Clearing Window

A clearing window is a scheduled period during which a payment or clearing system accepts, processes or exchanges transactions between participants. Batch systems run several windows each day, each closed by a cut-off time: a payment submitted before the cut-off is included in that cycle, while one submitted after it waits for the next. US Same Day ACH, for example, works through several submission windows during the business day, each followed by settlement, and card networks run daily clearing cycles. Real-time systems that operate around the clock have no clearing windows in this sense, although their settlement may still follow set cycles. Knowing the windows matters to treasury and operations teams, because missing one can delay a payment by a day, especially across time zones and over weekends. A related term, settlement window, refers to when funds actually move. Also see payment clearing.