References

-

General Disclosure:

As I Gather most of my information on this Blog from various other sites online, As an honorary mention I would like to try and attempt to list them in the comments section.

Comments

New comments are not allowed.

Popular posts from this blog

SWIFT MT – SERIAL AND COVER METHOD

-
Image
  SWIFT MT – Serial and Cover Method This is one of the most important articles from SWIFT payments’ perspective and it is critical that you fully understand the concepts laid out here. Payments are cleared and settled via 2 primary methods: Through a payment market infrastructure (PMI) Through correspondent banking Through payment market infrastructure: This is the case where bank A and bank B are direct participants of this PMI aka CSM. IN General usage the concept of serial and cover does not apply here but if you put a gun to my head, I would say is very close to the serial method. Through correspondent banking: This is the case where banks open accounts with each other (Nostro/Vostro) and settle funds directly. The prerequisite here is that banks need to open accounts with each other or in other words they need to have an  accounting relationship  with the other bank. Now, let us try to understand the connection between sending/receiving SWIFT messages and the moveme...
Read more

PAYMENT ENGINES

-
Image
  Payment Engines: I am really excited about this topic as it’s my favorite and the one in which I have the most experience. In this article, we will be discussing about a piece of software called “payment engine” . They are part of the bank’s IT ecosystem and they help banks process hundreds of thousands of payments a day seamlessly. In the previous articles, we discussed the different message types and how banks send these messages to each other. Payment engines help banks to send, receive and process payments. We will discuss only credit transfers here. Direct debits can be parked for the Future. We will approach this subject  without any particular payment engine or message scheme in our minds . Once we get the bigger picture knowing specifics will be much easier. A0501 From a payment engines’ perspective there are 4 types of payments: Incoming Outgoing Book Redirect We will briefly see what these types are and then dive right into the flows. Banks processes each of these ...
Read more

SWIFT MTS – BLOCKS 1 THROUGH 5

-
Image
  SWIFT MTs – Blocks 1 Through 5 We have discussed in our previous article that there are 5 blocks in a SWIFT MT message. Now we will dive deep into each of these blocks and try to understand them in detail. Please save this page for your future reference (At least till 2025) There are some common details and we will try to understand what they are All the blocks start with “{” The Block number or block identifier will be displayed at the very beginning followed by a “:” (Separator) This will be followed by the contents of the block The block will end with a “}” Basic Header Block (Block 1 ) This block is the only mandatory block and contains general information identifying a message.  Let us now dissect the block {1:F01CITIFRPPAXXX0070970817} This can be split into different components ( Split using spaces) {  1  :  F  01  CITIFRPPAXXX  0070 970817} F  – This is application Identifier or AppID . F Indicated that it is a FIN message 01  ...
Read more