An electronic system of settling a debt by transferring money through a bank or post office. The payer completes written instructions naming the receiver and giving the receiver's address and acount number. Several receivers may be listed and settled by a single transaction. The popularity of this system in the UK led the banks to introduce a credit-clearing system in 1961 and the Post Office to do so in 1968. See also giro.
Subjects: Financial Institutions and Services.