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Payment and Settlement Systems in Taiwan

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Taiwan has developed a robust payment and settlement system, enabling efficient transactions between financial institutions, businesses, and individuals. This article explores some of the key systems in place.

Direct Debits

Direct Debit is a system where payers agree to debit their bank accounts for utility fees, insurance fees, etc.

Benefits

  • Convenient: reduces the need for manual payment processing
  • Efficient: saves time and effort for both payer and payee
  • Reliable: ensures timely payments without the risk of missed deadlines

Electronic Payment Systems

Taiwan’s electronic payment systems offer a range of options for individuals and businesses to make and receive payments.

E-Money

Electronic stored value cards that can be used for shopping or bill payments.

CBC Interbank Funds Transfer System (CIFS)

A large-value electronic payment system launched in 1995 to improve funding efficiency across domestic financial institutions.

Systems Linked with CIFS

The following systems are linked with CIFS:

  • Central Government Securities Settlement (CGSS) System
  • Financial Information System (FISC-FIS)
  • Check Clearing System (TCH-CCS)
  • Bills Clearing System (TDCC-BCS)
  • Securities Book-Entry Clearing System (TWSE-SB ECS)
  • Electronic Bond Trading System (GTSM-EBTS)

These systems provide a secure and efficient platform for various financial transactions, including securities trading, bond issuance, and government securities settlement.