Sepa Credit Transfer RETURN FLOW “A ‘Return’ occurs when a SEPA Credit Transfer is diverted from normal execution after inter-PSP Settlement and is sent by the Beneficiary PSP to the Originator PSP for a SEPA Credit Transfer that cannot be executed for valid reasons” – EPC rule book. In this article we will discuss SEPA credit transfer RETURN FLOW. Basically,...
SEPA Credit Transfer – Reject flow : Even though the happy path is the most common case, there are always exceptions and the different parties in an SCT payment chain can reject the payment due to several reasons. The status of the payment has to be conveyed to the ordering customer so that corrective action can be taken. Let us...
Sepa Credit Transfer – Happy Path: Now that we understand the primary actors of the 4 corner model it is time to seal that understanding by taking an example of the happy path of an Sepa Credit Transfer scheme. We will discuss about the different messages that are involved and in which order they are exchanges between the different actors....
By – Nagaraj S R Banking Consultant & Trainer – LinkedIn 1. Overview of SWIFT SWIFT – Society for Worldwide Interbank Financial Telecommunication, a communication platform that allows members to connect and exchange financial messages securely and reliably. SWIFT acts as the catalyst that brings the financial community together to work collaboratively to share market practice, define standards and consider...
BOOKS & COURSES Here are some books related to payments and related areas that can help you develop your knowledge BOOKS
SEPA credit transfer – Introduction: SEPA credit transfer (SCT) is a payment instrument used to execute credit transfer payments between 2 customer accounts within SEPA. SCTs are push payments, which means that the debtor initiates the payment and the funds are received by the creditor. I am confident that we all must have initiated a normal credit transfer payment in...
SEPA Clearing and Settlement Mechanism: CSMs are very important for the transfer of funds from one bank account to another if both the accounts are not with the same bank. PSPs who are part of the SEPA payment scheme have to choose a CSM in order to comply with the reachability requirements of the scheme in which they are participating....
SEPA messages: SEPA payment messages are based on ISO20022. You might ask “What is that ??”. Before we go there, I just wanted to recap what we have discussed so far as they are very important for us to understand this article. If you need additional details on these points just read the previous articles. SEPA is an area under...
Payments Scheme: Getting right to the topic, SEPA has 4 payment schemes SEPA credit transfer (SCT) SEPA instant credit transfer (SCT Inst) SEPA direct debit core (SDD core) SEPA direct debit business-to-business (SDD B2B) Every year 43 billion transactions are processed by PSPs that fall in either one of these schemes. Yes, it was not a typo, the number is...
Key Stakeholders: Let me be honest here. This article is for me 😊. Someone asked me how the different stakeholders in Europe contribute to SEPA? I tried finding the answer. After some serious reading, I wanted to summarize my understanding in such a way that it’s easy for me and others to refer to. The scope of this article is only...
