u.s. real-time payments technology playbook · rtp represents a new phase of evolubon within the...

Version 1.0November 2016

Proposed features, functionality, implementation details, requirements

and timetables are in development and subject to change at any time.

U.S. Real-Time PaymentsTechnology Playbook

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Version1.0 ©2016TheClearingHousePaymentsCompanyL.L.C.

Structure

OPERATIONSPLAYBOOK02

BUSINESSPLAYBOOK01

TECHNOLOGYPLAYBOOK03

TheBusinessPlaybookprovidesabasicunderstandingofthereal-BmepaymentssystemandthepotenBalforusingitasaplaDormtodevelopnewservices.ThisplaybookincludesconsideraBonoftheinvolvementofvariousbusinessunitsandspecificitemstoconsiderasyoudevelopyourideasandplans.

TheOperaBonsPlaybookprovidesabasicunderstandingofthereal-BmepaymentssystemandoutlinestheprocessesandproceduresthatmaybeneededacrossvariousoperaBonalareaswithinyourorganizaBonasyouimplementtheRTPsystem.

TheTechnologyPlaybookcontainsatechnicaloverviewoftheRTPsystemforparBcipaBngFIsinorderforthemtodevelophigh-levelesBmatesforinterfacingtotheRTPsystem.

TheClearingHouseownsandoperatespaymentstechnologyinfrastructure,whichclearsnearly$2trillioneachdayforfinancialinsBtuBonsintheU.S.andaroundtheworld.ItsbusinessisdevelopingandoperaBngindustryuBliBesfocusedonsaferandfasterpayments.

Real-TimePaymentsPlaybooksRealTimePayments(RTP)provideconsumersandbusinesseswiththeabilitytoimmediatelysendandreceivefundsdirectlyfromtheiraccountsatfinancialinsBtuBonsanyBme24/7/365.RTPrepresentsanewphaseofevoluBonwithintheUnitedStates(U.S.)paymentsindustry,withseveralkeyfeaturesthatdifferenBatethemfromcurrentpaymentmethods,specificallyspeed,value-addedmessagingcapabiliBes,andimmediateavailabilityoftransacBonstatus.RTPwillprovideFIswiththefuncBonalityandfeaturestoinnovateforthefuture.

OutsidetheU.S.,manycountriesaredeveloping“fasterpayments”systemstoexpeditethemovementofmoneyandincreasethespeedwithwhichtransferredfundsaremadeavailabletorecipients.WithintheU.S.,TheClearingHouse(TCH)isleadingamulB-yearefforttobuildareal-Bmepaymentssystem(RTP)thataddressestheneedsforsaferandfasterpaymentsinanincreasinglydigitaleconomy.

YourinsBtuBonhasexpressedinterestinfindingoutmoreabouttheRTPsystemandwhatitwouldtaketoimplement.TCHhasdevelopedthreetargetedplaybookshighlighBngconsideraBonsforbusiness,operaBonsandtechnologyaudiences.AseachFIisdifferent,theseplaybooksshouldbeconsideredguidelinesratherthanrulestogiveyourorganizaBontheinformaBonandinsightitneedstogetstarted.InaddiBon,contactinformaBonforTCHexpertscanbefoundintheContactUssecBononpage47.

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Contents

ContentsTechnologyPlaybook

01: WhatistheRTPPlaybook? 04

RTPPlaybookpurposeandobjecBves

Howtousethisdocument

02: OverviewofReal-TimePayments 06

WhatareRTPayments?

HowareRTPaymentsdifferent?

WhocanuseRTP?

DefiningtheRTPecosystem

DriversofRTP

MythsaboutRTP

TCHRTPchecklist

03: HowdoReal-TimePaymentsWork? 15

SampleP2PRTPScenario

SampleB2BRTPScenario

SampleB2CRTPScenario

SampleC2BRTPScenario

04: BusinessCaseConsideraRons 19

05: TechnologyConsideraRons 20

TechnologyOverview

KeyConsideraBons

MessageTypes

IntegraBonsChecklist

06: ChecklistandSupporRngDocumentaRon 28

OperaBonsChecklist

OperaBngRules

NetworkDocumentaBon

07: ContactUs 35

07|ContactUs06|ChecklistandSupporRngDocumentaRon

05|TechnologyConsideraRons

04|BusinessCaseConsideraRons

03|HowdoReal-TimePaymentsWork?

02|OverviewofReal-TimePayments

01|WhatistheRTPPlaybook?

PurposeandobjecRves Playbooktargetaudience Howtousethisdocument

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01:WhatistheRTPPlaybook?RTPPlaybookpurposeandobjecRvesThepurposeoftheRTPPlaybookistoprovideahigh-leveldescripBonofthefuncBonalityoftheRTPsystemfromanFI’sperspecBveandtoidenBfyimportantconsideraBonsforimplementaBonofRTP.ThePlaybookoffersinformaBontosupportcommunicaBonswithanFI’sinternalandexternalstakeholders(e.g.,vendorsandregulators),asitmovesforwardwithitsRTPeffort.TheplaybookcanalsobeusedtocreateawarenessbyprovidingaclearunderstandingofwhatRTPis,idenBfyingkeybenefits,andprovidingaframeworkhighlighBngkeyacBonitemsanddecisionpointsorganizaBonsshouldconsiderastheybeginplanningandexecuBonoftheirRTPimplementaBon.

Thefollowingpagesincludekeytasksanddecisionpoints,alongwithpracBcaltoolsandBpsforRTPplanningandimplementaBon.ItprovidesguidanceandrecommendedpracBcesintheformofchecklists,reminders,andusefulexercisestoassistyourorganizaBonindeliveringRTP.

WhatistheRTPPlaybook?

02OverviewofReal-TimePayments

Describesreal-Bmepaymentsandhowtheywork.ProvidesexamplesthatdemonstratethebreadthandscopeofRTP.ClarifiestheroleofRTPinthepaymentsecosystem.

04BusinessCaseConsideraRons

DemonstratesopportuniBesfornewproductsandmarkets.SupportsanalysisofoperaBonsandtechnologyinvestmentsandassociatedcosts.

05TechnologyConsideraRons

IdenBfieskeyfeaturesofRTP,providesanoverviewofarchitectureandmessagingrequirements,highlightsimportantconsideraBonstotakewhendesigninganinterfacetoRTP.

01Howtousethisdocument Calloutsymbolsandiconshelpyouusethisdocumenttoitsfullestextent.

06ChecklistsandSupporRngDocumentaRon ProvidesusefulintegraBonandconsideraBonchecklistsandoverviewsofsupporBngsystemsdocumentaBon.

07ContactUsProvidescontactinformaBonforexpertswhowillanswerquesBonsandassistyouasneeded.

03HowdoReal-TimePaymentsWork?

IllustratesusecasescenariosintheRTPsystem,includingstep-by-stepflowofmessages.







PurposeandobjecRves Howtousethisdocument

TechnologyPlaybooktargetaudienceTheRTPTechnologyPlaybookisintendedforFItechnologyteamsandtechnologypartnersthatwilldesignanddeveloptheinterfacetotheRTPsystem.

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WhatistheRTPPlaybook?

Howtousethisdocument

CHECKLISTThe“Checklist”iconhighlightsalistofrecommendedconsideraBonsforapproachingaspecificRTPconceptortask.Forexample,theselistsmaybeusedasastarBngpointforprojectmanagerswhencreaBngaplantocompleteaspecificRTP-relatedtaskidenBfiedinthePlaybook.

RESOURCESThe“Resources”iconmarksthesecBonofferinglinkstoaddiBonalresourcesonatopic.Resourcesmayincludeembeddedfileahachments,externalsites,files,whitepapers,orpressreleases.

IMPORTANTThe“Important”iconmarkstheinformaBonoracBonitemthatisofutmostimportanceforasuccessfulimplementaBon.YoushouldpayspecialahenBontothisinformaBonandensurethattheseitemsaretrackedtoclosure.

TIPS/FACTCHECKThe“Tip/FactCheck”iconindicateshelpfulinformaBonabouttheindustry.YoumaydiscoveraleadingpracBceinthefieldoraninnovaBvewaytoimplementyoursoluBontosaveBmeormoney.

DECISIONPOINTThe“DecisionPoint”iconhighlightsastepwhereyourFIwillneedtomakeadecisionregardingtheimplementaBonofRTP.

STAKEHOLDERSTheiconsdisplayedinthe“Stakeholders”calloutboxindicategroupsthatmayhaveaninterestinRTPwithinyourorganizaBon.Highlightediconsrepresentareasthatshouldbeinvolvedinthediscussionofthetopicwhilegrayediconsrepresentgroupsthatmayhavelessofaninterestinthattopic.

HowtousethisdocumentThroughoutthePlaybook,iconswillappearthatrepresentimportantnotes,Bps,orresourcesthatyoucanreferencetohelpnavigatetheprocessofimplemenBngRTP.TherearespecificcalloutstofocusahenBononkeydecisionpoints,acBonitems,andcheckliststhatFIsshouldconsider.

Consumer Wholesale

HR

OperaRons TechnologySmallBusiness

Legal,Regulatory&Compliance

Treasury/Finance

MarkeRng Risk&Security







PurposeandobjecRves Howtousethisdocument

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OverviewofReal-TimePayments






WhatareRTpayments? HowareRTpaymentsdifferent? WhocanuseRTP? RTPecosystem RTPmyths RTPchecklistRTPdrivers

Real-TimePaymentCharacterisRcs

01

06

03

05

07

08

04

02

09

10

02:OverviewofReal-TimePaymentsWhatareReal-TimePayments?Real-BmepaymentsprovideconsumersandbusinesseswiththeabilitytoconvenientlysendandreceiveimmediatefundstransfersdirectlyfromtheiraccountsatFIs,anyBme24/7/365.RTPisanewnaBonalpaymentssystemthatwillsupportthisfuncBonalityandprovidesaplaDormforproductinnovaBon.FinancialinsBtuBonscanleverageavarietyoffeatures–enhancedspeed,security,andmessagingcapabiliBes–tocreateuniqueofferingsfortheirretailandcorporatecustomers.

ImmediateAvailability–RecipientswillreceivethepaymentwithinsecondsoftheSenderiniBaBngthetransacBon;theReceivingFIisrequiredtomakefundsavailableimmediately,exceptwherenecessaryforriskmanagementorlegalcompliancepurposes.

24/7/365–TheRTPsystemwilloperateona24/7/365model,whichmeansthesystemwillbeavailableforcustomerstosendorreceivepaymentsatanyBme.

Ubiquity–TheRTPsystemwillbeaccessiblebyallfinancialinsBtuBons,regardlessofsizeorchartertype,andwillreachthevastmajorityofU.S.accountholders.

PaymentCertainty–SenderswillnotbeabletorevokeorrecallapaymentonceithasbeenauthorizedandsubmihedtotheRTPsystem.However,therewillbeaprocesstofacilitateFI-to-FIcommunicaBonaroundreturnoffundssentinerror.

SafetyandSecurity–TodeterfraudulentacBvity,RTPrequiresparBcipantstoprovidestrongauthenBcaBonpriortoiniBaBngpaymentsandprovidesnetwork-levelfraudmonitoringandreporBng.

AccountDataPrivacy–FIsmayusetokenstoencryptreceiveraccountinformaBonasitistransmihedthroughtheRTPsystem.

GlobalStandards–TheRTPsystemwilladheretoglobalstandardstotheextentnecessarytofacilitatedomesBcneeds

Adaptability–TheRTPsystemwillhaveflexiblearchitecturetoadapttochangingmarketneeds

CashFlowControl–Theabilitytosendandreceivepaymentsimmediatelywillgivecustomersmorecontrolovercashflow,whichisparBcularlyimportantforcash-constrainedsmallbusinessesandconsumers

Extensibility–Rich,flexiblemessagingfuncBonalitywillbeincludedtosupportvalue-addedproducts.Forexample,theRTPsystemprovidesmessagingcapabilityenablingarequestforpaymentdirectlyviaRTP.

