Receiver FI Incoming Remittance Advice (TCH)

The Incoming Remittance Advice flow.

Use case summary

The Remittance Advice is initiated by a client so as to provide additional remittance information to a receiver, for a related transaction that is being initiated at the same time. For example, a Debtor FI might send a remittance advice message supplementary to a credit transfer message. Alternatively, a Creditor FI might send a remittance advice message supplementary to a request for payment message.

The remittance advice is delivered by the sending financial institution (FI) to the clearing and settlement mechanism (CSM). The CSM delivers the remittance advice to the receiver FI. The Remittance Advice is processed at the same time as the related transaction, resulting in acknowledgments for both being sent to the CSM at the same time, and notifications for both being sent at the same time to the receiver FI client.

The sending FI may time out if it hasn’t received an acknowledgment for a remittance that has been sent to the CSM within its time out limit. If this occurs, the sending FI re-sends the remittance to the CSM with a possible duplicate flag set. When the CSM has no record of this request, it sends it to the receiver FI as a possible duplicate. If the request is not known to the receiver FI either, it is processed normally. Otherwise, the acknowledgment for the original remittance is sent a second time.

The Receiver FI Incoming Remittance Advice case consists of the following processing steps:

FTM for Immediate Payments receives a remittance message from the CSM.
(Prior to this, a related message is received from the CSM. Example: a credit transfer or request for payment).
The remittance message is validated and checked for duplicates. Validation consists of locating the related transaction using information provided in the remittance, and then checking that particular values provided in both messages match correctly.
If the remittance has already been received by the receiver FI and the possible duplicate flag is set, the acknowledgment for the original request is sent to the CSM again and the process completes.
The remittance advice will correlate with the related transaction before undergoing any configured precheck services, and sending an acknowledgment to the CSM. Correlation can happen once the related transaction has been processed to the point that a pacs.002 response has been sent to the CSM. When the remittance has been validated, if the related transaction has already progressed this far, then the remittance can correlate immediately. Otherwise, the remittance waits for a raised event signaling that the related transaction has reached an appropriate state in its process, and then correlates.
If the correlation step is successful, any configured pre-check services are invoked.
FTM for Immediate Payments sends an acknowledgment to the CSM to confirm the acceptance or rejection of the remittance advice.
Once the acknowledgment has been sent to the CSM, any configured post-accept services are invoked.
As a default post-accept configuration, a notification is sent to the channels interface, which in turn may provide a notification to the (receiver) client. An additional configuration setting is used to optionally enrich the remittance message notification with additional information about the sender contained in the related transaction.

Use case high-level sequence diagram

The high-level sequence diagram for the sending FI incoming Remittance Advice case is shown in the following figure:

Note: The diagram illustrates a set of optional services within a parallel group for the pre-check service set. This group is empty as no services are configured by default. The set is provided as an extension point for customization.

Figure 1. Receiver FI Incoming Remittance Advice - high-level sequence diagram

Use case detailed sequence diagram

FTM for Immediate Payments, which is represented by one lifeline in the preceding high-level sequence diagrams, has been divided into multiple lower level lifelines in the following series of sequence diagrams. The lower level lifelines are grouped together by yellow boxes.

Figure 2. Receiver FI Incoming Remittance Advice - Good

Table 1. Links to the diagrams for the referenced interactions
Referenced interaction	Reference link
Log and Map Single Txn	Log and map single transaction diagram
Inline Send Txn (Fire and Forget)	Send transaction fire and forget diagram

Use case simple object lifecycle diagram

Figure 3. Receiver FI Incoming Remittance Advice