ISO 20022 Status Messages

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					International Payments Framework 13-14 Sept 2007




                              ISO 20022
                              Status Messages

                              James Wills
                              Business Manager
                              Standards
 NACHA Global Payments Forum September 2007        Slide 1
Agenda

ISO 20022 for Payments
Status Messages/Exceptions & Investigations
Questions and Answers




NACHA Global Payments Forum September 2007    Slide 2
ISO 20022 Payments
                          Direct Debit                             Credit Transfer

                 CustomerDirectDebitInitiation                  CoreCreditTransferInitiation
                 pain.008.001.01                                pain.001.001.02


Corporate                                                                                         Corporate
 to Bank                                                                                           to Bank
                                         CustomerPaymentReversal
                                         pain.007.001.01

                                         PaymentStatusReport
                                         pacs.002.001.01 / pain.002.001.02

                                         PaymentCancellationRequest
                                         pacs.006.001.01 / pain.006.001.01

                                         PaymentReturn
                                         pacs.004.001.01
                                         FIPaymentReversal
 Bank to                                 pacs.007.001.01                                           Bank to
  Bank                                                                                              Bank
                                                             FI2FICustomerCreditTransfer
                   FI2FICustomerDirectDebit                  pacs.008.001.01
                   pacs.003.001.01                           FinancialInstitutionCreditTransfer
                                                             pacs.009.001.01

                          Direct Debit                             Credit Transfer                     Slide 3
NACHA Global Payments Forum September 2007
MX messages for SEPA
                          Direct Debit                           Credit Transfer

                CustomerDirectDebitInitiationV01       CustomerCreditTransferInitiationV02
                pain.008.001.01                        pain.001.001.02


Recommended                                                                                 Recommended
                                     CustomerPaymentReversalV01
   for SEPA                          pain.007.001.01                                           for SEPA

                                      PaymentStatusReportV02
                   PAIN               pacs.002.001.02 / pain.002.001.02            PAIN

                                      PaymentCancellationRequestV01
                                      pacs.006.001.01 / pain.006.001.01
                   PACS                                                             PACS
                                      PaymentReturnV01
                                      pacs.004.001.01    
 Mandated                             FIPaymentReversalV01                                     Mandated
 for SEPA                             pacs.007.001.01                                         for SEPA

                                                       FIToFICustomerCreditTransferV01
                  FIToFICustomerDirectDebitV01         pacs.008.001.01                   
                  pacs.003.001.01                     FinancialInstitutionCreditTransferV01
                                                       pacs.009.001.01

                          Direct Debit                                    Credit Transfer
 NACHA Global Payments Forum September 2007                                                          Slide 4
ISO 20022 Related Messages
     5 messages supporting the Credit Transfer and Direct Debit Instructions

         Payments initiation                  Clearing & Settlement



                                      1
        Payment Status Report                  Payment Status Report


                                      2
     Payment Cancellation Request         Payment Cancellation Request



                                                                         3
                                                  Payment Return


 5                                                                       4
      Customer Payment Reversal               FIToFI Payment Reversal




 NACHA Global Payments Forum September 2007                                    Slide 5
ISO 20022 Customer Credit Transfers
 Debtor                       Debtor ’s Agent                        Creditor ’s Agent       Creditor




      CustomerCreditTransfer
      Initiation                          FIToFICustomerCreditTransfer


       PaymentStatusReport                PaymentStatusReport
       (Positive/Negative/Pending)        (Positive/Negative/Pending)


      PaymentCancellationRequest              PaymentCancellationRequest


                                          SETTLEMENT
     PaymentCancellationRequest           PaymentCancellationRequest

                                               PaymentStatusReport
       PaymentStatusReport

          Debit/Credit                           PaymentReturn                  Debit/Credit
          Advice, Statement                                                     Advice, Statement
 NACHA Global Payments Forum September 2007                                                         Slide 6
ISO 20022 Customer Direct Debits
   Creditor                  Creditor ’s Agent                    Debtor ’s Agent            Debtor




    CustomerDirectDebit
    Initiation                          FIToFICustomerDirectDebit


    PaymentStatusReport                PaymentStatusReport
    (Positive/Negative/Pending)        (Positive/Negative/Pending)


   PaymentCancellationRequest           PaymentCancellationRequest


                                          SETTLEMENT
   CustomerPaymentReversal                    FIPaymentReversal
                                                                                    Refund
     PaymentStatusReport                      PaymentStatusReport

