Automated clearing house (ACH) · Concepts · European Finance Observatory

Roles that need it

Deferred net settlement (DNS)Deferred net settlement (DNS) is a method in which payments are collected over a period and only each participant's net position is settled, at set times, often in central bank money. It needs much less liquidity than real-time gross settlement, while payments become final only when the net settlement completes.
SEPA Credit Transfer (SCT)SEPA Credit Transfer (SCT) is the European Payments Council scheme for euro credit transfers between accounts in the Single Euro Payments Area, identified by IBAN. Funds must reach the payee's bank by the next business day at the latest, with no scheme maximum amount, and cross-border transfers follow the same rules as domestic ones.
BacsBacs is the UK system for sterling Direct Debits and Bacs Direct Credits, used for salaries, benefits and household bills, and run by Pay.UK. It works on a three-day cycle: files are submitted on day one, processed on day two and settled on day three, with net positions settled at the Bank of England.
Real-time gross settlement (RTGS)Real-time gross settlement (RTGS) is the settlement of payments one by one, as soon as they are processed and without netting, usually in central bank money. It removes settlement risk between participants and needs more liquidity than net settlement. T2 in the euro area, CHAPS in the UK and SIC in Switzerland are RTGS systems.

Updated 31 Oct 2026.