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Payments and Clearing Systems in Australia Primary Tabs

By: alphafinance0 comments

Have you ever heard of the Australian Payments Clearing Association (APCA) before? You should have.

If you feel like your mode of paying for goods and services is efficient, effective, and safe, then you have these (some) 100 members to thank.

This joint group of people from leading financial institutions (major retailers, banks, credit unions, building societies, etc) are responsible for improving the safety, reliability, equity, convenience, and efficiency of your local payments systems.

Here are the payment and clearing systems they’ve placed for your convenience:

The Australian Payments Clearing Association (APCA) together with the Australian Cash Distribution Exchange System (ACDES) has provided various ways for Australians to pay for their goods and services.

Have you always wanted to familiarise yourself more about these payment methods? Today we are here to discuss a little more about the various ways you can pay and receive payment in Australia:

Cheque (CS1)

Cheques are the second most popular way to pay for items, especially for those who don’t like carrying cash or cards with them at all times.

What makes them appealing is the fact that only the person whose name is written n the check can cash the specified amount.

Direct Entry (CS2)

Direct entry refers to transferring money between bank accounts. It is commonly used to pay your utilities and other bills because of the convenience it offers.

It can also be used to make government payments as well as tax refunds.

Electronic Funds Transfer at Point of Sale [EFTPOS] (CS3)

If you have ever used a debit or credit card, then you have used EFTPOS. This includes ATM transactions as well as when you swipe your credit card when you go shopping.

High-Value Payments (CS4)

High-Value payments are used to transfer large sums of money. It has four central systems in use in the country:

  • Society for Worldwide Interbank Financial Telecommunication Payment Delivery System (SWIFT PDS)

  • Clearing House Electronic Subregister System (CHESS)

  • Financial Transactions Recording and Clearance System (FINTRACS)

  • Reserve Bank Information and Transfer System (RITS)

Cash (CS5)

Money is the universal way of paying for any good or service. These are settled and cleared according to the procedures set forth by the APCA and the ACDES.

However, some business will charge you full price if you pay in cash compared to the discounts offered if you choose to spend with your credit card.

Not only can you use these to pay for items, but you can also use them to pay for that car lease you recently took out.

Ask them about their payment methods and choose the one that works best for you.

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