Automated Clearing House System
ACH is a safe payment system that aims at providing the banks, the Central Bank, in addition to their customers with retail payment service to facilitate and accelerate the execution of numerous yet low- value debit and credit money transfers to contribute to enhancing the efficiency of the financial system in the Kingdom. The ACH system was launched on 30/10/2016.
ACH system processes the following types of operations:
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Credit transfers from one member to another: such transfers are carried out by the sending member to the receiving member’s customers. These types of transfers include:
- Payments of credit card bills
- Regular payments
- Salary payments
- Retirement payments
- IPO membership fees in addition to others
2. Debit transfers, which are divided into the following:
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Direct mandatory debit transfers paid by the Central Bank of Jordan to the system: such transfers are carried out directly without the need for a prior mandate from the paying member. Examples of this type of transfers include, fees of implemented transactions and/ or payment orders by any other authorized parties such as, payment orders issued by the court to transfer an amount from a member registered on the system.
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Direct debit transfers created by members of the system and which do not need a prior mandate: Such transfers are established by the customer of the recipient member bank (payee) for requesting the transfer of a certain amount from the customer of the payer member bank. Such transactions are carried out directly without the need for a prior mandate provided that the paying bank approves such in coordination with its customer.
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Pre- mandated Debit Transfers: these transfers are established by the customer of the recipient member bank (payee) requesting the transfer of a specific amount from the customer of the payer member bank. This type of transfers requires a pre- mandate from the payer to the recipient bank to debit the amount to his account held with his bank. The arrangements for a pre- mandate shall be conduct outside the Automated Clearing House system and outside the Central Bank- as a system administrator. The Central Bank shall not be liable or responsible for any consequences resulting from such arrangements. Such mandates shall not be activated or validated on the system unless an approval is obtained from the receiving member. Accordingly, the direct debit transfers shall be processed normally on the ACH system for the purposes of clearing and settlement.
Examples of such type of transfers:
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Payment of bills of services
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Payment of installments of loans and mortgage
- Cancelling debit and credit transfers by the sending member.
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Returning debit and credit transfers issued by the receiving member within the returning period specified in the system for the working day and before the settlement of the transfer order is finalized.
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Reverse transfers. It is used only with credit transfers created by the receiving member who desires to return the transferred amount to the sending member after the settlement operation has been finalized.
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Non- financial messages, which include:
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Query messages about current liquidation balance: the query is conducted through sending a message from the member to the system. The system responds to such message immediately.
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Query messages about the status of a file/ payment/ transfer: the query is conducted through sending a message from the member to the system. The system responds to such message immediately.
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Messages requesting the change of the limit of debit.
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Messages to monitor transfers.
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Circular messages issued by the Central Bank to the members.
- Automated Clearing Hous