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The Hong Kong Monetary Authority (HKMA) announced today (October 23) the launch of a new bulk settlement service for Hong Kong dollar credit card transactions between banks participating in a credit card scheme.
The new bulk settlement service will minimise settlement risk by eliminating the time gap between payments made by participating banks with net outgoing payments, and payments received by participating banks with net incoming payments. Under this new arrangement, participating banks with net outgoing payments will be debited at the same time as those with net incoming payments are credited through the bulk settlement run at a pre-determined time on each settlement day. This approach provides a more efficient and certain way of settling interbank credit card transactions.
Initially, credit card companies including VISA International, MasterCard International, and China UnionPay will use this new bulk settlement service for settlement of their Hong Kong dollar credit card transactions. VISA International will start using the new bulk settlement service from today. The implementation dates for MasterCard International and China UnionPay will be announced later.
The Hong Kong dollar credit card bulk settlement service is operated by Hong Kong Interbank Clearing Limited). Separate settlement runs for each credit card company joining the service will commence at 2:45 p.m. on each settlement day (Mondays to Fridays).
Ends/Monday, October 23, 2006
Issued at HKT 18:11
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