What is the meaning of a clearinghouse?

What is the meaning of a clearinghouse?

A clearinghouse is a designated intermediary between a buyer and seller in a financial market. The clearinghouse validates and finalizes the transaction, ensuring that both the buyer and the seller honor their contractual obligations.

What are examples of a clearinghouse?

Clearing House Examples There are two major clearing houses in the United States: The New York Stock Exchange (NYSE) and the NASDAQ. The NYSE, for example, facilitates the trading of stocks, bonds, mutual funds, exchange-traded funds (ETFs) and derivatives.

What is a clearing house in EDI?

Clearing house and it’s role in Healthcare EDI Communication. Clearing house is a third party service provider. It takes non-EDI data and translates them to EDI data. Then data are sent to another document. Clearinghouse can also convert paper documents to EDI and vice versa.

What is the role of clearing house in claims processing?

The Clearing House or TPA picks up claims from your hospital’s billing software, gathers and processes documentation for each patient, and passes them on to the insurance provider. They coordinate with dozens of insurance service providers, for each patient who passes through your hospital.

Is a clearinghouse the same as a billing company?

A clearinghouse is your #1 resource for any of your questions or issues regarding a claim. Rather than an internal medical billing or accounting department handling your medical claims processing, a clearinghouse can be fully immersed in all things associated with your claims processing.

Is JP Morgan a clearing house?

Members of The Clearing House include JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Bank of New York Mellon Corp., Deutsche Bank AG, UBS AG, U.S. Bancorp and Wells Fargo & Co.

Which is the best definition of a clearinghouse?

Financial Definition of clearinghouse. A country’s central bank (e.g. the Federal Reserve in the U.S.) acts as a clearinghouse for checks, interbank payments, foreign exchange transactions, and other fund transfers in the banking system.

How to use clearing house in a sentence?

clearing·house. Use clearinghouse in a sentence. noun. The definition of a clearinghouse is a central office, either a physical office or an electronic office. An example of a clearinghouse is a place where banks electronically exchange checks drawn against one another.

What can a clearing house do for You?

With a clearing house, both parties can rest assured that a successful transaction will take place. The diagram above shows the simplified flow of a transaction involving two parties, the seller and the buyer, and in between them, the clearing house firm.

How does a clearinghouse work in a trade?

How It Works. Clearinghouses take the opposite position of each side of a trade. When two parties agree on the terms of a transaction, a clearinghouse sits in the middle, acting as both the buyer and the seller.