Clearing House
Definition:
A multilateral system or arrangement that provides its Participants with clearing services for payment instructions, securities transactions, derivatives transactions, and in some cases, settlement services.
Details:
The most famous example of a clearing house is “The Automated Clearing House (ACH) Network” the electronic funds-transfer system run by NACHA, since 1974. ACH provides transactions for use with payroll, direct deposit, tax refunds, consumer bills, tax payments, and many more payment services in the U.S.
Note that even a Stock Exchange can fall under the general definition of a clearing house.
Note:
This is a series of posts with definitions for the jargon used in #banking, #fintech and #payments.
Too many people use some terms without understanding them beyond the definition.
Too many “experts” use the terms but they never had experience with the actual implementation of anything in #banking, #fintech and #payments.