Settlement & Reconciliation

Key to the sharing of transactions across the Network is the requirement to settle the net financial position between Members.

Proposective network Members are required to open a settlement account and to set up a mandate for LINK to perform settlement transactions to the institution's designated bank account. At the end of each business day (8.00 p.m. to 8.00 p.m.) LINK calculates a settlement position for each Member against the LINK switch which is advised to the Member the following morning. LINK subsequently moves funds between Member accounts to effect the settlement.

LINK also transmits a file of all daily transactions to allow each institution to reconcile its record of transactions against the LINK records.