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Hal E-Clearing

is a suite of products that enable automated processing of inter-bank payments (i.e. credit transfers, direct debits, cheques, etc.). The processing results include the calculation of participant bilateral and/or multilateral net positions, which form a basis for the settlement.

Hal E-Clearing is a family of well run-in and reliable products. In addition to automated payment processing, certain Hal E-Clearing products also offer an efficient access to inter-linked clearing houses and a single entry point to pan-European STEP2 payment systems. At system design, international standards (SWIFT, ISO 20022, SEPA) and Core Principles for Systemically Important Payment Systems were taken into account..


References

Halcom has been offering Hal E-Clearing products since 1998 and has therefore years of experience in the field of inter-bank clearing systems. Central banks and clearing houses that already use Hal E-Clearing products are:

  • Bank of Slovenia,
  • Bankart,
  • Central Bank of Bosnia and Herzegovina,
On international markets, Halcom acts independently (as a stand-alone player) or through its partners.


Basic functionalities

All Hal E-Clearing products support functionalities, which enable automated processing of credit and debit payments within four (4) phases of a clearing cycle. The supported functionalities include:

  • collection of payments sent by participants (including syntax and semantic validation);
  • processing of payments, which includes:
    • sorting of payments by receiving participants
    • routing of payments to receiving participants
    • off-setting of payments calculation of bilateral and/or multilateral net positions (for selected types of payments only or for all payments);
  • settlement, which includes:
    • settlement of liabilities by participants - net debtors
    • settlement of claims by participants - net creditors
  • distribution of processing results to participants.

Hal E-Clearing only prepares relevant information for the settlement, while the settlement itself usually takes place in the real-time gross-settlement system (RTGS).


Product List

Hal E-Clearing includes the following products, each representing a stand-alone system:

  • Hal E-Clearing/CT – system for processing of credit transfers, which can also include:
    • Hal E-Clearing/SCT – single entry point to pan-European STEP2 SCT clearing system;
  • Hal E-Clearing/DD – system for processing of direct debits (and cheques), which can also include:
    • Hal E-Clearing/SDD – single entry point to pan-European STEP2 M-PEDD clearing system;
  • Hal E-Clearing/ACP – system for capturing and processing of cheques;
  • Hal E-Clearing/ACH – system for processing different types of payments within ACH (e.g. credit transfers, direct debits, etc.).
  • Hal E-Clearing/MMS – centralized system for mandate management in the direct debit system.

Hal E-Clearing systems are compliant with SEPA rules and ISO 20022 standard.

In addition to this, Hal E-Clearing (previous generation) also includes a group of products, which enables processing of credit transfers and is based on SWIFT message standards:

  • Hal E-Clearing/GC – Giro Clearing system;
  • Hal E-Clearing/GC - STEP2 – single entry point to pan-European STEP2 XCT clearing system.

Hal E-Clearing/CT

is a system for processing of SEPA credit transfers. The system enables exchange of different types of payment messages (payment orders, payment returns) in XML format, in compliance with SEPA rules and ISO 20022 standard
It is a net clearing system, where the processing result is the calculation of participant bilateral and/or multilateral net positions. Settlement of payments, based on net positions, usually takes place in the RTGS.

System Operation

In addition to basic functionalities supporting automated processing of SEPA credit transfers within an individual clearing cycle, Hal E-Clearing/CT also enables the following:

  • several clearing cycles within an operational day
  • processing of payments in different currencies
  • setup of calendar (non-working days and holidays)
  • setup of daily schedule
  • setup of transaction limit (maximum transaction amount)
  • setup of participant CAP limits (participant maximum debit position)
  • change of participant status (e.g. default)
  • indirect participation in the system
  • encryption and digital signature based on PKI
  • syntax validation tool also on participant side
  • information enabling simple reconciliation of payments on participant side
  • robust architecture enabling the system to operate also in case of (one) system component failure
  • system management via multi-lingual graphical user interface

Hal E-Clearing/SCT

is a single entry point to the pan-European STEP2 SCT clearing system, operated by EBA Clearing. It is a system for processing of SEPA credit transfers among SCT and STEP2 SCT participants. The system operates on the same principles as Hal E-Clearing/CT.


Hal E-Clearing/DD

is a system for processing of SEPA direct debits. The system enables exchange of different types of payment messages (direct debit orders, rejects, returns/refunds) in XML format, in compliance with SEPA rules and ISO 20022 standard.
It is a net clearing system, where the processing result is the calculation of participant bilateral and/or multilateral net positions. Settlement of payments, based on net positions, usually takes place in the RTGS.

