The advantage of the clearinghouse is that all members guarantee all payments. The entire capital is available to make good on the negative clearing of a member in case the member itself cannot. If A cannot pay, then all the members pay in proportion to their capital subscription.

The payments system provides the arteries or highways for conducting trade, commerce and other forms of economic activities in any country. An efficient payments system functions as a lubricant speeding up the liquidity flow in the economy and creating a momentum for economic growth. The payments process in a vital aspect of financial intermediation; it enables the creation and transfer of liquidity among different economic agents. A smooth, well-functioning payments system not only ensures efficient utilization of scarce resources but also eliminates systemic risks.