Remittance information requirements for ACH payments( ISO20022)
Hi All
Has anyone experienced detailed remittance information requirements for ACH payments? We are trying to use the ISO20022 payment format for ACH payments in the US, and our bank suggested using detailed remittance information.
How can we achieve this in IFS?
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Hello @karl.schneider82
Select check the field Show Detailed Postal Address of Payee to have detailed address.
@gumabs The check box is related to the structured address and not for the remittance details.
In ISO 20022, offers rich remittance information through the use of the structured information element, however a payment can carry either unstructured (XML element called Ustrd) or structured (XML element called Strd) remittance information. In IFS solution, both options are available with some limitations.
@karl.schneider82
I assume you are referring to using Structured Remittance Information (SRI) in ACH payments. SRI is the associated information for which the payment is being made. Within B2B payments this will often be purchase orders, invoices/credit notes or specific payment references. In IFS Core solution, SRI structure is limited to the requirement of SEPA (requirement of EU payment council). According to EPC rules, only one occurrence of ‘Structured’ is allowed and the tags and Rule(s) the data within the ‘Structured’ element (i.e. excluding <Strd> and </Strd>) should not exceed 140 characters in length.
With the evolution of the ISO20022 standard and country adoption, the presentation of this element is getting complex. If you are familiar with US NACHA ACH text file-based payment file, each payment (record 6) can have up to 9,999 addenda records (record 7) which carry the remittance information. In reality, the same requirement should be able to achieve through ISO20022 with more details.
For example, if you want to populate the SRI in the following format, you have to go for a tricky configuration since IFS core solution will not support this as it is.
Please note that this cannot be a mandatory requirement, however, if you decide to transfer a rich data set to your supplier (or if the supplier demands it), you have to go for this.