The Cayman Islands Banker’s Association has announced an automated clearing house (ACH) has been launched for local retail banks.

The Association also said the ACH is designed to clear and settle electronic transactions and domestic payments in both US and CI currencies.

The ACH will be rolled out in phases, with the first being electronic funds transfer. Banks will now be able to electronically transmit bank to bank transactions in real-time, subject to the agreed daily times for exchange between banks.

Newlands’ MLA, Alva Suckoo’s private member’s motion was unanimous passed in the Legislative Assembly two years ago.

According to Wikipedia, ACH is a computer-based clearing and settlement facility established to process the exchange of electronic transactions between participating depository institutions.

Uses of the ACH payment system
Bank treasury management departments sell this service to business and government customers
Business-to-business payments
Direct debit payment of consumer bills such as mortgages, loans, utilities, insurance premiums, rents, and any other regular payment
Direct deposit of payroll, Social Security and other government payments, and tax refunds
E-commerce payments

IMAGE: ACH Banking