TPH
TPH
1
Objectives for the course
2
Introducing the participants to the concept of payments hub
Configuring and processing incoming, outgoing, redirect and book
SWIFT payments
Overview of batch processing (Single debit and multiple credits)
Understand the need and use of warehousing capability, debit
authority, code words balance reservation, TRIP (Track and Trace
Mechanism)
Overview of linkage to STeP (Automated Repair Tool) and AML
(Filtering)
Understand how processed payments can be reversed
Understand how incoming and outgoing claims are processed
Understand configuration of local clearing and how system can be
scaled to support additional clearings
Understand how direct debits (both incoming and outgoing) are
processed
Using reports and enquiries to perform payments monitoring and
analytics
Prerequisites for this Course 3
TPS Day 1
Learning Objectives 6
6
Objectives
MT101 SWIFT
Corporate MT1nn/MT2nn/MT9n
client
pain/
n
bulk files RTGS
Bank
Correspondent
MT101 TPS pain (ISO 20022)
Branch own system, pain/bulks Universal
System indirect Payment Hub camt (ISO 20022)
pacs
participant
Local clearing
RTGS Return
PEACH, Local clearing
ACH, Internal transfer
Central pacs
Bank
Return
7
Understanding different message formats 8
Transformation Layer
Payment
Generic Neutral
XML Object
schema
SEPA (Europe)
ACH (US)
SWIFT
TPS – Components Overview
9
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse
or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Product
Product
Posting Determination
Determination
Posting
Payment
PaymentGeneration
Generation
Configuration Driven to enable high STP rates
10
Dashboards
11
Mid Office Payment Entry Screen
12
Exception Handling - Repair and Resubmit Payments
13
In detail audit logs – Trace everything that happens to a payment
14
15
16
Concepts
17
POR.TABLES
Incoming MT103 18
Process incoming MT103 19
19
Business Case 1
Alfa Beta in US, wishes to pay USD 340 to his supplier Nike located in UK.
Nike holds an USD account with T24 Bank while Alfa Beta has an USD account with CITI
Bank in US, NY
T24BANK uses TPS (Temenos Payment System) for handling all types of payment
transactions and T24 acts as the DDA system (Demand Deposit Account)
20
MT103 Message flow
T24 BANK
Receiver
(DEMOGB)
Beneficiary
Customer Nike, UK
Process incoming MT103 21
21
MT103 Message
{1:F01DEMOGBPXAXXX9024629991}{2:O1031425131119CITIUS33AXXX89245950131311191435S}{3:{108:BNKMT103FXSHA}}{4:
:20:BUC1MT013INC
:23B:CRED
:32A:160719USD340,00
:50K:/GB10MIDL40051574128754
Alfa Beta
New York
US
:52A:MIDLGB22XXX
:59:/11193
Nike
London
UK
:70:INCOMING STP NO FX
:71A:SHA
-}
SWIFTMT103-BUC1-001.txt
Introduction to payment neutral object 22
23
POR.TABLES
POR.TRANSACTION main payment object table
Introduction to concept of POR tables 24
25
Static Data Configuration 26
27
PPT.COMPANY
Static Data Configuration 28
28
PPT.COMPANYPROPERTIES
29
PPT.CURRENCY
CURRENCY Record
Static Data Configuration 30
30
PPT.SOURCE
“SOURCE” using Swift Channel
CHAPS SWIFT
SWIFT
TARGET2
31
PPT.CHANNEL
Payment Channels
Static Data Configuration 32
32
PPT.REGION
Entity’s Region in the country
Country Code
Region
Static Data Configuration 33
STATUSCODE 33
PPT.STATUSCODE
Payment transaction flow monitor
Signifies payment current state and completion (i.e. ‘999’)
How does TPS process a payment message?
34
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse
or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Product
Product
Posting Determination
Determination
Posting
Payment
PaymentGeneration
Generation
Concept of Message Acceptance and Mapping 35
35
TPS Message Process
Other Channels
Messaging Channels
TPS
Message Acceptance37
PPT.MSGFORMAT
PPT.MSGFORMATPERCHANNEL
PPT.MESSAGEACCEPTANCEPARAM
Configuration of Message Acceptance and Mapping 38
Message Mapping
38
PPT.MSGPAYMENTTYPE
PP.MSGPAYMENTTYPECHANNEL
PPT.MESSAGEMAPPINGPARAMETER
Assign Weight for the Payment 39
39
SEPA Target
Weight
assignment
3. Light Weight
Assign Weight for the Payment 40
40
PPL.SPECIFICWEIGHT
High Level
Company ID Originating Source Message Type Rank Specific Weight Weight
MF1 * * 3 P2 H
MF1 SWIFT * 2 P3 H
Skip Programs based on weight 41
41
Weight to skip redundant process
PPT.PROGRAMSPERWEIGHT
Code Words 42
42
Code Words – Processing Sequence 43
43
Processing Sequence – Additional Information 44
44
Processing Information Code and Code
Result of Processing Sequence API Fags/Code Words that will be set
Sequence Words
Assign Requested Credit Value Date
1 OTHR/BBDD
equal to Requested Execution Date
• Set Credit value Date Imposed
Flag
Assign Requested Credit Value date =
Credit Value date in the message for • Set the Skip Balance Check flag
INSBNK (In tag 23E) Cddmmyy and impose the same for
processing • Set the SkipBoundaryCheck flag
2
OTHR/NBALANCE/Dddmmyy
and /or /Cddmmyy Assign Debit Value date = Debit value • Set the value of the Skip Fee flag
date in the message for Dddmmyy and to ‘A’ (Skip All charges)
impose the same for processing
• Set the value of the Debit Authority
Indicator field to ‘S’
• Set Credit value Date Imposed
Flag
• Set the Skip Balance Check flag
INSSDR (In tag 72) • Set the SkipBoundaryCheck flag
3
