Around $100 billion, or 90% by value, of Australian payments are “high value” payments. These are generally made between financial institutions either for themselves or on behalf of corporate customers. High value payments are immediate and irrevocable. Payment details are sent and verified through the Payment Delivery System (PDS) provided by SWIFT and each payment is settled individually using the Reserve Bank Information and Transfer System (RITS). Each financial institution holds an exchange settlement account within RITS and payment is settled across these accounts on a real-time basis. As the funds are settled at the same time as the payment detail is transferred, the arrangements promote a more secure payments system and reduce settlement risk. With each payment averaging around $4.7 million, this is critical.

High value payment arrangements are governed by APCA’s High Value Clearing System (HVCS) Rules and Procedures.