Domestic Clearing and Settlement (YTH) System

Domestic Clearing and Settlement (YTH) System

  • What is Domestic Clearing and Settlement (YTH) System?
    YTH system provides a system for clearing and settlement operations of domestic transactions, where one participant’s card used in another participant’s POS or ATM. YTH System Participiants send the transaction records to the System and records are cleared, netted multilaterally and settled by the System.
  • Who is responsible for YTH System?
    BKM is responsible from Domestic Clearing and Settlement System. As published in The Official Gazette on 19 June 2015, Central Bank gave official authorization to BKM as a Payment System Operator.
     
    BKM has the administirative supervision right and can take immediate action to keep the System operate without interruption. BKM informs the Participants about the precautions that will be taken.
  • YTH System Statistics

    Yearly transaction volume that was processed by YTH System has reached to 1,9 billion and yearly transaction volume has reached to 200 Billion TRY.
    Sharp increase in 2012 is the result of including the Debit Card transaction in the YTH System with dual message format.
    In 2005 average transaction volume was 65 TRY and has increased to 116 TRY in 2015.
    YTH_Annual_Number
    YTH_Annual_Volume
  • What are the Criteria for YTH Participant Acceptance?

    In order to be a Participant of YTH System,
    • A bank, subject to current Turkish banking law and other Turkish legislation related to banking, which issues or plans to issue cards under its name or concludes or plans to conclude merchant agreements and has obtained “necessary permits” from competent authorities,
    or
    • An institution which is a member of at least one of the card system organizations and plans to operate within the context of Bank Cards and Credit Cards Law, No. 5464, and has obtained operating license from competent authorities for that purpose;
    must have BKM Membership and meet administrative, technical and financial requirements.
  • How does YTH System operate?

    The System works in 3 steps;
    1. Clearing;
    clearing
    For a sale transaction that takes place in a merchant, the merchant  sends all the sale records to Acquirer Participant at the End Of Day Report. Acquirer Participant sends the records to BKM with “Outgoing Clearing File”. BKM processes all the “Outgoing Clearing File”s received from all System Participants via YTH System, and prepares “Incoming Clearing File”s for Issuer Participants and sends the files to the Issuers.
    2. Multilateral Netting:
    Multilateral Netting is a process step where one Participant’s credits and obligations to other participants due to records received and sent via YTH System are detucted to calculate one final debit or credit amount.
    3. Settlement:
    tcmb
    After Clearing and Multilateral Netting, Obligator Participants pay their debts to BKM Account. After receiving all the debts, BKM pays credit amounts to Creditor Participants’ Accounts.
  • What are the working hours for YTH System?

    System Participants can send Outgoing Clearing File from 18:00 of previous date to 10:00 of clearing date.
    Clearing and Multilateral Netting is processed on the clearing date from 10:00 to 13:30. “Incoming Clearing File” and Reconcilation Reports are shared at 13:30 of the clearing date.
    Obligator Participants are liable to pay the debt amount until 12:00 of the following day of the clearing day. BKM pays credit amounts to Creditor Participants’ Accounts by 14:00 of the following day of the clearing day.
  • What are YTH System Fees?

    1. Inter-Participant Interchange Commissions
    Please click here to see Inter-Participant Interchange Commissions.
     
    2. BKM Fees
    Different fees are charged from Source Participants and Destination Participants. Participants are charged with stepped fee structure on a monthly basis. Total fee is calculated according to steps that participants reached with the total amount of all financial records.