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What is the PACS.008 - FI to FI Customer Credit Transfer MX Message?

The Pacs.008 MX message is the FI to FI Customer Credit Transfer message. As the name suggests, this message is used by the banks when there is an underlying customer credit involved. This message is equivalent to the MT 103 ( Single Customer Credit Transfer) as well as the MT 102 ( Multiple Customer Credit Transfer) messages.

Building Blocks of a PACS.008 Message

Let us go through the main points about the structure of the pacs.008 message -

1. The message can be broadly divided into two sections. The Group Header and
   the Credit Transfer Transaction Information.
2. The group header contains characteristics which are applicable to all individual
   transactions in the message.
3. The credit transfer transaction information contains information related to each
   payment.
4. Though the base or global ISO 20022 pacs.008 message has the capability to
   carry more than one transaction in a single message, currently the CBPR+ as well as the HVPS+ guidelines have restricted each message to carry only one transaction.
   

PACS.008 : The Group Header

Points to keep in mind about the pacs.008 Group header -

1. Important element - Settlement Information. Contains the settlement method
   within it.
2. In CPBR+ , the CLRG settlement method is not used, only INDA, INGA and COVE can be used.

PACS.008 : The Credit Transfer Transaction Information

Let's group the elements of the credit transfer transaction information block depending on their purposes -

Five types of payment identification elements -

1. Point to Point identifications - are those whose value change from one bank to the next in the payment chain. Such identifications are - Instruction Identification and Clearing System Reference (only in HVPS+),
2. End to End identifications - are those whose values remain unchanged throughout the payment chain. Such identifications are - End to end identification, UETR, Transaction Identification

Three types of Amount elements -

1. Instructed Amount - the amount that was instructed to be moved,
2. Charges Information Amount - Amount deducted as charge,
3. Interbank Settlement Amount - Actual amount moved after deduction of
   charges
   

'Charge Bearer' element (contains the division of charge), allowed values -

1. CRED - Borne by creditor,
2. DEBT - Borne by debtor,
3. SHAR - Shared,
4. SLEV - new code, Service Level agreement, not allowed in CPBR+
   

'Charges Information' element-

1. Contains amount and agent who deducted charge,
2. Can be repeated any number of times for full transparency
   

Agents (Elements related to various roles of banks in that payment) -

1. Can be identified by BIC (always preferred way, Using BICFI),
2. Clearing System Member ID (e.g., TGT2 and then respective id for TARGET2) or
3. Name and Address (Structured or Unstructured)
   

Parties (Elements related to various possible party roles in that payment) -

1. Can be identified by Name and Address (Structured or Unstructured) or
2. Identification (Passport number, SSN, LEI, BIC using AnyBIC etc.)
   

Accounts -

1. All agents and the parties other than ultimate debtor, ultimate creditor and initiating party come together with their account details.
2. No point in having the account details of the ultimate debtor, ultimate creditor and the initiating party because they are not making any payment.
3. Can have following details - ID (Account number), Type (Savings, Current etc.), Currency, Name, Proxy (emailid, phone number etc. mapped to indicate that account)
   

Instructions (Miscellaneous information that one bank passes to another)-

1. For next agent (point to point) and
2. For creditor agent (end to end)
   

Remittance related (Elements that give details about the payment, e.g, Invoice details) -

1. Use of either Related Remittance Information or Remittance Information (Structured or Unstructured).
2. Use of Structured Remittance Information requires bilateral agreement,
   otherwise, message rejected.
   

This is in brief the structure and elements of a pacs.008 message. For structures of other MX messages keep reading the next articles.

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