clearing cycle


clearing cycle
The process by which a payment made by cheque, etc., through the banking system is transferred from the payer's to the payee's account. Historically, in the UK the average time for the clearing cycle to be completed was three days, although by 1994 this had been reduced to two days in many cases. However, with this reduction in the cycle, the payee's bank may not have received confirmation from the payer's bank that funds are available to provide value, cleared for fate

Accounting dictionary. 2014.

Look at other dictionaries:

  • clearing cycle — The process by which a payment made by cheque, etc. , through the banking system is transferred from the payer s to the payee s account. Historically, in the UK the average time for the clearing cycle to be completed was three days, although by… …   Big dictionary of business and management

  • Clearing (finance) — In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying… …   Wikipedia

  • Cycle detection — This article is about iterated functions. For another use, see Cycle detection (graph theory). In computer science, cycle detection is the algorithmic problem of finding a cycle in a sequence of iterated function values. For any function ƒ that… …   Wikipedia

  • Cheque and Credit Clearing Company — The Cheque and Credit Clearing Company Limited is a membership based industry body with 12 settlement members. The company has managed the cheque clearing system in England and Wales since 1985, and in all of Great Britain since 1996 when it took …   Wikipedia

  • Urea cycle — The urea cycle (also known as the ornithine cycle) is a cycle of biochemical reactions occurring in many animals that produces urea ((NH2)2CO) from ammonia (NH3). This cycle was the first metabolic cycle discovered (Hans Krebs and Kurt Henseleit …   Wikipedia

  • Hitting for the cycle — Curry Foley was the first player in Major League Baseball history to hit for the cycle. In baseball, hitting for the cycle is the accomplishment of one batter hitting a single, a double, a triple, and a home run in the same game …   Wikipedia

  • Segregated cycle facilities — A bike lane on the side of a highway. Utrecht has specially painted …   Wikipedia

  • America's Next Top Model, Cycle 4 — Promotional photograph of the cast of Cycle 4 of America s Next Top Model Format Reality TV Created by Tyra Banks …   Wikipedia

  • Night Cycle — An option created in 1979 to process Automated Clearing House (ACH) transfers (debits and credits) at night, generally between 10:00 p.m. and 1:30 a.m. Eastern Standard Time (EST). The ACH is a nationwide system for transferring money… …   Investment dictionary

  • Accredited Automated Clearing House Professional - AAP — A professional designation awarded by NACHA (The Electronic Payments Association) to individuals who are experts in electronic payments. Successful applicants earn the right to use the AAP designation with their names for five years, which can… …   Investment dictionary