Payments NZ doesn’t own or operate payments infrastructure, we manage clearing systems that govern how payments are exchanged and settled between financial institutions in New Zealand efficiently and securely.
These clearing systems are governed by rules, standards and procedures that we develop and manage with financial institutions who are Participants of the systems. The rules, standards and procedures set out the requirements for participation and how payments are processed. They also provide standardisation for the way transactions are made between Participants and their customers.
We manage three clearing systems which are defined by payment type. The clearing systems cover the range of different payments methods used in New Zealand:
High Value Clearing System
HVCS governs large payments that cannot be reversed, such as property settlements.
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Bulk Electronic Clearing System (BECS)
BECS governs how direct debits, automatic payments, bill payments, and direct credits.
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Consumer Electronic Clearing System
CECS governs how consumer payments work, such as EFTPOS payments and mobile payments.
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Financial institutions join one or more of these clearing systems so they can exchange those payment types directly with other Participants of the system.
Each clearing system is managed by a Management Committee made up of subject matter experts from each of the Participants in that clearing system. Payments NZ facilitates and supports the operation of the Management Committees.
There was a fourth clearing system, the Paper Clearing System (PCS), which governed cheques. PCS was decommissioned after the last Participants ceased issuing and accepting cheques and had exited the system on 31 August 2021.
We also administer the Settlement Before Interchange (SBI) system. SBI is a SWIFT-based system BECS and CECS Participants use to settle and interchange payment transaction files multiple times throughout each business day.
Settlement Before Interchange
SBI is a payment settlement and interchange system used by our BECS and CECS Participants.
Find out moreIn this section
Bulk Electronic Clearing System
BECS governs how direct debits, automatic payments, bill payments, and direct credits work.
Read moreConsumer Electronic Clearing System
CECS governs how consumer payments work, such as EFTPOS payments and mobile payments.
Read moreHigh Value Clearing System
HVCS governs large payments that cannot be reversed, such as property settlements.
Read moreSettlement Before Interchange
SBI is a payment settlement and interchange system used by our BECS and CECS Participants.
Read more