Payment Courses Detailed Contents

You will find below the detailed content of all our courses. Expand the toggle items to see the topics handled in the different modules

Course 1 – Payments Fundamentals

The purpose of payments fundamentals course is to provide you with the principles and keys to understand and study any payment system.

Module 1 – Payments, Payment instruments and payment systems

What is a payment?
Payment instrument definition and classification
- Cash and non-Cash usages
Payment systems definition
Payment systems volumes
End parties and their needs
End parties quadrants in payments
Assessment Quiz

Module 2 – Payments systems models

Introduction to payments systems models
- System modeling
- Types of payments systems models
Open loop models
- Payments system(s) anatomy at country level
- Example Payments systems in France
Closed loop models
- Example American Express
Models for cryptocurrencies
- Example the Bitcoin
Assessment Quiz

Module 3 – The Four Corner Model

From Open Loop Models to the Four corner Model
The Four Corner Model
Few examples of Four Corner Models
Direct and Indirect participants to CSMs
- Direct participants
- Indirect participants with no direct access to clearing system
- Indirect participants with direct access to clearing system
Participation directories

Module 4 – Clearing and settlement Mechanisms

What is Clearing?
Bilateral clearing
Multilateral clearing
(Gross and Net) Settlement
The two types of Net Settlements
Main types of clearing and settlement systems
Assessment Quiz

Module 5 - Push and Pull payments and related risks

Introduction and definitions
Push payments and few examples
Pull payments and few examples
Summary – Push and Pull payments
Assessment Quiz

Module 6 - Payments messages standards

The Four Corner Model
Customer-to-bank space and interbank space
Why standards are needed for payment messages
Payments Messages Standards (ISO 20022, SWIFT MT/MX, Local standards)
Original transactions and Related-transactions
Assessment Quiz

Module 7 - Domestic and International payments

Domestic payments
- Definition
- Intrabank payment
- intra bankgroup payments
- Interbank payments
International payments
- Domestic vs. Cross-border payments
- The six party model for cross border payments
- Correspondent banking – Nostro, Vostro and Loro accounts
- SWIFT – The global secure messaging platform
Assessment Quiz

Module 8 - Payment processing value chain

Value chain and Payment processing value chain
Payment processing value chain (From a bank’s perspective)
The Straight Through Processing (STP)
Payment processing value chain analysis
- Payment acquisition and reporting
- Payment Order Management
- Payment Exchange
Payment status reports
Assessment Quiz

Module 9 – Regulations and Risks in payments

Payments regulations
- Introduction
- Key regulatory goals
- Few examples of payment regulations and initiatives
- Subjects covered by private rules
Risk and risk management in payments
- Definitions
- The main types of risks in payments
- Operational risks (Errors and Failures, Fraud risk, Data security risk, Business disruption risk)
- Legal risks (Compliance risk, Regulatory risk, Contractual risk)
- Financial risks (Credit risk, Liquidity / Settlement risk, Systemic risk)
Assessment Quiz

Module 10 - Economic models in payments

Economic models of Payments Systems and Payment Service Providers
Economic models of Payments Systems
- Example of CSMs
- Example of Card schemes
- Example of cryptocurrency
Economic models of Payment Service Providers
PSPs Direct revenues
- Transactions fees
- Interest on associated loans
- Monthly maintenance fees
- Subscription fees
- Commission on turnover (CoT)
- Exception fees
PSPs Indirect revenues
- Float
- Interchange
- Net interest income on deposit balances
Assessment Quiz

Module 11 – Main key players in the payment industry

Payments is a dynamic industry with a bright future
Overview of few main players in the payments industry
- Players that are part of the value chain
  - Consumers and merchants
  - Bank payment service providers
  - Non-bank payment service providers
  - Card schemes
  - ACH schemes
  - RTP schemes
  - RTGS schemes
- Other players
  - Technology vendors
  - Business and IT Consulting companies
  - Strategy and Advisory Consulting companies
Assessment Quiz

Click here to enroll to the Payment Fundamentals Course (497 € for one year with the option to renew at 77 €/year at the end of the 1st year)

Click here to see the memberships (curriculums) where the Payment Fundamentals Course is included. The detailed content of our courses are provided below.

Course 2 – Understand and Master the SEPA Credit Transfer

The Understand and Master the SEPA Credit Transfer Course was designed for people who work in the payment industry or who want to understand how the SEPA Credit Transfer really works.

Module 1 – Introduction to SEPA and SEPA Payments

Definition of SEPA
The SEPA Geographical Area
What is a SEPA Payment Scheme?
The Four SEPA Payments Schemes
The main SEPA Payments Initiatives
The Payment Services Directive
The Payment Services Directive 1 and 2
The European Payments Council
The EPC scheme documents
SEPA Payments Schemes publications – The calendar and main milestones
The Payment Service Providers in SEPA
The generic Four Corner Model for all SEPA Payments
SCT and SCT Inst are push payments
SDD Core and SDD B2B are pull payments
SEPA payments rely on open international standards
Few statistics in different European countries
Assessment Quiz

