1. Cross Border User Guide
  2. Cross Border Maintenances
  3. SWIFT Pricing
  4. SWIFT Pricing Preferences
  5. Charge Processing for Cross Border/ RTGS transactions

Charge Processing for Cross Border/ RTGS transactions

  • While processing cross-border/ RTGS transactions, system refers to the new the maintenance for price code pick up if internal charges are applicable.
  • OUR charges is processed as follows:
Transaction Type OUR option-charge processing changes Claim Processing changes
outgoing
  • Bank’s own charges will be calculated and collected from the customer based on the price code maintained in e SWIFT Pricing Preferences Detailed (PMDSWPRF) for OUR charge bearer type (if not available, default price code)
  • No change in Receiver charge pick up
 There will not be any change in inbound claim processing related to outbound payments
Incoming
  • Charges will be calculated based on the Receiver charge code linked to Outbound Claim Preferences (PXDSRIMT)

    Note:

    In the Inbound transaction OUR pricing processing: If 'Rule Based Pricing' is checked in Claim preferences, the system computes the expected Receiver charge amount by applying Pricing Rule framework.

    If Pricing rule is not applicable - no rule is satisfied, the system computes the expected Receiver charge amount using the Receiver Pricing Code.

  • Price code can contain multiple components including tax components. Income/tax payable accounting will be done componentwise.
  • If charge currencies can be different.
  • The debit amount will be calculated by converting the charge currencies to debit currency (transfer currency).
  • While doing the price value pick up from Pricing Value Maintenance (PPDVLMNT), system will consider the customer as the customer ID linked to the Sender BIC. If no customer ID is linked, customer will be considered as ‘ALL.
  • Charge/tax amount to be collected will be first recovered from 71 G amount, if available.
  • If the computed amount is greater than 71G amount, the difference will be claimed by sending out MT 191 claim message. If the transaction is gpi enabled, then MT 191 claim will be suppressed
  • If the claim payment is received in excess, the difference amount will be credited to income GL.Receiver charge accounting template linked in PMDNCPRF will be used for accounting.
  • If the claim amount received is less, and the difference is within the tolerance maintained, then it will be expensed out. Existing accounting will be continued, i.e. accounting templates for debit /credit liquidation maintained in PMDNCPRF will be used. Expense GL maintained in Charge Claim Default preferences will be debited in DRLQ and Receivable GL from the same maintenance will be credited.
Pass through Same as Incoming transaction type Same as Incoming transaction type

Note:

Based on the system parameter 'SEND_CLAIM_FOR_VOSTRO' value, the system generates Outbound Charge Claim (MT 191) request message even when Debit Account is of type 'Vostro' instead of debiting the Vostro account. Applicable for Incoming / Passthrough.

Parent topic: SWIFT Pricing Preferences