FedNow Request For Pay

Using ISO 20022 messaging for FedNow Request For Pay transactions, facilitating both real-time and instant payments services, requires specific elements for both the payee (requesting payment) and the payer (making the payment). Here are the essential elements for each party:

Payee Side (Requesting Payment):

1. Payment Request Identifier: A unique identifier assigned to each payment request to distinguish it from others. This identifier helps track the payment request throughout the process.
2. Payment Amount: The total amount requested for payment, including any taxes or fees. This amount should be specified accurately to ensure correct payment processing.
3. Payment Currency: The currency in which the payment is requested to be made. It ensures that both parties understand the currency denomination for the transaction.
4. Payment Due Date: The date by which the payment is expected to be made by the payer. This helps establish a timeline for payment processing and ensures timely receipt of funds.
5. Invoice Reference: A reference number or identifier associated with the invoice or transaction for which the payment is being requested. It helps link the payment request to the corresponding transaction in the payer's records.
6. Payment Instructions: Any specific instructions or details provided by the payee regarding the payment. This may include account information, payment terms, or other relevant details necessary for payment processing.

Payer Side (Making Payment):

1. Payment Request Identifier: The same unique identifier assigned by the payee to identify the payment request. It ensures that the payer can easily identify and process the payment request.
2. Payment Amount: The total amount requested for payment, as provided by the payee. The payer needs to verify the payment amount to ensure accuracy.
3. Payment Currency: The currency in which the payment is requested to be made, as provided by the payee. It helps the payer understand the currency denomination for the transaction.
4. Payment Due Date: The date by which the payment is expected to be made, as specified by the payee. The payer needs to adhere to this due date to avoid late payments.
5. Invoice Reference: The reference number or identifier associated with the invoice or transaction for which the payment is being requested. It helps the payer link the payment request to the corresponding transaction in their records.
6. Authorization: Confirmation from the payer indicating their consent to initiate the payment as requested. It ensures that the payer acknowledges and approves the payment request.
7. Payment Execution: The actual transfer of funds from the payer's account to the payee's account. It should occur immediately or in real-time to fulfill the instant payment service requirement.

By incorporating these elements into ISO 20022 messaging standards for FedNow Request For Pay transactions, both the payee and the payer can effectively communicate and process payment requests, enabling seamless and efficient transaction processing through real-time and instant payments services.