Module 2 – The SCT scheme documents and the Four Corner Model

The Four Corner Model is at the basis of the SCT
The SCT scheme and the Four Corner Model
The SCT scheme rules are described in the EPC Rulebooks
The EPC documents for the SEPA Credit Transfer
- The Main documents
- Other interesting EPC documents for SCT implementation projects
- Other useful resources for the SCT Implementation projects
- An important tip for reading new versions of the main EPC documents
The Four Corners: What are they ?
End parties in the SCT Four Corner Model
The Payment Service Providers in SEPA
The PISP and the Four Corner Model
Assessment Quiz

Module 3 – Clearing, Settlement and Market infrastructures of the SCT

Clearing and settlement systems in the Four Corner Model
Clearing and Settlement – Definitions
Market infrastructures of the SEPA Credit Transfer
Separation of the scheme and the infrastructures – What does it mean?
SCT Scheme compliant clearing systems and their categories
Common characteristics of CSM
Interoperability of clearing systems
Interoperability at CSM level – What it implies
The two models of connections to CSM in the SEPA Area
Prioritization of clearing systems during the payment processing
Types of processing cycles in clearing systems
Participation Directory of a Clearing system
Interconnections of CSM
Assessment Quiz

Module 4 – The messages exchanged in SCT Scheme

The LIMF Method applied to payment schemes
The messages exchanged in the SCT Scheme are found in the Implementation guidelines
Overview of all messages listed in the SCT Implementations Guidelines
Overview of all messages listed in the SCT IG and Customer Reporting messages
SEPA Message names are inherited from the ISO 20022 standard
Structure and meaning of SEPA message names
Overview of all messages listed in the SCT IG and Customer Reporting messages
Messages in the Customer-to-bank space
- Customer to Bank Instruction and PSR messages (Pain.001 and Pain.002)
- Bank to Customer Reporting messages (Camt.052, Camt.053, Camt.054)
Messages in the Interbank space
- Pacs.008.001.02 (SCT), Pacs.002.001.03 (Rejet SCT), Pacs.004.001.02 (Return SCT), Camt.056.001.01 (Recall), Pacs.028.001.01 (Request for Status update), Camt.029.001.03 (Negative Response to Recall)
- Camt.027.001.06 (SCT Inquiry – Claim non-receipt), Camt.029.001.08 (Response to claim non-receipt), Camt.087.001.05 (SCT Inquiry – Claim for Value Date correction), Camt.029.001.08 (Response to Claim for Value Date correction)

Module 5 – Messages in the Customer-to-Bank space: the Standard ISO 20022 and SCT Implementations Guidelines

Introduction to the standard ISO 20022
Standard ISO 20022 and Payments
Syntax and semantics in the standard ISO 20022
ISO 20022 specifications and the SEPA Implementation Guidelines (IG)
Message elements available in the Standard ISO 20022 and their usage in SEPA
Comparison of SEPA IG and ISO 20022 specifications
Summary of differences between SEPA IG and ISO 20022 specifications
SEPA CORE Payments and Additional Optional Services (AOS)
Different types of Additional Optional Services (AOS)
Overview of all messages listed in the SCT IG and Customer Reporting messages
Deep dive into customer-to-bank messages used in the SCT Scheme

Pain.001.001.03 and Pain.002.001.03
Camt.052.001.02, Camt.053.001.02 and Camt.054.001.02

Assessment Quiz

Module 6 – Messages in the Interbank space: the Standard ISO 20022 and SCT Implementations Guidelines

- Reminder : the GAIM method to apprehend SEPA messages is very powerful
- Summary of differences between SEPA IG and ISO 20022 specifications
- Deep dive into messages used in the Interbank Space of the SCT Scheme
- Assessment Quiz

Module 7 – The main features of the SEPA Credit Transfer

Main features of the SEPA Credit Transfer
The SCT uses the IBAN as account identifier
The SCT uses the BIC as Bank identifier
The SCT allows only shared fees
The SCT is a non-urgent transfer
The SCT execution time is maximum one business day
The SCT allows amounts exclusively in EUR
The SCT can carry up to 140 characters unstructured or structured Remittance Information
The SCT can transport ultimate debtor and ultimate creditor Information
The SCT is independent of acquisition and clearing channels
Assessment Quiz

Module 8 – SCT Payment Processing value chain: Acquisition and Reporting

Payment processing value chain (from bank’s perspective)
Payment processing value chain – Inside the bank
Payment channels

Third Party Providers channels
File Transfer channels
File Transfer channels and the communication protocols

Security in file transfer channels – the main challenges
Security is achieved through the use of cryptography techniques
Asymmetric encryption mechanisms use pairs of keys
Asymmetric encryption mechanisms – how it works
Asymmetric mechanisms – combination of hash functions and keys
Asymmetric mechanisms – the reality (is a bit more complex)
Digital Certificate or public key certificate
Summary of encryption mechanisms
The EBICS Protocol
Encryption in the EBICS Protocol
EBICS Protocol – The summary
SWIFTNet and the SWIFTNet Protocols
Acquisition and Reporting agreements

Practical example to illustrate how it works
Typical requirements
Users and College of Signatories
Typical checks and outcomes

Assessment Quiz

Module 9 – SCT Payment Processing value chain: Order Management

Payment processing value chain (from bank’s perspective)
Payment processing value chain – Inside the bank
Payment order management – Introduction and generality
Payment order management for the SEPA Credit Transfer
Single-beneficiary and Multi-beneficiary payment orders
POM Payment processing steps
POM functions and services

