1. SEPA Instant Credit Transfer User Guide
  2. SEPA Instant Credit Transfer
  3. Outbound Faster Payments Transaction Input
  4. Outbound Faster Payments Transaction Processes

Outbound Faster Payments Transaction Processes

The time limit for SCT Inst processing by all banks/CSM involved in the process starts from the time stamp put by the Originator’s bank in the outbound message once the required processing is over. Hence, processing queues are allowed for outbound payments for better operational control.

The transaction steps are detailed below:
  • Initial Validations
    • If Creditor Account BIC is not available as part of payment details, the system derives the Creditor Bank BIC from Creditor Account IBAN if IBANPlus details are maintained.
    • Network character replacement is done for characters that are not allowed by the Network if the corresponding maintenance is available.
    • If Account re-direction or bank re-direction is maintained, then the account / bank details is replaced by the values. Account re-direction is applicable for debtor account only
    • Mandatory Fields / Referential data checks are done based on the details received in the payment request and the values populated by the system. Validation is available to verify whether the Creditor Bank Code is allowed for the Network chosen. In case of validation failure, the transaction is rejected.
    • Transfer amount limit check is done for the minimum and maximum amount limits defined for the Network, as maintained in Network Currency Preferences (PMDNCPRF).
    • Customer /Account Status validations – Customer accounts are verified whether account records are open and authorized.

      Note:

      Customer and account status checks are done by the external ECA system along with account balance check.
    • In case of invalid IBAN or Network character validation failure, transaction is moved to repair queue.
  • Duplicate Check

    Duplicate parameters can be maintained for the source. Based on the duplicate days and fields set, duplicate check for the transaction are done. If the transaction is identified as a duplicate transaction, the transaction is moved to business override queue.

  • Sanction Check
    The transaction can be sent for sanction screening to an external system. The external system status can be linked to one of the following system status:
    • Approved
    • Rejected
    • Interim
    • Seized
    • Timed out

    If sanction is approved, the transaction is resumed with the further processing. In case of seizure, if seizure accounting is applicable, then customer account is debited and the Seizure GL is credited. If the status is rejected, interim or timed out, the transaction is moved to sanction check queue.

  • Charge /Tax Computation
    Price code is linked in Network Currency preferences. Internal charge/tax values are picked up from Price value maintenance PMDVLMNT for the price code.

    Note:

    Price fetch from External systems is not supported for SCT Instant payments.
  • Exchange Rate

    The debit account can be in any currency. It is not mandatory to have debit account currency as Euro. The system fetches the internal exchange rate maintained if the transfer amount is within the mall FX limit maintained. If the transfer amount is more than the FX limit maintained and if External exchange rate fetch is applicable, the transaction details are sent to the external FX system for rate fetch. Any failure in rate fetch moves the transaction to exchange rate related Exception queues.

  • Balance Check with DDA (CASA) System
    The debit details are sent to the DDA system for account validation and balance check. The external system status can be linked to one of the following system status:
    • Approved
    • Rejected
    • Interim
    • Timed out
    If balance check is approved, the transaction is resumed with the further processing. If the status is rejected, interim or timed out, the transaction is moved to Credit Approval queue.

    Note:

    It is assumed that DDA system will create an amount block on the debit account for the debit amount on a successful ECA check.
  • Accounting

    Accounting preference can be set at Network preferences for the Outbound transactions. If he preference selected is ‘Before Messaging’ accounting entries will be handed off to Accounting system before Messaging. On payment reject, the reversal entries will be posted.

    If the preference is for posting the accounting ‘On Confirmation from CI’, the accounting handoff will be deferred till positive confirmation is received from CSM.

  • Accounting entries:
    Details in Accounting hand-off Debit Liquidation Credit Liquidation
    Accounting Event DRLQ CRLQ
    Amount Tag XFER_AMT XFER_AMT
    Transaction Account Debit Customer Account Faster Payment Clearing GL maintained in the Accounting code. If Nostro Account is maintained in PMDNCPRF that account is considered.
    Offset Account Intermediary GL: This is picked from the Debit Liquidation Accounting code maintenance Intermediary Gl: This is picked from the Credit Liquidation Accounting code maintenance.
    Transaction Currency Debit Account Currency Transfer Currency
    Transaction Amount Debit Amount Transfer Amount
    Value Date Transaction Value Date Transaction Value Date
    Offset Currency Transfer Currency Transfer Currency
    Offset Amount Transfer Amount Transfer Amount
    Local Currency Amount Transfer amount (in Local Currency) Transfer amount (in Local Currency)
  • Messaging

    Every payment generates a pacs.008 message with group header details. Time stamp put in the message are stored for the transaction.

    While generating the pacs.008 message, the following values are populated for SCT Inst:
    • Instructing Bank –This is populated as BIC of length 8 from the BIC maintained in Dispatch parameters for service type SCT
    • Instructed Bank - EBA IPS BIC is fetched from Network maintenance
    • Clearing system Proprietary value is IPS
    • Settlement method is CLRG
    • Service level code is populated as SEPA
    • Local instrument code is INST
    • Charge bearer value is populated as SLEV

    The message is forwarded to Clearing Infrastructure.

  • Response Handling
    • The Accept or Reject confirmation is received from the CSM in pacs.002 format. For every message sent, a confirmation message is received.
    • The system parses and uploads the received message and based on the status value received ACCP / RJCT, the outbound transaction is further processed.
    • If the accounting is configured to be after confirmation, the accounting entries are handed off on getting a ACCP status.
    • On receiving RJCT status, if the accounting is already passed, reversal entries are posted.
    • if accounting is pending, then Balance block reversal (ECA reversal) request is sent to DDA system.
Notification is sent to debtor customer that indicates the status of the payment.

Parent topic: Outbound Faster Payments Transaction Input