In an expanding economy, a myriad of solution providers serve a smorgasbord of alternative payment channels for the consumer. This is evident in the increasing number of corporations that use banks’ ATMs for collection purposes. E-Banking thru smart phones is getting a big push from telecoms providers, who continue to sign up banks to make use of their wireless networks. We are witnessing pockets of payment communities being formed among IT Service Providers and the Banks.
The PCHC currently provides electronic payment systems for very specific bank applications, e.g. PDDTS which complements the BSP’s USD Real-Time Gross Settlement (RTGS) payment system. RTGS focuses on high-value, time-critical transfers where participants and their customers are willing to pay a premium for the service. On the other hand, a cost-efficient batch system is in a better position to address the low-value repetitive payments that characterize the needs of the average individual consumer.
In July 2002, the BSP, BAP and PCHC signed a Memorandum of Agreement for the development and implementation of the Electronic Peso Clearing System (EPCS), with PCHC designated as the exclusive service provider. EPCS is an interbank account-to-account fund transfer system that supports bulk, recurring, low-value, less-time sensitive payment and collection transactions.
How does it work?
- Using data communication lines, participants electronically transmit payment instructions by batches to the EPCS Host Computer.
- Following the prescribed cut-off time for electronic transmissions, a netting process will then be performed by PCHC.
- Net clearing positions are forwarded by PCHC to the Bangko Sentral ng Pilipinas for posting to the participant banks’ respective DDA accounts.
- The banks’ clearing results and inward data files and reports are also generated by PCHC and made available to the participants for downloading and posting to the accounts of the beneficiaries/depositors.