The SEPA message flow diagrams all have the same general aspects. These aspects will be described using the
primary flow diagram as an example. Figure 1. SEPA credit transfer example message flow diagram: primary flow
Using the flow shown in the previous figure as an example, the following is true of each flow:
Begin reading the flows on the left or the upper left of the diagram
For example, the primary flow is started when a pacs.008 message from an originating client bank is placed
onto the Q1 queue.
There are three to five participants in each flow
These are the participants that may appear in each flow.
The originating or creditor client bank that may initiate the flow by placing pacs.008 messages onto the
Q1 queue. If the originating client bank initiated the flow, the message includes the bank identification code
(BIC) of the indirect participant.
sending bank (direct participant)
The sending bank either receives a credit transfer from an indirect participant or originates a credit
transfer. The message includes the BIC of the direct participant.
STEP2 (simulator)
For some of the flows in the reference application, the credit transfer functionality of STEP2 is
simulated by sample messages or simulator flows that are provided with the reference application. When the
sample messages are used, the STEP2 functionality is simulated by placing the sample messages onto queues in
the reference application.
receiving bank (direct participant)
The receiving bank receives the messages from STEP2. In cases where there is not a simulator flow to
provide STEP2 functionality, sample messages can be placed onto queues manually. For example, in the primary
flow, the receiving bank receives a settled credit file (SCF) that was placed onto Q3.
beneficiary bank (indirect participant)
The beneficiary bank receives the final credit message. If there is no beneficiary bank, the direct
participant receiving bank receives the final credit message. Each message includes the bank identification
codes (BIC) for the direct and indirect participants.
TARGET2 is not represented in the SEPA credit transfer reference application flows
The reference application does not interact directly with TARGET2. It only sends messages to STEP2, which
then uses the services of TARGET2 to perform settlement. Settlement-related messages, such as the settled
credit file (SCF) and the daily reconciliation report (DRR), are sent by STEP2 to the sending and receiving
banks.
