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Payment versus payment (PvP) A mechanism which ensures that the final transfer of a payment in one currency occurs if ? and only if ? the final transfer of a payment in another currency or currencies takes place. See also exchange-for-value settlement system.

Similarly, a PvP settlement mechanism is a mechanism which ensures that the final transfer of a payment in one currency occurs if and only if the final transfer of a payment in another currency or currencies takes place, and a DvD settlement mechanism is a securities settlement mechanism which links two or more ...

Settlement currency is the currency a vendor selects to be paid out in and the currency in which funds are sent to the vendor's bank account. You can have one settlement currency or multiple, depending on the functionality of your payment processor and the availability of accounts.

With more than half of the world's cross-border transactions currently taking place without an adequate safety net, Payment versus Payment (PvP) is a solution that ensures one side of the transaction gets paid at the same time as the other, eliminating settlement risk and reducing friction.

Payment-versus-Payment (PvP) * A settlement mechanism that ensures the final transfer of a payment in one currency if, and only if, a final transfer of a payment in another currency occurs.

Payment-versus-payment (PvP) transaction means a foreign exchange transaction in which each counterparty is obligated to make a final transfer of one or more currencies only if the other counterparty has made a final transfer of one or more currencies.

The primary advantage of CLS: reducing risk International banks have been the first to adopt the CLS system in order to reduce their FX settlement risk, also called ?Herstatt risk?. For a bit of history, in 1974, the bankruptcy of the German bank Herstatt blocked the dollar interbank payment system.

Cross-currency settlement risk is a type of settlement risk in which a party involved in a foreign exchange transaction sends the currency it has sold but does not receive the currency it has bought. In cross-currency settlement risk, the full amount of the currency purchased is at risk.

Multi-currency payment processing occurs when your business can accept credit cards from customers in foreign currencies. If your business charges customers in more than one currency (for example in US dollars and Canadian dollars) you are doing multi-currency processing.

Currency holidays are days in which the there is no settlement of prior transactions. Standard settlement periods for most currencies is 2 business days, with some pairs such as CAD/USD settling next business day.