What is Payment Switching Network?
Bankers’ banks and other providers of correspondent banking services rely on Clearingworks – Payments Switching Network to automate most aspects of check image clearing services. Respondent banks benefit from an expansive network of end points and one-click check adjustments. Flexible file formatting capabilities reduce the amount of time required to on board new respondent banks or upstream correspondents. In the end, it is all about speed, security and accuracy.
Clearingworks supports all variations of the X9 standard, including adding credit records. The system creates X9 files for delivery to all major banks, the Federal Reserve Banks,and over 1,500 regional financial institutions. In addition, we support variations in acknowledgement files, return files, and adjustments. Other files Clearingworks support are posting files to Core Systems and billing files for account analysis systems.
Clearingworks – Payments Switching Network is designed to route payments to a few major upstream correspondents, as well as a few thousand in-network banks. Regardless of the number of banks in your network, Payment Switching Network is scalable to meet the tight deadlines typically in today’s check processing world.
How it Works
Correspondent Banks use Clearingworks – Payment Switching Network to provide image cash letter clearing services to respondent banks. Every day, respondent banks transmit image cash letter files according to an agreed-upon schedule. These files are validated, acknowledged and routed to the most suitable clearing destination. In many cases, checks can be cleared completely in-network, avoiding additional cost and time delays. Check adjustments and research can also be automated through the Payment Switching Network.
Respondent Banks benefit from the Clearingworks – Payment Switching Network by simplifying the check image clearing process. Clearingworks can accept files in almost any format and automate the receipt of returned items through X9 and PDF files. In addition, respondent banks can login to do research, find check copies, create adjustments and even create group adjustments. All items are securely stored for a period of 13 months.