Clearing and Settlement Modernization for Card Payments on AWS

This whitepaper outlines the modernization of clearing and settlement processes for card payments utilizing Amazon Web Services (AWS) cloud infrastructure. It begins with an introduction to recent advancements in payment modernization strategies, highlighting the importance of faster payment options for businesses. The document details the clearing functions, including merchant batch file initiation, acquirer file processing, and transaction booking, explaining the roles of various entities such as acquirers, issuing banks, and card networks. It also describes the settlement functions, emphasizing the reconciliation processes and the flow of funds from issuers to acquirers. The paper discusses the reasons for modernization, including the need to address challenges posed by legacy systems, improve speed to market, reduce costs, and leverage data insights for enhanced decision-making. The conclusion reinforces the significance of adopting modern technologies to streamline payment processes and improve overall efficiency in the payment ecosystem.