Credit clearing is a practice in which a group of banks or businesses offset mutual obligations by netting payments and settling only the remainder. While clearing generally refers to confirming and processing payments before settlement, credit clearing specifically refers to cancelling out incoming and outgoing payments of equal or near-equal value.
Credit clearing is a practice in which a group of banks or businesses offset mutual obligations by netting payments and settling only the remainder. While clearing generally refers to confirming and processing payments before settlement, credit clearing specifically refers to cancelling out incoming and outgoing payments of equal or near-equal value.
Source: Wikipedia "Credit clearing" · CC BY-SA 4.0
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