What is the primary function of BankNet?

The primary function of BankNet is to deliver authorization, clearing, and settlement services. This system plays a crucial role in the payments ecosystem by ensuring that transactions made with credit or debit cards are efficiently processed. It facilitates the communication between merchants, banks, and consumers to confirm the availability of funds, authorize transactions, and finalize the transfer of money between accounts.

Authorization involves verifying that a consumer has sufficient funds to complete a transaction, while clearing refers to the process of reconciling the transaction amounts among the involved banks. Finally, settlement encompasses the actual movement of money from the payer’s account to the payee's account, completing the transaction cycle.

This function is central to the operation of payment networks and is key to ensuring seamless transactions in the banking and financial services industry, making it a foundational element for any institution involved in electronic payments.