CORPORATE TRADE PAYMENT (CTP)

A previous form of transferring funds electronically. The corporate trade payment (CTP) system was used by corporate and governmental entities to pay creditors using the automated clearing house (ACH) system. This form of payment became obsolete, due to its lack of flexibility.

The CTP system was discontinued in 1996. It was replaced by the corporate trade exchange (CTX) system, which provided for easier tracking of payments. One of the problems with the CTP system was its inability to provide adequate informational records with each payment, a problem rectified with the CTX system.