Harmonised use of bank-to-customer messages facilitates end-to-end processing of transactions
Ultimately, the "outcome" of a payment transaction must be communicated by a bank to the customer. Such communication takes place, for example, vi a account statements informing bank customers about payment transactions processed on their account. The recommendations on customer reporting of Credit Transfer and Direct Debit transactions now available are based on the ISO 20022 cash management messages (camt) which allow for uniform mapping of transactions on the account statement.
The ISO 20022 Cash Management Messages (camt)
The ISO1 20022 camt family contains three messages which are specifically dedicated to the information that banks provide to their customers regarding payment transactions processed on their account. Those messages are:
- camt.054, Bank to Customer Debit/Credit Notification
- camt.053, Bank to Customer Statement
- camt.052, Bank to Customer Account Report.
These three messages are applicable to any kind of payment transactions including credit transfers or direct debits, for example, to be reported to the account owner; e.g. the bank customer. To ensure that current reporting practices of banks can be accommodated, the recommendations on how to map and SDD Rulebook requirements to the ISO cash management messages were developed following approval of these messages by ISO and feature all of the required data sets.
The recommendations on customer reporting for Credit Transfers and Direct Debits
The recommendations on customer reporting allow for the uniform mapping of and SDD Rulebook requirements to the ISO 20022 cash management messages whilst respecting the fact that practices with regard to reporting on payment transactions are currently very diverse across different banking communities and customer segments.
The recommendations therefore enable competitive services to be provided by banks with regard to customer reporting based on their individual agreements with customers which may range from restricted information in mass payments to tailor-made reporting, from instantaneous transaction per transaction information to global periodical transaction reporting. As a result, banks are able to adjust outgoing reports based on the ISO messages according to the needs of their customers whilst ensuring that all data carried with a transaction are transported.
The strongly recommends that scheme participants apply the Implementation Guidelines for the initiation of transactions and follow the recommendations on customer reporting to their customer-to-bank and bank-to-customer communication channels, respectively.
Eric Veronneau is a member of the Payment Schemes Working Group (SPS WG) and of the SPS WG Standards Task Force.
- International Organisation for Standardisation (www.iso20022.org). The data formats enabling the exchange of information along the payment processing chain (customer to bank, bank to bank, bank to customer) are a subset of the global ISO 20022 messages standards.
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