Misplaced Pages

#626373

29-662: Australian Payments Network Limited ( AusPayNet ), formerly the Australian Payments Clearing Association ( APCA ) is the self-regulatory body set up by the payments industry to improve the safety, reliability, equity, convenience and efficiency of payment systems in Australia . AusPayNet has over 140 members which include Australia's leading financial institutions, such as banks, building societies and credit unions, as well as major retailers and other service providers. AusPayNet administers

58-817: A change in NPPA strategy (particularly the announcement of MPS, the Mandated Payment Service), as the cause of write-down in the value of their Osko business. PayID has been noted in Australia as a vehicle for online scammers on social media marketplaces. Banks that accept PayID include Commonwealth Bank (up to $ 10,000 for personal accounts, two-factor authentication, ability to block/unblock PayID), Westpac (limit of AUD 250 per transaction or $ 1,000 daily, Westpac Protect Security Code, Osko services from BPAY), ING Bank (default limit of $ 20,000, two-factor authentication, ability to manage PayID through

87-530: A financial institution who then allocates the other digits, in line with guidelines set by AusPayNet. AusPayNet also manages the Magnetic ink character recognition (MICR) cheque encoding standards in Australia. The objective of AusPayNet is to improve the Australian payments system through: AusPayNet's roles include providing: The Australian Paper Clearing System ( APCS ) is the system that facilitates

116-436: A global scale, but there are still many country-specific and product-specific systems. Examples of payment systems that have become globally available are credit card and automated teller machine (ATM) networks. Additionally, forms exist to transfer funds between financial institutions. Domestically this is accomplished by using Automated clearing house (ACH) and real-time gross settlement (RTGS) systems. Internationally this

145-459: A major service provided by banks and other financial institutions. Traditional payment systems include negotiable instruments such as drafts (e.g., cheques) and documentary credits such as letters of credit . With the advent of computers and electronic communications, many alternative electronic payment systems have emerged. The term electronic payment refers to a payment made from one bank account to another using electronic methods and forgoing

174-461: A national economy. Such failures can result in inefficient use of financial resources, inequitable risk-sharing among agents, actual losses for participants, and loss of confidence in the financial system and in the very use of money. The technical efficiency of the payment system is important for the development of the economy. An automated clearing house (ACH) system processes transactions in batches, storing, and transmitting them in groups. An ACH

203-443: A new Constitution designed to recognise the growing diversity of interests in payments arising from structural and technological change and to provide a more inclusive and representative association of the Australian payments system. The new Constitution opened AusPayNet membership to participants and operators of non-AusPayNet payment systems. AusPayNet has been publishing cheque and card fraud statistics since November 2006 as part of

232-443: A number of payment systems in Australia. AusPayNet sets, manages and develops regulations, procedures and standards governing payments clearing and settlement within Australia . Payments systems covered by AusPayNet's rules include cheques, direct debits and credits, aspects of ATM and EFTPOS transactions, high value payments and the distribution of wholesale cash. Its role includes strategic direction and regulatory policy for

261-598: A proposed merger of the New Payments Platform of eftpos Payments Australia and BPAY. The Mandated Payment Service is now known as PayTo. It is a system for enabling "withdrawals" on the NPP. The NPP does not inherently support "withdrawals", so the service provides an overlay allowing the "withdrawing" party to create a payment order and authorisation request. PayID is NPP's addressing service to enable payments. Its PayTo facility allows for payments to be sent by

290-474: A user to a PayID. The following chart compares PayID mobile payments via NPP to electronic payments, or bank transfers. PayID will coexist with the BSB and account number addressing scheme. Osko is owned and operated by BPAY , and operates on the NPP as an overlay service. It uses PayID as a reference for payments. Payments are instant to accounts that have been transferred to previously. In 2021, BPAY attributed

319-654: Is a RTGS system that covers the European Union member states which use the euro . It is part of the Eurosystem , which comprises the European Central Bank and the national central banks of those countries that have adopted the euro. TARGET2 is used for the settlement of central bank operations, large-value Euro interbank transfers as well as other euro payments. TARGET 2 provides real-time financial transfers, debt settlement at central banks which

SECTION 10

#1732786562627

348-512: Is accomplished by correspondent banking (possibly using the SWIFT network) or a more centralised system like the CLS settlement system . An efficient national payment system reduces the cost of exchanging goods, services, and assets. It is indispensable to the functioning of the interbank, money, and capital markets. A weak payment system may severely drag on the stability and developmental capacity of

377-529: Is an industry-wide payments platform for Australia. It became accessible to the general public on 13 February 2018 with the introduction of PayID, an addressing capability, and Osko , the first NPP overlay service, operated by BPAY . As of November 2022, there are nearly 13 million registered PayIDs. The new instant payment platform for real-time low-value payments was in response to the Reserve Bank of Australia 's Payment System Board’s Conclusions to

406-496: Is considered a net settlement system, which means settlement may be delayed. This poses what is known as settlement risk . Real-time gross settlement systems (RTGS) are funds transfer systems where the transfer of money or securities takes place from one bank to another on a "real-time" and on "gross" basis. Settlement in "real time" means that payment transaction does not require any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means

435-427: Is higher volumes of payments—in terms of both currency value and number of transactions. This is also leading to a consequent shift downwards in the average value of these payments. The ways these payments are made can be cumbersome, error prone, and expensive. Payments systems set up decades ago continue to be used sometimes retrofitted , sometimes force-fitted—to meet the needs of modern corporations. And, frequently,

