Deferred Net Settlement System (DNS)
A bilateral or multilateral net settlement system where settlement takes place on a net basis after many transactions have been processed, in which there is a time lag between acceptance of payment and its actual settlement.
This type of payment system is also called batch settlement system. Payments are processed in batches that are settled at certain moments in time. This kind of systems usually are dealing with high volumes of payments that are not critical to be executed in real time. The type of payment instruments that fall into this category are: cheques, bill payments, salaries etc.
This is a series of posts with definitions for the jargon used in #banking, #fintech and #payments.
Too many people use some terms without understanding them beyond the definition.
Too many “experts” use the terms but they never had experience with the actual implementation of anything in #banking, #fintech and #payments.