Settlement Date
The date on which the transfer of funds in a transaction takes place.
Related terms
Settlement
The process during which the asset of a trade is delivered or sold and the trade is marked closed: the seller is paid and ownership transfers to the buyer, after which the buyer can use the newly acquired asset or currency in another trade.
Read full definitionValue Date
The date on which counterparts to a financial transaction agree to settle their respective obligations; the date a transaction’s value goes into effect. It is also commonly called the maturity date.
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ACH (Automated Clearing House)
A network used for electronic payments and money transfers. ACH is popular in the United States for domestic transactions, including direct deposit, payroll and bill payments.
Read full definitionBACS
Bankers’ Automated Clearing Services, the process for making sterling payments via domestic UK banks. Mostly used for direct credits and direct debits, BACS payments tend to take three business days to clear.
Read full definitionBIC (Bank Identifier Code)
Also known as a SWIFT code, a standard format used to identify a specific bank during an international transaction.
Read full definitionCash Transfer
The movement of funds from one entity to another. When moving cash from one country to another, the term is often used interchangeably with currency transfer, foreign exchange and currency conversion.
Read full definitionCHAPS
Clearing House Automated Payment System, a faster way of making sterling payments that are usually cleared on the same working day.
Read full definitionClearing House
An organisation, institution or third party that settles a financial obligation between a buyer and seller, ensuring all parties honour and settle the agreements they have committed to.
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