With the launch of the NPP (New Payments Platform) we've had a glimpse of the future of instant settlement, but for many payment requirements the future still hasn't arrived...kinda like hover boards.

An Introduction to BECS (Bulk Electronic Clearing System)

BECS is Australia's payment workhorse processing the large majority of transactions that occur in Australia on a daily basis. It is the system of how your bank exchanges files to settle all the interbank credits and debits. Although, incredibly reliable and secure it is a bit slow and antiquated by modern day standards. 

Some fun facts on BECS: 

  1. BECS only processes payments on weekdays excluding national public holidays. 
  2. There are up to 6 exchange times a day. 
  3. Clearance of funds between institutions happen daily, however, settlement arrangements between institutions can be 9-48 hours. 

Direct Debit through BECS
All direct debits are processed through BECS, due to the timing of the exchanges and the settlement arrangements between banks the following is a standard time frame for a complete direct debit: 

  1. Direct Debit is processed: Day 1
  2. File exchange: Day 1
  3. Inter bank clearing: Day 2-3
  4. Funds are released for settlement: Day 2-3
  5. Funds are settled: Day 3-4

Credits through BECS
If you're sending money from your account it all happens a bit faster, as there is certainty that the funds are available.  

  1. Credit is processed: Day 1
  2. File exchanged: Day 1
  3. Funds are cleared by your institution: Day 1
  4. Funds settle to recipient: Day 2

Split's Clearance and Settlement times:
Using open banking practices and leading edge technology we are able to get a bit more speed out of BECS.  

With interbank visibility we're able to not only improve clearance and settlement times but also provide real-time messaging to our merchants.  

However, we are still limited to clearance and settlement on weekdays only excluding national public holidays. Please see our article on public holidays and clearance times for more detailed information.

*the below is an example of what we can do, default settings may differ.

Direct Debits through Split: 

  1. Direct Debit is processed>available funds pre-check>real-time notification of success or pre-fail: Day 1
  2. Clearance of funds: Day 1
  3. File exchange 6 times a day: Day 1
  4. Funds settle to recipient: Day 2

Credits through Split
We achieve marginal improvements in clearance and settlement times over manual processing, however, at high volume our automation provides considerable advantages. 

  1. Credit is processed: Day 1
  2. File exchange (6 times a day): Day 1
  3. Funds are cleared Day 1: 
  4. Funds settle to recipient: 9-24 hours

If you have any questions about your clearance and settlement times, please contact your sales representative to discuss your account configuration.  

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