FedNow Request For Payment

Creating a FedNow Request for Payment (RfP) message format for mobile payments that aligns with the ISO 20022 standard while integrating with Real-Time Payments (RTP) and Automated Clearing House (ACH) requires careful consideration of the unique features of each payment network.

Here’s a detailed breakdown of how to structure an RfP message for mobile payments, ensuring it can be processed via FedNow, RTP, and ACH while adhering to ISO 20022 standards.

FedNow Request for Payment (RfP) Mobile Message Specification Format

1. Message Header

• Message Identifier (MsgId): A unique identifier for the payment request.
  • Data Type: String (Max length: 35)
  • Example Value: RFP-987654321-FedNow
• Creation Date and Time (CreDtTm): The date and time when the message is created.
  • Data Type: DateTime (ISO 8601 format)
  • Example Value: 2023-12-05T10:15:30Z
• Message Type (MsgTp): Defines the type of message being sent (Request for Payment).
  • Data Type: String (Fixed Value: RFP)
  • Example Value: RFP

2. Initiating Party Information

• Initiating Party Name (InitgPtyNm): The name of the individual or entity initiating the payment request.
  • Data Type: String (Max length: 140)
  • Example Value: John Doe
• Initiating Party Identifier (InitgPtyId): Unique identifier for the initiating party (e.g., mobile phone number or email).
  • Data Type: String (Max length: 35)
  • Example Value: +11234567890
• Initiating Party Financial Institution (InitgPtyFinInstnId): Identifier of the initiating party's bank.
  • Data Type: String (Max length: 35)
  • Example Value: BANK12345

3. Creditor Information

• Creditor Name (CdtrNm): Name of the creditor to whom payment is owed.
  • Data Type: String (Max length: 140)
  • Example Value: ABC Corp
• Creditor Identifier (CdtrId): Unique identifier for the creditor (e.g., business ID, account number).
  • Data Type: String (Max length: 35)
  • Example Value: 987654321
• Creditor Financial Institution Identifier (CdtrFinInstnId): Identifier of the creditor's financial institution.
  • Data Type: String (Max length: 35)
  • Example Value: BANK98765

4. Debtor Information

• Debtor Name (DbtrNm): Name of the debtor (the party from whom payment is requested).
  • Data Type: String (Max length: 140)
  • Example Value: Jane Doe
• Debtor Identifier (DbtrId): Unique identifier for the debtor (e.g., mobile number, email, or bank account number).
  • Data Type: String (Max length: 35)
  • Example Value: janedoe@example.com
• Debtor Financial Institution Identifier (DbtrFinInstnId): Identifier of the debtor's bank or financial institution.
  • Data Type: String (Max length: 35)
  • Example Value: BANK65432

5. Payment Details

• Payment Amount (PmtAmt): The amount requested in the payment.
  • Data Type: Decimal (Precision: 18, 2)
  • Example Value: 150.00
• Currency (Ccy): Currency in which the payment is requested (ISO 4217 Code).
  • Data Type: String
  • Example Value: USD
• Payment Due Date (DueDt): Date by which the payment should be made.
  • Data Type: Date (ISO 8601 format)
  • Example Value: 2023-12-20

6. Payment Channels (Mobile, RTP, ACH)

This section contains fields specifying the preferred or supported payment channels (FedNow, RTP, and ACH).

• Payment Method (PmtMtd): Indicates the preferred method for payment.
  • Data Type: String (e.g., FedNow, RTP, ACH)
  • Example Value: FedNow
• Real-Time Payment (RTP) Details:
  • RTP Identifier (RTPId): Unique transaction ID for RTP.
    • Data Type: String (Max length: 35)
    • Example Value: RTP-456789123
  • RTP Financial Institution ID (RTPFinInstnId): Identifier of the financial institution processing the RTP.
    • Data Type: String (Max length: 35)
    • Example Value: BANK98765
  • RTP Transaction Date (RTPTrnsDt): Date and time of the RTP transaction.
    • Data Type: DateTime (ISO 8601 format)
    • Example Value: 2023-12-05T11:15:30Z
• ACH Payment Details:
  • ACH Transaction ID (ACHTrnsId): Transaction ID for the ACH payment.
    • Data Type: String (Max length: 35)
    • Example Value: ACH-123456789
  • ACH Routing Number (ACHRtgNb): ACH routing number for the payment.
    • Data Type: String (Max length: 9)
    • Example Value: 021000021
  • ACH Settlement Date (ACHSttlmDt): Settlement date for the ACH payment.
    • Data Type: Date (ISO 8601 format)
    • Example Value: 2023-12-10

7. Invoice/Reference Information

• Invoice Number (InvNb): Reference number for the payment request.
  • Data Type: String (Max length: 35)
  • Example Value: INV-987654
• Reference Note (RfrdDoc): Optional reference or memo for the payment.
  • Data Type: String (Max length: 140)
  • Example Value: Payment for November utilities.

8. Additional Information

• Remittance Information (RmtInf): Optional field for remittance or payment details.
  • Data Type: String (Max length: 140)
  • Example Value: Invoice #987 for utilities.
• Payment Terms (PmtTrms): Any specific terms or conditions for the payment.
  • Data Type: String (Max length: 140)
  • Example Value: Net 30 days.

Integration Across Payment Channels

1. FedNow Integration:

FedNow operates in real-time, so it supports immediate RfP processing. The mobile-specific data (e.g., phone number or email for payment notification) can be mapped directly into FedNow’s ISO 20022-compliant fields. FedNow offers real-time credit transfer, with immediate settlement.

2. Real-Time Payments (RTP):

RTP supports ISO 20022 and is compatible with FedNow. If RTP is the chosen channel, the system can use the RTPId and RTPFinInstnId to process payments. RTP provides the same real-time benefits as FedNow, but the clearing and settlement occur through The Clearing House.

3. Automated Clearing House (ACH):

ACH is slower compared to FedNow and RTP but supports batch payments. ACH data (like routing number and transaction ID) needs to be handled in the ACHTrnsId and ACHRtgNb fields. ACH payments can be scheduled for future settlement, typically one to two business days after initiation.

End-to-End Payment Flow

1. Request Creation: The RfP is generated by the creditor (business) and sent to the debtor (payer) via their mobile device, with preferences for payment methods (FedNow, RTP, or ACH).
2. Payment Method Selection: The debtor selects a payment method (real-time or batch processing) depending on urgency, cost, and network availability.
3. Processing and Settlement: The selected payment network processes the payment request, and the transaction is completed in real-time (FedNow/RTP) or through a delayed settlement (ACH).
4. Reconciliation: Upon payment completion, the RfP is reconciled with invoice data, with remittance information shared as needed.

This specification integrates mobile payment functionality with three distinct payment rails (FedNow, RTP, and ACH), all while conforming to ISO 20022 standards. It ensures that payment requests can be processed efficiently across various channels based on the needs of the debtor and creditor.