Central Clearing House System

A Central Clearing House System acts as a centralized platform that collects transaction data from multiple participants (banks, payment service providers, transit operators, merchants), validates, reconciles, clears, and settles transactions in a secure and efficient manner.

CCHS in the context of public transportation is a centralized financial and data processing hub that facilitates fare transactions, settlement, and reconciliation among multiple transit agencies, payment providers, and banks.

CCHS ensures seamless interoperability between different fare collection systems and enables a unified payment ecosystem across cities, regions, or even entire countries.

Central Clearing House (CCH) System is widely used in:

Banking & payments
Transit fare collection
Card & wallet ecosystems
Interoperable digital payment networks

validator

Key Features

Centralized Transaction Processing

Collects transactions from multiple channels and participants

Single point for validation, clearing, and settlement

Ensures consistency and accuracy

Multi-Participant & Multi-Channel Support

Supports banks, issuers, acquirers, merchants, and operators

Handles card, wallet, QR, UPI, NCMC, EMV, and account-based payments

Automated Clearing & Settlement

Rule-based net or gross settlement

Configurable settlement cycles (T+0, T+1, T+2)

Automated fund allocation among stakeholders

Real-Time & Batch Processing

Supports both real-time authorization clearing

End-of-day or periodic batch settlement

Reconciliation & Dispute Management

Automated reconciliation of transaction files

Mismatch detection and exception handling

Dispute tracking and resolution workflows

High Security & Compliance

End-to-end encryption and tokenization

Role-based access control

Compliance with PCI-DSS, ISO 8583, ISO 20022 (as applicable)

Scalable & High Availability Architecture

Designed for high transaction volumes

Supports redundancy, failover, and disaster recovery

Suitable for national-level systems

Configurable Business Rules Engine

Custom settlement rules, fees, commissions, and revenue sharing

Flexible tax, surcharge, and incentive calculations

Comprehensive Reporting & Analytics

Settlement reports, MIS, and audit logs

Real-time dashboards for operational monitoring

Regulatory and compliance reporting

API & Integration Framework

Seamless integration with banks, gateways, switches, and back offices

Supports REST / ISO-based messaging standards

Key Benefits

Operational Efficiency
Eliminates manual reconciliation and settlement processes
Reduces errors and processing time

Interoperability Enablement
Allows multiple participants to operate on a common platform
Enables open-loop and multi-issuer ecosystems

Faster & Accurate Settlements
Timely settlement improves cash flow
Accurate fund distribution reduces disputes

Transparency & Trust
Clear audit trails for every transaction
Builds trust among participating entities

Reduced Operational Costs
Centralized processing lowers infrastructure duplication
Automation reduces manpower and administrative overhead

Scalability for Growth
Supports increasing transaction volumes and new participants
Easily adaptable to new payment instruments

Enhanced Risk Management
Real-time monitoring and fraud detection hooks
Controlled settlement minimizes financial exposure

Regulatory Readiness
Simplifies compliance with central banks and regulators
Enables standardized reporting formats

Key Functions CCHS

Transaction Processing & Validation

Collects and verifies payment transactions from various sources (contactless cards, mobile wallets, QR codes, smart cards).
Ensures proper fare calculations, including discounts, transfers, and fare capping rules.

Revenue Settlement & Distribution

Allocates collected fares to different transit operators based on predefined rules.
Manages financial clearing between banks, transport agencies, and payment service providers.
Supports multi-modal and multi-operator fare distribution.

Interoperability Management

Allows seamless travel across different transit networks using a single payment method.
Integrates with both open-loop (credit/debit card) and closed-loop (transit-specific card) systems.
Enables Account-Based Ticketing (ABT), where fare rules are applied centrally rather than on physical cards.

Data Analytics & Reporting

Generates reports on ridership, revenue, fraud detection, and fare compliance.
Provides insights to transit agencies for optimizing routes and pricing strategies.

Security & Compliance

Ensures secure payment processing, adhering to PCI-DSS and other financial regulations.
Uses encryption and tokenization for data protection.