NACHA Payments 2017 Annual Conference Today, businesses worldwide are employing ISO 20022 messaging to execute payments to currencies around the globe, and are initiating payments as well in U.S. dollars via the ACH Network. While usage is currently stratified among the largest businesses and banks, ISO 20022 messaging should be on the roadmap of every business, financial institution and payments provider. Increase in ISO 20022 usage for financial messages is being driven by SEPA (Single Euro Area Payments) mandates, as well as tremendous efficiencies gained by businesses in their treasury operations. NACHA-The Electronic Payments Association, is leading initiatives and support for integration of ISO 20022 with the ACH Network

1. © 2017 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.
1
How to Execute Standardized ISO 20022
Payment Initiation Via the ACH Network

2. Today’s Speakers
2
Robert Unger
Senior Director
Nasreen Quibria
Managing Director &
Founder
Gordon Skjeie
First Vice President, LCI CB
Cash Management NYB

3. © 2017 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.
33
Today’s Discussion

4. 4

5. © 2017 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.
55
Today’s Discussion

6. © 2017 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.
6
• Industry tools and solutions that allow ACH users
to leverage the ISO 20022 Payment Message
standard for both electronic payments initiation
and remittance without making changes to the
current U.S. ACH formats and with the support of
the NACHA Operating Rules.
ACH Integration
ACH Conversion
• Current U.S. ACH file formats are converted
to ISO 20022 Payment Messages for all
ACH payment types to all endpoints and
supported by the NACHA Operating Rules.
6
ISO 20022 Strategies for the U.S. ACH Network
include integration of and/or conversion of the network

7. © 2017 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
ISO 20022 integration mapping for all relevant ACH B2B,
C2B/B2C and related messaging standard entry codes
(credit and debit) – 2017
INVOICE
INTERBANK CLEARING AND SETTLEMENT
NACHA File Formats: B2B, C2B/B2C, Remittance, Messaging (e.g., prenotes, returns)
ISO Messages:
pain.002
camt.05x
Debtor / Originator * Creditor / Receiver *
PURCHASE
Debtor Agent / ODFI *
Creditor Agent / RDFI
*ACH OPERATOR
NACHA Operating Rules
NACHA File Formats:
EDI, BAI/BAI2, SWIFT MT,
remt.00X, camt.05x,
Custom Reports,
Integrated Receivable
NACHA
Mapping Guide
used to translate
ISO format to
NACHA file
formats
*Note: Originator / Receiver & RDFI / ODFI reversed for debit
ISO
Messages:
pain.001
remt.00x,
pain.007
pain.008

8. © 2017 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
Will the U.S. ever convert its ACH Network to an ISO
format?
 Gaps created by ISO 20022 ACH integration are
documented and assessed
 Support for end users and financial institutions is
provided for those who want to support integration
across all low value payments
 Software providers and financial institutions work
together with businesses to provide straight-through
processing
• Supported by case study illustrations on integration
 We continue to identify gaps or opportunities that impact
users, and the changing payments landscape in order to
plan future steps that may trigger conversion
Dialogue with the industry will continue to ensure:

9. © 2017 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.
99
Today’s Discussion

10. © 2017 Q INSIGHTS. All rights reserved
Acknowledgements
10
Thanks to the following financial institutions and other key
stakeholders for providing insights that were applied in the
development of one or more of the NACHA ISO 20022
Mapping Guides and Spreadsheets:
ACI Worldwide  Bank of America  Bayer  BBVA Compass 
BNY Mellon  BOK Financial  Bottomline Technologies  Citi 
Commerzbank  Deutsche Bank  DNB  Fifth Third Bank  IBM 
JPMorgan Chase  Microsoft  Oracle  PNC  SAP  Wells Fargo 
US Bank

