Payment systems

The National Electronic Clearing System

The National Electronic Clearing System (SNCE) is the Spanish retail payment system.

It was initially managed by the Banco de España, but as a result of the reform of the payment systems in Spain in 2005, this function was transferred to IBERPAY (Sociedad Española de Sistemas de Pago), a private company whose shareholders are the credit institutions participating in the National Electronic Clearing System. The Banco de España is responsible for approving the rules governing the system and its oversight.

The National Electronic Clearing System processes transactions made using retail payment instruments (cheques, transfers, direct debits, bills and various other transactions). From an operating point of view, it is structured into various sub-systems where the institutions exchange all information concerning payments. Generally speaking, transactions are cleared when the settlement is made for the net amount. However, transfers and cheques exceeding €100,000 (€300,000 in the case of SEPA (Single Euro Payments Area) transfers) are not subject to the clearing process and are settled individually. In both cases, settlement takes place in the accounts the participants hold in TARGET2-Banco de España.

The system is based on electronic communication networks and a common infrastructure to exchange transactions. The majority of the sub-systems are decentralised so that the participants exchange information bilaterally. Then, they calculate their bilateral net positions in each sub-system, which are communicated to IBERPAY so that the latter can process their clearing and subsequent settlement.

The sub-systems for processing SEPA transactions, however, follow a centralised multilateral exchange mode, or in other words, the institutions send their transactions to the system which processes their clearing and subsequent settlement.

The following can be members of the National Electronic Clearing System: the Banco de España - to channel its own retail payments and those of the central government, and banks, savings banks and credit co-operatives, provided that they comply with the regulations and requirements established by the National Electronic Clearing System Regulations.