Editing Financial system in Australia (section)

==Payments and clearing systems==
There are several payment systems in use within Australia, many of which are regulated by [[Australian Payments Network]] (AusPayNet) (previously called Australian Payments Clearing Association (APCA)), including:

=== Cash ===
The [[Australian dollar]] is Australia’s [[currency]] and [[legal tender#Australia|legal tender in Australia]]. Clearing and settling of cash payments (also called CS5) are regulated by AusPayNet as the Australian Cash Distribution Exchange System (ACDES).<ref>{{Cite web |url=http://www.apca.com.au/docs/payment-systems/acdes_regulations.pdf |title=Australian Cash Distribution and Exchange System Framework (CS5), Australian Payments Clearing Association Limited: accessed 26 July 2015 |access-date=26 July 2015 |archive-date=6 March 2016 |archive-url=https://web.archive.org/web/20160306093133/http://www.apca.com.au/docs/payment-systems/acdes_regulations.pdf |url-status=dead }}</ref>

=== Cheques ===
[[Cheque]]s are still the most important non-cash payment instruments in Australia, in terms of the value transferred. The number of monthly cheque transactions in 2008 was 33.7 million with a value of $139.3 billion.<ref>{{Cite web |url=http://www.apca.com.au/Public/apca01_live.nsf/WebPageDisplay/Stats_CheqMonth |title=Cheque Payment Transactions (Monthly volume and value) |access-date=2009-05-19 |archive-date=2015-07-12 |archive-url=https://web.archive.org/web/20150712035642/http://www.apca.com.au/Public/apca01_live.nsf/WebPageDisplay/Stats_CheqMonth |url-status=dead }}</ref> Cheque use is in decline worldwide, but it is declining faster in Australia than many other countries. Between 2010 and 2014, cheque use in Australia declined by 42.8% with just over seven cheques written per person in 2014. In 2014, 166.6 million cheques were used in Australia, compared to 291.1 million in 2010.<ref>Bank for International Settlements, quoted in  Australian Payments Clearing Association, [http://www.apca.com.au/docs/default-source/decline-of-cheques---consultations/apca-milestones-report-2016.pdf Towards a digital economy] {{Webarchive|url=https://web.archive.org/web/20180313130901/http://apca.com.au/docs/default-source/decline-of-cheques---consultations/apca-milestones-report-2016.pdf |date=2018-03-13 }}, p.5</ref> In 2015, cheque usage fell by a further 16.3%.

Cheques and other payment instruments (such as travellers cheques and warrants) (also called CS1) are cleared and settled in accordance with the regulations and procedures set by APCS.<ref>{{Cite web |url=http://www.apca.com.au/docs/payment-systems/becs_procedures.pdf |title=Procedures for Australian Paper Clearing System Framework (CS1), Australian Payments Clearing Association Limited: accessed 26 July 2015 |access-date=26 July 2015 |archive-date=10 March 2015 |archive-url=https://web.archive.org/web/20150310131525/http://apca.com.au/docs/payment-systems/becs_procedures.pdf |url-status=dead }}</ref>

Cheques use [[Magnetic ink character recognition|MICR]] encoding containing the [[Bank State Branch|BSB]] and account number to identify the bank and account to debit, as well as other information to streamline the processing of cheques. In 2014, the cost of processing cheques was the highest of all modes of payments at $5 per transaction, compared to about $0.20 for direct debits.<ref name=RBA>Reserve Bank of Australia, quoted in  Australian Payments Clearing Association, [http://www.apca.com.au/docs/default-source/decline-of-cheques---consultations/apca-milestones-report-2016.pdf Towards a digital economy] {{Webarchive|url=https://web.archive.org/web/20180313130901/http://apca.com.au/docs/default-source/decline-of-cheques---consultations/apca-milestones-report-2016.pdf |date=2018-03-13 }}, p.6</ref> 

A recent innovation has been digital cheque imaging, which involves images of cheques being captured by financial institutions and exchanged electronically between the relevant financial institutions rather than the previous costly practice of physically transporting paper cheques around Australia. This has also ended the need for maintaining long-term storage and retrieval systems.<ref name=RBA/> The new system speeds up the clearing process, with cheques being able to be cleared at the end of the next weekday after being presented, as opposed to up to the six weekdays under the old system.

=== Direct entry ===
Direct entry (also called CS2)<ref>{{Cite web |url=http://www.apca.com.au/docs/payment-systems/becs_procedures.pdf |title=Procedures for Bulk Electronic Clearing System Framework (CS2), Australian Payments Clearing Association Limited: accessed 26 July 2015 |access-date=26 July 2015 |archive-date=10 March 2015 |archive-url=https://web.archive.org/web/20150310131525/http://apca.com.au/docs/payment-systems/becs_procedures.pdf |url-status=dead }}</ref> can be used to transfer funds between bank accounts in Australia. Clearing and settling is regulated by AusPayNet as the Bulk Electronic Clearing System (BECS).

