The Settlement Before Interchange (SBI) system is the payment settlement system used by BECS, CECS and PCS Participants. It enables Participants to exchange payment information and settle their payment obligations with other Participants throughout the course of a business day. Before SBI was introduced in 2012, Participants would exchange payment information each business day, but settlement of the related transactions would not take place until the next morning. Today, settlements occur throughout the business day and are closely followed by the exchange of the related payment information.
For example, if you need to pay a business for goods or services, you might set up a direct credit payment through your internet banking. If you are a customer of Participant A and the business you are paying is a customer of Participant B, then Participant A needs to both pay the money to Participant B (called ‘settlement’ ) and tell Participant B all the relevant information about the payment transaction (called ‘interchange’).