Rulebook improvements to facilitate end-to-end straight-through-proces...

Rulebook improvements to facilitate end-to-end straight-through-processing and better reconciliation of accounts receivable

24 October 13

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As a result of stakeholder consultations, the next version of the Credit Transfer Rulebook includes measures aimed specifically at facilitating end-to-end STP for corporate users.  In this way key corporate requirements can be met related to:

Matching of incoming payments against accounts receivable

It is intended to support the use of the ISO Creditor Reference Standard once approved.  This will mean that beneficiaries of high volumes of payments can instruct their customers  to add to the credit transfer instruction a structured reference provided to them together with the invoice.  This reference is unique for the beneficiary, can be checked for correctness by the originator bank (standard check digits), and allows straight through reconciliation with the outstanding receivables.

'On behalf of' payments, for example, to facilitate a corporate in-house bank or payment factory executing payments on behalf of a subsidiary

The addition of the so-called 'reference parties' will allow the two parties involved in the payment to refer to another party involved in the underlying transaction.  In the case of the originator of a credit transfer, the payment might be made by a person or entity on behalf of the person due to pay the debt.  In the case of a beneficiary of a credit transfer, the payment might need to be received by an agent who handles the payments for the beneficiary.

Specification of the reason of payment ('purpose codes')

Inclusion of the 'Category Purpose' and 'Purpose' codes will mean that originators can add specific information to the payment instruction for specifying the reason for making the payment, or for specifying, in agreement with the originator bank, a specific processing to be executed for the instruction.

To achieve this goal, specific data fields are included that can be passed on end-to-end from the originating company to the beneficiary throughout the interbank (clearing) chain.


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