Direct entry uses the [[Bank State Branch|BSB]] and account number to identify the bank and accounts to debit and credit. Some common uses of the direct entry system include:
* setting up monthly [[direct debit]]s to pay recurring bills such as credit card bills
* transferring funds to other bank accounts, also known as third party transfers
* payment of wages and salaries
* government tax refunds and payments.

Participants of BECS exchange direct entry (DE) files at intervals through the day. Net positions are usually cleared daily.

=== EFTPOS ===
[[EFTPOS]] (Electronic Fund Transfer Point of Sale) and [[Automated teller machine|ATM]] transactions (also called CS3)<ref>{{Cite web |url=http://www.apca.com.au/docs/payment-systems/cecs_regulations.pdf |title=Regulations for Consumer Electronic Clearing System Framework (CS3), Australian Payments Clearing Association Limited: accessed 26 July 2015 |access-date=26 July 2015 |archive-date=7 December 2015 |archive-url=https://web.archive.org/web/20151207222746/http://www.apca.com.au/docs/payment-systems/cecs_regulations.pdf |url-status=dead }}</ref> occur over the [[Electronic funds transfer|EFT]] network. Clearing and settling of EFTPOS and ATM transactions are regulated by the AusPayNet as the Consumer Electronic Clearing System (CECS). Between 2005 and 2015, ATM withdrawals dropped by 11.5% but increased 5.1% in value.

=== Credit card ===
Several credit card systems are active in Australia including [[MasterCard]], [[Visa Inc.|Visa]], [[Diners Club]] and [[American Express]]. The [[Bankcard]] scheme is no longer in use.

=== BPAY ===
[[BPAY]] is a bill payment system used in Australia, which is regulated by the four major banks and not by AusPayNet. As of January 2015, the BPAY payments system covered more than 156 participating Australian banks, credit unions and financial institutions.<ref name=aboutbpay /> More than 45,000 businesses accept payments using BPAY<ref name=aboutbpay /> and each month approximately 30 million bills are paid to the value of $24 billion.<ref name="aboutbpay">[http://www.bpay.com.au/About-BPAY/Overview.aspx About BPAY, Overview] {{Webarchive|url=https://web.archive.org/web/20190630105624/https://www.bpay.com.au/About-BPAY/Overview.aspx |date=2019-06-30 }}. Retrieved January 2015</ref>

=== High value payments ===
High value payments (also known as CS4) are regulated by AusPayNet under the Regulations for High Value Clearing System Framework.<ref>{{Cite web |url=http://www.apca.com.au/docs/payment-systems/hvcs_regulations.pdf |title=Regulations for High Value Clearing System Framework (CS4), Australian Payments Clearing Association Limited: accessed 26 July 2015 |access-date=26 July 2015 |archive-date=5 March 2016 |archive-url=https://web.archive.org/web/20160305103649/http://www.apca.com.au/docs/payment-systems/hvcs_regulations.pdf |url-status=dead }}</ref> The main high value payment systems in Australia are:
* [[Society for Worldwide Interbank Financial Telecommunication]] Payment Delivery System (SWIFT PDS)
* [[Clearing House Electronic Subregister System]] (CHESS): CHESS is an automated share [[Transfer agent|transfer]] and [[Settlement (finance)|settlement]]  system developed by the [[Australian Securities Exchange]]. For a CHESS transaction, an interbank request is sent to RITS via SWIFT FIN, the service which sends financial information from one financial institution to another.<ref>[http://searchfinancialapplications.techtarget.com/definition/SWIFT-FIN-message What is SWIFT-FIN message?]</ref> When RITS notifies CHESS of settlement of the gross amount across ESAs, CHESS finalises the transaction by transferring share holdings at the participant level.
* Financial Transactions Recording and Clearance System (FINTRACS)
* [[Reserve Bank of Australia|Reserve Bank]] Information and Transfer System (RITS) is used by banks and other approved institutions to settle their payment obligations on a [[real-time gross settlement]] (RTGS) basis.<ref>{{Cite web |url=http://www.rba.gov.au/payments-system/rits/ |title=About RITS |access-date=2015-10-10 |archive-url=https://web.archive.org/web/20151023051413/http://www.rba.gov.au/payments-system/rits/ |archive-date=2015-10-23 |url-status=dead }}</ref> Final and irrevocable settlement is achieved by the simultaneous crediting and debiting of Exchange Settlement Accounts (ESAs) held at the Reserve Bank.

=== New Payments Platform ===
The New Payments Platform (NPP)<ref>{{cite web|title=New Payments Platform|url=https://www.rba.gov.au/payments-and-infrastructure/new-payments-platform/|website=RBA|access-date=11 May 2018}}</ref> is open access infrastructure for fast payments in Australia. The NPP was developed via industry collaboration to enable households, businesses and government agencies to make simply addressed payments, with near real-time funds availability to the recipient, on a 24/7 basis. Each payment message is capable of carrying much richer remittance information than other systems. The NPP infrastructure supports the independent development of ‘overlay’ services to offer innovative payment services to end-users.