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Corporate Trade Exchange (CTX)

Corporate Trade Exchange (CTX)

What Is the Corporate Trade Exchange (CTX)?

The corporate trade exchange (CTX) is an electronic funds transfer system utilized by companies and government agencies to make recurring payments to a number of gatherings with a single electronic funds transfer (EFT).

The CTX system replaced the corporate trade payment (CTP) system in the late 1990s; the CTP had been the primary between business payments platform from 1983.

How the Corporate Trade Exchange (CTX) Works

The utilization of CTX requires the agreement of the two players to permit fund transfers. This is called a trading partner agreement.

Each fund transfer through the CTX payment system contains several snippets of data that take into consideration the aggregation of payments. This data is contained in an attached record of variable length, called an addendum record. The addendum record contains extra data, like beneficiary identification, taking into consideration accurate payment and tracking.

Since the CTX design considers a large number of addenda records, a single CTX payment can cover several solicitations as full data of each invoiced transaction will be sent together with the total payment.

Fast Fact

The CTX was initially adopted by the federal government to handle indistinguishable recurring payments, similar to social security checks, to a large number of beneficiaries.

Special Considerations

Systems like the CTX have been being used since the mid-1970s. These were initially adopted by the federal government as an additional efficient means of processing indistinguishable recurring payments to numerous beneficiaries. Social Security checks are a model. Prior to the CTX, the primary payments platform was the Corporate Trade Payment (CTP) system, which was sent off in 1983 to enhance the legacy ACH systems of the '70s. CTP, nonetheless, additionally couldn't keep up with mechanical advances in data processing and was eventually phased out with the section of the Debt Collection Improvement Act of 1996.

The CTX system makes tracking payments simpler and adds greater transaction records with each payment. The CTX system likewise remedied issues with the data content standard that the CTP utilized, which made it hard to use now and again. The Corporate Trade Exchange further developed the data architecture and capacity further, utilizing a standard known as ANSI X12, and the CTX stays being used to this day. X12 is an ANSI-licensed standard for interoperable electronic data interchange standards.

Payments made through the CTX actually go through a automated clearing house (ACH) permitting each payment to clear in a single day. CTX is presently utilized regularly for business-to-business payments. The system can be utilized for debits as well as credits.


  • The CTX took the place of the obsolete corporate trade payment (CTP) platform after it was phased out in 1996.
  • The Corporate Trade Exchange (CTX) is an automated clearing house (ACH) system utilized by companies and government agencies to follow and automate recurring payments.
  • The CTX system considers tracking of payments alongside extensive record-keeping for each payment, taking into consideration numerous solicitations to be covered in a similar payment.