Create FedNow RfP Request for Payment File Format

To create a Request for Payment (RfP) file format that is compatible with FedNow, ACH, and Real-time Payments, the approach involves combining key components of each payment system while ensuring compliance with their specific formats and standards. Below is a guide to creating a unified file format for FedNow, ACH, and Real-time Payments (RTP) Request for Payment.

Understanding the File Formats

1. FedNow uses the ISO 20022 standard, specifically the pain.013.001.07 message for Request for Payment (RfP).
2. ACH (Automated Clearing House) typically uses a NACHA format, which includes files structured according to the NACHA operating rules.
3. Real-time Payments (RTP), managed by The Clearing House, also uses ISO 20022 messages for payment processing, specifically focusing on pain.013 and pain.014 messages for RfP.

The unified file must be capable of supporting these systems while maintaining necessary elements for processing and validation. To implement this, we'll use ISO 20022 for both FedNow and RTP, and then add necessary mappings for ACH.

Key Elements of RfP for All Systems

All three systems—FedNow, ACH, and RTP—require certain core elements in the Request for Payment:

• Message Identification: A unique identifier for the RfP message.
• Initiating Party (Debtor): Information about the party requesting the payment (payer).
• Creditor Information: Details about the recipient of the payment (payee).
• Payment Amount: The amount being requested.
• Due Date or Expiration Date: The deadline for the payment to be made.
• Remittance Information: Details regarding the payment, such as invoice numbers or purchase order references.
• Purpose of Payment: Description of the transaction.

Step-by-Step Guide to Create the RfP Format

1. FedNow and RTP - ISO 20022 (pain.013.001.07) Structure

Below is a basic structure for an ISO 20022-compliant RfP message that works for both FedNow and Real-time Payments (RTP).

xml

<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pain.013.001.07">

   <CstmrDrctDbtInitn>

      <GrpHdr>

         <MsgId>Msg-001</MsgId>

         <CreDtTm>2024-09-14T10:30:00</CreDtTm>

         <NbOfTxs>1</NbOfTxs>

         <CtrlSum>500.00</CtrlSum>

         <InitgPty>

            <Nm>John Doe</Nm>

            <Id>

               <OrgId>

                  <Othr>

                     <Id>DEBTOR_ID_123</Id>

                  </Othr>

               </OrgId>

            </Id>

         </InitgPty>

      </GrpHdr>

      <PmtInf>

         <PmtInfId>Payment-001</PmtInfId>

         <PmtMtd>TRF</PmtMtd>

         <ReqdColltnDt>2024-09-20</ReqdColltnDt>

         <Cdtr>

            <Nm>ABC Supplier</Nm>

         </Cdtr>

         <CdtrAcct>

            <Id>

               <IBAN>US12345678901234567890</IBAN>

            </Id>

         </CdtrAcct>

         <Dbtr>

            <Nm>John Doe</Nm>

         </Dbtr>

         <DbtrAcct>

            <Id>

               <IBAN>US09876543210987654321</IBAN>

            </Id>

         </DbtrAcct>

         <RmtInf>

            <Ustrd>Invoice #12345</Ustrd>

         </RmtInf>

      </PmtInf>

   </CstmrDrctDbtInitn>

</Document>

Key Elements in the XML:

• <MsgId>: Unique message ID for the request.
• <CreDtTm>: Timestamp of when the request was created.
• <NbOfTxs>: Number of transactions in the message (1 for single payment).
• <CtrlSum>: Total sum of payments requested.
• <InitgPty>: The debtor (payer) initiating the request, with name and ID.
• <Cdtr>: The creditor (payee), including account details.
• <PmtInfId>: Payment information ID.
• <RmtInf>: Remittance information (e.g., invoice or transaction details).

2. ACH - NACHA Format (TXP Addendum for Payment Requests)

The ACH system uses the NACHA format, and you can use the TXP addendum for Request for Payment (RfP). The format might look like this:

markdown

TXP*123456*INV*5678*100.00

Explanation:

• TXP: Identifies the file as a transaction payment request.
• 123456: The taxpayer or customer identification number.
• INV: Indicates the type of payment (e.g., invoice).
• 5678: The invoice number.
• 100.00: The payment amount.

NACHA File Example

The NACHA file has different segments like header records, batch records, and detailed records, but here is an example:

yaml

101 031300012 123456789012345678 091024 0610A094101FEDERAL RESERVE BANK OF ATLANTA 0106

5200Company Name     12345678901PPDDESCRIPTIO0204131012000000001000C

6270310001230123456789012               000010000012345678901DOE JOHN        0099101

8200000001003100012300000000010000000000000012345678901                         0000000

9000001000001000000010031000123000000000100000000000000

Explanation:

• File Header Record: Provides routing information.
• Batch Header Record: Specifies the type of payment (e.g., credit or debit).
• Entry Detail Record: Contains individual transaction details such as account number, amount, and name.
• Batch Control Record: Summarizes the transactions within the batch.
• File Control Record: Summarizes the entire file.

Step 3: Mapping the Elements Across the Systems

Here’s how the key fields map across the three systems:

Step 4: Finalizing the RfP for Upload

Now, you'll need to finalize your RfP for the specific use case:

1. FedNow and RTP: Use the ISO 20022 XML format shown above.
2. ACH: Use the NACHA file format with the relevant fields in the TXP addendum for payment information.
3. Conversion Tools: If you are building a system that handles multiple payment types, consider using a converter to map the common fields across these systems to simplify future processing.

By combining ISO 20022 and NACHA standards, you can create a comprehensive RfP system that supports FedNow, ACH, and Real-time Payments.

Let me know if you need any further clarification on specific fields or implementation!