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Payment Flow

The document outlines the end-to-end payment flow between a sender and a receiver using online banking. It details the process from the sender initiating a transfer to the receiver's bank processing the payment, including various checks and the use of XML files for communication. The flow involves multiple banking systems and intermediary agents to ensure the transaction is completed successfully.

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Vinod Kumar Amanchi
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3 views3 pages

Payment Flow

The document outlines the end-to-end payment flow between a sender and a receiver using online banking. It details the process from the sender initiating a transfer to the receiver's bank processing the payment, including various checks and the use of XML files for communication. The flow involves multiple banking systems and intermediary agents to ensure the transaction is completed successfully.

Uploaded by

Vinod Kumar Amanchi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Aarish Bhesania 17 DEC 2022

End to End Payment flow


✦ Sender logs into online banking / mobile banking & navigates to transfer page and enters details
and hits send.
✦ Banks channel gets the request from the Front end and translates and sends to Sender banks CBS.
✦ Sender Banks CBS, receives the request runs AML, Account validations & proceeds with
accounting and sends a payment message. Debits Senders account & Credits the same to Banks
settlement account ( Banks will later settle among them self by using a settlement mechanism )
✦ Payment message is sent to Receivers CBS, via a SWITCH, ACH, clearing , central institution or
directly.
✦ Receivers CBS, receives and runs AML, Accounting check & proceeds with accounting , and
credits the receiver, Banks settlement account is debited & Receivers account is credited ( Receiver
bank will receive the payment from Sender bank by agreed settlement mechanism.
✦ Receivers CBS forwards the request to mobile / internet banking channel, which then sends
notification to the Receiver.

Sender OUTWARD PAYMENT FOR Receiver


DEBTOR / SENDER

Channel INWARD PAYMENT FOR Channel


Net banking / CREDITOR / RECEIVER
Net banking /
Mobile banking mobile banking

SWITCH, ACH,
Clearing,
Intermediate Bank,
Central institute

Senders Bank Receivers Bank


Core Banking Payment message Core Banking
System System
Aarish Bhesania. 1

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Tom wants to send money to Jerry,
Aarish Bhesania Tom logs in to his banks net banking 17 DEC 2022
UI/Channel and fills up the details

Jerrys bank processes the


inward pacs.008 , does
Tom’s bank channel (Net Banking , accounting and credits

Camt.5X
Mobile Banking ) converts the data Tom Jerry and sends him a
Pain.001

entered in UI to an XML file this is a report/notification in form


payment initiation file (Pain.001) & of camt.5x(cash
sends it to Toms bank payment Hub/ management messages)
processing system.

Intermediary Agents
Tom’s bank
Pacs.008
processes the
payment and
does accounting
in their books Pacs.002
and sends a
XML file for
Jerrys
Pacs.

payment
Bank
Pacs
clearing and Intermediary agents
sends Jerrys bank an sends
settlement
Inward Pacs.008 the
08

(outward
008
.002

status of
Pacs.008) to
the
Pacs.0

intermediary
received
0

agents so they
Pacs.0

file in
deliver it to
pacs.002
crediting bank TOMS Bank receives the status file
of the sent file in pacs.002 file

TOMS Bank Jerrys Bank

Payment
CBS
HUB Payment CBS
HUB

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Aarish Bhesania 17 DEC 2022

The End.
Please fell free to suggest & add more on it,
For more articles about payments please follow,
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Aarish Bhesania. 3

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