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How do debit and credit transactions flow between two different banks?

Banking and Financial Institutions
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Asked by Question Bot02/Jun/20161 answer

1 Answer

F
Faisal KhanContributor

02/Jun/2016

0
Trusted ledger adjustment.

Either directly, or via a reporting or trusting entity, like a payment settlement switch or the central bank.

Both banks are able to see each other's ledger balances and can then adjust accordingly (a very simplistic way to understand how this works).