Bank payments transaction type

Summary

Bank payments is a monetary transaction type designed to model a transfer of funds from one bank account to another in a different financial institution.

It includes the concepts of debtor, creditor and agents, alongside a range of other fields required to model transactions of this type.

From the overall transaction model, it inherits: base value + currency; value + currency; custom fields etc.

This model does not cover bank payments between accounts in the same financial institution i.e. where there are two customers. These will be modelled separately as an internal transfer.

Guide to usage

Parties

There are four party types:

Creditor (required)
Debtor (required)
Ultimate creditor (optional)
Ultimate debtor (optional)

Rules:

Either the debtor or the creditor must be a customer and the other one must be a counterparty, both require external identifiers
The rest are counterparties
No more than one counterparty can have an external identifier. It’s permissible that none of them do.

The Ultimate Debtor is the party who truly owes the money or on whose behalf a payment is initiated, while the Ultimate Creditor is the party who is the true final recipient or beneficiary.

These ultimate roles are only specified in bank transactions when they are different from the immediate Debtor and Creditor (the bank account holders). Identifying these parties enhances transparency, especially for compliance and regulatory purposes.

Direction

A direction is calculated and stored when the transaction is submitted. It can be used in scenario logic.

If the debtor is the customer, the direction is outbound
- The funds are leaving the customer
If the creditor is the customer, the direction is inbound
- The funds are being received by the customer

Agents

Agents represent other financial institutions involved in the transaction, e.g. the counterparty's bank. 0+ agents can also be provided in the transaction

Fields

To view the fields and full details, visit the API docs for Create and process a transaction and explore transaction object > monetary > bank_payments.