CBA introduces Everyday Settlement payment service

Up to 100,000 customers will be migrated to new system by December

Business customers will be able to access funds from their Commonwealth Bank of Australia (CBA) merchant terminals the same day following the rollout of a new service called Everyday Settlement.

Prior to the introduction of the service, transactions made on the weekend could not be accessed until the following Tuesday. Using Everyday Settlement means that payments will be processed up to 10pm Australian Eastern Standard Time (AEST) and settled into a customer’s account by midnight the same day. According to CBA data, $332 million goes through merchant terminals every weekend, equating to 4.7 million transactions.

CBA business products and development executive general manager, Kelly Bayer Rosmarin, said in a statement that the bank will be the only one of the big four, which includes ANZ Banking Group, Westpac and the National Australia Bank (NAB), to offer the service. Up to 100,000 business customers would be migrated to Everyday Settlement by December 2011 with the rest shifted across during the first quarter of 2012.

Rosmarin also said that not being able to settle accounts every day of the week was a frustration for many small businesses.

“Combined with our core banking technology, businesses can also get real-time access to those settled funds, including the ability to accrue value for them over the weekend,” she said.

“With no weekend cash flow gaps, merchants will be able transfer cash around their business with far greater speed, making it easier to pay both staff and suppliers.”

She added that businesses would also benefit from an easier daily reconciliation process, with transactions for weekends and public holidays no longer lumped together in a single day at the start of the following week.

The launch of the new service follows CBA’s development of a banking application called Kaching for the Apple iPhone that allows users to wirelessly pay for goods and services using Near Field Communications (NFC) technology.

Follow Hamish Barwick on Twitter: @HamishBarwick

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Tags iPhoneCBANFCEveryday Settlement

More about ABANZ Banking GroupAppleBayer AustraliaCommonwealth Bank of AustraliaCommonwealth Bank of AustraliaNABNational Australia BankNFCWestpacWestpac

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