An Exchange Partner is the representation of an external Party with which the Financial Institution running the system has an agreement to exchange or settle payments, either directly, or via other intermediary Exchange Partners. The Exchange Partner can be:
- an external Financial Institution: clearing system, correspondent banks, represented banks or an agent receiving or sending payments on behalf of one of those.
- an external non Financial Institution that acts on behalf of a Financial Institution: a Data Processor, a Cheque Printer.
- an Accounting Management System inside the Bank running the system.
- an “Order Management-type” System inside the Bank running the system.
- A transaction is received from an Exchange Partner.
- And will be routed and submitted to another Exchange Partner.
- On-us Transactions are also routed to an Exchange Partner, which is often referred as “the AMS”.
- Customer Instructions/Transactions are received from an Exchange Partner which is often referred as “ORM” (or “ORM-like”).