NACHA Payments 2018 Annual Conference More and more companies and financial institutions in the U.S. are adopting ISO 20022. Yet, migrating to ISO 20022 is not so simple nor straightforward. A growing challenge is the technical preparation in sending and receiving payment message files in the corporate on-boarding process. Hear real-world experiences on implementation of ISO 20022 for corporate to bank payment operations. Learn about the latest product available on NACHA's ISO 20022 Resource Center to complement NACHA's ISO 20022 Mapping Guide & Tool to offer efficiencies and reduce risk in the ISO 20022 integration process.

1. Drive Value with the ISO 20022 Validator

2. 2
Getting To Know Us
Michelle A. Palombo
Managing Director,
Global Client Access
Nasreen Quibria
Senior Advisor,
Innovation & Technology

3. Today’s Discussion…
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4. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
4
What is ISO 20022?
A standard for standards – a “recipe”
or a standardized approach to
building message standards across
financial services

5. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
5
What is ISO 20022?

6. Today’s Discussion…
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7. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
7
Very familiar
Not very
familiar
Somewhat
familiar
Not at all
familiar
Source: 2012 Remittance Coalition Study
Source: 2013 U.S. Stakeholder Group - The Federal Reserve Bank of NY, The
Clearing House, NACHA, X9 - ISO 20022 Business Case Study
Key Observations in the U.S. Market
Then…
› Lack of awareness
› Demand driven by global banks and corporations
› No compelling financial business case, but potential
strategic reasons to consider adoption
Phase Recommendation
1. Planning &
Education
Promote educational efforts and
develop a national strategy for
adoption
2. Cross-Border
Payments
Enable cross-border wire payments,
followed by cross-border ACH
payment
3. Domestic
Payments
Assess value proposition and timing for
adoption for domestic wire and ACH
payments
Additional
Consideration
Consider as the standard messaging
format for new products and serviceNACHA Launches XML-ACH
Remittance Opt-In Program
Herndon, VA., 2013
What’s Happening In The U.S.?
© 2015 Q INSIGHTS

8. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
8
ISO 20022 Activities In The U.S. …And now
NACHA Enhances ISO 20022-to-ACH Mapping Guide
HERNDON, Va., Nov. 16, 2016 – NACHA – The Electronic Payments Association® announced today that it has
published an enhanced version of its ISO 20022-to-ACH Mapping Guide to assist financial institutions in translating
ISO 20022 payment instructions into ACH payments for their business customers. The Guide, which previously only
provided information to map ISO 20022-formatted payment messages to corresponding ACH Network business
credit and international transactions, now includes instructions for mapping debit and additional credit transactions,
rejections and returns, as well as Same Day AC.
HERNDON, Va., March. 13, 2018 – Today, NACHA—The Electronic Payments Association®
announced the launch of its new Request for Payment program. The Request for Payment program
leverages the ISO 20022 message standard to enable businesses of all sizes to send electronic invoices
and receive corresponding payment and remittance through the ACH Network. The program, which is
voluntary, provides for consistency in process across enterprise applications and platforms, creating
efficiencies, increased control, and cost savings
NACHA Launches Program to Support Standardization of
B2B ACH Transactions

9. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
9
ISO 20022 Activities In The U.S. …And now
› The ISO 20022 Stakeholder Group
proceeding on the following workstreams:
– Wires: Federal Reserve Banks (Wholesale
Product Office), TCH (CHIPS and X9)
– ACH: Federal Reserve Banks (Retail
Payments Office), TCH (EPN), NACHA
and X9
Strategy #4 – Achieve greater end-
to-end efficiency for domestic and cross
border payments (2015 and beyond)
Legacy format
preparation for ISO
18 months from
start date
Phase I
November 23, 2020
Fedwire / CHIPS begin
production rollout
Rollout complete
and sunset
legacy format
(TBD)
And beyond2020
Phase IIIPhase II
ISO enhancements
ISO like for like
3 months post
Phase II

10. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
10
ISO 20022 Activities In The U.S. …And now
First New Core Payments System in the U.S. in more than 40 Years
Initiates First Live Payments
New York, NY (November 14, 2017) – Yesterday, The Clearing House (TCH) launched RTP®, its real-time payments
system, the first new core payments infrastructure in the U.S. in more than 40 years. The new RTP system was designed
and built through the collaborative effort of TCH’s 25 owner banks and meets the objectives of the Federal Reserve Faster
Payments Task Force. RTP is open to all U.S depository institutions with a goal of reaching ubiquity by 2020.
Payment
Acknowledgement
by Receiver
Message from the
receiver to the
sender regarding
payment disposition
Credit Transfer
Basic multi-purpose
message, including
remittance
Request for
Payment
To support P2P funds
request, e-invoicing
or e-billing
Remittance
Advice
Extensive remittance
detail in the Credit
Transfer Message
Request for
Information &
Response
Receiver request for
additional
information about a
payment
Real-Time Payments ISO 20022
Message Set

11. Today’s Discussion…
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12. BNY Mellon’s Experience
with ISO 20022
NACHA Payments 2018
Michelle Palombo
Senior Group Manager for Global Client Access
May 1, 2018
BNY Mellon Treasury Services

13. Today’s Discussion…
1313

15. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
15
NACHA ISO 20022 Validator
visit iso20022.nacha.org and register

16. Today’s Discussion…
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17. Thank You – Questions? …Let’s Connect
(m) 617.388.6207
nquibria@nacha.org
nasreenquibria
@nquibria
Michelle A. Palombo |Managing
Director, Global Client Access
(o) 412.236.2303
michelle.palombo@bnymellon.com
Nasreen Quibria | Senior Advisor,
Innovation and Technology
17

18. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
18
• ISO: http://www.iso20022.org/
• NACHA: https://www.nacha.org/ISOresources
• CGI – Market Practice: http://corporates.swift.com/en/cgi-mission-and-scope
• Federal Reserve Banks: https://fedpaymentsimprovement.org/payments-efficiency/iso-
20022/
• SWIFT: https://www.swift.com/standards/about-iso-20022
• Canadian Payments Association (CPA):
https://www.cdnpay.ca/imis15/eng/Our_Initiatives/eng/initiatives/ISO_20022.aspx
• European Payments Council (EPC):
http://www.europeanpaymentscouncil.eu/index.cfm/sepa-credit-transfer/iso-20022-
message-standards/
• IFX: http://www.ifxforum.org/home/
• Payments UK: http://www.paymentsuk.org.uk/policy/payment-industry-
standards/iso20022
Appendix – Resources

19. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
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No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
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Landing Page

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No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
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File Upload

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No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
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Validated ISO File
Logical
View
ISO
XML
View

23. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
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Invalid File with Errors
2. Errors
highlighted
(with tool
tips)
1. Summary
of all
validation
errors
3. Easy to
fix errors
1
2
2
3

24. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
24
Message Repair and Revalidation
5. Re-test
6.
Download
repaired
file
4. Edit field
values
4
5 6

25. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
25
Compare Original vs Repaired Files
Field value
updated
Field /
section
added
Field /
section
deleted

26. © 2018 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA. This material is not
intended to provide any warranties or legal advice, and is intended for educational purposes only.
26
Downloadable Files
Downloadable Report
includes:
› Logical view
› Raw message
› Inline comparison
1
2
Downloadable ISO
20022 XML File