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WhatareRTPs? HowareRTPsdifferent? WhocanuseRTP? RTPecosystem RTPdrivers FourRTPmyths RTPchecklist



HowareReal-TimePaymentsdifferent?

CURRENTPAYMENTMETHODS REAL-TIMEPAYMENTS

01

02

03

04

05

PaymentCertaintyPaymentscannotberevokedorrecalledonceauthorizedbyasenderandsubmihedtotheRTPsystem.

PAYMENTREVERSAL–PaymentsmaybereversedundercertaincircumstancesandwithinapredefinedperiodofBme.

CreditPushOnlyTCH’sRTPsoluBonwillonlysupportCreditpushtransacBons.ThepayeemaysendaRequestforPaymentmessagebutwillnotbeabletopullfundsdirectlyfromthepayer’saccount.

CREDITPUSHANDDEBITPULL–ACHsupportscreditpushaswellasdebitpulltransacBons.

FlexibleMessagingOpRonsTCH’sRTPsoluBonwillprovideflexible,robustmessagingcomponentswithmulBpleopBonsforenclosingremihanceinformaBon.OpBonsincludeusingthepaymentmessage,sendinganon-paymentmessage,orreferencinganexternalremihancesource.

LIMITEDMESSAGINGOPTIONS–RemihanceinformaBonistypicallyincludedwithinthepaymentmessageitself.

DELAYEDAVAILABILITY–DuetounpredictableclearingBmes,thesenderdoesnotknowfor1-3dayswhetherthetransferwassuccessful

andthatfundsareavailabletothereceiverforuse.

ImmediateAvailabilityandNoRficaRonWithTCH’sRTPsystem,receivershaveimmediatefundsavailability.RelatedstatusnoBficaBonsaresenttosenders(thatatransferwassuccessful)andrecipients(thatfundsareavailable).

24/7FraudDetecRonFrauddetecBonandcontrolswillneedtobeenhancedandautomatedtocorrespondwiththeabilitytomovefundsnearlyinstantaneously.

DELAYEDFRAUDDETECTION–TheBmebetweenthesendingandactualposBngofapaymentallowsforawindowduringwhichfraudanalysismaybeconducted.

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WhocanuseRTP?


WhocanuseRTP?Real-BmepaymentsareintendedtobeusedfortransacBonsbetweenanyenBtywhetherbusiness,consumer,orgovernment.

AheadofhouseholdsendingemergencyfundstoafamilymemberonvacaBon

PersontoPerson(P2P)

CollegeroommatessplikngmonthlyrentanduBlitypayments

Adaytradersendingreal-Bmemoneytransferstohisorherinvestmentaccounttotakeadvantageofthemostrecentmarketswing

ConsumertoBusiness(C2B)

Abusyworkingindividualpayingforgeneralservicesaroundthehousesuchasthegardener,cleaningservices,orchildcareprovider

Arestaurateurwhopaysforfarm-freshproducefromthelocalfarmertoservethatevening’sdinnerspecials

BusinesstoBusiness(B2B)

Asmallbusinesspayinganurgentinvoiceinordertoreceivegoodsorservices

AsmallbusinessownerwhoispayingtemporaryemployeesalariesorBpsonanadhocbasis

Alargecorpora9onpayingemployeesfortravelexpensesinBmeforpaymentofcorporatecreditcards

BusinesstoConsumer(B2C)

Au9litycompanyrequesBngpaymentforservicesfromabusinessorconsumer

Aninsurancecompanyadjustorreviewingaclaim,determiningasehlementamount,andimmediatelyprovidingfundstothepolicyholder

AretailbankdistribuBngpersonalloanproceedstoadealershiponbehalfofacustomerwhoisattheshowroombuyinganewcar

GovernmenttoConsumer/ConsumertoGovernment(G2C/C2G)

AgovernmentagencypayingoutemergencydisasterrelieffundstociBzensimpactedbyanaturaldisaster

AtaxpayermakinghisorhertaxpaymentinBmefortheApril15deadline

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07|ContactDocumentaRon

06|ChecklistandSupporRngDocumentaRon









IllustraRveRTPecosystem

DefiningtheRTPEcosystem

2FinancialInsRtuRonswillhavetheabilitytodirectlyconnecttotheRTPcoreinfrastructuretoprovidereal-Bmepaymentscapabilityandvalue-addedpaymentrelatedservicestotheircustomersandclients.FIsinclude(butarenotlimitedto)globalbanks,regionalbanks,creditunions,communitybanks,etc.

Third-PartyServiceProviders(forexample:FIS,JackHenryandD+H)willprovideconnecBvityintotheRTPnetwork,providingaccesstoFIsthatmaynotwanttoconnectdirectlytotheRTPsystem.TheywillalsointegrateRTPintotheirexisBngandnewpaymentsproductsforthebenefitoftheiraccountholders.

3

TheClearingHousehoststheRTPcoreinfrastructurefortheU.S.providing:•  Paymentprocessingservices–TheRTPsystemorchestratesmovementofpaymentsandvalue-addedmessagestoandfrom

FIparBcipants.•  FraudDetecBon–TheRTPsystemwillofferfrauddetecBonservicestoscanandreportonnetwork-levelfraudulentacBvity.

FIswillalsoberequiredtomaintaintheirownautomatedreal-BmefrauddetecBoncapabiliBestoscantransacBonsbeingsenttoandreceivedfromtheRTPsystem.

1

5

4Banks*,Bankers’Banks,CommunityBanksandCorporateCreditUnions,willprovideconnecBonstoRTPaswellasfundingservicesfortheirFIcustomersthatmaynotwanttoconnectdirectlytotheRTPsystemorprovidetheirownfunding.*Note:AlthoughbanksandcreditunionsmayprovideconnecBvityandfundingservicestootherFIs,nocorrespondentpaymentswillbepermihedthroughtheRTPsystem.

Note:ThereshouldbenodifferenceintheuserexperienceforcustomersofdirectFIsandthoseconnecBngthroughaTPSP.

CorrespondentBanks*,Banker’sBanks,CommunityBanksandCorporateCreditUnions,willprovideconnecBonstotheRTPnetworkaswellassehlementservicesforFIsthatmaynotwanttoconnectdirectlytotheRTPsystem.*Note:CorrespondentbanksofferconnecBvityandliquidityservices.ThisdiffersfromconvenBonalcorrespondentbankwiretransferservicesthatmayinvolveaseriesofbanktransferstocompleteapayment.

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Driversofreal-Rmepayments

1WorldPaymentsReport.CapgeminiandTheRoyalBankofScotland;2015.

WhatareRTPs? HowareRTPsdifferent? WhocanuseRTP? RTPecosystem RTPdrivers RTPmyths RTPchecklistWhatareRTpayments? HowareRTpaymentsdifferent? WhocanuseRTP? RTPecosystem RTPmyths RTPchecklistRTPdrivers

PAPER:Cash+Checks CARD:Debit+Credit ONLINE:Digital MOBILE:P2PmCommerce,MobileWallet

CustomerDemands

IncreasedSpeed

MoreConvenient

IncreasedTransparency(PaymentStatus,FundsAvailability,etc.)

CustomerAdopRonofNewPaymentMechanisms

GreaterValue

EnhancedSafetyandSoundness

Customerdemand

Intoday’sworldofsophisBcatedcompuBngdevices,informaBonismovinginreal-Bme.Withhigh-speeddatanetworks,andnearlyuniversalpresenceofsmartphones,customersexpecteverything–includingpayments–tokeepupwiththeirpaceoflife.

•  Increasedspeed:Overthepastdecade,immediatedeliveryofelectroniccontentandnearreal-Bmedeliveryofphysicalgoodshasbecomethenorm.Thisalongwithfaster,pervasivetechnology,hasincreasedtheexpectaBonforfasterpaymentsoluBons.

•  Moreconvenient:Customersaremovingawayfromcashandchecksinfavoroftheconvenienceassociatedwithnewerbankingchannels,likeonlineandmobile.Growthratesofnon-cashtransacBonsinmaturemarkets(NorthAmerica,Europe,matureAsia-Pacific)haveacceleratedinthepastfewyears,accounBngforalmostthreequartersofthepaymentsmarket.1

•  Increasedtransparency:AfasterpaceoflifemeansmakingsurepaymentinformaBonistransparentandreadilyavailable.Customersarelookingforrobust,real-BmepaymentinformaBon,includingpaymentstatusandimmediateconfirmaBonoffundsavailability.

•  Enhancedsafetyandsoundness:Despiteanincreaseindatatransparency,customerssBllexpecttheirinformaBontobekeptsecureandprivate.Asdatabreacheshavebecomenearlycommonplaceevents,thedemandfromconsumersforinformaBonprivacyandsecurityhasconBnuedtoincrease.FIsmustworkhardertoimplementthebestandmostsecuresystemstoprotectcustomeraccountdata.

•  Greatervalue:Banksandnon-bankpaymentserviceprovidersarecreaBngvalue-addedservicessuchasautomatedmatchingofpurchaseorderstoinvoicesforbusinessesorgeo-locaBonbasedin-storepromoBonsforconsumers.Thesevalue-addedservicescanspantheenBrepurchasingexperiencebeyondthepaymentitself.TheyenrichthebasicpaymentdatawithawidersetofinformaBontocreateaddedvalue.

TheRTPsystemallowsFIstoaddressconsumerdemandsinthedigitalage–providingawayforconsumersandbusinessestomakeimmediatepaymentstomerchantsandvendorsinasafeandconvenientmanner.







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1KPMGInvesBgaBon2StatementfollowingthesecondmeeBngoftheEuroRetailPaymentsBoardEuropeanCentralBankEuropeanRetailPaymentsBoard;December1,2014.3StrategiesforImprovingtheU.S.PaymentSystem.UnitedStatesFederalReserveSystem;January2015.p.56

Countrieswith24/7retailRTPsystemsthatareliveorindevelopment

•  Mexico–SPEI(2004)•  Chile–TEF(2008)•  Brazil–SITRAF(2002)•  Sweden–BiR(2012)•  Denmark–Nets(2014)•  U.K.–FasterPayments(2008)•  Poland–ExpressELIXIR(2012)•  Nigeria–NIP(2011)•  SouthAfrica–RTC(2006)

•  India–IMPS(2010)•  SouthKorea–HOFINET(2001)•  Singapore–FAST(2014)•  Australia–NPP(2016)•  UnitedStates–TBD•  Colombia–TBD•  EU–TBD•  Thailand–TBD

Countrieswith24/7retailRTPsystemsthatareliveorindevelopment

SystemsinDevelopment/PublicConsultaRon

Current24/7RetailRTPSystems

MEXICOSPEI

UNITEDKINGDOMFasterPayments

AUSTRALIANewPaymentsPlaDorm

POLANDExpressELIXIR

SWEDENBiR

SINGAPOREFastandSecureTransfers

SOUTHKOREAHOFINET

INDIAIMPS

SOUTHAFRICARTC

NIGERIANIP

BRAZILSITRAF

CHILETEF

UNITEDSTATESTBD

EUTBD

DENMARKNETS

COLOMBIATBD

THAILANDTBD

DriversofRTPGlobalcompeRRonWhileTCH’sRTPSystemisanewcapabilityintheU.S.forFIs,atleast12countrieshaveimplemented24/7retailRTPsystemssupporBngimmediatelow-valueaccount-to-accounttransfers,1andworkiswellunderwayinAustralia,Europe,andtheUnitedStates.TheEuropeanRetailPaymentsBoardhasagreedon“theneedforatleastonepan-EuropeaninstantpaymentsoluBon.”2IntheUnitedStates,theFederalReserveBoardhascalledfortheimplementaBonof“asafe,ubiquitous,fasterpaymentscapability”3andTheClearingHousehasannouncedthatitwillcreateanaBonalRTPsystem.Thediagrambelowillustratestheglobalspanof24/7retailRTPsystemstodate.ThereisacleartrendtowardsmoreandmorecountrieseitherhavingtheabilitytoconductfasterpaymenttransacBonsorstarBngtheprocessofdevelopingasystemthatallowsthemtodoso.







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WhatareRTPs? HowareRTPsdifferent? WhocanuseRTP? RTPecosystem RTPdrivers RTPmyths RTPchecklist


DriversofRTP


DriversofRTP

EvolvingpaymenttechnologycapabiliRes

FIsneedtooffertheircustomersanRTPcapabilitythatprovidespeed,convenience,andtransparencyaswellasthelevelofsafetyandsecuritytheyexpectfromatradiBonalpaymentsnetwork.

ThoughnotexhausBve,thefollowinglistrepresentstheprimarygroupingsofevolvingtechnologyplayers.

•  Closedloopcardsandmobileapps:Manynon-bankcompanieshavebuiltclosedloopcardnetworkstopromoteloyaltyprogramsandprovideaconvenientwayforcustomerstopayforgoods.ThemostsuccessfulexamplehasbeenStarbucks’mobileapp,whichhasseena75percentgrowthinitsmobileapptransacBonsfrom2013(4milliontransacBonsperweek)to2015(7milliontransacBonsperweek).1,2

•  Digitalwallets(non-banks):DigitalwalletsarebeginningtogaintracBonamongconsumersastheyprovideaneasyandflexiblemethodtotransfermoney.PayPal’sdigitalwalletconBnuestoincreaseinmobilepaymenttransacBons,growing40percentyear-over-year.3TheindustryanBcipatesmobilewalletusagetoreach200milliontransacBonsbytheendof2016.4

•  Mobilemoney(non-banks):Mobilemoneyallowsconsumerstoaccessfinancialservices,suchasmoneytransferorbankaccountaccess,viauseofthemobilephone.In2014alone,mobilemoneyservicesintheU.S.suchasSquareCashandVenmohandled$5.2billioninP2Ppayments.5

1WhyIsTheStarbucksMobilePaymentsAppSoSuccessful?Forbes;June13,2014.2Starbucks'sMobileAppPaymentsNowRepresent16%ofallStarbucksTransacBons.FastCompany;January23,2015.3PayPalbeginspiloBngNFCandrecords40%growthinmobilepayments.NFCWorld;April27,2015.4MobileWallets:Contactless&RemotePayments2015-2020.JuniperResearch;September7,2015.5MobilePaymentstoExplodeby2019.PYMTS.com;November18,2014.

IdenRfiedconsumerriskswithcurrentpaymentsystem

Pushtransac9onsonly;noauto-debitofcustomeraccounts

UnauthorizeddebitsfromconsumeraccountsviaACHleadtounexpectedfeestothecustomerandasignificanteffortforcustomerstostoppaymentsandrevokeorders

Real-9mefundsavailabilitywithpaymentcertaintyandextensivesetofpaymentandnon-paymentrelatedmessages

Lackoftransparency,parBcularlyasitrelatestofundsavailability,causesconfusionforcustomersandoxensignificantoverdraxcharges

RReal-9me24/7paymentabilityforconsumertobusinessandotherpaymenttransacBons

NeedforexpeditedpaymentsandexpeditedfundsaccessforcesindividualswithimmediateneedsoremergencysituaBonstorelyonhigh-costmoneyorderservicestoexpeditefundstransfer

RTPmiRgaRon

RegulatoryinfluenceTheCFPBhasraisedseveralconcernsregardingexisBngpaymentssystems(e.g.,theabilityoffraudsterstoiniBatedunauthorizeddebits,lackoftransparencyregardingwhentransacBonswillpost).TheCFPBbelievesthatfaster,saferpaymentscapabiliBeswillbenefitconsumers(e.g.,byprovidingfasteraccesstofundsandgreatercertaintyaboutfundsavailability)andseesopportunityforFIstomoreeffecBvelyserveconsumerswithanewreal-BmepaymentsfuncBonality.Assuch,theCFPBisurgingthefinancialservicesindustrytomakereal-BmepaymentsanurgentprioritytohelpmiBgatemanyoftheissuescurrentlyfacingconsumers.

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WhatareRTPs? HowareRTPsdifferent? WhocanuseRTP? RTPecosystem RTPdrivers RTPmyths RTPchecklist



ThreemythsaboutRTP

MYTHONE RTPisonlyforP2P

RTPwillonlybeavailabletoTCHmemberbanks

RTPisthesameasSameDayACH

TRUTH•  TheRTPsystemisdesignedtoaddressunmetcustomerneedsacrossallcustomersegments(i.e.,B2B,B2C,C2B,P2P,G2C,

etc.).

•  Consumers,businesses,andgovernmentcanuseRTP.

•  ForexampleRTPscenarios,refertopage9.

TRUTH•  AnyparBcipaBngFI,irrespecBveoftheirsizeorchartertype,willhavetheabilitytotransmitpaymentsthroughtheRTP

system.

•  FIswillhavetheflexibilitytochoosetheirlevelofparBcipaBon(i.e.,ReceiveOnly,Send,AllowRequestforPayment,etc.)withintheRTPsystem.

•  Technologyplayersandthird-partypaymentproviderswillhavearoleintheenvironmenttoprovideorfacilitateconnecBvitywherenecessary.

•  RefertoReal-TimePaymentsEcosystemonpage10.

TRUTH•  Value-AddedMessaging–RTPwillhavetheabilitytoenablenewproductsandservicesthroughtheuseofitsextensiveand

mulBfacetedmessagingcapabiliBes.

•  AvailabilityofFunds–TheRTPsystemwillmakefundsavailableinreal-Bme–24/7/365.

•  Transparency–TheRTPsystemwillprovidestatusupdatesofpaymentandnon-paymentmessagesinreal-Bme.

MYTHTWO

MYTHTHREE

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RTPchecklist


RTPchecklistAchecklistofhigh-levelkeyacBviBeswhichshouldbeconsideredasFIsstarttheirimplementaBonofRTPisincludedbelow.DependingonthestructureoftheorganizaBon,someoftheseacBviBesmaybeperformedconcurrentlyorinadifferentorder.TheOperaBonsteamshouldalsocoordinatewithTCH,third-parBes,and/orothergroupswithintheFItosynchronizeacBviBessurroundingtheimplementaBonofRTP.

!  FIOperaRonsChecklistofKeyAcRviResforImplemenRngRTP

AcRvity TCH BUS TECH

!  SeekdirecBonfromBusinessonproductandcustomersegmentaBon X!  DetermineoperaBonalareasthatwillenableareal-Bmeproductoffering(i.e.Linesof

Business,InformaBonTechnology,OperaBons,RiskManagement,RegulatoryCompliance,Treasury,etc.)

!  DevelopTargetOperaBngModelforoperaBonsteamsincludingchannels,operaBonalprocesses,RTPRoadmap

!  PerformCurrentStateAssessmentandcreateRTPRoadmap

!  ConductscopinganddetailedplanningofRTPprogramfromanoperaBonsperspecBve!  AssistwithcreaBonoffuncBonalrequirements,design,usecasescenarios,and2D

processflows!  DeveloptesBngstrategyandtestcaseswithtestteam X X

!  EstablishtestwindowandtestperiodfortesBngtobeconducted X X

!  Developpost-implementaBonandtransiBonplanning

!  DevelopanddeterminetrainingandcommunicaBonsplan X

!  Developanddocumenthelpdeskandcustomerservicetrainingprocedures

!  Developandcommunicatedisasterrecoveryplan X!  DevelopanddocumentcommunicaBonplans(e.g.prego-live,go-live,andpostgo-live

communicaBonplan)X

!  DevelopimplementaBonstrategiesandchecklistsformovingsystemfromtestenvironmenttoproducBonenvironment

X X

!  DetermineclientmigraBonandtransiBonplan X X

!  ConductdressrehearsalandproducBonreadiness X X

!  Determinedetailedcontrolprocedures

!  Conductgo-liveweekendandtransiBontoproducBon X X X

!  ConductclientmigraBon/transiBonsupport X

!  Documentlessonslearned X X

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SampleC2BRTPScenarioSampleP2PRTPScenario SampleB2BRTPScenario SampleB2CRTPScenario

HowdoReal-TimePaymentsWork?

03:HowdoReal-TimePaymentsWork?SampleP2PRTPScenarioReal-Bmepaymentsareexecutedthroughasequenceofpaymentmessages.ItstartswithapayersendingapaymentinstrucBonviaachannelmadeavailablebytheirFI(iniBaBon).TheFIensuresfundsavailability(approval),conductsrequiredscreening(authenBcaBon),andsecurelysendsthepaymentinstrucBonmessagetotheRTPcoreinfrastructure.TheRTPcoreinfrastructurevalidatesthetransacBonandroutesittothereceivingFI(clearing).ThereceivingFIacknowledgesthemessageandimmediatelysendsaresponsetotheRTPcoreinfrastructure.TheRTPcoreinfrastructureprovidesanacknowledgmentmessagetothereceivingFIaswellastheissuingFI(receipt)andmanagessehlementbetweenFIs.UponreceiptoftheconfirmaBonmessage,thereceivingFIpoststhetransacBontothereceivingcustomer’saccount.Thisprovidesimmediateavailabilityoffundstotherecipient.TheserealBmepaymentsareapplicabletoavarietyofusecasescenarios.RepresentaBveusecasesarepresentedbelow.

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Real-TimePaymentsCoreInfrastructure

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Person-to-Person(P2P)

John MikeJohn’sFI Mike’sFI

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16b

RTPvalidatespaymentand

updatesseplementaccounts

ConfirmaRonofpayment

1.  John’sFIcarriesoutitsnormalauthenBcaBonprocesstoverifyJohnastheaccountowner.JohninstructshisFIthroughOnlineBankingtopayMikeviaRTP.HeincludesMike’salias(orrouBngandaccountnumber)toaddressthepayment.HemayalsoaddaddiBonalreferenceinformaBonsothatMikeknowswhatthepaymentisfor.

2.  John’sFIverifiestheavailabilityoffunds.Incertaincases,theFImayneedtoholdthepaymenttoperformmoreextensivefraudprotecBonchecks.John’sFImayalsoopttoperformanoutofbandauthenBcaBonstepifthispaymentexceedsacertainthreshold.

3.  John’sFIresolvesthealias(ifused)andsubmitsthetransacBontotheRTPcoreinfrastructure.Atthispoint,thetransacBoncannolongerbecancelled.

4.  TheRTPcoreinfrastructurevalidatesthetransacBondetailsandprovisionallyupdates(debits)thesehlementposiBonforthepayer’sFIintheamountofthetransacBon.

1.  OnceMike’sFIhasreceivedthetransacBon,itchecksthattheaccountnumberisvalidandthensendsamessagebacktotheRTPcoreinfrastructurethatithasaccepted(orrejected)thepayment.

2.  UponreceivingtheacceptmessagefromMike’sFI,theRTPcoreinfrastructurefinalizesthesehlementposiBon(debit)forthepayer’sFIandupdatestheposiBon(credit)forthepayee’sFIintheamountofthetransacBonandsendsamessagetoJohn’sFItoconfirmthatthetransacBonwassuccessful(orrejected)andsendsamessagetoMike’sFItoconfirmthetransacBonwassuccessfullycompleted.

3.  Mike’sFIsimultaneouslycreditshisaccountwiththevalueofthetransacBonsentbyJohn.

4.  John’sFImarksthetransacBonascomplete.

5.  FIsnoBfyJohnandMikerespecBvely,thestatusofthepayment.EachsendingFIwilldecidehowtheircustomerswillbenoBfiedoftransacBonstatus.

Note:Fundsareaccessiblewithinseconds

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Usecasescenario:TransacAonfromaperson(John)toanotherperson(Mike)withaccountsatdifferentFIs.

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SampleP2PRTPScenario SampleB2BRTPScenario SampleB2CRTPScenario SampleC2BRTPScenario


SampleB2BRTPScenarioImmediatepaymentsystemsareparBcularlywell-suitedtoprovidevaluebeyondtheinherentbenefitoffastmoneymovement.Afundamentalfeatureofreal-Bmepaymentsisreal-BmecommunicaBonamongsenders,receivers,andtheirFIs.

Usecasescenario:SinglebusinesstobusinesstransacAonbetweenarestaurantanditssupplier.Therestaurantneedssuppliesimmediately,andthesupplierneedstobepaidbeforeshippingthegoods.


Supplier Restaurant

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Supplier’sFIRestaurant’s

FI

ValidateandRouteRequest

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RTPvalidatespaymentandupdatesseplementposiRon


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1.  Thesupplierreviewsanorderreceivedfromarestaurantandsendsa“RequestforPayment”(RFP)throughtheirFI.Thesupplier’sFIsendstheRFPmessagetotheRTPcoreinfrastructure.Sendingtherequestthroughasecure,trustedchannelreducesfraudriskassociatedwithane-mailinvoice.

2.  TheRTPcoreinfrastructurevalidatestherequestandroutesittotherestaurant’sFI,whichthennoBfiestherestaurant.

3.  TherestaurantreceivestheRFPthatcontainsa“PayNow”buhon.UponselecBngthe“PayNow”buhon,apre-populatedpaymentmessagethatincludesallperBnentpaymentdata(e.g.,remihanceinformaBon,paymentamount,etc.)ispresentedtotherestaurantsotheycanconfirmandmakethepaymenttotheirsupplierquicklyandeasily.

4.  Therestaurant’sFIsubmitsthetransacBontotheRTPcoreinfrastructurethatvalidatesthetransacBondetailsandprovisionallyupdates(debits)sehlementposiBonforthepayer’sinsBtuBonintheamountofthetransacBon.Thepaymentmessageisthensenttothesupplier’sFIthatthenconfirmstheaccountnumberisvalidandacceptsthepayment.

Note:TheexchangeofinformaBonbetweenbuyerandsellergoesbeyondtheremihancedetailthattypicallyaccompaniesB2Belectronicpayments.RemihancedataisessenBalandenablesthesuppliertoapplypaymenttothecorrectinvoice,accountforanydifferences,andreconcilethosedifferences.Inthisimmediatepaymentexample,thepaymentrequest,noBficaBonmessage,andconfirmaBonmessageallprovideaddiBonalvalueforaBme-sensiBvetransacBon.

1.  Thesupplier’sFIsendsamessagetotheRTPcoreinfrastructurewithacceptanceofthepaymentandtheRTPcoreinfrastructurefinalizesthesehlementposiBon(debit)forthepayerandupdatestheposiBon(credit)forthepayee’sFIsintheamountofthetransacBon.

2.  Thesupplier’sFInoBfiesthesupplierofpayment.Thesuppliersendsapaymentacknowledgementmessagetotherestaurant,confirmingthegoodsareontheway.

3.  Thesuppliersendstheloadeddeliverytrucktotherestaurant,confidentthatpaymenthasbeenmade.

4.  Therestaurant’sFInoBfiestherestaurant,confirmingthatthegoodsareonthewaywithamessagearrivingthroughareliable,trustedchannel.

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SampleB2CRTPScenarioAbusiness-to-consumer(B2C)transacBondemonstratesthatRTPoffersvaluebeyondP2PtransacBons.Oneexampleisthecaseofaninsuranceclaimsadjusternowhavingtheabilitytomeetwithacustomershortlyaxeranaccidentorclaim,assessvalueofdamages,andprovidefundsimmediately,therebyrelievingthecustomerofworryinanalreadystressfulsituaBon.

David(Person)

Tom(Agent)

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David(Person)

InsuranceCompany’s

FI

David’sFI

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2RTPvalidatespayment

andupdatesseplementposiRons


1.  Tominstructstheinsurancecompany’sFItopayDavidtheapprovedamountofdamages.ThepaymentinstrucBonalsoincludesclaiminformaBonthatboththeinsurancecompanyandDavidcanaccess.(ExtensiveclaiminformaBoncouldbeincludedinaremihanceadvicemessageorthroughareferencetoanexternalsource).

2.  Theinsurancecompany’sFIusesappropriatecustomerprocessestoverifyTomhasauthoritytoiniBatepaymentsfromthisaccountandthatgoodfundsareavailable.

3.  Theinsurancecompany’sFIsubmitsthepaymentmessagetotheRTPcoreinfrastructure.

4.  TheRTPcoreinfrastructurevalidatesthetransacBondetailsandthepaymentinstrucBonandprovisionallyupdates(debits)thesehlementposiBonforthepayer’sFI.AssociatedclaiminformaBonisthensenttoDavid’sFIasapartofthepaymentmessage.

5.  OnceDavid’sFIhasreceivedthetransacBon,itchecksthattheaccountnumberisvalidandthensendsamessagebacktotheRTPcoreinfrastructurethatithasaccepted(orrejected)thepayment.

1.  TheRTPcoreinfrastructuresendsamessagetotheinsurancecompany’sFIandDavid’sFItoletthemknowthatthetransacBonhasbeenmadesuccessfully.Theinsurancecompany’sFImarksthetransacBonascomplete.

2.  David’sFIsimultaneouslycreditshisaccountwiththeclaimamountsentbytheinsurancecompanysohecanhaveimmediateaccesstothefunds.

3.  Theinsurancecompany’sFIconfirmsthestatusofthepaymentandprovidestransacBondetailstotheinsurancecompany.EachsendingFIwilldecidehowtheircustomerswillbenoBfiedoftransacBonstatus

Note:TheexchangeofinformaBonbetweenbuyerandsellergoesbeyondtheremihancedetailthattypicallyaccompaniesB2Celectronicpayments.RemihancedataisessenBalandenablesthesuppliertoapplypaymenttothecorrectinvoice,accountforanydifferences,andreconcilethosedifferences.Inthisimmediatepaymentexample,thepaymentrequest,noBficaBonmessage,andconfirmaBonmessageallprovideaddiBonalvalueforaBme-sensiBvetransacBon.

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Usecasescenario:Davidhasdamagestohiscarfromanaccident.Hecallshisinsurancecompany,whichsendsitslocaladjustor,Tom,tomeetwithDavidandviewthedamages.Tominspectstheclaim,determinestheappropriateamountforthedamages,andapprovesitremotely.Tom’sinsurancecompanyimmediatelysendsDavidtheseSlementamount.

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SampleC2BRTPScenario

Aconsumer-to-business(C2B)transacBondemonstratesthatRTPoffersmanyfeaturesbeyondtradiBonalmoneymovement.Oneexampleisasmallbusinessthatwantstosendelectronicinvoicestoitscustomers,alongwiththeabilityforcustomerstoviewandrespondimmediatelywithpayment.ThesmallbusinesswantstohavethepaymentandremihancedatainstantlydownloadedtoitsaccounBngsoxwareprogramtoavoidmanuallyenteringpaymentremihances,whichcantakeBmeandintroduceerrors.

1.  AcmePlumbingcreatesaninvoicetobepresentedtoSteve,theircustomer,forpayment.Acme’saccounBngsystemcreatesafilecontainingalinktotheinvoice,(includingremihanceinfo)andaRequestforPaymentforitscustomers.

2.  Acme’sFIusesappropriatecustomerauthenBcaBonandpaymentverificaBonprocessestoverifyAcme’sAccounBngpersonnelhasauthoritytomakepaymentrequests.

3.  Acme’sFIsubmitstheRequestforPayment(RFP)messagestotheRTPcoreinfrastructure.

4.  TheRTPcoreinfrastructurevalidatesthepaymentrequestandroutesthemessagetoSteve’sFIfordistribuBontothecustomer.

5.  OnceSteve’sFIhasreceivedthepaymentrequest,itvalidatesthatStevehaselectedtoreceiveRFPs.Steve’sFIthenpoststhemessagetohisaccount.

1.  SteveispresentedwithaRFPthathasa“PayNow”buhon.UponselecBngthe“PayNow”buhon,Steveispresentedwithapre-populatedpaymentmessageincludingallperBnentdata(i.e.,remihanceinformaBon,paymentamount,etc.).

2.  Oncethepaymentisauthorizedandsubmihed,Steve’sFIsendsthepaymentmessageincludingtherelatedremihanceinformaBonandareferenceIDtotheRFPtoAcme’sFIviaRTP.RTPcoreinfrastructureprocessesthepaymentasitwouldanyotherpaymentontheSystem.

3.  Acme’sFIinformsAcmePlumbingthatthecustomer’spayment,andrelatedremihancedata,hasbeenreceivedandfundsareavailableinAcme’saccount.

4.  AcmePlumbingreceivesremihanceinformaBonintotheiraccounBngsystemviatheirFI’sinterface,avoidingmanualentryofpaymentinformaBon,andappliespaymenttotheappropriatecustomeraccount.

5.  AcmesendconfirmaBonthatpaymenthasbeenpostedtoSteveviaaPaymentAcknowledgementmessagethroughRTP

Note:TheexchangeofinformaBonbetweenbuyerandsellergoesbeyondtheremihancedetailthattypicallyaccompaniesC2Belectronicpayments.RemihancedataisessenBalandenablesthesuppliertoapplypaymenttothecorrectinvoice,accountforanydifferences,andreconcilethosedifferences.Inthisimmediatepaymentexample,thepaymentrequest,noBficaBonmessage,andconfirmaBonmessageallprovideaddiBonalvalueforaBme-sensiBvetransacBon.

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Usecasescenario:ConsumertoBusinessscenariowithrequestforpayment.Steve,anAcmecustomer,ispresentedwithalinkfromhisFI’scustomerfacingapplicaAonthatdisplaysaninvoice.AnopAontoimmediatelypayalloraporAonoftheinvoiceismadeavailable.OnceSteveinstructshisFItopay,hisFIsendsthepaymentdirectlytoAcme’scheckingaccountwhileAcme’sFIroutestheremiSanceinformaAondirectlytoAcme’saccounAngsystem.

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AcmePlumbing

Acme’sAccounRngSystem


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SteveAcme

Plumbing’sFI

SteveFI

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Paymentwith

Remipance 5b

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03|HowdoReal-TimePaymentswork?

02|OverviewofRealTimePayments


BusinessCaseConsideraRons

BusinessCaseConsideraRons

TheRTPbusinesscaseshouldbeacollaboraBveeffortwithinputandknowledgecomingfromthebusiness,operaBons,andtechnologyteams.ThispartnershipisessenBaltobuildingthebusinesscaseforRTPasFIsanalyzethecurrentoperaBngmodelthatissupporBngtheproductswithinthebank.TheknowledgegatheredbytheOperaBonsteamsthroughtheirexperiencewiththeclient,understandingoftheirorganizaBon’sproductsandservices,andprocessesthatdrivetheFI’sbusinessmakestheirparBcipaBonintegraltodevelopingawell-roundedandintelligentbusinesscaseforRTP.

•  ClientNeedsandExpectaRons:Byassessingclientneedsandleveragingtheirknowledgeoftheclient,OperaBonsteamscancombinetheirday-to-dayexperiencewiththebusinesscasetodetermineareaswherethereareopportuniBestobeherserveormeettheneedsandexpectaBonsoftheclient.

•  ProductsandServices:TheOperaBonsteamhasanunderstandingofnotonlytheorganizaBon’sproductsandservices,butalsothecustomer’slevelofacceptanceofitsproducts.ThisuniqueviewintotheorganizaBon’sfuncBonswillhelpstrengthenthecaseforhowtheFIcanleverageRTPtosupportanFI’sexisBngproductandserviceporDolio.

•  OperaRngModelsandProcesses:TheOperaBonsteamshouldassessexisBngoperaBngmodelstoidenBfyanychangesthatmaybeneededtosupportRTP.ThisassessmentshouldincludeanevaluaBonofresourcesthatmaybeneededfor24/7coverageorwhohaveknowledgeorskillsetaroundaspecifictopic(e.g.ISO20022).ThisassessmentwillhelptheOperaBonsteamunderstandthewaysthatRTPcandrivevaluefortheorganizaBon.ThisreviewcanalsoprovideanunderstandingoftheoperaBonalcostsassociatedwithimplemenBngRTP.

OpBmizingtheorganizaBonforclientneedsandaligningitagainsttheinternalbusinesscaseforimplemenBngtheRTPmodelcontributestothecostanalysisthatsupportsthebusinesscase.TheOperaBonsteamcanprovideaddiBonalvaluebyassessingthevariousopportuniBesforimplemenBngRTPanddeterminingwheretheorganizaBoncandrivethemostvalue.

BusinessCaseConsideraRonsforRTP

04:BusinessCaseConsideraRons

NewProductIdeaRonConsideropportuniBesfornewproductsandmarketscreatedbyfasterpaymentstodeliverinnovaBveproductsthattransformtheindustryanddriveadopBonofRTP.

CompeRRveOpportuniResUnderstandcompeBBveopportuniBesacrossusecases.Developyourownvalue-addedproductsandpricingstrategiesthatalignwithyourcustomers’demand.

30%

50%

20%

2010 2011 2012 2013 2014 2015 2016

ImpactedProductsandServiceOfferingsAssesscustomerneedsalongsideexisBngproductandserviceofferingstodeterminethefoundaBonforyourorganizaBon’sRTPstrategy.

ImpactedInvestmentsandAssociatedCostsDetermineinvestmentareasandassociatedcoststounderstandtheoverallcostandimpacttoyourorganizaBon.

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ImpactedAreas:KeyConsideraRons

RTPTechnologyOverviewRTPoperates24hoursperday,everydayoftheyear.Toensureavailability,RTPruns“AcBve/AcBve”inbothsites.ParBcipantsarerequiredtomaintaintwosites,butmaychoosetorunacBve/acBveoracBve/standby.Atitsmostbasiclevel,theRTPsystemallowsfortheexchangeofmessagesrelatedtoapaymenteventbetweentwoparBcipants.EachmessagesubmihedtoRTPreceivesaresponsewithinseconds.Thereal-BmeresponseindicatesthatthemessagehasbeenreceivedandhasbeenprocessedbythereceivingfinancialinsBtuBon.Subsequentbusiness-levelresponses(suchastheResponsetoRequestforPayment)mustbesubmihedasnewrequestsandwillreceivereal-Bmeresponses.MessagetransportforRTPisviaIBMMessageQueue(MQ).TheinterfaceemploysanOutboundQueuePair,anInbound,QueuePair,andaSystemNoBficaBonMessageQueue.QueuenamingconvenBonsaredefinedindetailintheTCHCustomerDocumentaBonRTPSystemInterfaceGuide.NetworkConnecBvityisviaMPLSorSecureVPN,andconnecBvityopBonsareoutlinedintheTCHRTPNetworkConnecAvityOverviewdocumentavailableuponrequest.InaddiBontothesecurityprovidedbytheMPLSorSecureVPNconnecBon,MQTransportLayerSecurity(TLS)isuBlized,andeachmessageisdigitallysignedtoensureauthenBcityinaccordancewithISO20022.RTPadherestothelatestFFIECguidelinesandFederalInformaBonProcessingStandards(FIPS-2).AmanagementportalwillbeprovidedtoallowbankoperaBonsuserstoviewtransacBonstatus,messagevolumes,liquidityposiBons,andmanagereports.ParBcipantswillhavetheabilitytoadministerusersandpermissionsfortheirinsBtuBonandwillalsobeabletoconfigurecertainprocessingparameterssuchasthehigh-watermarkandlow-watermarkthresholds.Userscanalsorequestawithdrawalofexcessliquidityfromtheprefundedsehlementaccount.

MessageTypesKeyConsideraRons IntegraRonsChecklistTechnologyOverview

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KeyTechnologyConsideraRonsRTPisanewsystemthatisuniquefromanyotherexisBngpaymentsystemintheU.S.today.TechnologyteamsresponsibleforbankimplementaBonofRTPwillneedtotakecertainahributesofthesystemintoconsideraBonwhendesigningthesystemintegraBonsthatwillmakeupafinancialinsBtuBon’simplementaBonofRTP.TCHhasidenBfiedfiveimportantconsideraBonsthattechnologyteamsmustunderstandwhenconsideringanRTPimplementaBon.

!  FiveimportantconsideraRonsforInformaRonTechnologyteams

!  24/7/365 !  RouBngTableManagement

!  MessageProcessingSLAs !  CustomerNoBficaBons

!  NetworkInfrastructure

SystemsconnectedtoRTPmustbeavailabletofacilitateimmediatefundsavailabilityfortransacBonsreceivedatanyBmeofday,anydayoftheyear.WhilesomefinancialinsBtuBonshaveinvestedinreal-Bmecoreaccountprocessingsystems,themajorityoffinancialinsBtuBonsusecoreaccountprocessingsystemsthatrelyonbatchprocessing.Thoserelyingonbatchprocessingmustdeterminehow“immediatefundsavailability”willbeachievedtechnically.Further,24/7/365natureofRTPmayhaveanimpactonplannedmaintenancetosystemsthatinteractwithRTP.Giventhatthereisno“greenzone”forchanges,whileapplicaBonsthataretypicallyusedinprocessingRTPtransacBonsaredownformaintenance,parBcipantswillneedtodeterminehowtheywillrespondtoincomingrequestmessages.Finally,ina24/7/365systemtheseisno“startofday”or“endofday”process.TCHwillprovideintradayreconciliaBonpointstohelpparBcipantsinensuringthattheirtransacBonrecordsmatchwhatisintheRTPsystem,butRTPdoesnothaveabeginningorendofday.Further,thereisno“valuedate”onpayments,butRTPvalidatestoensurethatthemessagedateiswithin1calendardayoftheRTPSystemTime.

Topic1:24/7/365

ImportantMaintenancewindowsareessenBalforcompleBngimportantsecurityupdates,replacingorupdaBnghardwareorsoxware,andevendailyforposBngtransacBons.Givenapaymentssystemthatoperates24/7/365with“five-nines”upBme,anFImustconsiderwhatwillhappenwhensystemsthattypicallyreceivemessagesfromthesystemaredownforscheduledmaintenance.

•  Whatwillbetheimpactonuserstryingtosendpayment?

•  Whatwillbetheimpactonaccountholderswhoreceivepaymentsduringanoutageormaintenancewindow?

•  DomaintenancewindowsalignwithlowvolumeBmesforRTPacBvitytoensurethatcustomerimpactisminimized?








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KeyTechnologyConsideraRons(ConRnued)

RTPgovernanceestablishesServiceLevelAgreements(SLAs)thatparBcipantsmustmeetregardingaverageresponseBmetoincomingrequests.Generally,paymentrequestsmustcompletewithin15secondsofiniBaBon.ParBcipantsreceivingmessagesmustacceptorrejectthepaymentwithinfive(5)seconds.Thesefivesecondsmustinclude:–  SchemavalidaBonandVerificaBonofthemessagesignature–  BusinessvalidaBon(accountexists,transacBontypepermihedforaccount,

regulatorychecks,etc.)–  CreaBon,signature,andtransmissionofresponse(accept/reject/accept

withoutposBng)

AlloutgoingmessagesmustbedigitallysignedinaccordancewithalgorithmsspecifiedbyworldwidewebconsorBum(www.w3.org).Likewise,signaturesmustbevalidatedonincomingmessages.DetailsofhowtosignmessagesareprovidedintheRTPInterfaceGuide(seeresourcessecBon).LibrariesofstandardfuncBonsusedtosignmessagesandvalidatesignaturesareavailableformostcomputerlanguages.However,dependingonthevolumeoftransacBonsexpected,technologyteamsmaywanttoconsidertheuseofhardwaresecuritymodules(HSMs)toperformcryptographicfuncBonsinordertoensuremessagescanbeprocessedwithinSLAs.RTPwillautomaBcallyBmeoutandcancelatransacBonifthereceivingparBcipantsdoesnotrespondinBme.IfaBmeoutoccurs,RTPwillnoBfyboththesendingandreceivingparBcipantsthatthetransacBonhasbeencancelled.ThesendingparBcipantshouldalsotakeacBonifnoresponseisreceivedwithin15seconds.IfnoresponseisreceivedfromRTPwithin15seconds,itislikelythatanissueexistsbetweenthesenderandRTP,andthesendermayahempttoresendthetransacBonasapossibleduplicate,ormayindicatetotheircustomerthatthetransacBoncouldnotbecompletedatthisBme.PleaserefertothemostrecentversionoftheRTPCustomerDocumentaAonSystemMessageFlowsdocumenttoensureproperuseofthepossibleduplicateflagonvariousmessagetypes.

Topic2:MessageProcessing

ResourceTheRTPCustomerDocumentaAonSystemMessageFlowsoutlinethestandardflowsandusecasesthataparBcipantcanexpectforeachofthesupportedmessagetypesinRTP.ThisdocumentalsoincludesasecBondescribingRTPsehlement,therequiredminimumprefundedbalance,supplementalfunding,andwithdrawalsfromthesehlementaccount.

InaddiBontotechnicalresources,productmanagersmayalsofindthisresourcehelpfulinplanningfeaturesandfuncBonalitythatmustbeincludedinthebusinessrequirementsforanyRTPintegraBonproject.








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ParBcipantswithanexisBngMPLSnetworkconnecBontoTCHmaybeabletousetheirexisBngcommunicaBonscircuitsandinfrastructuretoconnecttoRTP,butchangesinvolumeandrequiredup-Bmemaynecessitateupgradedcircuitsandrouters.Inestablishingnetworkinfrastructurerequirements,eachparBcipantmustbeabletoaccommodatethe24/7/365availabilityrequirementsofRTPaswellastheexpectedvolumeofallmessagetypes,includingpayments,paymentrelatedmessages,extendedremihancemessages,andadministraBvemessages.InfrastructureplanningshouldtakeintoaccounttheISO20022messagetypesandexpectedvolumesforeachinsBtuBon.NotethatmulBplemessagesmaybeassociatedwitheachtransacBon(forexample,aCreditTransfer[pacs.008]maybegeneratedinresponsetoaRequestforPayment[pain.013]).

Topic3:NetworkInfrastructure








ImportantInfrastructureplanningshouldtakeintoaccountnotjustexpectedpaymentvolume,butalsooverallmessagevolume.WithinRTP,payment-relatedmessageslikeRequestforPayment,RequestforInformaBon,PaymentAcknowledgement,andStand-AloneRemihanceAdvicewillcontributesignificantmessagevolume.

DecisionPointParBcipantswithexisBngnetworkconnecBonstoTCHmustdetermineifthoseconnecBonscanbereused,orifdedicatedRTPcircuitsarerequired.

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KeyTechnologyConsideraRons(ConRnued)

MessagerouBngwithinRTPisbasedonR/Tnumberandaccountnumber.ToensurethateachparBcipantisawareofeachotherparBcipantinthenetworkatsign-onandthroughouteachday,RTPwillperiodicallypublishaRouBngTableandwillsendSystemNoBficaBonMessagesindicaBngachangeinstatustootherparBcipants.TheRouBngTableisbasedonR/TnumberandincludesinformaBonsuchaseachR/Tnumber’sassociatedParBcipantID,FinancialInsBtuBonID,ConnecBonID,andReceiveMessagesSupported.ItisrecommendedthateachRTPParBcipantmaintainalocalversionofthemostcurrentRTPRouBngTable.TCHwillmakethecurrenttableavailablethroughthemanagementportalforParBcipantandTPSPdownload;however,oncedownloaded,ParBcipantsshouldupdatetheirlocalcopywhenSystemNoBficaBonMessagesarereceivedindicaBngthatotherparBcipantshave:–  Signed-onorSigned-off;–  BecomeConnectedorDisconnected;and–  BecomeSuspendedorReinstatedbyRTP.ParBcipantsshouldavoidsendingmessagestoR/TnumbersthatareunavailablethroughRTPasfeesmaybechargedforthesemessageswhichwillulBmatelyfailandprovidenovaluetothesendingparBcipant.

Topic4:RouRngTableManagement

ImportantParBcipantsareresponsibleformanagingtheirownlocalrouBngtables,andtherefore,theyhaveopBonswhenitcomestohowthistableismanaged.IfaparBcipantoptsnottomaintainandupdatetheirlocalversionoftherouBngfileusingtheSystemNoBficaBonMessagesthatbroadcastparBcipantstatus,theymayexperiencemorerejectedmessagesastheysubmittransacBonstorouBngandtransitnumbersthatarenotavailable.ThismayresultinanincreaseinnetworkfeesfortransacBonsthatareunsuccessful.

RTPrequiresthatinformaBonregardingpaymentstatusbemadeimmediatelyavailabletotheaccountholderthroughelectronicmeans.Thismeansthatthestatusofeachpaymentandpayment-relatedmessagewillneedtobeelectronicallycommunicatedtoaccountholdersthroughavailablechannels.AccountholderswillhavevaryingmeansthroughwhichtheyareabletoreceivenoBficaBons.Someaccountholdershaveaccesstoonlineandmobilebanking,whileothersonlyhaveaccesstoonlinebanking.EachparBcipantwillneedtodecidehowthesenoBficaBonsaredeliveredtoaccountholdersandwhatopBonstheywillgiveaccountholderstoupdatethesekngsforthesenoBficaBons.IntegraBonwithmulBpleapplicaBonsmaybenecessarytoachievethenoBficaBonsrequirementsdeterminedbyeachparBcipant’sproductmanagementteam.

Topic5:CustomerNoRficaRons








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MessageTypesRTPsupportsanumberofISO20022messagetypesthatareusedforavarietyofpurposesthroughoutthepaymentlifecycle.TheRTPmessagesetisdesignedtofacilitateanumberofpaymentusecases.MessagessupportedwithinRTPinclude:

•  CreditTransfer(pacs.008):ThisbasicmulB-purposepaymentmessageisusedtopushfundstoanaccountdesignatedbythesender.ThecredittransferistheonlyfinancialtransacBonwithintheRTPmessageset,meaningthatitistheonlymessagethatresultsinsehlement.AllfundsassociatedwithRTPcredittransfersmustbemadeimmediatelyavailabletotheCreditorandinformaBonrelatedtothestatusofthecredittransfermustbemadeimmediatelyavailabletotheDebtor.

•  RequestforPayment(pain.013)&ResponsetoRFP(pain.014):TheRequestforPayment(RFP)isiniBatedbyaCreditortorequestfundsbesentrelatedtoadebtowedbythedebtor.InformaBonrelatedtotheRequestforPaymentmustbemadeimmediatelyavailableviasecureelectronicmeanstotheDebtor.UponreceiveoftheRequestforPayment,theDebtormayiniBateaCreditTransfer(pacs.008)inresponseormaydeclinetomakeapayment,inwhichcaseaResponsetoRFP(pain.014)issenttotheDebtorFI.TheCreditTransferthatfollowsaRequestforPaymentincludesareferencetotheoriginalRFPtoallowforstraight-throughprocessingandsimplereconciliaBonfortheCreditorthatiniBatedtheRFP.

•  PaymentAcknowledgement(camt.035):ThePaymentAcknowledgementmessageissentbyaCreditortoaDebtortoconfirmthatfundssentinapreviousCreditTransfer(pacs.008)havebeenreceivedandappliedtoanaccount.ThisisespeciallyusefulforbillersthatmustapplyfundsassociatedwithaCreditTransfertoaspecificaccountthroughtheiraccountspayablesystem.

•  RequestforInformaRon(camt.026)andResponsetoRFI(camt.028):TheRequestforInformaBon(RFI)isiniBatedbyaCreditortorequestaddiBonalormissinginformaBonregardingapreviouslyreceivedCreditTransfer(pacs.008).Forexample,ifaCreditTransferisreceivedbytheCreditorFIandappliedtotheCreditor’saccount,buttheCreditTransferdidnotincludetheinvoicenumberagainstwhichthefundsweretobeapplied,theCreditorhasameanstorequestthisinformaBonthroughthepaymentsystem.UponreceiptofaRequestforInformaBon,theReceivingFImustimmediatelymakeinformaBonrelatedtotheRequestavailabletoitsaccountholderthroughsecureelectronicmeans.ShouldtheDebtorrespondwiththemissinginformaBonordeclinetorespondwiththerequestedinformaBon,aResponsetoRFI(camt.028)issentbacktotheCreditorFIincludingthemissinginformaBonorareasonthatindicateswhysuchinformaBoncannotbeprovided.

•  Stand-AloneRemipanceAdvice(remt.001):TheStand-AloneRemihanceAdvicemessageprovidesextensiveremihancedetailthatcannotbeincludedintheCreditTransfermessageortheRequestforPaymentmessage.Thismessage,whichmustbesentinreferencetoaCreditTransferorRequestforPayment,allowsforupto4,000charactersofremihanceorinvoiceinformaBon.

ResourceTheRTPMessageSpecificaAonsdescribeindetailthestructure,format,contentsofeachmessagesupportedinRTP.ForthemessagetypeslistedaboverefertothefollowingspecificaBons:

•  RTPCreditTransferMessageSpecificaAon•  RTPRequestforPaymentMessageSpecificaAon•  RTPPaymentAcknowledgementMessage

SpecificaAon

•  RTPRequestforInformaAonMessageSpecificaAon•  RTPStand-AloneRemiSanceAdviceMessage

SpecificaAon








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MessageTypes(ConRnued)RTPsupportsanumberofISO20022messagetypesthatareusedforavarietyofpurposesthroughoutthepaymentlifecycle.TheRTPmessagesetisdesignedtofacilitateanumberofpaymentusecases.MessagessupportedwithinRTPinclude:

•  RequestforReturnofFunds(camt.056)andResponsetoRfRF(camt.029):TheRequestforReturnofFunds(RfRF)canbeiniBatedbyaDebtorFIifaDebtorreportsaCreditTransferwassenteitherfraudulentlyorinerror.UponreceiptofaRfRF,theCreditorFImustiniBateaninvesBgaBonintotheerroranddetermineiffundsassociatedwiththeoriginalCreditTransfercanbereturnedtotheDebtor.UponcompleBonoftheinvesBgaBon,theCreditorFImayrespondwithaResponsetoRfRF(camt.029)indicaBngwhetherornotfundswillbereturnedtotheDebtor.Iffundsaretobereturned,theCreditorFIcandosothroughanymeans,includinguseofanRTPCreditTransfer(pacs.008).

•  MessageStatusReport(pacs.002):TheMessageStatusReportisthestandardconfirmaBonmessagethatissentinreal-BmebytheReceivingParBcipantinresponsetoallmessagetypesdescribedabove.ThisStatusReportconfirmsthatthemessagehasbeenreceivedbytheReceivingParBcipantandindicatesifthemessagecouldbesuccessfullyprocessed.Ifamessagecouldnotbesuccessfullyprocessed,theMessageStatusReportwouldincludeindicaBonthattheReceivingParBcipantisrejecBngthemessageandthereasonfortherejecBon.AllrequestmessagesandtheirrespecBveresponsemessagesmustberespondedtoinreal-BmewithaMessageStatusReport.

InaddiBontothemessagetypeslistedabove,AdministraBvemessagesaresentbetweenParBcipantsandtheSystemforvariouspurposesincludingsign-on,sign-off,echoes,andindividualandbroadcastsystemnoBficaBons.FormoreinformaBonregardingindividualmessagesorstandardmessageflows,pleaserequestaccesstotheRTPMessageSpecificaBonsandSystemMessageFlowsdocuments.

Finally,eachmessageissentwithaBusinessApplicaBonHeaderwhichcontainsrouBnginformaBonusedbyTCHandauniqueidenBfierforeachend-pointtoend-pointmessageleg.MoreinformaBonregardingthefuncBonoftheBusinessApplicaBonHeadercanbefoundintheBusinessApplicaAonHeaderMessageSpecificaAon.

ResourceTheRTPMessageSpecificaAonsdescribeindetailthestructure,format,contentsofeachmessagesupportedinRTP.ForthemessagetypeslistedaboverefertothefollowingspecificaBons:

•  RTPSystemTime-OutandRequestforReturnofFundsMessageSpecificaAon

•  RTPMessageStatusReportMessageSpecificaAon•  RTPAdministraAveMessagesSpecificaAon

InaddiBontothesespecificaBons,moreinformaBonregardingtheBusinessApplicaBonHeadercanbefoundintheRTPBusinessApplicaAonHeaderMessageSpecificaAon.








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IntegraRonChecklistsTheimplementaBonofRTPwilllikelyimpactanewparBcipant’sexisBngsystemsandapplicaBons.SincedatarelatedtoinboundRTPmessagesmayneedtobefedtomulBplesystems,impacttothefollowingsystemsshouldbeanalyzedtodeterminethescopeofworkrelatedtoRFPimplementaBon.ItisalsoimportanttoconsiderthemessagetypesthatwillbesupportedasaresultofyourinsBtuBon'slevelofparBcipaBon(e.g.ReceiveOnly,SendandReceive,SendRequestforPayment).

!  CoreAccountProcessingSystem–usedtoposttransacBons(CreditTransfer)toaccounts,forgeneraBonofstatementsincludingRTPacBvity,andmovementoffundsbetweenaccountsattheFI(GLAccountsandEnd-useraccounts)

!  NetworkInfrastructure–infrastructurewillbeneededtoestablish24/7connecBvitytoRTPtosendandreceivemessages

!  OnlineBanking–channelthroughwhichRTPCreditTransfer,RequestforPayment,RequestforInformaBon,andPaymentAcknowledgementacBvitymaybemadeavailabletoaccountholders.

!  MobileBanking–channelthroughwhichRFPCreditTransfer,RequestforPayment,PaymentAcknowledgement,andRequestforInformaBonacBvitymaybemadeavailabletoaccountholders.

!  EnterpriseAlertsSystem–systemusedtoalertaccountholdersofspecificeventsinamanneragreedtobytheaccountholder(forexample,text,email,ormobilealerts)

!  FraudMonitoringandAMLSystems–systemsdesignedtodetectandrespondtosuspectedfraudorAnB-MoneyLaunderingviolaBons.ThesesystemsmusthavetheabilitytoscreenRTPacBvityinreal-Bme.FraudulenttransacBonsreportedbyaccountholdersmustbereportedtoTCHinaBmelymanneraswell.

!  OFACScreeningTools–thesesystemstypicallycheckaccountholderprofilesforOFACviolaBonsduringnewcustomeraccountcreaBonanduponanaccountholderinstrucBngtheFItosendaninternaBonaltransacBon.TotheextentthatRTPisusedtomovefundsbetweenaccountswithintheUSandaccountsofforeignaffiliatesofU.S.financialinsBtuBons,OFACscreeningmayneedtobeperformedinreal-BmeatthediscreBonofthefinancialinsBtuBon.

!  PaymentsHub/PaymentsGateway–centralizedsystemusedtoprocessandmanagetheworkflowforallpaymentsgoingintoandoutofaninsBtuBon.

AddiBonally,anyapplicaBonsthroughwhichaccountholderswillhavetheabilitytosendCreditTransfersorRequestsforPaymentwillbeimpactedbytheRTPimplementaBon.Examplescouldinclude:

!  OnlineBillPay

!  PersontoPersonPayments

!  ExternalAccounttoAccountTransfers

!  DigitalInvoicing

!  CashConcentraRonproducts

!  AccountsReceivableproducts

!  AccountsPayableproducts








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ConsideraRonsChecklist OperaRngRules

ChecklistandSupporRngDocumentaRon

Risk,Fraud,andCompliance

!  HowdoRegEconsumerdisclosuresneedtobeupdatedtoincludeRTPpayments?WhatshouldtheposBngorderofRTPtransacBonsberelaBvetoothertransacBontypes(e.g.ACH,checks,cardpayments,wires)?

!  Howdoaccountagreementswithbusinesscustomersneedtobeupdated?

!  HowwilltheinsBtuBonensurecompliancewithallaspectsofBSAforRTPtransacBons,includingscreeningforpotenBalOFACviolaBonsasnecessary?

!  DoexisBngAMLcontrolsneedtobeupdatedgiventheimplementaBonofRTP?

!  HowwilltheinsBtuBonimplementreal-BmefraudmonitoringforRTPtransacBons?

!  IfsendingtransacBons,whatdollarlimitswillbeimplementedforretailcustomers?Whatdollarlimitswillbeimplementedforcommercialandwholesalecustomers?

!  WhataddiBonaltrainingwillbenecessaryforfraudandOFACanalystsregardingRTP?

!  WhatauthenBcaBonmethodsareusedpriortoallowinganaccountholdertosendanRTPpayment?

!  WhatduediligenceprocesswillbenecessarytoensurethatcustomersiniBaBngRequestforPaymentmessagesarecredibleandusingsuchtransacBonsforavalidbusinesspurpose?

!  WhatduediligenceprocesswillbenecessarytoallowpaymentserviceproviderstoaccessRTPservicesthroughourinsBtuBon?

PaymentOperaRons

!  Asadefault,allaccountholdersshouldbeeligibletoreceiveRTP.ShouldyouallowyouraccountholderstooptoutofreceivingRTP?Ifso,howwillthisprocessbemanaged,andhowwillthesystempreventacceptanceofpaymentsforaccountsthatareopted-out?

!  Whatend-of-dayreconciliaBonprocessesneedtobeestablished?

!  WillaccountholdersberequiredtoenrolltoreceiveRequestsforPayments?Ifso,whatdoesthisenrollmentprocesslooklike?HowwilltheFItrackrequeststorenrollmentandopt-outsforRFPs?

!  WhatwillbetheprocessforinvesBgaBngaRequestforReturnofFundsreceivedfromanotherinsBtuBon?Canthisprocessbeautomated?

!  WhatwilltheprocessbeforaccountholderstoiniBateaRequestforReturnofFunds?Towhatextentcanthisbeautomated?

!  WhatmonitoringwillbenecessarytoensurethatRTPSLAsregardingresponseBmesareconsistentlymet?WhataddiBonalmonitoringwillbenecessarytoensureotherperformancemetrics(%posiBveresponses,%Bmeouts)willbemet?

!  HowwillcustomersiniBaBngRFPmessagesbemonitoredtoensureproperuse?

06:OperaRonsChecklistBelowisachecklistorganizedbygroupswithinatypicalFI’sorganizaBonthatservesasaquickreferenceforsomeoftheconsideraBonslistedthroughoutthisdocument.ThislistisnotintendedtobeinclusiveofallconsideraBonsthatmustbemadewhenimplemenBngRTP,butitcanhelpspurconversaBonaboutRTPimpactsthroughoutanFI’soperaBons.

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06:OperaRonsChecklist(conRnued)ProductManagement

!  Whatwilluseofnon-paymentmessage—suchasRequestforPayment,RemihanceAdvice,andothers—beincorporatedintoexisBngandnewproducts?

!  WhatlevelofparBcipaBonisnecessarytosupportproductsthatwillbeintegratedwithordevelopedtoleverageRTP?HowwillthatlevelofparBcipaBonimpactOperaBons?

!  Istheuseofadirectoryservicenecessaryfortheproductsthatwillbeoffered?HowwillaliasesberesolvedandmanagedoutsideofRTP?

CustomerServiceandCommunicaRons

!  Whattrainingwillbegiventocallcenterandin-branchemployeessothattheywillbeabletospeakgenerallyaboutRTPanditsimpactsoncustomers?

!  WillaspecializedcallcenterteambeestablishedtoansweraccountholderquesBonsrelatedtoRTP?Ifso,willcustomersbegivenaspecificnumbertocallforRTP-relatedquesBons?

!  WhataddiBonalpersonnelwillbenecessarytosupportRTP?

TreasuryManagementandDepositOperaRons

!  HowwillsupplementalfundinganddrawdownsofthesehlementaccountbesupportedoperaBonally?

!  HowwilltreasurymanagementprepareforweekendsandholidaystoensureasufficientbalanceismaintainedinthesehlementaccountunBlthenextopportunitytoprovidesupplementalfunding?

!  Whatistheprocessformonitoringthebalanceofthesehlementaccount,especiallyuponRTPsystemnoBficaBonsregardingtheLowWatermarkandHighWatermarklevelsconfiguredbytheFI?

!  WhatisthepreferredreconciliaBon/reporBngBme,ifTCHisofferingmulBplereconciliaBonwindowsperday?

!  WhatprocesswillbedefinedtorespondtodiscrepanciesidenBfiedthroughreconciliaBon?

Technology

!  WilltheFIconnectdirectlytoTCHorthroughathird-partyserviceprovider(TPSP)?

!  Ifusingthird-partyvendorsforproductsandservicesthatarealreadyimplementedbutthatarebeingintegratedwithRTP,whatpartywillmanagethetechnicalconnecBonandhowwilltheintegraBonbeaccomplished?

!  HowwillthetechnologyteamrespondtonoBficaBonsofconnecBonand/orBmeoutissues?

!  HowwilltheFImanageandmonitormulBpleconnecBons,ifnecessary?

!  Ifusingathird-partyserviceProvider(TPSP),howwillthetechnologyteamensurethevendorisnoBfyingthemofanyoutageortechnicalissuesdisrupBngservicetotheFI’saccountholders?







ConsideraRonsChecklist OperaRngRules NetworkDocumentaRon

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OperaRngRules

NetworkdocumentaBonwillbepublishedtoprovidethestructureandon-goingrouBnestoensuretheeffecBvenessandintegrityoftheReal-TimePaymentsSystem.OperaBngruleswillbeestablishedtoensureBmely,secure,andaccuratepayments,messagingandsehlement.VariousahributesandscheduleswillbedefinedthatparBcipaBngFIsmustbeawareofsuchasduediligencerequirements,sehlementwindows,andperformanceSLAs.ThesemaychangeoverBme,butallchangeswillbewellcommunicated.ThegeneralframeworkfortheoperaBngrulesforTCH’sRTPSystemisoutlinedbelow.

RTPRequirements OperaRngRulesandProcedures FIRequirementsAllpaymentsareoriginatedbythepayer

•  Alegalbasismustbeprovidedforcredittransfersthatareauthorizedbyapayer

•  RightsandobligaBonsofallparBestothetransacBonmustbedefined-includingthepayer,thepayee,thesendingFI,thereceivingFI,andthepaymentsystemoperator

•  Customersmustbeprovidedwithproductsandservicestosendandreceivecredittransfers

FIcustomershavetheabilitytosendorreceivepayments24hoursaday,7daysaweek,365daysayear

•  FIsmustbeabletoreceiveandrespondtopaymentsandnon-paymentmessages24/7/365withinanestablishedSLA

•  24/7/365asareceivingFI•  FIsmusthavetheabilitytoperformnecessaryriskmanagementandcompliancefuncBonssuchascustomerauthenBcaBon,authorizaBon,regulatorycompliancescreening,andanB-fraudscreening24/7/365inanautomatedfashion

Sendersandreceiverswillhavecomplete,BmelyinformaBonaboutthestatusofRTP

•  ReceivingFIsmustacceptorrejectthemajorityofpaymentswithinsecondsandallpaymentsinareasonableBme

•  FIsmustmakeimmediatenoBficaBonofpaymentstatustosendersandreceiversorprovideachannelforsendersandreceiverstoviewpaymentstatus

•  FIsmustintegrateaccurateRTPstatusinquiry,noBficaBon,andfeedbackintoonlineandmobilebankingservices

ReceivingFIswillprovideimmediateavailabilityoffundstorecipients24/7/365

•  ReceivingFIsmustmakefundsavailabletoreceiverswithinsecondsforanyacceptedpayment

•  Paymentscanberejectedforriskmanagement,inabilitytopost,orlegalcompliance

•  PaymentsmaybeheldforreviewforareasonableBmeonlywhennecessaryforriskmanagementandlegalcompliancepurposes(expectedtobeasmallpercentageofpaymentsintheordinarycourseofbusiness).Axerreview,FIsmustacceptorrejectpayments-notwithholdavailability

•  ReceivingFIsmusteitherpostormemopostfundsforpaymentsreceivedimmediately

•  ReceivingFIsmustbeabletoeitheracceptorrejectmostpaymentsautomaBcallywithoutmanualreview24/7/365

Real-Bmeexchangeoffinancialandnon-financialmessagesthatsupportavarietyofusecases

•  SendingFIsmustadheretostandardformatsandusagerulesforpaymentandnon-paymentmessages

•  ReceivingFIsmustmakeallrelevantinformaBonfrompaymentandnon-paymentmessagesavailabletoreceivers

•  ReceivingFIsmustactonadministraBvemessages

•  FIsmustdevelopproducts,services,andprocessestocreate,deliver,andrespondtopayment,non-payment,andadministraBvemessages

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ConsideraRonsChecklist








OperaRngRules(ConRnued)

RTPRequirements OperaRngRulesandProcedures FIRequirementsSystemwidelimitsontransacBonvalue,updatedperiodicallybasedonobjecBvecriteria

•  LimitsonthevalueoftransacBonsclearedthroughthepaymentsystemwillbeestablishedbytheRTPSystem

•  RTPSystemrulesmayincludeaprocessforrevisingthetransacBonvaluelimit

•  SendingFIsmaysetlowervaluelimitsfortheircustomers•  ReceivingFIsmaynotsetatransacBonlimitlowerthanthesystemwidelimit

•  AniniBaltransacBonlimitwillbeestablishedfortheRTPsystemwiththeintenBontoreviewandraisethelimitoverBme

•  PoliciesandproceduresmustbeavailableforasendingFItosettheirtransacBonvaluelimitandhaveitapplytopaymentoriginaBon

•  RiskmanagementpoliciesandproceduresmustbeavailabletoacceptpaymentsuptothesystemwidetransacBonvaluelimit

•  FIsmusthavetheabilitytoidenBfythepotenBalstructuringoftransacBonsmadetoavoidestablishedtransacBonlimits

Fundscannotbetakenbackfromthereceiver;payercanrequestreturnofpaymentmadeinerror

•  ThelegalbasisforpaymentfinalitywillbeestablishedbytheRTPSystem

•  TheRTPSystemwillnotprovideabasisforsendingFIstoreclaimfundsfromreceivingFIsforunauthorizedpayments(thesendingFIonlyhasobligaBontoverifypaymentauthorizaBon)

•  FIsmusthaveeffecBveprocessesandtechnologytopreventunauthorizedpaymentoriginaBon

•  SendingFIsmusthavepoliciesandproceduresinplaceforhandlingcustomerclaimsforunauthorizedtransfersandfundssentinerror

•  ReceivingFIsmusthavepoliciesandprocedurestorespondtorequeststoreclaimfundssentinerror

Aninter-FIprocessincludingelectronicmessagingtosupportRequestsforReturnofFundssentinerror

•  AprocessforsenderstorequestreturnofpaymentssentinerrormustbeestablishedbyeachFI

•  Aninter-FIprocessforhandlingRequestsforReturnofPaymentssentinerrorwillbeestablishedbyeachsendingFI

•  TimelyresponsesforResponsetoRequestforReturnofFundswillberequested.

•  FIsmusthaveproductsandserviceswithfeaturesthatpreventerrorsinsendingpayments

•  SendingFIsmustestablishpoliciesandproceduresforhandlingcustomerRequestsforReturnofFundssentinerror

•  ReceivingFIsmustestablishpoliciesandproceduresforrespondingtorequeststoreclaimfundssentinerror

SehlementprocessandlegalframeworkthatreducesoreliminatespotenBalforsehlementfailure

•  TheRTPSystemmusthaverulesthatestablishthelegalbasisforinter-FInetsehlementandsehlementprocedures

•  FIsmusthavethecapabilitytomonitor,manage,andfundtheirsehlementpoolornetsehlementacrossallsehlementwindows

•  FIsmustdevelopaprocesstorespondtosituaBonswheresehlementexposurehasreacheditslimit

Useofauniquecodeinlieuofanaccountnumberthatcannotbeusedtodebittheaccount(token)

•  TheSecureDigitalPaymentscompanyisdevelopinganapproachfortokenizingaccountnumbers.

•  FIsmustcreateandoperatetheirownTokenVault,outsourcetheirtokenizaBonprocesstoaTokenServiceProvider,orleverageTCH’stokenservices

•  FIsmustintegratetokenizaBonintoproductsandservices

•  FIsmusthavetheabilitytoeducatecustomersontokenizaBon

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RTPRequirements OperaRngRulesandProcedures FIRequirementsSenderscaniniBatepaymentusinganaliasforthereceiversuchasatelephonenumberore-mailaddress(Alias)

•  RTPsystemshouldestablishaliasregistraBon,maintenance,androuBngpoliciesandprocedures

•  FIsshouldsupportaliasrouBnginpaymentproductsandservices

•  FIsshouldadministeraliasenrollmentandmaintenanceforcustomers

ParBcipaBngFIsmustmeetminimumlevelsofstandardsforsecurityandprivacyprotecBon

•  RTPsystemrulesshouldreferenceexternalsecurityandprivacystandards

•  AllFIsmustmeetdataprotecBonstandards•  SendingFIsmustmeetrigorousstandardsforsenderauthenBcaBonandpaymentauthorizaBon

•  FIsshouldensuretheircompliancewithsecurityandprivacystandardsareauditableandaudited

•  AnFI’ssecuritystandardsshouldnotunnecessarilyrestrictusability

•  MostsecurityanddataprotecBonrequirementsshouldapplyacrossallchannelsandproductsandnottoaspecificpaymentsystem

SupportforanB-fraud,anB-moneylaundering,andOFAC/sancBonscomplianceprocesses

•  SendingFIsshouldhaverulesthatrequirethemtoprovidethenecessarydataforregulatorycomplianceneededbythereceivingFI

•  FIsshouldhavepoliciesandprocedurestoobtaindatarequiredforregulatorycomplianceduringthepaymentiniBaBonprocess

•  AutomatedanB-fraudscreeningmayberequiredtomeetexpectaBonstoacceptorrejectpaymentsinsecondsorminutes

UseglobalmessagestandardsanddefineprocessesconsistentwithglobalpracBces

•  RTPsystemshouldavoidunnecessarydivergencefromoperaBngrulesforpaymentssystemsinothercountries

•  RTPSystemshoulddeveloprulestogoverninternaBonalpaymentsforthelongterm

•  FIsshouldadaptproductsandservicestouseinternaBonalstandardpaymentformatsandprocesses

TieredapproachtofraudprevenBonandmiBgaBonsegmentedbyacBvity-basedsystemparBcipaBon

•  RTPshouldensuretheminimumrequirementsforriskcontrolareassociatedwiththeacBviBesthatafinancialinsBtuBonisofferingandwillbeaddiBveinnatureforeachincreasinglevelofpotenBalrisk

•  RTPSystemtocreateacentralizeduBlitythatanalyzesnetwork-leveldatatoidenBfyandreportpotenBalfraudulentbehavior(e.g.,detectanomaloussend/receiveacBvity;excessivecomplaints)o  VelocitychecksonoriginaBon,receive,andrequestfor

paymentvolumeso  DetecBonofpahernsthatindicatepotenBalnetworked

fraudormoneymuleacBvityo  AlertswithreasoncodesupondetecBonofanomalous

acBvityforimpactedfinancialinsBtuBons

AllparBcipantsmustcomplywithFFIECguidelinesasappliedthroughprudenBalregulatorexaminaBon•  AllparBcipantsmustreportfraudulentbehaviortoTCHand/orsendingFIs(note:thiscouldbefacilitatedthroughTCHoffering)

•  AllparBcipantsmustreacttoalertsfromcentralizedacBvitymonitoringuBlity

•  SendingFIsmustestablishaminimumoftwofactorauthenBcaBon(asdefinedthroughRTPgovernanceprocess)

•  SendingFIsmustrequireregistraBonofcustomerssendingpayments

•  SendingFIsmustscreenforfraudandriskinreal-Bmeforpaymentsbeingoriginated(conBnued)

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RTPRequirements OperaRngRulesandProcedures FIRequirementsTieredapproachtofraudprevenBonandmiBgaBonsegmentedbyacBvity-basedsystemparBcipaBon(conBnued)

•  RTPwillensuretheminimumrequirementsforriskcontrolwillbeassociatedwiththeacBviBesthatafinancialinsBtuBonisofferingandwillbeaddiBveinnatureforeachincreasinglevelofpotenBalrisk

•  FIneedstocreateacentralizeduBlitythatanalyzesnetwork-leveldatatoidenBfyandreportpotenBalfraudulentbehavior(e.g.,detectanomaloussend/receiveacBvity,excessivecomplaints)o  VelocitychecksonoriginaBon,receive,andrequestfor

paymentvolumeso  DetecBonofpahernsthatindicatepotenBalnetworked

fraudormoneymuleacBvityo  AlertswithreasoncodesupondetecBonofanomalous

acBvityforimpactedfinancialinsBtuBons

RequestforpaymentparRcipants(aboverequirementsplus)•  MakewarranBesandrepresentaBonsthatRequestsforPaymentareforlegiBmatepurposes

•  ScreenandmonitorrequestforpaymentiniBators,withtheabilitytoidenBfyabusiveorfraudulentuseandtakecorrecBveacBonsincludingsuspensionofiniBatoraccesstothenetwork(asdefinedthroughRTPgovernanceprocess)

•  RespondtonetworkreportsofabuseofRequestforPayment

Originatedbythird-partypaymentserviceparRcipants(aboverequirementsplus)•  MakewarranBesandrepresentaBonsthatthird-partyisabidingbyrulesforpaymentoriginaBon

•  Applysamerequirementstothird-partypaymentservicesthatareappliedtoFIsthatsendRTPandallowrequestsforpayment(asapplicable)

•  FollowFFIECguidelinesregardingthird-partyrelaBonships

•  AllownetworktoenforcerulesagainstFIsandthird-parBesbyallowingnetworktolevyfinesandsuspendacBvityonthenetwork

•  Prohibitthird-parBesfromoriginaBngvolumegreaterthantheirfinancialresourcescansupportinthecaseofthird-partyfailure

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NetworkDocumentaRon

NetworkDocumentaRon

DocumentName Purpose

TCHCustomerDocumentaBonRTPSystemMessageFlows

DescribesallRTPmessagetypesandoutlinesstandardflowsforeachmessage.Includesdiagramsofstandardflows.

RTPCustomerDocumentaBonSystemInterfaceGuide

DescribestheapplicaBoninterfacetoRTPincludingtechnicaldetailsandconsideraBonsforinterfacedevelopment.

RTPNetworkConnecBvityOverview

Providesahigh-leveloverviewofthenetworkconnecBvityopBonsavailabletofacilitatetheexchangeofdatabetweenTCHanditscustomersandhowtheRTPportalisaccessed.

RTPBusinessApplicaBonHeaderSpecificaBon

Describesthestructure,format,contentsandusageoftheBusinessApplicaBonHeaderindetail.

RTPCreditTransferMessageSpecificaBon

Describesthestructure,format,andcontentoftheCreditTransfermessage(pacs.008)indetail.

RTPMessageStatusReportSpecificaBon

Describesthestructure,format,andcontentoftheMessageStatusReport(pacs.002)indetail.ProvidesalistofacceptableReasonCodesforrejectresponsesusedbyTCHandbyParBcipants.

RTPRequestforPaymentMessageSpecificaBon

Describesthestructure,format,andcontentoftheRequestforPayment(pain.013)andResponsetoRequestforPayment(pain.014)indetail.ProvidesalistofacceptableReasonCodesfornegaBveResponsetoRequestforPaymentmessages.

RTPRequestforInformaBonMessageSpecificaBon

Describesthestructure,format,andcontentoftheRequestforInformaBon(camt.026)andResponsetoRequestforInformaBon(camt.028)indetail.

RTPPaymentAcknowledgementMessageSpecificaBon

Describesthestructure,format,andcontentofthePaymentAcknowledgement(camt.035)indetail.

RTPStand-AloneRemihanceAdviceMessageSpecificaBon

Describesthestructure,format,andcontentoftheStand-AloneRemihanceAdvicemessage(remt.001)indetail.

RTPSystemTime-OutandRequestforReturnofFundsMessageSpecificaBon

Describesthestructure,format,content,andusageoftheSystemTime-OutandRequestforReturnofFunds(camt.056)andResponsetoRequestforReturnofFunds(camt.029)messagesindetail.

RTPAdministraBveMessageSpecificaBon

Describesthestructure,format,andcontentofthevariousAdministraBvemessagesusedwithinRTP.ThisdocumentincludesdetailsregardingeachSystemNoBficaBonMessagetype,sign-onmessages,sign-offmessages,andheartbeat(echo)messages.

ThetablebelowidenBfiesimportantdocumentaBonfortechnologyteamstoreadastheyprepareforanRTPimplementaBon.ThesedocumentsincludeimportantdetailsregardingtheRTPInterface,RTPMessages,andstandardmessageflowsthatareimperaBvetounderstandinghowthesystemoperates.Accesstothesedocumentscanbegranteduponrequest.Pleaseseethe“ContactUs”secBontorequestaccesstothedocumentaBonbelow.

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ProductDevelopment&Strategy

ContactUs

07:ContactUsYourquesBonsandcommentsareveryimportanttous.FormoreinformaBonaboutRTP,pleasecontactususingtheinformaBonprovidedbelow.

ContactUs

SteveLedford

Phone:(336)769-5308Email:[email protected]

IrfanAhmad

Phone:(212)613-0195E-Mail:[email protected]

MarkMajeske


CustomerRelaRonshipManagement

HankFarrar

Phone:(336)769-5352Email:[email protected]

JamesColassano


MichaelThomas


u.s. real-time payments technology playbook · rtp represents a new phase of evolubon within the...

Documents