Request Real-Time Payments

When dealing with real-time payments, especially in business-to-business (B2B) and consumer-to-business (C2B) environments, it’s common to use standardized message formats to ensure accurate and efficient processing. One of the widely used formats for real-time payments and "Request for Payment" (RFP) messages is based on ISO 20022. Here's a breakdown of the concepts and formats used in B2B and C2B scenarios for real-time payments:

1. ISO 20022 Standard

ISO 20022 is a global standard for financial industry messaging, enabling businesses and financial institutions to exchange payment instructions and related data. It is often used for real-time payment messaging and Request for Payment (RFP) messages.

2. Request for Payment (RFP)

A Request for Payment message can be sent from a business (B2B) or a consumer (C2B) to ask for payment from a counterpart. The message typically contains the following information:

• Invoice Information: Details about the invoice or payment obligation (e.g., invoice number, amount, due date).
• Creditor Information: The business or individual sending the RFP, including name, bank account, and address.
• Debtor Information: The business or consumer expected to make the payment.
• Payment Terms: Instructions on how and when the payment is expected.
• Remittance Information: Data that links the payment to the invoice (e.g., reference number or purpose of the payment).

3. File Format

While the exact format can vary depending on the platform and the region, the typical file format used for such messages could be an XML-based format as outlined in the ISO 20022 Payment Initiation (pain.013) or Request for Payment (pain.011) messages.

4. Sample ISO 20022 Request for Payment Message

Here’s an example of what a simplified "Request for Payment" message might look like in XML format based on ISO 20022:

xml

<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pain.013.001.06">

   <RfpMsg>

      <GrpHdr>

         <MsgId>RF123456789</MsgId>

         <CreDtTm>2024-09-14T08:30:00Z</CreDtTm>

         <NbOfTxs>1</NbOfTxs>

         <CtrlSum>100.00</CtrlSum>

         <InitgPty>

            <Nm>Requesting Company Name</Nm>

         </InitgPty>

      </GrpHdr>

      <Rfp>

         <RfpId>INVOICE-12345</RfpId>

         <PmtInf>

            <PmtMtd>TRF</PmtMtd>

            <Amt>

               <InstdAmt Ccy="USD">100.00</InstdAmt>

            </Amt>

            <ReqdExctnDt>2024-09-20</ReqdExctnDt>

            <Cdtr>

               <Nm>Company XYZ</Nm>

               <PstlAdr>

                  <Ctry>US</Ctry>

                  <AdrLine>123 Business St</AdrLine>

               </PstlAdr>

            </Cdtr>

            <CdtrAcct>

               <Id>

                  <IBAN>US12345678901234567890</IBAN>

               </Id>

            </CdtrAcct>

            <Dbtr>

               <Nm>Debtor Corp</Nm>

               <PstlAdr>

                  <Ctry>US</Ctry>

                  <AdrLine>789 Consumer Rd</AdrLine>

               </PstlAdr>

            </Dbtr>

            <RmtInf>

               <Ustrd>Invoice Payment - INVOICE-12345</Ustrd>

            </RmtInf>

         </PmtInf>

      </Rfp>

   </RfpMsg>

</Document>

5. Components of the File

• Document Header (GrpHdr): Contains meta-information like the message ID, creation date, and initiating party details.
• Request for Payment (Rfp): The core section containing the payment request, including the invoice, creditor, debtor, and remittance details.
• Payment Information (PmtInf): Includes the payment method (TRF for transfer), amount, and the required execution date.
• Remittance Information (RmtInf): Provides unstructured data that helps the receiver identify what the payment is for (e.g., invoice reference).

6. Use Cases

• B2B: A business can send a Request for Payment to another business to settle an invoice.
• C2B: A consumer might receive a Request for Payment from a service provider, utility company, or retailer, which they can use to make a real-time payment.

7. Key Advantages

• Standardization: ISO 20022 provides a consistent and global standard, making cross-border and cross-industry communication easier.
• Efficiency: Real-time payments enable faster settlements, improving cash flow and reducing the need for manual reconciliation.
• Transparency: RFP messages can carry detailed information about the payment, reducing disputes or delays.

8. Integration

This format can be integrated with real-time payment platforms such as:

• SEPA Instant Credit Transfer (SCT Inst) in the Eurozone.
• FedNow or RTP (Real-Time Payments) in the US.
• Faster Payments Scheme (FPS) in the UK.
• Other regional real-time payment networks.

This message format is widely adopted, but individual financial institutions or service providers may have slightly different implementations or requirements for fields.