CMS (Cash Management Service) Shared Network

CMS (Cash Management Service) Shared Network 

The CMS (Cash Management Service) shared network is a system that allows financial institutions to process large volumes of deposits and withdrawals efficiently. It has been operated by the Korea Financial Telecommunications & Clearings Institute (KFTC) since August 1996.  

 

The debit transfer service is used to collect payments such as product sales fees, service charges, tuition, and membership dues. In this process, funds are automatically withdrawn from multiple customers’ bank accounts and transferred to the service provider’s collection account. This function is similar to automatic bill payments commonly used in the United States.

 

In simple terms, CMS can be described as:
“A service that collects money from many people’s accounts at once, or sends money to many people’s accounts at the same time.”

 

 

The credit transfer service works in the opposite direction. It is used to distribute payments such as purchase payments, dividends, pensions, and salaries. Funds are withdrawn from the organization’s payment account and transferred to recipients’ accounts at other financial institutions. This is similar to bulk payment or payroll processing systems.

 

CMS is widely used by social organizations, schools, and private educational institutes. By using this system, organizations can regularly collect and distribute payments at a relatively low cost without visiting a bank each time or making individual online transfers.

 

 

* Related terms: credit transfer, debit transfer