      Debit/Credit                            PaymentReturn                  Debit/Credit
      Advice, Statement                                                      Advice, Statement
 NACHA Global Payments Forum September 2007                                                           Slide 7
Agenda

ISO 20022 for Payments
Status Messages/Exceptions & Investigations
Questions and Answers




NACHA Global Payments Forum September 2007    Slide 8
Common Elements to Status Messages

 Group            Header
       – Mandatory, present once
       – Point-to-point message ID
       – # of txns, sum
       – clearing system




NACHA Global Payments Forum September 2007   Slide 9
Common Elements to Status Messages

 Original            Group Information (For Status Msgs)
       – Optional, present once
       – Original message Identification
       – Reason for Action




NACHA Global Payments Forum September 2007              Slide 10
Common Elements to Status Messages

 Transaction         Information
       –    Optional and repetitive
       –    Unique Txn ID
       –    Original msg ID (point-to-point)
       –    Original instruction ID (Instructing party ID)
       –    Original end-to-end ID (Initiating party ID)
       –    Original Txn ID (ID assigned by first instg
            Agt)

NACHA Global Payments Forum September 2007              Slide 11
Usage of Status Messages

 For        use between Financial Institutions
 Can     be used for a single instruction or multiple
     instructions from one or different files
 Can          be used domestically or cross border
 Contains               references to original instruction




NACHA Global Payments Forum September 2007                    Slide 12
 Which Messages Will SEPA use?

 Payment                Status (Report)
 Payment                Return
 Payment                Reversal


 Will       not use
       – Customer Payment Reversal
       – Payment Cancellation Request

NACHA Global Payments Forum September 2007   Slide 13
Payment Status Report

 Arranged   between agents via a bilateral
     agreement or in response to an inquiry
 Contains     predefined codes or the use of a
     proprietary code
 Original   party information and reference
     information is harmonized and carried from
     Customer Transfer message to Status
     message


NACHA Global Payments Forum September 2007        Slide 14
Group Status Codes

    Accepted customer profile
    Accepted cancellation request
    Accepted settlement in process
    Accepted settlement completed
    Accepted with change
    Pending
    Received
    Rejected


NACHA Global Payments Forum September 2007   Slide 15
Status Reason Codes (35 reject codes)

    Closed account
    Incorrect account number
    Blocked account
    Transaction forbidden
    Duplication
    Not allowed currency
    Missing creditor address…….
    Proprietary


NACHA Global Payments Forum September 2007   Slide 16
Transaction Reject Reason Codes
 Code                     Name                                                           Definition
AC01    Incorrect Account Number         Format of the account number specified is not correct.
AC04    Closed Account Number            Account number specified has been closed on the Receiver's
                                         books.
AC06    Blocked Account                  Account specified is blocked, prohibiting posting of transactions against it.
AG01    Transaction Forbidden            Transaction forbidden on this type of account
AG02    Invalid Bank Operation Code      Bank Operation code specified in the message is not valid
                                         for receiver
AM01    Zero Amount                      Specified message amount is equal to zero.
AM02    Not Allowed Amount               Specified transaction/message amount is greater than
                                         allowed maximum.
AM03    Not Allowed Currency             Specified message amount is in a non processable currency outside of existing agreement.
AM04    Insufficient Funds               Amount of funds available to cover specified message amount is insufficient.
AM05    Duplication                      This message appears to have been duplicated.
AM06    Too Low Amount.                  Specified transaction amount is less than agreed minimum.
AM07    Blocked Amount                   Amount specified in message has been blocked by
                                         regulatory authorities.
AM09    Wrong Amount                     Amount received is not the amount agreed or expected
AM10    Invalid Control Sum              Sum of instructed amounts does not equal the control sum
BE01    Inconsistent With End Customer   Identification of end customer is not consistent with
                                         associated account number
BE04    Missing Creditor Address         Specification of creditor's address, which is required for payment, is missing/not correct
BE05    Unrecognised Initiating Party    Party who initiated the message is not recognised by the end customer.


