Drive Value with the ISO 20022 Validator Tool
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The document discusses ISO 20022, a messaging standard aimed at enhancing modern financial services, and highlights the gap in awareness and strategic drivers for its adoption in the U.S. market. It outlines initiatives by Nacha and other organizations to promote ISO 20022, including the development of a mapping guide for ACH payments and the launch of a request for payment program. The content also references the establishment of new payment systems and ongoing stakeholder activities aimed at improving domestic and cross-border payment efficiency.
Drive Value with the ISO 20022 Validator Tool
- 1. Drive Value with the ISO 20022 Validator
- 2. 2 Getting To Know Us Michelle A. Palombo Managing Director, Global Client Access Nasreen Quibria Senior Advisor, Innovation & Technology
- 4. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 4 What is ISO 20022? A standard for standards – a “recipe” or a standardized approach to building message standards across financial services
- 5. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 5 What is ISO 20022?
- 7. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 7 Very familiar Not very familiar Somewhat familiar Not at all familiar Source: 2012 Remittance Coalition Study Source: 2013 U.S. Stakeholder Group - The Federal Reserve Bank of NY, The Clearing House, NACHA, X9 - ISO 20022 Business Case Study Key Observations in the U.S. Market Then… › Lack of awareness › Demand driven by global banks and corporations › No compelling financial business case, but potential strategic reasons to consider adoption Phase Recommendation 1. Planning & Education Promote educational efforts and develop a national strategy for adoption 2. Cross-Border Payments Enable cross-border wire payments, followed by cross-border ACH payment 3. Domestic Payments Assess value proposition and timing for adoption for domestic wire and ACH payments Additional Consideration Consider as the standard messaging format for new products and serviceNACHA Launches XML-ACH Remittance Opt-In Program Herndon, VA., 2013 What’s Happening In The U.S.? © 2015 Q INSIGHTS
- 8. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 8 ISO 20022 Activities In The U.S. …And now NACHA Enhances ISO 20022-to-ACH Mapping Guide HERNDON, Va., Nov. 16, 2016 – NACHA – The Electronic Payments Association® announced today that it has published an enhanced version of its ISO 20022-to-ACH Mapping Guide to assist financial institutions in translating ISO 20022 payment instructions into ACH payments for their business customers. The Guide, which previously only provided information to map ISO 20022-formatted payment messages to corresponding ACH Network business credit and international transactions, now includes instructions for mapping debit and additional credit transactions, rejections and returns, as well as Same Day AC. HERNDON, Va., March. 13, 2018 – Today, NACHA—The Electronic Payments Association® announced the launch of its new Request for Payment program. The Request for Payment program leverages the ISO 20022 message standard to enable businesses of all sizes to send electronic invoices and receive corresponding payment and remittance through the ACH Network. The program, which is voluntary, provides for consistency in process across enterprise applications and platforms, creating efficiencies, increased control, and cost savings NACHA Launches Program to Support Standardization of B2B ACH Transactions
- 9. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 9 ISO 20022 Activities In The U.S. …And now › The ISO 20022 Stakeholder Group proceeding on the following workstreams: – Wires: Federal Reserve Banks (Wholesale Product Office), TCH (CHIPS and X9) – ACH: Federal Reserve Banks (Retail Payments Office), TCH (EPN), NACHA and X9 Strategy #4 – Achieve greater end- to-end efficiency for domestic and cross border payments (2015 and beyond) Legacy format preparation for ISO 18 months from start date Phase I November 23, 2020 Fedwire / CHIPS begin production rollout Rollout complete and sunset legacy format (TBD) And beyond2020 Phase IIIPhase II ISO enhancements ISO like for like 3 months post Phase II
- 10. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 10 ISO 20022 Activities In The U.S. …And now First New Core Payments System in the U.S. in more than 40 Years Initiates First Live Payments New York, NY (November 14, 2017) – Yesterday, The Clearing House (TCH) launched RTP®, its real-time payments system, the first new core payments infrastructure in the U.S. in more than 40 years. The new RTP system was designed and built through the collaborative effort of TCH’s 25 owner banks and meets the objectives of the Federal Reserve Faster Payments Task Force. RTP is open to all U.S depository institutions with a goal of reaching ubiquity by 2020. Payment Acknowledgement by Receiver Message from the receiver to the sender regarding payment disposition Credit Transfer Basic multi-purpose message, including remittance Request for Payment To support P2P funds request, e-invoicing or e-billing Remittance Advice Extensive remittance detail in the Credit Transfer Message Request for Information & Response Receiver request for additional information about a payment Real-Time Payments ISO 20022 Message Set
- 12. BNY Mellon’s Experience with ISO 20022 NACHA Payments 2018 Michelle Palombo Senior Group Manager for Global Client Access May 1, 2018 BNY Mellon Treasury Services
- 15. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 15 NACHA ISO 20022 Validator visit iso20022.nacha.org and register
- 17. Thank You – Questions? …Let’s Connect (m) 617.388.6207 nquibria@nacha.org nasreenquibria @nquibria Michelle A. Palombo |Managing Director, Global Client Access (o) 412.236.2303 michelle.palombo@bnymellon.com Nasreen Quibria | Senior Advisor, Innovation and Technology 17
- 18. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 18 • ISO: http://www.iso20022.org/ • NACHA: https://www.nacha.org/ISOresources • CGI – Market Practice: http://corporates.swift.com/en/cgi-mission-and-scope • Federal Reserve Banks: https://fedpaymentsimprovement.org/payments-efficiency/iso- 20022/ • SWIFT: https://www.swift.com/standards/about-iso-20022 • Canadian Payments Association (CPA): https://www.cdnpay.ca/imis15/eng/Our_Initiatives/eng/initiatives/ISO_20022.aspx • European Payments Council (EPC): http://www.europeanpaymentscouncil.eu/index.cfm/sepa-credit-transfer/iso-20022- message-standards/ • IFX: http://www.ifxforum.org/home/ • Payments UK: http://www.paymentsuk.org.uk/policy/payment-industry- standards/iso20022 Appendix – Resources
- 19. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 19 Login screen
- 20. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 20 Landing Page
- 21. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 21 File Upload
- 22. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 22 Validated ISO File Logical View ISO XML View
- 23. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 23 Invalid File with Errors 2. Errors highlighted (with tool tips) 1. Summary of all validation errors 3. Easy to fix errors 1 2 2 3
- 24. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 24 Message Repair and Revalidation 5. Re-test 6. Download repaired file 4. Edit field values 4 5 6
- 25. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 25 Compare Original vs Repaired Files Field value updated Field / section added Field / section deleted
- 26. © 2018 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties or legal advice, and is intended for educational purposes only. 26 Downloadable Files Downloadable Report includes: › Logical view › Raw message › Inline comparison 1 2 Downloadable ISO 20022 XML File