Archive | Direct Debits

Collection of funds through direct debits, SEPA Scheme, Interbank exchanges, Domestic clearing systems, Messages standards, Mandates management

Image of a Structure of the SWIFT BIC Code structure

SWIFT BIC Code

The SWIFT BIC code is a standardized international identifier (ISO 9362) used in financial messages exchanges. Understanding what the BIC code is fundamental because it is used to identify entities and to route payments messages over SWIFTNet, the SWIFT secure IP Network. What does BIC stand for? and what is the BIC? Does BIC stand for […]

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Image for Messages exchanged in the SDD Schemes

ISO 20022 Messages exchanged in the SDD schemes

After looking at the different SDD schemes, the involved players and their roles, the next thing to consider is the messages exchanged in the schemes. Which messages do the different players exchange and for what purpose? To find out which messages are exchanged in the schemes, the documents to consult are the SDD implementations guidelines […]

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Image for Four Corner Model for the SDD Schemes

Main differences between SEPA Direct Debit Core and SEPA Direct Debit B2B Schemes

Before considering the differences between SEPA Direct Debit Core and SEPA Direct Debit B2B Schemes, it is worth reminding ourselves what a scheme is. The European Payments Council (EPC) defines a scheme as following: “A payment scheme is a set of rules which Payment Services Providers (PSPs) have agreed upon to execute transactions through a specific […]

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The Four Corner Model for the SEPA Direct Debit

The Four Corner Model for SEPA Direct Debit

If you ever want to understand how a payment instrument works and specifically the SEPA Direct Debit, the place to start is to draw the Four Corner Model and to study it. In introductory articles, we analyzed the open loop model, which remains the most widespread payments system model in the world. The Four Corner […]

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Camt messages for customer reporting in the Customer to Bank Space

Camt messages for customer reporting in the Customer to bank space

The EPC recommends three messages for the customer reporting. The bank can use one or many of them, according to client’s needs, to provide account reports, account statements and debit/credit notification. It is important to understand that these reporting messages are for customers which can integrate and process them in own IT systems. They are […]

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Picture of Direct and Indirect Participants to a CSM

Direct and Indirect Participants to Clearing and Settlement Systems

Banks can join a clearing system or a settlement system as direct participant (DP) or as indirect participant (IP). After reading this post, you will understand the differences between these two types of participants and why only direct participants settle in CSM. The following figure depicts direct and indirect participants and the relationship they have to […]

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