Bulk Payment Instruction
Definition:
A set of payment orders delivered together for processing which may be destined for several receivers.
Details:
Bulk payment instructions are payment instructions delivered to the clearing and settlements system as bulk files and are processed together ordered after some criteria containing at least the same sender and receiver.
Note that the number of financial transactions that result from a bulk usually is one per bulk or just several per bulk in case sorting of the bulk is done.
They are in general used for Direct Debit or Payroll payments. The bulk settlement systems that do this type of processing are the Automated Clearing House (ACH) or Cheque Truncation Systems (CTS).
Note:
This is a series of posts with definitions for the jargon used in #banking, #fintech and #payments.
Too many people use some terms without understanding them beyond the definition.
Too many “experts” use the terms but they never had experience with the actual implementation of anything in #banking, #fintech and #payments.