Request for Payment File Format

To upload FedNow Instant Payments, ACH, and Real-Time Payments (RTP) Request for Payment (RfP) files into your business bank, you need to follow specific steps, depending on the payment type and the file format each system requires. Here's how you can handle each payment method and upload the respective file formats into your business bank's portal:

1. Understanding File Formats for Each Payment Type

• FedNow Instant Payments: Uses the ISO 20022 XML format.
• ACH (Automated Clearing House): Typically uses the NACHA file format, a standardized text file with strict formatting requirements.
• Real-Time Payments (RTP): Like FedNow, RTP also uses the ISO 20022 XML format.

Each of these file formats is used to process payment requests in bulk or individual transactions in your bank’s system.

2. Preparing the Request for Payment Files

A. Preparing ACH Request for Payment File (NACHA Format)

1. Create Payment Data:
   • Collect details of the payer and payee, including bank account numbers, routing numbers, and payment amounts.
2. Create the NACHA File:
   • Use an accounting system (like QuickBooks, Sage, or an ERP system) or a third-party ACH payment processor to generate the NACHA file.
   • The NACHA file consists of:
     • Header Record: Identifies the file origin and purpose.
     • Batch Header Record: Contains details about the batch of payments.
     • Detail Records: Information about each payment, including payer and payee details.
     • Batch Control Record: A summary of the batch payments.
     • File Control Record: Summarizes all payments in the file.

Example:

yaml

101 091000019 123456789 2005190930A094101Bank Name   

5225 123456789MyBusiness      091000019PPD        00000001

6269876543210987654321000000012345000000000000123456789

8225000003000910000190000000012345000000000000

900000300000100000000012345000000000000000000

3. Validate the NACHA File:
   • Before uploading, use validation tools or your payment processor's built-in validator to ensure the file conforms to NACHA standards.

B. Preparing FedNow and RTP Request for Payment File (ISO 20022 XML Format)

1. Create Payment Data:
   • Gather information like payer details, payee details, payment amount, and reference numbers for each transaction.
2. Create the ISO 20022 XML File:
   • Use an ERP system, accounting software, or a dedicated payment processor that supports ISO 20022 XML. The structure of the XML file includes:
     • Message Identification (MsgId): A unique identifier for the payment batch.
     • Payment Information (PmtInf): Details about the payment type, payee, and payer.
     • Credit Transfer Transaction Information (CdtTrfTxInf): Specific details for each payment transaction (amount, account information, remittance details).

Example of an ISO 20022 XML structure:

xml

<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pacs.008.001.02">

  <FIToFICstmrCdtTrf>

    <GrpHdr>

      <MsgId>Batch001</MsgId>

      <CreDtTm>2024-09-14T10:15:00</CreDtTm>

      <NbOfTxs>5</NbOfTxs>

      <CtrlSum>5000.00</CtrlSum>

      <InitgPty>

        <Nm>MyBusinessName</Nm>

      </InitgPty>

    </GrpHdr>

    <CdtTrfTxInf>

      <PmtId>

        <InstrId>0001</InstrId>

        <EndToEndId>INV001</EndToEndId>

      </PmtId>

      <Amt>

        <InstdAmt Ccy="USD">1000.00</InstdAmt>

      </Amt>

      <CdtrAcct>

        <Id>

          <IBAN>US987654321098765432</IBAN>

        </Id>

      </CdtrAcct>

      <RmtInf>

        <Ustrd>Invoice 001 Payment</Ustrd>

      </RmtInf>

    </CdtTrfTxInf>

  </FIToFICstmrCdtTrf>

</Document>

3. Validate the ISO 20022 XML File:
   • Use XML validation tools or the validation feature provided by your payment processor to ensure the XML is properly structured and meets ISO 20022 standards.

3. Uploading the Request for Payment File to Your Business Bank

A. Uploading ACH Request for Payment File (NACHA Format)

1. Log in to Your Bank’s Business Portal:
   • Access your bank’s online banking platform using your business credentials.
   • Navigate to the ACH or Batch Payment section.
2. Upload the NACHA File:
   • In the ACH section, look for the option to Upload File or Import ACH File.
   • Select the NACHA file from your system and upload it.
3. Review and Submit:
   • Your bank’s system will validate the file for proper formatting and content.
   • After validation, review the payment details and click Submit to initiate the batch payment.
4. Monitor the Payment Status:
   • You can track the payment status in the ACH transaction history section of your bank's portal.

B. Uploading FedNow and RTP Request for Payment Files (ISO 20022 XML Format)

1. Log in to Your Bank’s Business Portal:
   • Access your bank’s online platform using your credentials and navigate to the Real-Time Payments or FedNow section.
2. Upload the ISO 20022 XML File:
   • In the appropriate section (FedNow or RTP), look for the Batch Upload or File Import option.
   • Select the ISO 20022 XML file from your computer and upload it.
3. Validate and Review the File:
   • Your bank’s system will automatically validate the XML file structure and content.
   • Review the batch details, including the number of transactions, amounts, and payees.
4. Submit for Processing:
   • Once the file is validated and reviewed, submit it for processing.
   • Real-time payments (RTP and FedNow) will be processed instantly, and you’ll receive immediate confirmation once the payments are completed.
5. Track Payment Status in Real Time:
   • For both FedNow and RTP, you can track the status of each transaction through your bank’s real-time payments dashboard, where the status will be updated as Pending, Processed, or Failed.

4. Security Considerations

• Data Encryption: Ensure that all files (NACHA or ISO 20022 XML) are uploaded through secure, encrypted channels in your bank’s platform.
• Access Controls: Limit who can upload and submit payment files by using multi-factor authentication (MFA) and role-based access within your bank’s system.
• Audit Trails: Keep a record of who uploads and processes payment batches in your bank’s portal to maintain transparency and prevent unauthorized access.

5. Reconciliation

• After processing, download a payment confirmation report or receipt from your bank’s portal and match the payments to the corresponding invoices or accounting records in your system.
• For ACH, payments may take 1–2 business days to settle, while RTP and FedNow payments are processed instantly.

Conclusion

By preparing and uploading the correct NACHA file for ACH payments or ISO 20022 XML files for FedNow and RTP payments, you can efficiently handle bulk payment requests in your business bank’s system. Make sure to validate the file formats before uploading them to avoid processing errors.