11. © 2017 Q INSIGHTS. All rights reserved
ISO 20022 Flow of Messages
11
Debtor / Originator* Creditor / Receiver*
Debtor Agent/
ODFI*
Creditor Agent/
RDFI*Interbank Clearing and Settlement
ACH Operator
Purchase
CustomerCreditTransfer
pain.001
2
Invoice1
CustomerPaymentStatus
Report
pain.002
3
4
AccountReporting
camt.05x
5
7
8
AccountReporting
camt.05x
6
7
8
pacs messages pacs messages
Credit Transfer Transaction
1. The Debtor (Originator) receives an invoice
for a purchase that they made.
2. The Debtor creates the payment
instruction, a Credit Transfer Initiation
(pain.001) file that is sent to the Financial
Institution, the Debtor Agent (or ODFI).
3. The Debtor Agent validates the message
and sends a Payment Status Report
(pain.002) notifying the Debtor if the file is
accepted or rejected.
4. The information included in every single
payment is validated against each
payment system and the Debtor Agent
sends a Payment Status Report (pain.002)
reporting rejected payments to the
Debtor, if any.
5. Once a file is transmitted via the clearing
house to the Creditor Agent (or RDFI), the
Debtor Agent will send a Debit Notification
report (camt.054) to the Debtor reporting
executed payments.
6. The Creditor Agent sends a Credit
Notification report (camt.054) to the
Creditor reporting incoming payments.
7. Debtor Agent and / or Creditor Agent
sends an Interim Account Report
(camt.052) to the Debtor and/or Creditor.
8. Debtor Agent and / or Creditor Agent
sends an Account Statement (camt.053)
to the Debtor and/or Creditor.
CustomerDirectDebit
CustomerPaymentStatus
Report
pain.008
pain.002
*NOTE: RDFI / ODFI and Originator / Receiver are reversed when pain.008 is originated

12. © 2017 Q INSIGHTS. All rights reserved
Highlights of Findings from NACHA
Stakeholder Outreach Conducted by Q INSIGHTS
12

13. © 2017 Q INSIGHTS. All rights reserved 13
NACHA ISO 20022 Guides & Spreadsheets
Block
ISO
Index
ISO Field
Name
Tag
Level
Content
Description
Mult Type M / O
Maps to NACHA
Format Field
Mapping
Guide
NACHA Version Explanation:
› Conforms to European Payments Council mandate
on SEPA
› Adheres to the recommendations of CGI – MP
› Dominant version in use in the U.S. market and
globally
ISO fields requirements NACHA fields requirements

14. © 2017 Q INSIGHTS. All rights reserved
ISO 20022 Customer and Bank Formats
14
Customer
Bank
pain pain
Bank
Customer
• pain = payment initiation error
messages
• Error message/status message
(pain.002)
• pacs = payment clearing &
settlement
• Clearing for
 Credit Transfers (pacs.008)
 Direct Debits (pacs.003)
pacs pacs
• pacs = C & S error messages
• Error message/status message
• pain = payment initiation
• Payment Initiation for
 Credit Transfers (pain.001)
 Direct Debits (pain.008)
camt
• camt = cash management
• Account Information
 Notification (camt.052)
 Statement of account
(camt.053)
 DTI (camt.054)
PaymentOrder
ErrorInformation
CustomerInformation

15. © 2017 Q INSIGHTS. All rights reserved
Enhancements & Additions to NACHA Guides
& Spreadsheets
15
Addition of PPD
Same Day ACH
Remittance details with CTX
Revision History
Credit Transfer
pain.001.001.03
Mapping Guide & Spreadsheet
Support of PPD & CCD
Same Day ACH
Revision History
Direct Debit
pain.008.001.02
Mapping Guide & Spreadsheet
Payment Status
pain.002.001.03
Mapping Guide & Spreadsheet
Account Report
camt.053.001.02
Mapping Guide & Spreadsheet
Rejections & Returns
Revision History
Enhancement
NEW
1
2
3
4

16. © 2017 Q INSIGHTS. All rights reserved
Highlights of Findings from NACHA Stakeholder
Outreach Conducted by Q INSIGHTS Continued
16

17. © 2017 Q INSIGHTS. All rights reserved
Highlights of Findings from NACHA Stakeholder
Outreach Conducted by Q INSIGHTS Continued
17

18. © 2017 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.
1818
Today’s Discussion

19. 19

20. © 2017 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.
2020
Today’s Discussion

21. 2121
Thank You – Questions? …Let’s Connect
(m) 617.388.6207
nasreen.quibria@qinsights.net
nasreenquibria
@nquibria
Gordon Skjeie | First Vice President
(o) 212.681.3868
gordon.skjeie@dnb.no
Nasreen Quibria | Founder
(o) 703.561.3913
runger@nacha.org
Robert Unger| Senior Director

22. © 2017 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.
• 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