Hong Kong has launched a bulk settlement service, allowing Hong Kong dollar credit card transactions between participating banks to be settled more efficiently, the Monetary Authority said Monday.

The new service will minimize settlement risk by cutting the time gap between payments made by banks with net outgoing payments, and those received by banks with net incoming payments.

Participating banks with net outgoing payments will be debited at the same time as those with net incoming payments are credited through the bulk settlement run at a pre-determined time on each settlement day.

Credit card companies - VISA, MasterCard and China UnionPay - will use the service, which will be operated by Hong Kong Interbank Clearing.

Source: Xinhua