464-511: Is immediate and irreversible. For users of these systems, on both the paying and receiving sides, it can be difficult and time-consuming to learn how to use cross-border payments tools, and how to set up processes to make optimal use of them. Solution providers (both banks and non-banks) also face challenges cobbling together old systems to meet new demands. For these providers, cross-border payments are both lucrative (especially given foreign exchange conversion revenue) and rewarding, in terms of

493-412: The Australian payments system. AusPayNet provides a venue for collaboration and cross-industry innovation on these issues and works closely with government, regulators, payments stakeholders and individuals to improve the payments system. AusPayNet is also the official issuer and custodian of Bank State Branch (BSB) numbers, the bank code system used in Australia. AusPayNet assigns the bank code to

522-870: The Recommendations and Commitments. One recent report, released in August 2014, featured a special focus on cash use. The latest Report, was released in May 2017. In July 2013, the company announced a new industry-wide program to develop a New Payments Platform (NPP) for Australia and established NPP Australia Limited in December 2014 to oversee its development and operation. AusPayNet is supporting Australia's first Contactless Transport Payments trial launched by Transport NSW on 6 July 2017. Payment system Payment systems are used in lieu of tendering cash in domestic and international transactions. This consists of

551-797: The Strategic Review of the Innovation in Payments System publication. The NPP was announced in July 2013 by the Australian Payments Clearing Association . In December 2014, the Program proceeded to the third phase: "design, build and test." In 2015 a contract was signed with SWIFT to design, build and operate the platform. In September 2021, the Australian Competition & Consumer Commission (ACCC) authorised

580-533: The company released the final report from its consultation entitled "The Decline of Cheques: Building a Bridge to the Digital Economy". The report summarises the outcomes of the consultation process and includes a series of Recommendation and Commitments to ensure those that still rely on cheques today can switch to electronic payments as cheques become scarcer and more difficult to use. AusPayNet regularly releases Milestones Reports, to track progress against

609-535: The company took responsibility for managing projects and for contingency planning, certification and accreditation. These kinds of activities remain core business for AusPayNet. It took over the regulation and management of the BSB system, which had been in operation since the 1970s. In 2017, the company celebrated its 25th anniversary as the payments industry's self-regulatory body and changed its name to Australian Payments Network (AusPayNet). On 1 January 2014, it adopted

SECTION 20

#1732786562627

638-711: The direct intervention of bank employees. Narrowly defined electronic payment refers to e-commerce —a payment for buying and selling goods or services offered through the Internet, or broadly to any type of electronic funds transfer . Modern payment systems use cash-substitutes as compared to traditional payment systems. This includes debit cards , credit cards, electronic funds transfers, direct credits , direct debits , internet banking and e-commerce payment systems . Payment systems may be physical or electronic and each has its own procedures and protocols. Standardization has allowed some of these systems and networks to grow to

667-527: The exchange and settlement of cheques and other paper-based payments in Australia , under the governance of the APN. AusPayNet was called APCA when established on 18 February 1992 as a self-regulatory industry body charged with carrying forward the process of payments reform. In its early years, it focused on re-grouping payment services into distinct clearing systems and developing and managing rules and procedures for their day-to-day operation. In its next phase,

696-442: The first decline in eight years, whilst "strong growth" was noted in card use over the same year. In December 2021, AusPayNet released data showing a 9.2% rise of fraud in payment card transactions during increased online spending, concurrent with COVID-19 lockdowns , for the 12 months ending 30 June 2021. In 2011, the company began a public consultation period to gain feedback on the future role of cheques in Australia. In May 2012

725-428: The overall financial relationship created with the end customer. The challenges for global payments are not simply those resulting from volume increases. A number of economic, political, and technical factors are changing the types of cross-border transactions conducted. Such factors include: New Payments Platform The New Payments Platform ( NPP ), operated by New Payments Platform Australia Ltd ( NPPA )

754-403: The payment industry's commitment to counter payments fraud and to help the public in understanding payments fraud issues. The payment fraud figures for 2016 show that Australian card fraud is increasing as part of a global trend, but that detection and prevention measures employed by the industry are showing promising results in keeping fraud levels down. Transaction fraud declined by 15% in 2019,

783-616: The systems creak and groan as they bear the strain. Examples of such systems include STEP2 (an upgrade from 2003), which processes only Euros, and TARGET2 (an upgrade from 2007), which is closed on Saturdays and Sundays and some public holidays. As of 2014, STEP2 is the only Pan-European automated clearing house (or PE-ACH system) in operation. This type of system is thought to become less relevant as banks will settle their transactions via multiple clearing houses rather than using one central clearing house. TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer System)

812-405: The transaction from debit of ordering customer's account to credit of beneficiary customer's account within a timeframe of 10–15 seconds. Globalization is driving corporations to transact more frequently across borders. Consumers are also transacting more on a global basis—buying from foreign eCommerce sites as well as traveling, living, and working abroad. For the payments industry , the result

841-452: The transaction is settled on one to one basis without bunching or netting with any other transaction. Once processed, payments are final and irrevocable. Comparatively, ACHs are typically used for low-value, non-urgent transactions while RTGS systems are typically used for high-value, urgent transactions. Countries and regions have also implemented real-time or instant (or faster) payment systems which typically operate 24x7x365 and perform

#626373