NACHA Global Payments Forum September 2007                                                                                            Slide 17
   Transaction Reject Reason Codes
   BE06                       Unknown End Customer                         End customer specified is not known at associated
                                                                           Sort/National Bank Code or does no longer exist in the
                                                                           books.
   BE07                       Missing Debtor Address                       Specification of debtor's address, which is required for
                                                                           payment, is missing/not correct.
   DT01                       Invalid Date                                 Invalid date (eg, wrong settlement date).
   ED01                       Correspondent Bank Not Possible              Correspondent bank not possible.
   ED03                       Balance Info Requested                       Balance of payments complementary info is requested.
   ED05                       Settlement Failed                            Settlement of the transaction has failed.
   MD01                       No Mandate                                   Mandate is cancelled or invalid.
   MD02                       Missing Mandatory Information In Mandate     Mandate related information data required by the scheme is
                                                                           missing.
   MD03                       Invalid File Format For Other Reason Than    File format incomplete or invalid.
                              Grouping Indicator
   MD04                       Invalid File Format For Grouping Indicator   File format incorrect in terms of grouping indicator.
   MD06                       Refund Request By End Customer               Return of funds requested by end customer.
   MD07                       End Customer Deceased                        End customer is deceased.
   MS02                       Not Specified Reason Customer Generated      Reason has not been specified by end customer.
   MS03                       Not Specified Reason Agent Generated         Reason has not been specified by agent.
   NARR                       Narrative                                    Reason is provided as narrative information in the additional
                                                                           reason information.
   RC01                       Bank Identifier Incorrect                    Bank identifier code specified in the message has an
                                                                           incorrect format.
   RF01                       Not Unique Transaction Reference             Transaction reference is not unique within the message.
   TM01                       Cut Off Time                                 Associated message was received after agreed processing
                                                                           cut-off time.

NACHA Global Payments Forum September 2007                                                                                            Slide 18
Acceptance Date and Time

 Point    in time when the payment order meets
     the processing conditions of the debtor’s agent
     (credit transfer) or creditor’s agent (direct
     debit). This means that the payment order has
     been received and checks applied
     (authorization, availability of funds)




NACHA Global Payments Forum September 2007        Slide 19
Payment Cancellation

 Exchanged      between FIs requesting to cancel a
     previously sent payment message
 Refers     to original instructions by means of
     elements and references contained in the
     original instruction
 Provides              reasons and codes
 Followed               by a Return (if accepted)



NACHA Global Payments Forum September 2007           Slide 20
Payment Return

 Exchanged      after settlement between FIs
     requesting the return of funds
 Refers     to original instructions by means of
     elements and references contained in the
     original instruction
 Provides              reasons and codes
 Provides              for compensation



NACHA Global Payments Forum September 2007          Slide 21
Payment Reversal

 Exchanged      after settlement between FIs
     requesting to reverse a previously executed
     payment
 Refers     to original instructions by means of
     elements and references contained in the
     original instruction
 Provides              reasons and codes
 Provides              for compensation

NACHA Global Payments Forum September 2007          Slide 22
   SWIFTNet Exceptions and Investigations
   Creation of a business protocol
                    Flows                  Xml                         Rules
                                           messages


Debtor                        FirstAgent                       FinalAgent                   Creditor
Corporate                     Financial Institution            Financial Institution        Corporate

  1. RequestToCancelPayment
                                      2. RequestToCancelPayment

   3. NotificationOfAssignement                                         4. DebitAuthorisationRequest
                                        5. NotificationOfAssignment

     6. NotificationOfAssignment

                                                                       7. DebitAuthorisationResponse
                                         8.ResolutionOfInvestigation
    9. ResolutionOfInvestigation


   NACHA Global Payments Forum September 2007                                                  Slide 23
Standardised enquiries content and workflows

                                      16 messages with an integrated workflow
          Investigation
          Manager A                   to cover B2B and C2B needs
Query types
Query types (assign, forward)
(1) Unable to apply                                                              Investigation
(2) Request To Cancel Payment                                                    Manager B
(3) Request To Modify Payment
(4) Claim Non Receipt                                         (6) DebitAuthorisation

  (5) Request for Debit Authorisation          Case Management
  (7) Notification of Additional
      Payment Information                       Resolution of investigation (final)   (1)   Or
                                                     Notification of assignment       (2)   Or
Case Management                                 Request for duplicate instruction     (3)   Or
Or (6) Cancel case assignment                                        Reject case      (4)   Or
Or (7) Duplicate Instruction
                                                 Case Status Response (pending)(5)          -
Or (8) Case Status request


 NACHA Global Payments Forum September 2007                                                 Slide 24
         Q&A
NACHA Global Payments Forum September 2007   Slide 25