pps*clearing - universal postal union
TRANSCRIPT
PPS*Clearing
Postal payment services
clearing and settlement system
Published by the Universal Postal Union (UPU) Berne, Switzerland Printed in Switzerland by the printing services of the UPU International Bureau Copyright © 2016 Universal Postal Union All rights reserved Except as otherwise indicated, the copyright in this publication is owned by the Universal Postal Union. Reproduction is authorized for non-commercial purposes, subject to proper acknowledgement of the source. This authorization does not extend to any material identified in this publication as being the copyright of a third party. Authorization to reproduce such third party materials must be obtained from the copyright holders concerned. TITLE: PPS*Clearing, postal payment services clearing and settlement system
CONTACT: Universal Postal Union P.O. Box 312 3000 BERNE 15 SWITZERLAND PHONE: +41 31 350 31 11 FAX: +41 31 351 31 10 E-MAIL: [email protected] WEBSITE: www.upu.int
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PPS*Clearing, postal payment services clearing and settlement system
WHAT CAN PPS*CLEARING DO FOR YOU?
LINK TO A SETTLEMENT PROVIDER
Are you a postal operator looking for software to link to a settlement provider within
the international money order business?
AUTOMATED CLEARING AND SETTLEMENT
Could you benefit from a system that automates clearing and settlement between you and your
partners?
CURRENCY CONVERSION
Should this software also provide you with the latest
currency conversion rates on a daily basis?
PPS*Clearing was launched in 2012 to secure and facilitate settlements between DOs exchanging postal payment services electronically within the same network
PPS*Clearing is a receivable-driven clearing system open to all designated operators of UPU member countries that have signed to the PPS Agreement
7/7
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PPS*Clearing, postal payment services clearing and settlement system
BILATERAL SETTLEMENT VERSUS CENTRALIZED CLEARING
WITHOUT PPS*CLEARING
DOs settle their accounts bilaterally and manually at intervals defined in bilateral agreements
Country A
Country C
Country B
Country E
Country D
Currency 1 Currency 2
Currency 3
WITH PPS*CLEARING
A centralized clearing and settlement system prevents a multiplication of settlement agreements (and periodic payments)
Ensures payment discipline through a pre-defined clearing calendar
Reduces exposure to FX risk through the use of a limited number of currencies and FX adjustment mechanisms
Reduces exposure to default risk through strict financial rules
Country A
Country C
Country B
Country E
Country D
CLEARING HOUSE
USD
USD
EUREUR
USD
Difficult process when many countries and currences are involved
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PPS*Clearing, postal payment services clearing and settlement systemPPS*Clearing, postal payment services clearing and settlement system
HOW DOES PPS*CLEARING WORK?
ON A WEEKLY BASIS:
PPS*Clearing generates bilateral invoices, consolidates them and calculates net positions for each designated operator
The clearing house receives payments from net debtors and pays net creditors through the settlement provider once per week
THE SYSTEM IS AUTOMATED
AND PROVIDES DESIGNATED OPERATORS WITH:
Detailed bilateral invoice statements on financial traffic
Net statements
Daily exchange rates (supplied by a common, reliable exchange rates provider)
Confirmation of settlement (from settlement provider)
Confidentiality and a secure environment
COMPATIBILITY:
The system supports EDI messages that are compliant with UPU standards (MS38-5 and above)
The system can be used in conjunction with the PTC’s IFS software suite. For more information on IFS, please see our dedicated documentation
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PPS*Clearing, postal payment services clearing and settlement system
CLEARING CALENDAR
CLOSURE DAY
D D+2 D+6 D+7 D+11
CONTESTATION AND ADVICE
DAY
DEBTORS’ SETTLEMENT
DAY
CREDITORS’ SETTLEMENT
DAY
SUSPENSION DAY
Generation of invoices by PPS*Clearing
Transfer of invoices to the netting system
Verification of the invoices by members
Members are notified of their net position
Deadline for debtors’ payments to be credited to the clearing house account
Deadline for all payments to be made by the clearing house
Automatic suspension of a defaulting member
Notification sent to all members
The calendar is published every year by the clearing house and shows the clearing cycle for each month
There are four to five clearing cycles in each month
EACH CYCLE CONTAINS FIVE KEY DATES
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PPS*Clearing, postal payment services clearing and settlement system
CLEARING CALENDAR OVERVIEW OF THE PPS*CLEARING SYSTEM COMPONENTS
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PPS*Clearing, postal payment services clearing and settlement system
WHAT ARE THE BENEFITS OF JOINING PPS*CLEARING?
Optimize their administrative and banking costs
Facilitate the process of data reconcilitation and cash-flow management
Reduce the risk of errors caused by a manual process
Reduce the number of payments to one payment per country (by generating a single net position for each member)
GOVERNANCE
PPS*Clearing is managed by the UPU International Bureau
The User Group, made up of all PPS*Clearing members, meets annually to elect its Steering Committee and takes all decisions related to the system. The User Group reports to the POC
Clear rules and procedures govern the User Group and PPS*Clearing operations to ensure the security of financial settlements between members
OPERATIONAL
PPS*Clearing helps designated operators:
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PPS*Clearing, postal payment services clearing and settlement system
HOW TO JOIN PPS*CLEARING
All members exchanging postal payment services within the UPU network can join PPS*Clearing at any time of the year and at an affordable cost
PROCEDURE FOR JOINING PPS*CLEARING
Step 1: The DO completes and signs the membership form provided by the PPS*Clearing Secretariat. The form is then submitted to the PPS* Clearing Steering Committee for approval
Step 2: Once the application has been accepted, the future member is asked to pay a standing deposit (5,000 USD) and an annual contribution fee based on the member country’s contribution class for the UPU budget
Contribution class for UPU budgetPPS*Clearing contribution class
Annual fee in CHF
0.5 or 1 1 2,500
3 or 5 2 5,000
10 or more 3 7,500
Step 3: Upon receipt of the deposit and fee, a test phase and a training are organized by the PPS*Clearing Secretariat
For more information on becoming a PPS*Clearing member, please contact [email protected]
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PPS*Clearing, postal payment services clearing and settlement system
AFRICA
BeninBurkina FasoCameroonCongo (Rep.)Côte d’Ivoire (Rep.)DjiboutiGabonMaliMauritaniaMoroccoNigerNigeriaSenegalTogoTunisia
LATIN AMERICA
ArgentinaChileColombiaCubaDominican Rep. Ecuador ParaguayPeruUruguay
EUROPE
FranceMoldovaSpain
Currently, 27 designated operators use PPS*Clearing (as of July 2018)
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Contact
Universal Postal UnionInternational BureauPPS*Clearing
Tel.: +41 31 350 31 11E-mail: [email protected] ©
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