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    Payments System - SEPA Payments - Messages

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    Pranay Sahu
    The document discusses SEPA payments and messages. It defines key terms like SEPA, IBAN, SCT, and DD. It describes the four-corner model and anatomy of SEPA message names. Finally, it provides examples of PAIN, PACS, and CAMT message types and flows for SEPA credit transfers and direct debits.

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    Payments System - SEPA Payments - Messages

    Uploaded by

    Pranay Sahu
    341 views14 pages
    The document discusses SEPA payments and messages. It defines key terms like SEPA, IBAN, SCT, and DD. It describes the four-corner model and anatomy of SEPA message names. Finally, it provides examples of PAIN, PACS, and CAMT message types and flows for SEPA credit transfers and direct debits.

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    Payments system- SEPA payments _ Messages

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    The document discusses SEPA payments and messages. It defines key terms like SEPA, IBAN, SCT, and DD. It describes the four-corner model and anatomy of SEPA message names. Finally, it provides examples of PAIN, PACS, and CAMT message types and flows for SEPA credit transfers and direct debits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    341 views14 pages

    Payments System - SEPA Payments - Messages

    Uploaded by

    Pranay Sahu
    The document discusses SEPA payments and messages. It defines key terms like SEPA, IBAN, SCT, and DD. It describes the four-corner model and anatomy of SEPA message names. Finally, it provides examples of PAIN, PACS, and CAMT message types and flows for SEPA credit transfers and direct debits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14

    PAYMENTS SYSTEM- #4

    SEPA PAYMENTS & MESSAGES

    WAQUAR AHMAD
    SEPA – Single Euro Payment Area
    IBAN - International Bank Account Number

    The unique identifier for the bank account in SEPA payments. It was originally developed to facilitate
    payments within the European Union but the format is flexible enough to be applied globally. IBAN is used to
    identify an account internationally. An IBAN is unique in the whole word. The length of the IBAN is variable
    depending on the country, but it is fixed in a single country. The IBAN is used to facilitate automated
    processing of cross-border payments and therefore to increase the speed and quality of processing.

    The IBAN structure consists of maximum 34 characters


    And the BBAN limit is 30
    Schemes of SEPA

    SCT - The SEPA Credit Transfer is a push payment initiated by the originator (payer or debtor) who instructs
    his bank to transfer funds from his own account to the beneficiary’s account (payee).

    DD - A SEPA Direct Debit is a pull payment initiated by the Creditor (the payee) to collect funds from the
    debtor’s account (the payer). The debtor signs an electronic or paper mandate to pre-authorise the creditor to
    send direct debit instructions (collections).
    Four corner model
    When we look at the naming of the messages exchanged in SEPA, we see that they all begin with four letters:
    These four letters are inherited from the ISO20022 standard:

    PAIN and CAMT in the Customer-to-Bank space


    PACS and CAMT in the Interbank space

    PAIN stands for PAyment INitiation: Pain messages are used by originators to send instructions to the bank and
    received status report about their execution from the Bank. They are used exclusively in the C2B space.

    CAMT stands for CAsh ManagemenT: In the C2B space, Camt messages are used to inform the customer about
    his cash situation as a result of the execution of instructions or reception of payments. Customers can also send
    camt messages to cancel orders or transactions. In the Interbank space, Camt messages are used to cancel orders
    or transactions as well, but in addition to reply to cancellation requests.

    PACS stands for PAyment Clearing & Settlement: Pacs messages are used to transfer money from one financial
    institution to another financial institution. They are used exclusively in the Interbank space.
    Anatomy of SEPA message name

    The four letters and the three digits after Pacs, Camt or Pain identify a specific message

    The last five digits identify the versioning of the messages.


    Pain.001.001.03 means version 1.3 (001.03) of the pain.001 message. When a new version of the message is
    published, only the last digit is increased. 
    Type of PAIN messages
    Message Name Message ID
    Customer Credit Transfer Initiation Pain.001.001.09
    Customer Payment Status Report Pain.002.001.09
    Customer Payment Reversal Pain.007.001.09
    Customer Direct Debit Initiation Pain.008.001.09

    Type of PACS messages

    Message Name Message ID


    FI to FI Payment Status Report Pacs.002.001.09
    FI to FI Customer Direct Debit Pacs.003.001.08
    Payment Return Pacs.004.001.09
    FI to FI payment Reversal Pacs.007.001.09
    FI to FI Customer Credit transfer Pacs.008.001.09
    SEPA Credit Transfer Messages Flow
    SEPA Direct Debit Messages Flow
    Type of CAMT messages

    Message Name Message ID


    A/C Reporting camt.052.001.09
    A/C Statement camt.053.001.09
    Notification of Debit/Credit camt.054.001.09
    Payment Cancellation Request (C2B) camt.055.001.09

    Payment Cancellation Request (I2B) camt.056.001.09


    SEPA Credit Transfer Messages Flow
    Recall
    4 strategies to understand a cross border payment

    Strategy #1 - The open loop model & CSM

    Strategy #2 - Correspondent Banking & account relationships between banks


    located in different currency zones

    Strategy #3 – Swift network & standards

    Strategy #4 – 4 corner model & SEPA messages


    THANK YOU !!!!

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