clearing
Sign in to saveall activities from the time a commitment is made for a financial transaction until it is settled
~10 min read
Encyclopedic overview
In banking and finance, clearing refers to all activities from the time a commitment is made for a transaction until it is settled. This process turns the promise of payment (for example, in the form of a cheque or electronic payment request) into the actual movement of money from one account to another. Clearing houses were formed to facilitate such transactions among banks.
Description
Excerpted from Wikipedia’s “clearing” article, available under the CC BY-SA 4.0 licence.