Outbound Transaction Processing in Oracle Banking Payments (OBPM) refers to the workflow, validation, routing, and execution of payment transactions that are initiated within the bank and transmitted to external entities such as other banks, clearing systems, or payment networks.

Outbound payments follow the below listed processing steps:

• Settlement Instruction
  Settlement Instruction in Outbound Transaction Processing refers to the step where the system determines and records how and through which channels the payment will be settled.
• Non-STP Check
  Validates the transaction for exceptions that prevent Straight Through Processing and routes failed transactions for manual review.
• Bank Redirection
  This step involves rerouting outbound transactions to the appropriate banking institution based on predefined business rules and payment instructions.
• Account Redirection
  Routes outbound transactions to the correct beneficiary account using predefined rules and account mapping to ensure accuracy and compliance.
• D to A Conversion
  Refers to the process of converting demand (D) deposits or balances into account (A) debits during outbound transactions. This ensures that funds are properly debited from the relevant account type before processing the transaction.
• Account Derivation
  Identifies and assigns the appropriate source and destination accounts for outbound transactions, based on predefined rules and transaction details.
• Debtor IBAN Defaulting
  Debtor IBAN Defaulting is the step where the system automatically populates the Debtor Account IBAN.
• Receiver Derivation
  Determines the appropriate receiver account for the transaction based on predefined rules and account mapping logic.
• IBAN Validation
  Validates the creditor account IBAN based on country-specific rules and IBAN maintenance tables to ensure accurate transaction processing.
• Special Character Validation
  Checks transaction data for invalid or unsupported special characters to ensure compliance with payment network standards.
• Settlement Method/Account Derivation
  This step identifies the appropriate settlement method and corresponding account for each outbound transaction, based on predefined rules and transaction details.
• Nostro to Nostro Transfer Processing
  Refers to the transfer of funds between a bank’s own Nostro accounts held in different banks or locations. It is used to manage liquidity, fund foreign accounts, and facilitate cross-border payments.
• Date Derivation
  Determines and assigns the relevant processing or settlement dates for outbound transactions based on predefined business rules and transaction details.
• PSD Validation
  Ensures that outbound transactions comply with the requirements set by the Payment Services Directive (PSD).
• Customer Payment Restriction Validation
  Ensures that outgoing transactions comply with predefined customer payment restrictions, preventing unauthorized or non-compliant payments and supporting regulatory and risk management controls. Validates if the Credit Account or Customer is subject to any payment restrictions before processing the transaction.
• Duplicate Check
  Checks whether a transaction is a duplicate to prevent multiple processing of the same payment.
• Special Instructions Validations
  Validates special instructions maintained for the Debit Account before processing the transaction.
• Authorization Limit Validations
  Validates the transaction amount against defined authorization limits and routes it to the appropriate authorization queue.
• Processing Cutoff Validation
  Validates the transaction against the processing cutoff time to ensure it is processed within the allowed period.
• EU Payer Validation
  Validates the payer’s account and compliance with EU regulations before processing the payment.
• Sanctions Check
  Identifies and blocks any transaction involving individuals, entities, or countries that are subject to economic or trade restrictions.
• Exchange Rate/FX Processing
  
• Pricing
  
• Charges Calculation - Charge Bearer - DEBT
  Calculates charges where the debtor (payer) bears the transaction fees.
• External Credit Approval Processing
  Validates and processes outbound transactions that require approval from an external credit system before execution.
• Network Cutoff Validation
  Validates outbound transactions against the network’s cutoff time to ensure timely processing.
• Accounting
  Accounting in Outbound Transaction Processing refers to posting debit and credit entries for outbound payment transactions to ensure the bank’s ledgers remain accurate and comply with accounting standards.
• MIS and UDF
  Refer to the maintenance of reports and analytics (MIS) and custom transaction fields (UDF) in outbound payment processing.
• Messaging
  Generates and transmits the required payment messages to the designated network or channel based on transaction details and processing rules.
• Transaction Cancellation Processing
  Handles the cancellation of outbound payment transactions and updates the system accordingly.
• Future Date Transaction Processing
  Manages outbound payment transactions scheduled for a future date, ensuring they are processed on the intended day.
• Cross Border to RTGS/Fedwire Rule Evaluation
  Evaluates rules for routing cross-border payments to RTGS or Fedwire networks in outbound processing.
• TARGET2 Multi Addressee Support
  TARGET2 multi addressee refers to the capability to manage and process payments to multiple recipients or addressees within the TARGET2 payment system.