Credit clearing

2020-01-22 07:49:10

Credit clearing is the practice according to which a small group of banks need to make many payments to each other, of adding up the payments and cancelling them out before settling the remainder. While clearing is about waiting for the payment to go through, credit clearing is about cancelling out a payment with one coming in the opposite direction.

Credit clearing is the practice according to which a small group of banks need to make many payments to each other, of adding up the payments and cancelling them out before settling the remainder. While clearing is about waiting for the payment to go through, credit clearing is about cancelling out a payment with one coming in the opposite direction.
Read article on Wikipedia