Payment Systems in Hong Kong
Here is just to review what I have learnt from the book and compare the payment systems from Hong Kong with those from US.
One thing quite common in the two territories is that no matter how it evovles, the payment systems can always categorized as pull-basd systems and push-based systems. As to pull-based systems, the payment is initiated by the fund payee, and the fund will be authorized by the payer and then pulled from the payer's fund account; on the other side in push-based systems, the payment is initiated by the payer to send the money to the payee's account.
It's ubiquitos all around world, nothing special in Hong Kong.
There is nothing special either here in HK.
- Real Time Gross Settlement System
- Bulk Clearing Services
- HK - Mainland China Cross Border Service
- CCASE Real Time DvP PvP
Credit Cards Payment is the same with the rest of the world and it's pull-based.
As to the Debit Cards, normally underneath it's based on ACH payment system.
Normally it's used in cross-border transactions with the characteristics like large in volumn, requirement in security and irrevokability, like SWIFT.
There are a lot eWallet provider in HK now,
- PayMe (FPS and HSBC's clearing and settlement system)
- Alipay (FPS based)
- WeChatPay (FPS based)
All of them will need to manage a ledger internally. Normally the implementation of them will based on other payment systems, eg., the FPS, ACH, etc.
Compared with the payment system of e-commerce system, which includes
- Order Placement
- Credit Entry
- Debit Entry
the eWallet's transactions only contain
And if foreign exchange is involved, an exchange wallet will be involved, for example,
|From||To||From Amount||From Curency||To Amount||To Curency||EXCHANGE|
and then the transaction record will be split into ledger entries,
Now the if there is 1000 HKD in A's account previously, now it will be 900; and if there is 0 RMB in B's account, now it will be 83.
And normally there will be a temporary transaction table to record the daily transations, by the EOD, the eWallet will reconcile with the counterparty (normally the banks), and move those matching transactions into history table.
Another Real Time payment system initiated by HKICL which included both push-based and pull-based payment methods.
Updated on 2022/02/08
We all know there is a history table and a current table for cash flow, while how will the account balance be calculated? the article above demystifies the process in calculating it in a ledger DB. Excellent!