Sepa Credit Transfer – Happy Path

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....

SWIFT – A Communication Platform

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...

Payments Books and Courses

BOOKS & COURSES Here are some books related to payments and related areas that can help you develop your knowledge BOOKS

SEPA credit transfer – Four Corner model

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

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 Payment Messages

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...

SEPA Payments Schemes

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...

SEPA stakeholders

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...

Introduction to SEPA

Introduction Since the inception of the European Union and the introduction of the EURO currency, there was a big gap as far as payments were concerned. There wasn’t a unified payment method or framework for the unified market. SEPA was created to resolve this problem in the year 2008. What is SEPA? Single Euro Payments Area is a payment scheme...

Misc Payment Concepts

Misc Payment Concepts Now that we have seen how payments and payment processing work in general, we can now move on to understand some payment-related terminologies with some examples. These are crucial to further our understanding of the different payment systems. SWIFT SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It is a co-operative of banks that provide the...