Payment parsing and validation
IBAN validation and verification
BIC / IBAN coherence check
NAR validation and enrichment
Dates and the related controls
Dates – Processing time, Calendar and Business days
Dates – Open Business days
Duplicate checks

POM functions and services

Processing agreements

Service Execution speed
Service Requested execution date as Settlement date
Service Duplicate checks
Service Late modification
Service percentage of erroneous transactions
Service management of erroneous orders / operations
Service deferred cut-off
Service accounting methods for booking entries

Pending order management
Balance check
Routing and issuing

Assessment Quiz

Module 10 – SCT Payment Processing value chain: Payment exchange

Payment processing value chain (from bank’s perspective)
Payment processing value chain – Inside the bank
Payment Exchange Platform (PEP)
Payment exchange platform – A focal point
PEP functions and services
Sanctions screening
PEP and Routing directories
SEPA Routing Directory and other CSM directory
Participation directories versions
Payment Exchange Platform – Bulking and Debulking
Assessment Quiz

Click here to enroll to the Course Understand and Master the SCT (597 € for one year with the option to renew at 97 €/year at the end of the 1st year)

Click here to see the memberships (curriculums) where the Course Understand and Master the SCT is included. Stay on this page to see the detailed contents of all our courses.

Course 3 – Secrets for your SEPA Credit Transfer Projects

The Secrets for your SEPA Credit Transfer projects Course was designed for people who deliver payment projects and want to become highly skilled payment professionals.

Module 1 – Booking and the SEPA Credit Transfer

Introduction to Booking
The double entry bookkeeping principle
and accounting events
Examples of accounting events to illustrate the double entry principle
Different types of bank accounts
Booking and non-booking transactions
Creditor bank pacs.008 (SCT) booking
Creditor bank pacs.004 (Return) booking
Creditor bank pacs.004 (Pos. response) booking – the amounts
Creditor bank pacs.004 (Positive response) booking
Debtor bank credit transfer pain.001 and pacs.008 booking – Order with one transaction
Debtor bank credit transfer pain.001 and pacs.008 booking – Order with ten transactions
Debtor bank pacs.004 (normal return) booking
Debtor bank pacs.004 (positive response) booking
Correspondent banking in domestic payments – Nostro, Vostro and Loro accounts
Correspondent banking in domestic payments – Nostro and Vostro accounts
Shadow and mirror accounts
Shadow and mirror accounts – Illustration with an account relationship between DP and IP
Real and Mirror accounts in end-to-end the processing of a SCT
Real and Mirror accounts in settlement between IP and DP
Reconciliation of real and mirror accounts
Example of reconciliation with single booking between IP and DP
Assessment Quiz

Module 2 - Account Balance Management

Challenges of Account balance management
- Challenge 1 of account balance management
- Challenge 2 of account balance management
Customer account balance management : the ideal and the reality for banks
Balance Management System (BMS)
Intraday balance and account balance
- Challenge 1 with a BMS system
- Challenge 2 with a BMS system
Introduction to merge accounts
- Balance Management for merge accounts – Payment initiation
- Balance Management for merge accounts – Payment reception
Assessment Quiz

Module 3 – Payment engines

Introduction to payment engines
Payment engines interact with many systems in the bank
Payment engines and Payment Services Hubs
Payment engines and the payment processing value chain
Finding the Payment engines in your projects

Example 1 of payment engines application architecture
Example 2 of payment engines application architecture
Example 3 of payment engines application architecture
Example 4 of payment engines application architecture

Options for Payment engines Implementation
Main actors of PE implementation projects
Few payment engines for SEPA Payment Processing
Assessment Quiz

Module 4 – Payment engines integration into the Bank IT landscape

Payment engines interact with many systems in the bank
Interfaces

Interfaces play a crucial role in payment processing
Synchronous messaging (or communication)
Asynchronous messaging (or communication)
2-way asynchronous communication
Challenges of asynchronous communication
Batch Mode
Transactional Mode

Surrounding systems of a payment engine (POM)
Authentication & rights
Channels
CSM and SWIFT Directories
Customer Referentials
Fraud detection
Surrounding systems of a payment engine (POM)

Accounting systems
Audit log or Audit Trail
Pricing & Billing
Archiving
Reporting
Data warehouse & Statistics
Monitoring
The Scheduler
Investigations

Surrounding systems of a payment engine (PEP)

Screening
Intrabank and Interbank Networks

Assessment Quiz

Module 5 – Payment engine and the Graphical User Interface

Introduction to Graphical User Interfaces
Navigation menu on the left of the page
Navigation menu on top of the page
Payment instruments and the GUI
Payment engines GUI – Naming and organizing the menu items
Payment capture – Key principles
SEPA Payment capture – Best practices
Payment information displayed on the GUI

Examples of pain.001 and pacs.008

Original transactions and related transactions (R-transactions)
Original transactions and R-transactions on the GUI
Reconciliation of R-transactions
Linking original and r-transactions on the GUI
The 3270 screens
Assessment Quiz

