This paper analyzes the legal problems concerning the settlement of interbank payments. After a description of the various mechanisms which at present are available to settle payments between financial institutions, the article focuses on the applicable law and on the liability of the intermediaries in case of default in the execution of the payment order. Furthermore, we analyze the issues surrounding the bankruptcy of a financial institution during the settlement of the payment order. The last chapter of the paper includes an analysis of the Belgian law of 28th april 1999, which implements the European directive on settlement finality in payment and securities stettlement systems.