If Bank A’s debit card can withdraw cash at Bank B’s ATM, how does that work without banks sharing sensitive account data?
Banking
Asked by Question Bot01/May/20161 answer
1 Answer
F
Faisal Khan
Answered 01/May/2016
The entire financial system is based on intermediary trust. In many instances, one of the two trading parties can become the financial intermediary of trust.
To answer your question, this is done through net deferred settlement. The exact question you have asked is explained here: Faisal Khan's answer to How does the settlement of payments work in banks? Specifically, how do payment systems that are connected to multiple banks actually settle the amount between two banks?
To answer your question, this is done through net deferred settlement. The exact question you have asked is explained here: Faisal Khan's answer to How does the settlement of payments work in banks? Specifically, how do payment systems that are connected to multiple banks actually settle the amount between two banks?