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Consignment collection refers to the settlement method by which the payee authorizes a bank to collect a payment from the payer. Both entities and individuals can use consignment collection as a settlement method when conducting settlement of amounts on the strength of accepted commercial drafts, bonds, certificates of deposit and other debt proofs of the payers.
Consignment collection can be used on both a local and a non-local basis. At the local level, the payee can employ the local specially authorized consignment collection method when charging utility fees as approved by local PBC branch.