System Operation

In addition to basic functionalities supporting automated processing of SEPA direct debits within an individual clearing cycle, Hal E-Clearing/DD also enables the following:

Delovanje sistema

  • processing of payments in different currencies
  • setup of calendar (non-working days and holidays)
  • setup of daily schedule
  • setup of transaction limit (maximum transaction amount)
  • setup of participant CAP limits (participant maximum debit position)
  • change of participant status (e.g. default)
  • indirect participation in the system
  • encryption and digital signature based on PKI
  • syntax validation tool also on participant side
  • information enabling simple reconciliation of payments on participant side
  • robust architecture enabling the system to operate also in case of (one) system component failure
  • system management via multi-lingual graphical user interface

Hal E-Clearing/SDD

is a single entry point to the pan-European STEP2 M-PEDD clearing system, operated by EBA Clearing. It is a system for processing of SEPA direct debits among SDD and STEP2 M-PEDD participants. The system operates on the same principles as Hal E-Clearing/DD.


Hal E-Clearing/ACP

jis a system for processing of cheques, which is based on capturing of cheque data and its exchange in electronic form. In addition to cheque data, the system also supports the exchange of digital (scanned) cheque images. Hal E-Clearing/ACP is composed of two modules, covering two different levels:

  • customer-to-bank relation (i.e. cheque imaging and dematerialisation)
  • inter-bank relation (i.e. cheque clearing)

Cheque imaging and dematerialisation takes place on participant side, while clearing of cheques takes place within Hal E-Clearing/DD, based on the same principles as for direct debits and taking into account cheque specifics. The processing results include the calculation of participant bilateral and/or multilateral net positions. Settlement of payments, based on net positions, usually takes place in the RTGS.


Hal E-Clearing/ACH

is a set of products to support clearing house functions, which enables processing of credit transfers and direct debits:

  • Hal E-Clearing/CT and
  • Hal E-Clearing/DD.

Hal E-Clearing/MMS

is a centralized system for mandate management in the direct debit system. A mandate is an agreement between the creditor (e.g. goods and services provider), debtor bank and the debtor, authorizing the creditor to directly debit the debtor bank account.

Mandates represent an important part of the direct debit system, since it is necessary to check prior to every direct debit if there is a corresponding mandate for the direct debit of a debtor account. Due to the large number of direct debits and corresponding mandates as well as periodic payments (e.g. electricity) it is difficult to perform manual validation, therefore, an automatic system is much more suitable. Automatic validation of direct debits against mandates can be done at the banks or the process can be carried out centrally, that is within the process of receiving direct debits in the ACH center.

Hal E-Clearing/MMS (MMS) is a centralized system for mandate management with the following characteristics:

  • MMS is a supplement to the Hal E-Clearing/ACH DD direct debit system; it enables centralized processing of all direct debits of all banks in one place.
  • MMS verifies the compliance of all received direct debits against mandates. Incorrect debits are cancelled at the beginning of the processing, and only debits which correspond to all mandate limitations (e.g. amount, time limit, etc.) and other limitations of the direct debit system are accepted into the system.
  • MMS offers banks three different interfaces for working with the mandate register:
    • File Interface: for a mass import of mandate data; mostly suitable for larger banks and the initial uploading of mandates,
    • Web Services: for integration of MMS in bank's back-office processing. Suitable for banks that already have systems for validating mandates and wish to upgrade their existing system,
    • Web Application: for smaller banks that do not wish to invest in the development of their own system for working with mandates.
  • Banks do not need to adapt their systems in order to use Hal E-Clearing/MMS.
  • MMS is connected for all banks simultaneously, so there is no need to wait for the completion of the adaptation and connection at every bank individually before the implementation of the direct debit system.
  • MMS offers all banks and creditors a unified approach to mandates with the same operating rules. The centralized system, therefore, offers all users of all banks equal possibilities and the same rules for mandate preparation, regardless of the bank used by the debtor and the creditor.
  • The highest level of data security is incorporated into the system. All files with mandates are digitally signed and are transferred in encrypted form. Critical safety procedures (encryption, decryption, digital signature and its verification) are carried out with the help of PKI (Public Key Infrastructure) enabled smart cards. Access to the web application for working with mandates and access via web services is also secured with the use of smart cards. Existing users of Hal E-Clearing/ACH system can use their existing smart cards.
  • MMS supports two mandate types:
    • non-transferable: enables payment to a certain account,
    • transferable: enables payment to any number of accounts depending on the direct debit content.

Transferable mandates are intended for larger creditors (e.g. electricity providers, telecommunication companies, insurance companies, etc.), since they enable payment to any number of accounts at one or more banks. The accounts can be added without changing the validity of a mandate. This simplifies company mergers/take-overs and opening accounts at new banks.


Hal E-Clearing/GC

is a system for processing of low-value credit transfers. The system enables the exchange of different types of payment messages in SWIFT format (MT103, MT103+, MT202).

The system operates on the same principles as Hal E-Clearing/CT.


Hal E-Clearing/GC-STEP2

is a single entry point to the pan-European STEP2 XCT clearing system, operated by EBA Clearing. It is a system for processing of cross-border low-value payments among GC-STEP2 and STEP2 XCT participants.

The system operates on the same principles as Hal E-Clearing/SCT.

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