Clearing Definition.
The exchange of transaction data between participants and the calculation of each party’s net position, before the funds are actually settled. For cards, the schemes handle clearing; for SEPA credit transfers and direct debits, CSMs such as STET or EBA Clearing do. Clearing and settlement are two separate steps: information is exchanged first, and money is settled afterward.
See also
Where this term appears
GuideThe four-party modelGuideMerchant, acquirer, PSPGuideCentral banks and payment infrastructuresGuidePayments in GermanyGuidePayments in AustriaGuidePayments in the Baltics and FinlandGuidePayments in Germany, Austria, and SwitzerlandGuidePayments in FranceGuidePayments in Spain and PortugalGuidePayments in IrelandGuidePayments in ItalyGuidePayments in the Nordic countries