The One-Leg Out (OLO) Instant Credit Transfer (OCT Inst) scheme is the newest EPC scheme dedicated to international instant credit transfers. It covers the set of rules, practices and standards to achieve interoperability for the provision and operation of the Euro Leg of an international instant credit transfer agreed at inter-payment service provider (PSP) level within SEPA.
The OCT Inst scheme empowers PSPs in the Euro Leg to use as best as possible the existing SEPA payment ‘rails’ - including procedures, features and standards - that are reflected in arrangements which PSPs are already familiar with such as the SEPA Instant Credit Transfer
(SCT Inst) scheme and the existing SEPA payment infrastructures.
It enables PSPs in SEPA to efficiently process incoming and outgoing OLO instant credit transfers through highly automated funds transfer systems available in the Euro Leg and, if available, via similar systems in the respective non-Euro Leg countries or jurisdictions.
It gives PSPs in SEPA the opportunity to offer their customers a faster execution of such international payment transactions, more up-front transparency on costs and parties involved, and a better payment status traceability.
Key benefits of the OCT Inst scheme
Payers and Payees
- Payers and Payees in the Euro Leg have an account-to-account (A2A) based payment solution supporting both incoming and outgoing international instant euro credit transfers.
Clear maximum execution times (i.e. a few seconds only) are set for the Euro Leg of such transfers. The services based on the OCT Inst scheme for the Euro Leg are available 24 hours a day and on all calendar days of the year.
Depending on the performance of the channel used in the non-Euro Leg jurisdiction where the transaction is coming from or going to, this may lead to a more rapid and predictable end-to-end execution of international payments.
- Attributes are foreseen to provide Payers and Payees with better transparency on costs for all parties - both those inside and outside of the Euro Leg - as well as on payment status traceability (e.g., via the option of using the Unique End-to-End Transaction Reference (UETR)).
- The scheme relies on open and commonly accepted standards and data elements which help to improve the initiation and reconciliation of such transfers on a Straight-Through-Processing (STP) basis.
- The scheme also supports the possibility to send or to receive remittance data end-to-end on either a structured or unstructured basis.
- The maximum amount of 100.000 EUR per OCT Inst transaction can support a wide variety of payment use cases.
Euro Leg-based Payee’s PSPs and Payer’s PSPs
- The scheme allows these Euro Leg PSPs to offer account-to-account based payment solutions supporting both incoming and outgoing international instant credit transfers. It gives them the possibility to offer their Payees and Payers a faster execution of such transactions, more up-front transparency on costs and on the parties involved in/concerned about, and a better payment status traceability (e.g., via the option of UETR and inquiry use cases).
- The scheme sets well defined processing timelines and steps for OCT Inst transactions in the Euro Leg.
It also enables more efficient and cost-effective processing, clearing and settlement for these credit transfers within the Euro leg, using the ISO 20022 XML messaging standard and existing intermediary PSPs and Clearing and Settlement Mechanisms (CSMs) operating in the Euro Leg. The scheme aims at maximum possible alignment with the SCT Inst scheme.
- The clearing and settlement for such credit transfers through Euro Leg-based intermediary PSPs and CSMs, and through the preferred non-Euro Leg channels (e.g., national payment infrastructures, schemes or systems) will potentially improve the liquidity management for those PSPs involved (e.g., via the offset between incoming and outgoing payment positions). It may also allow these PSPs to optimise the number of euro correspondent banking relationships.
- The scheme supports concepts, processes and attributes covered in the Cross Border Payments and Reporting Plus (CBPR+) and Cross-Border Instant Payments Plus (IP+) guidelines of SWIFT. This will facilitate the processing of such transfers based on better structured and richer data under the ISO 20022 XML messaging standard.
- These PSPs can also rely on a predictable and automated r-transaction handling and inquiry processing.
Euro Leg Entry PSPs and Exit PSPs
- These PSPs can develop new business models by offering OCT Inst transaction services in the role of Euro Leg Entry PSP and/or Euro Leg Exit PSP for both Euro Leg-based PSPs and non-Euro Leg Financial Institutions.
- They can offer a standardised way of processing the Euro leg of international instant credit transfers and re-use the existing SCT Inst rails to process them.
Find out more about the latest publications related to the OCT Inst scheme:
- Infographic on the OCT Inst Scheme
- Q&A about the OCT Inst Scheme
- 2023 OCT Inst Rulebook Version 1.1
- Maximum Amount for Instructions under the 2023 OCT Inst Rulebook Version 1.1
- OCT Inst Scheme Customer-to-PSP Implementation Guidelines 2023 version 1.0
- OCT Inst Scheme Inter-PSP Implementation Guidelines 2023 version 1.0
- Guidance on reason codes for OCT Inst R-transactions
- OCT Inst scheme adherence pack
- Template to Propose a Change to the EPC Payment Scheme Rulebooks
OCT Inst scheme evolution calendar:
28 November 2023
- Until 31 December 2023
Possibility to submit change requests to the version 1.1 of the 2023 OCT Inst rulebook
- Between March and June 2024
Three-month public consultation
- November 2024
Publication of the next rulebook (entering into effect as of November 2025)