ISO20022 - PACS.008
MESSAGE FLOWS - Happy Path
Step 1: A retail customer initiates a Credit Transfer payment by filling all the desired details (Beneficiary details,
Amount of Transfer, Date, and others). The IT system of the Debtor bank converts the customer’s instruction into a
Pain.001 message and injects it into the bank’s payment engine.
Step 2: Debtor Bank’s payment engine performs different checks (like AML, Sanctions screening, Risks, and others).
Further, the bank also performs balance checks on the Debtor’s account and returns a Pain.002 message to the
Debtor indicating successful processing of the message.
Step 3: Debtor Bank debits the Debtor’s account and sends a Pacs.008 message via CSM.
Step 4: CSM validates & settles the payment. It returns a Positive Status message (Pacs.002) to the Debtor Bank
indicating successful validation.
Step 5: CSM forwards the Pacs.008 to the Creditor bank.
Step 6: Creditor Bank receives the Pacs.008 from the CSM, validates the payment (performs checks like AML,
Sanctions, Risks, Balance Checks, and others) and completes the processing. Funds are credited to the beneficiary’s
account and Camt.054 (Credit advice) is sent.
ISO20022 - PACS.008 MESSAGE FLOWS - Reject Flow - 1
Step 1: A retail customer initiates a Credit Transfer payment by filling all the desired details (Beneficiary details,
Amount of Transfer, Date, and others). The IT system of the Debtor bank converts the customer’s instruction into a
Pain.001 message and injects it into the bank’s payment engine.
Step 2: Debtor Bank’s payment engine performs different checks (like AML, Sanctions screening, Risks, and others).
Further, the bank also performs balance checks on the Debtor’s account and returns a Pain.002 message to the
Debtor indicating unsuccessful processing of the message. The payment may be rejected due to reasons like
Insufficient funds, Incorrect details or payment would have failed to clear Sanction Checks or AML check
ISO20022 - PACS.008 MESSAGE FLOWS - Reject Flow - 1
Step 1: A retail customer initiates a Credit Transfer payment by filling all the desired details (Beneficiary details,
Amount of Transfer, Date, and others). The IT system of the Debtor bank converts the customer’s instruction into a
Pain.001 message and injects it into the bank’s payment engine.
Step 2: Debtor Bank’s payment engine performs different checks (like AML, Sanctions screening, Risks, and others).
Further, the bank also performs balance checks on the Debtor’s account and returns a Pain.002 message to the
Debtor indicating successful processing of the message.
Step 3: Debtor Bank debits the Debtor’s account and sends a Pacs.008 message via CSM.
Step 4: CSM validates the Pacs.008 message received and rejects the payment due to reasons like the incorrect
format of the message or so. It returns a Negative Status message (Pacs.002) to the Debtor’s Bank.
ISO20022 - PACS.008 MESSAGE FLOWS - Return Flow
Step 1: A retail customer initiates a Credit Transfer payment by filling all the desired details (Beneficiary details,
Amount of Transfer, Date, and others). The IT system of the Debtor bank converts the customer’s instruction into a
Pain.001 message and injects it into the bank’s payment engine.
Step 2: Debtor Bank’s payment engine performs different checks (like AML, Sanctions screening, Risks, and others).
Further, the bank also performs balance checks on the Debtor’s account and returns a Pain.002 message to the
Debtor indicating successful processing of the message.
Step 3: Debtor Bank debits the Debtor’s account and sends a Pacs.008 message via CSM.
Step 4: CSM validates & settles the payment. It returns a Positive Status message (Pacs.002) to the Debtor’s Bank
indicating successful validation.
Step 5: CSM forwards the Pacs.008 to the Creditor bank.
Step 6: Creditor Bank receives the Pacs.008 from the CSM, validates the payment (performs checks like AML,
Sanctions, Risks, Balance Checks, and others). Creditor Bank returns the payment for one or more of the reasons like
Invalid Account number, Account is closed/dormant/blocked, Invalid Beneficiary’s IBAN or BIC and sends a Pacs.004
message to the Debtor bank via CSM.
Step 7: CSM validates and returns a Positive Status message (Pacs.002) to the Creditor’s Bank indicating successful
validation of Pacs.004.
Step 8: CSM forwards the Pacs.004 to the Debtor bank.
Step 9: Funds are credited to the Debtor’s account and Camt.054 (Credit advice) or a Pain.002 is sent to the Debtor.
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