Welcome » IT Booklets » Wholesale Payment Systems » Interbank Payment and Messaging Systems » Other Clearinghouse, Settlement, and Messaging Systems » Telex-based Messaging Systems
Several private telecommunications companies offer worldwide or
interconnected services that provide a printed record of each
transmitted message. Financial institutions that do not have access
to SWIFT use Telex-based proprietary systems. Financial
institutions access Telex-based systems via a dial-up or a
dedicated line with dedicated printers. Some systems are computer
monitored 24 hours a day, seven days a week and are fully redundant
with automatic switch over and recovery capability.
Telex systems do not include built-in security features.
Financial institutions that use Telex must exchange security codes.
Typically, senders number messages sent to another institution to
provide better audit controls. The sending institution is
responsible for incorporating a test key in all instructions to a
receiver to execute a payment order. The receiver is responsible
for safekeeping the unique test code keys of each sender and
decoding each test message. This function should be clearly
separated from the Telex operating area and funds payment function.
Presently, only a few institutions employ fully automated interface
of Telex with their funds payment systems.