Debit Value Date = Requested Credit
value Date in the message • Set the value of the Skip Fee flag
REC/NBALANCE
to ‘A’ (Skip All charges)
SLA Determination 45
Debit Authority
46
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse
or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Product
Product
Posting Determination
Determination
Posting
Payment
PaymentGeneration
Generation
Debit Authority 47
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse
or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Product
Product
Posting Determination
Determination
Posting
Payment
PaymentGeneration
Generation
Determining Debit Party 49
49
50
Bank Conditions
51
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Payment Future
FutureDue
Due Balance
BalanceCheck
Check
Payment
Warehouse YES Date
Date Debit
Warehouse DebitClient
Client
NO Conditions
Conditions
Direction
Direction
Determination
Determination
Fee
Fee
Product
Product
Posting Determination
Determination
Posting
Output Future
FutureSend
Send
Output
Warehouse
Warehouse YES Date
Date Processed Component Processing Component
NO
Payment
PaymentGeneration
Generation
Bank Conditions
52
Warehouse
53
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Payment Future
FutureDue
Due Balance
BalanceCheck
Check
Payment
Warehouse YES Date
Date Debit
Warehouse DebitClient
Client
NO Conditions
Conditions
Direction
Direction
Determination
Determination
Fee
Fee
Product
Product
Posting Determination
Determination
Posting
Output Future
FutureSend
Send
Output
Warehouse
Warehouse YES Date
Date Processed Component Processing Component
NO
Payment
PaymentGeneration
Generation
Types of Warehouse 54
54
Warehouse
Payment warehouse – When Requested Execution Date or Requested Credit Value Date is
in future, payments are warehoused at the start of STP flow based on Bank Conditions
Future due date warehouse – When calculated Credit Value date is in future and processing
date is also pushed to future to meet the credit value date
55
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Payment Future
FutureDue
Due Balance
BalanceCheck
Check
Payment
Warehouse YES Date
Date Debit
Warehouse DebitClient
Client
NO Conditions
Conditions
Direction
Direction
Determination
Determination
Fee
Fee
Product
Product
Posting Determination
Determination
Posting
Output Future
FutureSend
Send
Output
Warehouse
Warehouse YES Date
Date Processed Component Processing Component
NO
Payment
PaymentGeneration
Generation
Balance Check 57
57
Balance Check process
TPS T24
2. AC.FUNDS.AUTHORISATION
2. PPT.MANUALAUTHREQUIRED
3. PPT.REJECTRESPONSEACTION
Balance Check - Configuration 58
58
PPT.BALANCECHECKREQUIRED
PPT.MANUALAUTHREQUIRED
Balance Check - Configuration 59
59
PPT.REJECTRESPONSEACTION
Balance Check Process Flow 60
Check Account 60
status and
restriction
Required
Y/N
Reserve Balance
Flow Within DDA
(ACLK) and send Balance
Yes (Working Balance – Locked Amount + Limits)
Success response to Available?
TPS
No
Park Payment
Manual Funds Manual Auth
Yes
Authorisation queue Required
(ACFA)
No
Authorise
Send Rejected
Overdraft No
resp onse to TPS
request?
Yes
Reserve Balance
(ACLK) and Send
‘Approved’ response
to TPS
RejectResponse
Can cel PPT.REJECTRESPONSEACTION
Action is R or C?
Repair
Park payment in
Cancel Payment and
Repair queue i.e.
set status to 997
status 235
Determine direction of payment
61
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Payment Future
FutureDue
Due Balance
BalanceCheck
Check
Payment
Warehouse YES Date
Date Debit
Warehouse DebitClient
Client
NO Conditions
Conditions
Direction
Direction
Determination
Determination
Fee
Fee
Product
Product
Posting Determination
Determination
Posting
Output Future
FutureSend
Send
Output
Warehouse
Warehouse YES Date
Date Processed Component Processing Component
NO
Payment
PaymentGeneration
Generation
Direction Determination 62
62
Direction
63
Bank Or Client Transfer
Acceptance
Acceptance Payment
PaymentInitialization
Initialization Duplicate
DuplicateCheck
Check Payment
PaymentFinalization
Finalization
Mapping
Mappingand
and Debit
DebitAuthority
Authority Date
DateDetermination
Determination
Assign Weight
Assign Weight
Debit
DebitParty
Party Credit
Auto CreditBank
Bank//Client
Client Credit
CreditBank
Bank
AutoRepair
Repair Determination
Determination Conditions
Conditions Conditions
Conditions
Debit
DebitBank
Bank Credit
CreditParty
Party
STP Validate
ValidateCredit
CreditParty
STPFlow Conditions Determination Party
Flow Conditions Determination
YES Future
FutureRED
RED YES
Payment
Payment
Filtering
Filtering Warehouse
Warehouse or
orRCVD?
RCVD? Incoming
Incoming NO Routing
RoutingAnd
And
NO or
orBook?
Book? Settlement
Settlement
Payment Future
FutureDue
Due Balance
BalanceCheck
Check
Payment
Warehouse YES Date
Date Debit
Warehouse DebitClient
Client
NO Conditions
Conditions
Direction
Direction
Determination
Determination
Fee
Fee
Product
Product
Posting Determination
Determination
Posting
Output Future
FutureSend
Send
Output
Warehouse
Warehouse YES Date
Date Processed Component Processing Component
NO
Payment
PaymentGeneration
Generation
Product Determination 65
65
Product Determination
67
Conclusion
68
www.temenos.com