ISO 20022: Survival Guide

15 | Treasury and Trade Solutions ISO20022 has introduced a set of messages covering all the needs of corporates and bankers, and flexible enough to embrace all current and future local specifics. Payment messages can be regrouped in three main classes, each of them corresponding to one step of the payment processing chain. What typeofmessageshould I use? Take a deep dive in to pacs.008 & pacs.009 message flows in our Mini-Series Part 2 here Material When to use a pacs message? Clearing and Settlement: This category of messages is sent between banks to clear the transaction information and settle the related funds. These messages are specifically designed to facilitate the clearing and settlement of wire transfers, direct debits and cancellations directly between banks or via an automated clearing house (ACH) and real-time gross settlement systems (RTGS). • pacs.008 FI To FI Customer Credit Transfer • pacs.009 Financial Institution Credit Transfer • pacs.003 FI To FI Customer Direct Debit • pacs.004 Payment Return MT 103 MT 103 B C A pacs.008 pacs.008 B C A MT 103 pacs.008 Party MT 103 Party pacs.008 Ordering Customer Debtor A Ordering Institution A Debtor’s Agent B Intermediary Institution B Intermediary Agent 1 C Intermediary Institution C Intermediary Agent 2 D Account with Institution D Creditor’s Agent Beneficiary Creditor Example Flows: