International Payments Scheme

1
International Payments Scheme

• Global Payments Forum
• 14 September 2006
• Limerick, Ireland

2
Agenda

• Review of concept
• Update on other meetings
• Project scope
• Next steps

3
Concept

• Develop an international body of rules, policies
  and procedures to facilitate multi-currency,
  cross-border batch transactions. 
• Linking existing infrastructures (banks and/or
  ACH Operators)
• Multi-lateral agreements binding participants to
  the rules to facilitate interoperability
• Format for transactions using international
  standards
• Settlement facilitated through existing
  procedures

4
International Payment Scheme Model
USA
SEPA/PE-ACH
Federation Rules and Procedures
Receiving Financial Institutions
Sending Financial Institutions
ISO 20022 Standard Format
ACH
ACH
Customer
Customer
Domestic Formats Rules
Domestic Formats Rules
Customer
Customer
Correspondent Bank
Correspondent Bank
There can be one or more entry points Into or out
of any country. The domestic ACH Rules Formats
are not impacted by Federation Rules and
Procedures.
5
Guiding Principles

• Scheme open to all ACH Networks or banks that
  meet the established scheme requirements
• Use existing infrastructures
• Standards ISO 20022 XML message standards
• Fee structure to be established to adequately
  compensate scheme participants

6
Guiding Principles

• Scheme will endeavor to ensure that the principal
  amount remitted is the amount credited to the
  beneficiary
• Identify management infrastructure to support
  rules development, maintenances and enforcement
• Cost to maintain this body will be included in
  the service fee structure

7
Next Steps

• Business case development
• Establish the scope of the project Federal
  Express Payment Model
• Cross-border batch payments
• Large value payments
• Credit card
• Identification of participants

8
Discussion