Module 6 - Payment engine User rights and actions

User actions – introduction
User rights, user roles and users – the overview
User rights and user roles
Role-Based Access Control (RBAC) and User roles
Illustration of user role and RBAC on menu items
The search and search criteria
Generic search steps
Tips and suggestions about search screens
The worklist items (WLI)
The worklist items should be pushed
The worklist items (WLI) should be exhaustive
Prioritization of worklist items
Messages on the worklist items
Messages on the worklist items – Clarity, training and documentation
Audit log or audit trail – Logging of actions
Settings and parameters
Assessment Quiz

Module 7 – State machine diagrams of payment entities

Introduction to State machine diagrams
Examples of State machine diagrams
The light bulb
The door
The entities of a payment message
Process flows of the payment entities
Message – State machine diagram
Order – State machine diagram
Transaction – State machine diagram
State diagrams and booking
Assessment Quiz

Module 8 - Scope of your SCT project

What is your SCT project about ?
SCT messages and your project
Which messages are in scope of your project?
Messages in the customer-to-bank space
The Originator bank interbank messages
The Beneficiary bank interbank messages
Messages exchanged with Clearing systems
Messages exchanged with EBA STEP2 (SCT Scheme)
The Payment processes – few key concepts
The rulebooks contain high-level processes
Typical processes in scope of an SCT project
The processes in your SCT project
The applications in scope of your project
The geographical scope
Internal and external customers
Assessment Quiz

Module 9 – Information system architectures

Why the architectural approach

The challenges
The objectives

The Architectural approach – What is it?
How the architectural plans relate to each other
The process architecture
The functional architecture
The functional architecture with sub-functional blocks
Functional architecture – a payment exchange platform
The Application architecture
Application architecture – data flows
Application architecture – Integration tools
The technical architecture
Technical architecture – Load balancing and high availability
Assessment Quiz

Click here to enroll to the Course Secrets for your SCT Projects (597 € for one year with the option to renew at 97 €/year at the end of the 1st year)

Click here to see the memberships (curriculums) where the Course Secrets for your SCT projects is included. Stay on this page to see the detailed contents of all our courses.

Course 4 – Initiation to Cross-Border Payments

The Initiation to Cross-border payments Course provides a step-by-step explanation of how cross-border payments work.

Module 1 – Key strategies to understand how cross-border payments work-Organization of market infrastructures

What is a Cross-border payment?
The « six party model » for cross border payments
The four key strategies to understand how cross-border payments work
Strategy #1 – Understand the principles behind the organization of market infrastructures in the different countries of the world
Payment systems models – Open loop models
Open loop models – Payment systems anatomy
Payment market infrastructures in France (EUR)
Payment market infrastructures in the USA (USD)
Payment market infrastructures in Australia (AUD)
Payment market infrastructures in South Africa (ZAR)
Payment market infrastructures in UK (GBP and EUR)
Payment market infrastructures in Sweden (SEK and EUR)
Payment market infrastructures in Norway (NOK and EUR)
Payment market infrastructures in China (CNY/RMB)
Payment market infrastructures in Japan (JPY)
Payment market infrastructures in Canada (CAD)
Payment market infrastructures in India (INR)
Answers to key questions of Strategy #1
Assessment Quiz

Module 2 – Key strategies to understand how cross-border payments work-Correspondent account relationships

The Strategy 2 to understand how cross border payments work
Banks need to send and receive payments in foreign currency
Banks and correspondent accounts
Correspondent banking – unilateral account relationship
Correspondent banking – Nostro, Vostro, Loro accounts
Unilateral account relationship and mirror account
Bilateral account relationship
How mirror accounts are used
Funds in currency are kept on correspondent accounts
Transfers in currency and the correspondent account
The correspondent network
Different types of currencies
Opening of correspondent accounts – direct deposit
Answers to key questions of Strategy #2
Assessment Quiz

Module 3 – Key strategies to understand how cross-border payments work-The SWIFT Network and the SWIFT standards

The strategy 3 to understand how cross border payments work
The situation before the SWIFT Network
SWIFT addresses security and automation
SWIFTNet is a highly secure Network
SWIFT standards enhance the communication
SWIFT standards enable automation
SWIFTNet interconnects banks and corporations
SWIFTNet is a messaging system
SWIFT and the BIC code
Assessment Quiz

Module 4 – Key strategies to understand how cross-border payments work-Introduction to FX markets and how banks handle currencies

The Strategy 4 to understand how cross border payments work
Cross border payments and currency exchanges
FX Markets are used by banks and their customers
Foreign exchange – Introduction and definition
ISO 4217: the Standard for currency codes
FX – Fixed Exchange rate and Floating Exchange rate
Foreign exchange – Currency pairs
BID price and ASK price for banks and customers
Foreign exchange – Example of a currency quote
Foreign exchange – Direct and Indirect Quotation
Foreign exchange – Currency tenor
Foreign exchange – The Float
Liquidity management (in cross border payment context)
When do banks go the FX markets?
Adjustments on the FX account(s)
Funds in currency are kept on correspondent accounts
Assessment Quiz

