Universal Confirmations: Get Ready for 2020
With the arrival of universal confirmations, we sit down with some industry experts to find out more about what impact this will have on transforming cross-border payments. We’re welcomed by Fabien Depasse - Head of SWIFT gpi Customer Success at SWIFT and Craig Ramsey - Head of Real-Time Payments at ACI Worldwide.
What are universal confirmations and why are they needed?
Fabien Depasse, SWIFT: As of November 2019, SWIFT will extend the benefits of tracking and confirming payments to all financial institutions on SWIFT. To that end, we’re launching a Basic Tracker, which will provide tracking and search capabilities to all financial institutions on SWIFT. By the end of 2020, every single payment (MT 103 on FIN) will also require a confirmation that the funds have been credited to the end beneficiary account within two business days. Without confirmations, the flow of money around the world becomes unclear when the funds are received or sent on to another scheme. Businesses depend on knowing that a payment has arrived as an integral part of their supply chain. Without this step, trade can grind to a halt and goods and services end up delayed. Confirmations enable banks to provide an excellent customer experience by offering transparency and certainty that the funds have reached their destination and are available to the beneficiary.
What do SWIFT customers need to do and by when?
Fabien: For all MT 103 payments received, banks and FIs need to send a confirmation to the SWIFT gpi Tracker indicating the payment status:
- Accepted & Settlement completed – when funds are made available to the beneficiary’s account (include amount, currency and date/time of credit)
- Reject – If you can’t process the payment accompanied with a reason code
- Transferred – If you transferred the payment to a next agent outside of FIN
- Settlement in Progress – Further processing and it is not possible to either transfer the payment or credit the beneficiary customer
Confirmations are required within a maximum of two business days following the value date indicated in the MT 103 for non-gpi members. However, banks and FIs are encouraged to provide a confirmation as soon as possible.
How can SWIFT members confirm payments?
Fabien: We have a number of user-friendly ways for SWIFT financial institutions to confirm payments. For SWIFT gpi members already have access to the full functionality of the gpi tracker, as well as access to the other value-added features of SWIFT gpi. For non-gpi members, the Basic Tracker will provide some tracking and search capabilities, as well as the ability to manually confirm payments. We also have a range of automated options in the pipeline, including options to confirm using MT 199 on FIN, API calls or batch confirmations.
How is ACI Worldwide supporting universal confirmations?
Craig Ramsey, ACI Worldwide: SWIFT reached out to ACI as one of their longest vendor partners to help them support SWIFT’s pilot program for universal confirmations. For ACI, this was an exciting opportunity to collaborate with SWIFT and increase our offering to the payments industry. ACI’s functionality is available at the end of October 2019 – a full 12 months before the mandate.
Why did ACI see launching universal confirmations for its customers for the SWIFT pilot as a priority?
Craig: ACI is a leader in payments and close partner with SWIFT, so ACI thrives on being at the cutting edge of key technologies and offering our customers the ability to take advantage of SWIFT’s pilot program. After all, whilst this is a SWIFT initiative, there is demand from across the payments industry for universal confirmations. ACI is proud to make this offering available to all our customers one year ahead of the deadline.
What benefits do ACI feel that universal confirmations will provide to payments industry?
Craig: Universal confirmations is vital for the tracking of credit transfers for those banks that are not gpi-enabled. Additionally, the whole industry is evolving with more advanced technology, increased competition from FinTechs, as well as regulatory pressure for greater transparency on cross-border payments as a whole.
Is your organization a digital trailblazer or a laggard? Find out how to encourage a culture of innovation by completing the Ovum Culture of Innovation Index. Click here to get started.
Related Blog Posts
Strong Customer Authentication: New Rules Will Trigger Profound Changes in Many Organizations [Q&A]
One of the biggest industry issues for the payments community right now is strong customer authentication (SCA) – the new regulation for card payments, including card-not-present or eCommerce payments. This is due to come into force on December 31, 2020 in the EU, and on September 14, 2021 in the U.K. ACI recently brought together industry stakeholders for a webinar entitled Competition Versus Compliance: How an SCA Exemptions Strategy Can Grow Your Business. I spoke with these stakeholders about the challenges, but also opportunities, that SCA will bring to the payments industry.
Gaming Merchants Are Riding a Rollercoaster in 2020 with Rises in Revenue and Fraud
With the social lives of millions worldwide on hold due to the COVID-19 pandemic, many have turned to video gaming as a safe outlet to interact with others or to simply counter boredom.
How Australian Financial Institutions Can Get the Most from Strong Customer Authentication
Whether viewed through the prism of 3D Secure 2.2 (3DS2), the AusPayNet CNP Fraud Mitigation Framework, or the Australian Government’s Consumer Data Right, strong customer authentication (SCA) is now — or about to be — mandatory for financial organizations across Australia. Here is a quick primer on how Australian financial institutions can make the most of SCA.
Defense in Depth: Fighting Fraud in India with a Multi-Layered Approach
There’s a quip, albeit ironic, making the rounds as forwarded emails and messages – “Who’s driving digital transformation among enterprises: CEO or CIO? The correct answer is COVID-19.” Going beyond impacting global well-being, COVID-19 is pushing the corporate world to rapidly introduce new measures for business continuity. Diametrically opposite to continuity, the black swan event of the novel coronavirus is creating disruption in terms of exploitation and fraud perpetration – especially in the banking and financial sector.
Introducing Incremental Learning: An Industry-First Boost for Fraud Prevention
In our previous blog on machine learning, we sought to clarify its role in fraud prevention for merchants. To summarize, it can be an extremely effective way to identify patterns of fraud in a manner and at a speed that humans cannot. It is a critical tool in the fight against fraud, especially when used as part of a multi-layered fraud solution.
Machine Learning: Separating Fact from Fraud Fiction for Merchants
Machine learning is a broad discipline about which many claims, sometimes extravagant, are made. In recent years, it has often been hailed as the most effective answer to stopping payments fraud.
At ACI, we’ve been working with machine learning models to prevent fraud for over two decades – and we know they can play a critical role in improving fraud detection accuracy. Here we bring together a few insights on how models can be used most effectively.
For Financial Institutions, Community Is Critical to Fighting Fraud with Machine Learning
In November 2019, our experts predicted that democratized machine learning and shared intelligence would be among the most important fraud prevention trends for financial institutions (FIs) in 2020.
Fraud Prevention Is the Frontline of Customer Experience
Digital transformation has done more than disrupt business models. In almost every consumer-focused market – and most business-to-business ones, too – it has fundamentally re-oriented the competitive landscape around customer experience as a core differentiator.
COVID-19: Global eCommerce Sales are likely to rise beyond the crisis and businesses need to prepare accordingly
Since the start of the Covid-19 pandemic, ACI has published a monthly Covid-19 eCommerce Tracker, analyzing global eCommerce sales, consumer purchasing behaviors and fraud trends. Katrin Boettger spoke with ACI’s Debbie Guerra, executive vice president at ACI, about the latest eCommerce trends and the long-term changes the pandemic may bring for consumers and merchants.
SCA: How PSPs Can Help Merchants Stay One Step Ahead
The main objective of PSD2’s Strong Customer Authentication (SCA) is to protect customers and reduce fraud by introducing new measures that ensure that customer-initiated transactions are being made by the genuine cardholder.