- Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.
Related Terms and Acronyms
- Bank of Canada (BC, BOC) — Company Est. 1935, Ottawa, Ontario, Canada, Important,
➥ Canada's central bank.
- Canada's central bank.
- Bank Wire — Definition,
- An electronic payment system for the transfer of money between banks.
- Canadian Payments Association (CPA) — Company, Canada,
- This association, which is composed of several financial institutions and the Bank of Canada, operates a national clearing system for financial institution payments.
- Cheque (CK) — Acronym,
➥ Bank account transaction code.
- A written order for payment of a certain amount of money.
- Cheque Clearing — Definition,
- When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."
- Clearing and Settlement (C&S) — Acronym,
- The process whereby banks collect or pay out for items drawn on or paid into accounts in their institution. This process enables banks to accept each other's cheques and bank drafts for deposit. The Canadian Payments Association operates Canada's clearing system.
- Direct Fund Transfer — Definition,
- Similar to a direct deposit.
- Electronic Funds Transfer (EFT) — Acronym, Important,
➥ Also known as e-Transfer.
- The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
- Large Value Transfer System (LVTS) — Acronym,
- System being created by the Canadian Payments Association that will settle large value payments, possibly $50,000 and over, at the central bank on a same-day basis.