Module 5 – Modeling cross border payments

What is a Cross-border payment?
The « six party model » for cross border payments
Customer Credit Transfer to a customer of the correspondent bank
Customer Credit Transfer to a customer of the correspondent
bank’s subsidiary
FI Transfer to the correspondent bank’s subsidiary
Customer Credit Transfer to a customer of another bank in the monetary zone
FI Transfer to another bank in the monetary zone
Customer Credit Transfer to a customer of a major bank’s subsidiary in the monetary zone
FI Transfer to a major bank’s subsidiary in the monetary zone
Customer Credit Transfer from a customer of a major bank’s subsidiary to a customer of another major bank’s subsidiary
FI Transfer from a major bank’s subsidiary to the subsidiary of another major bank
Customer Credit Transfer – Bank 1 and Bank 2 have the same correspondent in the country of the currency of transfer
FI Transfer – Bank 1 and Bank 2 have the same correspondent in the country of the currency of transfer
Customer Credit Transfer – Bank 1 and Bank 2 have the same correspondent and subsidiaries are involved
FI Transfer – Bank 1 and Bank 2 have the same correspondent and subsidiaries are involved
Customer Credit Transfer – Bank 1 and Bank 2 have different correspondents in the country of the currency of transfer
FI Transfer – Bank 1 and Bank 2 have different correspondents in the country of the currency of transfer
Customer Credit Transfer – Bank 1 and Bank 2 have different correspondents and their subsidiaries are involved
FI Transfer – Bank 1 and Bank 2 have different correspondents and their subsidiaries are involved
Assessment Quiz

Module 6 – MT Messages in Cross border payments

SWIFT Messages standards
The main spaces in cross border payments
How to get the messages overview?
SWIFT MT Messages for Customer transfers
SWIFT MT Messages for Financial Institution transfers
Bank roles in Cross border payments
SWIFT MT Message Identifiers
Structure of a SWIFT MT Message
SWIFT MT Message structure example
MT Message field structure
List of SWIFT Messages Types
MT Messages in the Customer-to-bank Space
SWIFT MT Messages for Customer transfers
MT Messages in the Bank-to-correspondent Space
SWIFT MT Messages for Financial Institution transfers
Assessment Quiz

Module 7 – MX Messages in Cross border payments

SWIFT Messages standards
Advantages of SWIFT MX standards
SWIFT migration to MX messages – The calendar
The different spaces in cross border payments
How to get the messages overview?
SWIFT MX Messages for Customer transfers
SWIFT MX Messages for Financial Institution transfers
MT and MX ISO 20022 have different vocabularies
SWIFT MX message names
Structure and meaning of SWIFT MX message names
SWIFT MX Message Definition Reports and Schemas
SWIFT MX Message structure
Difference between ISO 20022 and SWIFTNet MX messages
MX Messages in the Customer-to-bank space
SWIFT MX Messages for Customer transfers
MX Messages in the Bank-to-correspondent space
SWIFT MX Messages for Financial Institution transfers
Assessment Quiz

Module 8 – Basic Customer and Financial Institution Credit Transfers

Basic MT103 Transfer with Direct Account Relationship
MT103 Transfer with optional fields 53B, 70 and 71G // Pacs.008
MT103 Transfer with fields 52a, 57a // Pacs.008

Message 1 from Bank to correspondent
Message 2 from correspondent to Creditor Agent

Transfer with Currency conversion

MT 103 from bank to correspondent // Pacs.008
MT950 from correspondent to Bank // Camt.053

MT202 FI Transfer // Pacs.009

Message 1 from FI debtor to correspondent
Message 2 from correspondent to Creditor Agent

Assessment Quiz

Module 9 – Serial and Cover Payments

Serial and Cover Methods – Introduction
Customer Credit Transfer – Cover Method
Customer Credit Transfer – Serial Method
Cover method analysis (MT and MX messages)

Customer instruction: MT101 // Pain.001
MT 103 // Pacs.008 Announcement
First MT202 COV // MX Pacs.009
Second MT202 COV // MX Pacs.009
MT910 // Camt.054 Credit Notification

Serial method analysis (MT and MX messages)

First MT103 // MX Pacs.008
Second MT103 // MX Pacs.008
Third MT103 // MX Pacs.008

Assessment Quiz

Module 10 – SWIFT MT and MX Messages structures

SWIFT MT Messages structure

SWIFT MT Message overview
Structure of a SWIFT MT Message
SWIFT MT Message structure example
SWIFT MT 101 Text block structure
SWIFT MT 104 Text block structure
SWIFT MT 103 Text block structure
SWIFT MT 102 Text block structure
SWIFT MT 202 Text block structure
SWIFT MT 202 COV Text block structure
SWIFT MT 204 Text block structure

SWIFT MX Messages structure

SWIFT MX Messages overview
Syntax and semantics in the standard ISO 20022
MX pain.001.001.11 message structure
MX pain.008.001.09 message structure
MX pain.002.001.11 message structure
MX pain.007.001.11 message structure
MX camt.053.001.02 message structure
MX pacs.008.001.10 message structure
MX pacs.009.001.10 message structure
MX pacs.010.001.05 message structure
MX pacs.004.001.11 message structure
MX pacs.007.001.11 message structure

Assessment Quiz

Click here to enroll to the Course Initiation to Cross-border Payments (697 € for one year with the option to renew at 117 €/year at the end of the 1st year)

Click here to see the memberships (curriculums) where the Course Initiation to Cross-border Payments is included. Stay on this page to see the detailed contents of all the courses we provide.

