What term is used to describe quicker cheque processing when both payer and payee use the same financial institution?

The term used to describe quicker cheque processing when both the payer and payee use the same financial institution is "On-us clearing." In this scenario, the cheque does not need to go through external clearing channels, which can slow down the processing time. Since both accounts are held within the same bank, the transaction can be settled more quickly, often on the same day or within hours. This process significantly reduces the time it takes for funds to be available to the payee compared to transactions that involve different banks.

On-us clearing is a crucial aspect of payment systems, emphasizing efficiency in transactions handled internally by financial institutions, which benefits both parties involved.