clear and settle over $2 trillion dollars of ACH, wire, real-time payments and checks every day. It owns and operates the RTP platform.

The Clearing House

TCH also operates one half of the ACH network, while the Federal Reserve operates the other half. It is owned by a collective of 24 large banks. These are both domestic US and international banks.

TCH runs a number of payments systems such as:

  • CHIPS (Clearing House Interbank Payments System):
  • RTP (Real-Time Payments)
  • ACH (Automated Clearing House)

What is CHIPS?

CHIPS is an acronym for Clearing House Interbank Payments System and is the largest clearing system for wire transfers in US dollars. It settles approximately 1.8 trillion dollars daily.

CHIPS is not an RTGS and does not settle payments in real-time. It is a netting engine and aggregates payments over the course of the day.

What is RTP?

RTP is a real-time payments platform that allows banks insured by the US government to clear and settle payments in real time. An RTP payment resembles an instant wire transfer.

Real-time payments over the RTP network provide financial institutions with the capability to send payments directly from their accounts 24/7, and to receive and access funds sent to them over the RTP network immediately.

RTP Network
RTP network

What is the ACH Network?