Course 5 – Master Cross-Border Payments

The Mastering Cross-border payments Course provides an advanced step-by-step explanation of how cross-border payments work.

Module 1 – SWIFTNet: Registration, Connectivity and Services

Prerequisites for exchanging messages on SWIFTNet
SWIFTNet Identifiers
Steps to get SWIFT Identifiers and become a SWIFTNet user
Connectivity to SWIFTNet

Cloud-based solutions
Alliance Kits
Alliance connect packages

SWIFTNet Link: the connectivity software
Alliance connect implementation process
Security on SWIFTNet

SWIFT Public Key Infrastructure
Certificates distribution

Security on SWIFTNet

Certificates and the HSMs
Functions performed by the SNL and by the institution

Protocols and services on SWIFTNet
Subscription and access rights

The Closed User Groups (CUG)
The Relationship Management Application (RMA)

Recap – actions before message exchange
SWIFTNet transactional modes
Typical architecture for a direct connection to SWIFT
Assessment Quiz

Module 2 – Customer credit transfer initiation (MT101 and MX Pain.001)

SWIFT MT 101 Text block structure
MX pain.001.001.11 message structure
How corporations use the MT101 / MX Pain.001
MT101/MX Pain.001 with two domestic transactions
MT101/MX Pain.001 usage to pay from multiple debit accounts
MT101/MX Pain.001 usage to pay from a subsidiary account
MT101/MX Pain.001 usage by parent company to pay on behalf of subsidiaries
MT101/MX Pain.001 usage for funds repatriation
Assessment Quiz

Module 3 – Customer credit transfers where six financial institutions are involved

Model where Bank 1 and Bank 2 have different correspondents and their subsidiaries are involved
Customer credit transfer where six banks are involved (Method 1 with a third reimbursement institution)

The announcement: MT103/MX Pacs.008
The MT202COV / MX Pacs.009 to the sender’s correspondent
The MT205COV / MX Pacs.009 in the USD zone
The second MT202COV / MX Pacs.009

Customer credit transfer where six banks are involved (Method 2 using an Account with Institution)

The announcement: MT103/MX Pacs.008
The MT202COV / MX Pacs.009 to the sender’s correspondent
The MT205COV / MX Pacs.009 in the USD Zone
The MT910 / MX Camt.054 to the Receiver’s Main office

Customer credit transfer where six banks are involved (Can a MT 103 serial be used ?)

First MT103/MX Pacs.008 with the serial method

MT103 Core and MT 103 STP
MT103 Core and MT 103 REMIT
Assessment Quiz

Module 4 – Financial Institution Credit Transfers and Direct Debits

Financial Institution Credit Transfer with MT200 / MX Pacs.009
Financial Institution Credit Transfer with cover method

The MT202 / Pacs.009 Advice
The first MT202 / Pacs.009 Core as Cover
The second MT202 COV / Pacs.009 Core as Cover
The third MT202 COV / Pacs.009 Core as Cover
The MT910 / MX Camt.054

The MT 204 / Pacs.010 Financial Institution Direct Debit
Assessment Quiz

Module 5 – Related transactions in cross border payments

Original transactions and related transactions (R-transactions)
The main related transactions
Example of MT103 Reject
Example of MT103 Return
Cancellation request in the Cover method
Cancellation request from Customer (MT192 / MX Camt.055)
Cancellation request MT192 / MX Camt.056 on announcement
Response to Cancellation request MT196 / Camt.029 (Pending)
Response to Cancellation request MT196 / Camt.029 (Cancelled)
Cancellation request MT292 on MT202COV / MX Camt.056 on MX Pacs.009
First MT 202 COV Return / MX Pacs.004 Return after accepting a cancellation request
Cancellation Request Process in the MX ISO 20022
Payment Reversal
Customer Payment Reversal through domestic CSM
SWIFT GPI tracker and Universal payment confirmations (MT 199)
Assessment Quiz

Module 6 – Standing Settlement Instructions (SSI) and Settlement path determination

Standing settlement instructions
Getting SSI data: the two main options
FULL and DELTA versions of SWIFTRef Directories
How SSIs are used during payment processing
Algorithm to determine the settlement path
Many parties can be provided in the SSI
How to send currency to a small Creditor Bank?
Updated algorithm to determine the settlement path
Assessment Quiz

Module 7 – Foreign Exchange in Cross-border payments

FX Markets are used by banks and their customers
BID price and ASK price for banks and customers
Foreign eXchange – Example of a currency quote
Foreign eXchange – Currency tenor
Foreign eXchange – The Float
FX main process steps

1. Find out if a FX conversion is required
2. Determine the rate type
3. Determine the rate
4. Apply the rate

Assessment Quiz

Module 8 – Charges in Cross-border payments

The charge options
MT103 Serial with charge option BEN
MT103 Serial with charge option SHA
MT103 Transfer with charge option OUR prepaid
MT103 Serial with charge option OUR non-prepaid
MT202 charge model
MT202: collection of charges
Usage of MTn90 (Advice of Charges)
Usage of MT191 (Request of Charges)
Query and Answer related to the MT191
Usage of MT191 with Account with Institution
Assessment Quiz

