What are the methods of money transfer available in Hong Kong ? Methods of domestic money transfer in Hong Kong  Cheque  Debit cards and Electronic Fund Transfer at Point of Sale  Phone Payment System (PPS)  Standing orders and direct debits

What are the methods of money transfer available in Hong Kong ? Methods of cross-border money transfer in Hong Kong  Banker ’ s draft  Telegraphic Transfer  SWIFT

Advantages and disadvantages between banker ’ s draft and telegraphic transfer / SWIFT Accuracy and reliability A banker ’ s draft mailed by the customer himself could be lost, stolen or destroyed in transit. Additional costs are incurred in stopping payment of the banker ’ s draft. The telegraphic transfer / SWIFT is more reliable than the banker ’ s draft.

Advantages and disadvantages between banker ’ s draft and telegraphic transfer / SWIFT Cost Telegraphic transfer / SWIFT is more expensive than banker ’ s draft. But for a large amount of money to be remitted, the interest saving definitely overrules the fee saving. Speed Telegraphic transfer / SWIFT is the speediest method of money transfer.

Hong Kong Interbank Payment Systems The Hong Kong Interbank Clearing Limited (HKICL) manages the operation of the interbank payment and settlement systems. The HKICL took up the Clearing House Automated Transfer System (CHATS) and the electronic clearing (ECG) of bulk volume low value items 1996, and the paper cheque clearing (CLG) in All licensed banks are direct participants in the interbank payment system. Other Authorized Institutions, like restricted licence banks and deposit-taking companies, do not have direct access to the interbank payment system.

Hong Kong Interbank Payment Systems Paper cheques are settled on the next day on a batch run basis. They are settled after the returned items have been identified and adjusted in order to eliminate the settlement risk related to the returned items. Cheques presented to HKICL are sorted and sent to the drawee banks overnight. The drawee banks would check for balance in the drawees' accounts and return all dishonoured cheques to HKICL on the next day (Day D+1). Only cheques presented on Day D and are not returned would be settled on day D+1.

Hong Kong Interbank Payment Systems The electronic clearing is designed to handle low value bulk volume items generated by EPS, PPS and Autopay. Since 1996, CHATS Payment Instructions have been settled on a real time gross basis. CHATS is designed for large value interbank payments. All licensed banks must join CHATS and be connected to the Clearing House computer operated by HKICL.

Hong Kong Interbank Payment Systems There are two types of CHATS Payment Instructions - Value Today or Value Tomorrow. The implementation of the Real Time Gross Settlement (RTGS) system has significantly reduced the settlement risk in CHATS payments. All licensed banks are requested to open a Settlement Account with the HKMA for the account of the Exchange Fund. Once fund transfers are effected by the paying bank across the books of the HKMA, settlement is final and irrevocable.