Importing Request for Payment File

To import FedNow Instant Payments and Real-Time Payments (RTP) Request for Payment (RFP) files into your bank's systems, there are several steps that will likely involve a mix of technical integration, data formatting, and procedural compliance depending on your bank's internal systems and regulatory requirements.

Below is a general guide on how to import these types of payment files into your bank's infrastructure:

Steps to Import FedNow and RTP RFP Files into Your Bank

1. Identify File Format and Standards

• FedNow Instant Payments and Real-Time Payments (RTP) operate under specific formats, typically using ISO 20022 message formats for payment processing. This international standard for financial messages allows for seamless data exchange across banks and payment systems.
• Request for Payment (RFP), associated with RTP, is typically handled via XML format and follows the ISO 20022 guidelines, which helps standardize the process.

Your bank will need to support these formats and standards.

2. Receive the Files

• You will need to ensure your bank has the necessary infrastructure to receive the FedNow and RTP files, which may come through secure channels such as SFTP, API integrations, or other bank-to-bank communication protocols.
• Files should be received from trusted sources with proper encryption in place, adhering to NACHA standards (for ACH payments) and other security protocols.

3. Validate the File Data

• Before importing the files into your bank’s system, validate that the file conforms to the required standards. This includes:
  • Checking for proper ISO 20022 formatting.
  • Verifying that fields such as payment IDs, amount, payer details, and recipient details are present and correctly formatted.
  • Ensuring Request for Payment (RFP) fields match your expected schema (e.g., request date, due date, amount).

Your bank may already have validation systems in place, or you might need to use a third-party service to validate files before processing.

4. File Mapping and Transformation

• In many cases, the FedNow and RTP files will need to be mapped and transformed into a format that your bank’s core banking system understands. This may involve:
  • Parsing XML or JSON files if they come in these formats.
  • Converting ISO 20022 message structures (such as pain.001 for credit transfers or pain.013 for RFP) into formats accepted by your core banking system (e.g., CSV or flat files).
  • Ensuring all mandatory fields like transaction amounts, account numbers, and transaction codes are mapped correctly.

5. Use Middleware or Payment Gateway

• If your bank does not natively support the direct import of FedNow or RTP files, you may need to use middleware or a payment gateway that can process and import the files. The middleware would handle:
  • File transformation: Convert from ISO 20022 to the format supported by your core banking system.
  • File validation: Automatically check for compliance with the required standards before processing.
  • Transaction routing: Ensure the payment requests are routed to the correct internal system (e.g., for ACH payments or real-time settlement).

Some solutions include:

• SWIFT (supports ISO 20022 messaging)
• Real-TimePayments.com (offers real-time payments and request for payment files)
• ACI Worldwide (offers real-time payment processing platforms)
• Finastra (provides banking software that integrates FedNow and RTP)

6. Ingest Data into Core Banking System

• After transforming the files to the required format, they can be imported into your core banking system. This system will:
  • Record the payment or request for payment details.
  • Trigger any necessary workflows, such as processing the payment, applying fees, or sending payment confirmations.
  • Update account balances in real-time (for instant payments).

Most core banking systems have APIs or file upload capabilities to import payment files.

7. Settlement and Reconciliation

• Once the files are imported, your bank will need to settle the transactions. This involves:
  • Real-time settlement for FedNow Instant Payments or RTP.
  • Reconciliation of payment records to ensure that all payments are accounted for.
  • Sending confirmations to the originating bank or customer.

8. Notify Customers (Optional)

• Depending on your bank's setup, you may want to notify customers once a Request for Payment (RFP) has been received or when a payment has been successfully processed.
• This can be done through customer-facing portals, mobile banking apps, or email notifications.

Integration Methods

A. SFTP File Transfer

• Many banks use SFTP (Secure File Transfer Protocol) to exchange payment files. You can set up an automated process that pulls the FedNow or RTP files from a designated folder and imports them into your bank’s system.

B. API Integration

• Some banks may integrate with FedNow or RTP via APIs, allowing for real-time file ingestion and processing. The APIs would handle:
  • Payment initiation and confirmation.
  • Request for Payment (RFP) management.
  • Payment status updates.

C. Direct SWIFT Integration

• Using the SWIFT network is a common method for exchanging international and domestic payment instructions. If your bank uses SWIFT, you can integrate the ISO 20022-compliant messages for FedNow and RTP via this method.

Key Considerations

• Compliance and Security: Ensure the imported files comply with financial regulations, such as KYC (Know Your Customer), AML (Anti-Money Laundering), and CIP (Customer Identification Program).
• Real-time Processing: FedNow and RTP are real-time systems, so your bank needs to ensure that it can process these payments in real time or near real-time, without delays.
• Testing and Monitoring: Ensure robust testing before going live. Use a test environment to simulate importing these files, and monitor transactions closely for errors or delays.

By following these steps, your bank can successfully integrate and import FedNow Instant Payments and Real-Time Payments, including Request for Payment, into its internal systems.