Module 9 – XCT Payment processing value chain – Acquisition and Reporting

Payment processing value chain (from bank’s perspective)
Payment processing value chain – Inside the bank
Payment channels

Third Party Providers channels
File Transfer channels
The Worldwide host-to-host channel
File Transfer channels and the communication protocols

Security in file transfer channels – the main challenges
Security is achieved through the use of cryptography techniques
Asymmetric encryption mechanisms use pairs of keys
Asymmetric encryption mechanisms – how it works
Asymmetric mechanisms – combination of hash functions and keys
Asymmetric mechanisms – the reality (is a bit more complex)
Digital Certificate or public key certificate
Summary of encryption mechanisms
SWIFT Personal token and End entity certificates
SWIFT Secure Signature Key or 3SKey
Assessment Quiz

Module 10 – XCT Payment processing value chain – Order management

Payment processing value chain (from bank’s perspective)
Payment processing value chain – Inside the bank
Payment order management – Introduction and generality
Payment order management for Cross-border payments
Single-beneficiary and Multi-beneficiary payment orders
POM Payment processing steps
POM functions and services

Payment parsing and validation
IBAN/BBAN account validation
IBAN/BBAN Account verification
NAR validation and enrichment
Dates and the related controls
Dates – Processing time, Calendar and Business days
Dates – Open Business days
Duplicate checks

POM functions and services

Processing agreements

Service Debit/Credit Notification
Service FX Margin
Service Account substitution
Service Late modification
Service Value date
Service Authorization to debit account
Service Specific charges Account

Charge option validation & application
Specific country or regional validations
Settlement path determination
Pending order management
FX conversion
Balance check
Routing and issuing

Assessment Quiz

Module 11 – XCT Payment processing value chain – Payment Exchange

Payment processing value chain (from bank’s perspective)
Payment processing value chain – Inside the bank
Payment Exchange Platform (PEP)
Payment exchange platform – A focal point
PEP functions and services
Sanctions screening
PEP and Routing directories
XCT Validation, Routing and SSI Directories
Participation directories versions
Payment Exchange Platform – Bulking and Debulking
Assessment Quiz

Click here to enroll to the Course Master Cross-border Payments (797 € for one year with the option to renew at 127 €/year at the end of the 1st year)

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Course 6 – Secrets for your Cross-Border Payment Projects

In this course, you get all the secrets to quickly understand and successfully deliver your cross-border payment projects.

Module 1 – Correspondent accounts and their reconciliation

Correspondent banking – unilateral account relationship
Correspondent banking – bilateral account relationship
Correspondent banking – Loro accounts
Recap: Shadow and mirror accounts
Illustration with an account relationship between bank and its correspondent
Real and Mirror accounts in end-to-end the processing of cross-border transfers
Why mirror account are needed
Reconciliation of real and mirror accounts
Example of reconciliation with single booking between a bank and its correspondent
Example of reconciliation with batch booking between a bank and its correspondent
Challenge of Nostro account management
Nostro account management: the solutions

Module 2 – Booking and cross-border payments

Introduction to Booking
The double entry bookkeeping principle
and accounting events
Examples of accounting events to illustrate the double entry principle
Different types of bank accounts
Customer Credit Transfer – Serial Method

When a FX conversion is required: an example
Rates and accounting events to debit an account in currency
Debtor bank credit transfer pain.001/MT101 and pacs.008/MT103 booking – Order with one transaction
Debtor bank pacs.004 (normal return) booking
Correspondent of Debtor bank pacs.008 / MT103 booking – Order with one transaction

Customer Credit Transfer – Serial Method

Correspondent of Creditor bank pacs.008 / MT103 booking – Order with one transaction
Case of an incoming transaction in currency
Case of an incoming transaction in currency
Creditor bank pacs.008 / MT103 (credit transfer) booking
Creditor bank pacs.004 / MT103 (Return) booking
Creditor bank pacs.004 / MT103 Return from a customer account

Customer Credit Transfer – Cover Method

Creditor bank pacs.008 / MT103 (announcement) booking

Assessment Quiz

Module 3 – Customer and Nostro Account Balance Management in cross border payments

Purposes of Account balance management

Challenge 1 of account balance management
Challenge 2 of account balance management

Customer account balance management : the ideal and the reality for banks
Balance Management System (BMS)
Intraday balance and account balance

Challenge 1 with a BMS system
Challenge 2 with a BMS system

Purposes of Nostro account balance management
Structures of Nostro accounts
Challenge of Nostro account management
Nostro account management: the solutions
Results of the Proof of Concept for SWIFT gpi Nostro DLT
Assessment Quiz

Module 4 – The Payment engines

Introduction to payment engines
Payment engines interact with many systems in the bank
Payment engines and Payment Services Hubs
Payment engines and the payment processing value chain
Finding the Payment engines in your projects

Example 1 of payment engines application architecture
Example 2 of payment engines application architecture
Example 3 of payment engines application architecture
Example 4 of payment engines application architecture

Options for Payment engines Implementation
Main actors of PE implementation projects
Few payment engines for the processing of Cross-Border Payments
Assessment Quiz

Module 5 – The Payment engines Integration into the Bank IT landscape

Payment engines interact with many systems in the bank
Interfaces

Interfaces play a crucial role in payment processing
Synchronous messaging (or communication)
Asynchronous messaging (or communication)
2-way asynchronous communication
Challenges of asynchronous communication
Batch Mode
Transactional Mode

Surrounding systems of a payment engine (POM)

Authentication & rights
Channels
CSM and SWIFT Directories
Customer Referentials
Fraud detection
Foreign Exchange Systems

Surrounding systems of a payment engine (POM)

Accounting systems
Audit log or Audit Trail
Pricing & Billing
Archiving
Reporting
Data warehouse & Statistics
Monitoring
The Scheduler
Investigations

Surrounding systems of a payment engine (PEP)

Screening
Intrabank and Interbank Networks

Assessment Quiz

Module 6 – Payment engines and the Graphical User Interfaces

Introduction to Graphical User Interfaces
Navigation menu on the left of the page
Navigation menu on top of the page
Payment instruments and the GUI
Payment engines GUI – Naming and organizing the menu items
Payment capture – Key principles
Cross-border payments capture – Best practices
Payment information displayed on the GUI

Examples of pain.001 and pacs.008

Original transactions and related transactions (R-transactions)
Original transactions and R-transactions on the GUI
Reconciliation of R-transactions
Linking original and r-transactions on the GUI
The 3270 screens
Assessment Quiz

Module 7 – Payment Engines GUI: User rights and actions

User actions – introduction
User rights, user roles and users – the overview
User rights and user roles
Role-Based Access Control (RBAC) and User roles
Illustration of user role and RBAC on menu items
The search and search criteria
Generic search steps
Tips and suggestions about search screens
The worklist items (WLI)
The worklist items should be pushed
The worklist items (WLI) should be exhaustive
Prioritization of worklist items
Messages on the worklist items
Messages on the worklist items – Clarity, training and documentation
Audit log or audit trail – Logging of actions
Settings and parameters
Assessment Quiz

Module 8 – State machine diagrams of payment entities

Introduction to State machine diagrams
Examples of State machine diagrams

The light bulb
The door

The entities of a payment message
Process flows of the payment entities
Message – State machine diagram
Order – State machine diagram
Transaction – State machine diagram
State diagrams and booking
Assessment Quiz

Module 9 – Debit and credit legs payment processing

Debit and credit legs for credit transfers
The options for transaction validations
Process/functions and exceptions
Debit and credit legs for Customer Credit Transfers
Debit leg processing – MX Pain.001/MT101 Customer Credit Transfer Instruction flow
Credit leg processing – MX Pain.001/MT101 Customer Credit Transfer On-Us Transaction flow
Credit leg processing – MX Pain.001/MT101 Customer Credit Transfer Not on-Us Transaction flow
Debit and credit legs for FI to FI credit transfers
Debit leg processing – MX Pacs.008/MT103 FI to FI Credit Transfer Instruction flow
Credit leg processing – MX Pacs.008/MT103 FI to FI Credit Transfer On-Us Transaction flow
Credit leg processing – MX Pacs.008/MT103 FI to FI Credit Transfer Not on-Us Transaction flow
Debit and credit legs for Customer Direct Debits
Credit leg processing – MX Pain.008/MT104 Customer Credit Transfer Instruction flow
Debit leg processing – MX Pain.008/MT104 Customer Credit Transfer On-Us Transaction flow
Debit leg processing – MX Pain.008/MT104 Customer Credit Transfer Not on-Us Transaction flow
Debit and credit legs for FI to FI Direct debits
Credit leg processing – MX Pacs.003/MT104 FI to FI Direct Debit Instruction flow
Debit leg processing – MX Pacs.003/MT104 FI to FI Direct Debit On-Us Transaction flow
Debit leg processing – MX Pacs.003/MT104 FI to FI Direct Debit On-Us Not on-Us Transaction flow
Assessment Quiz

Module 10 – The scope of your cross-border payment Project

Understanding what your XCT project is about
Cross-border payment messages and your project
Message categories in cross border payments
The main spaces in cross border payments
Bank roles in Cross border payments
Bank role-based analysis method
SWIFT MT Messages for Customer transfers
Messages in the customer-to-bank space
The Originator bank interbank messages
The originator bank’s correspondent messages
The receiving bank’s correspondent messages
The receiving bank messages
SWIFT MT Messages for Financial Institution transfers
The ordering institution messages
SWIFT MX Messages for Customer transfers
SWIFT MX Messages for Financial Institution transfers
Payment processes – few key concepts
Typical processes in scope of an XCT project
The processes in your XCT project
The applications in scope of your project
The geographical scope
Internal and external customers
Assessment Quiz

Module 11 – Information Systems architectures and the different plans

Why the architectural approach

The challenges
The objectives

The Architectural approach – What is it?
How the architectural plans relate to each other
The process architecture
The functional architecture
The functional architecture with sub-functional blocks
Functional architecture – a payment exchange platform
The Application architecture
Application architecture – data flows
Application architecture – Integration tools
The technical architecture
Technical architecture – Load balancing and high availability
Assessment Quiz