Payment Confirmation (PC)

Purpose

The primary purpose of a Payment Confirmation is to provide evidence that a payment has been made and received.

Sender

The financial institution receiving the payment.

Receiver

The issuer of the payment

Legal framework

Since the end of 2022, payment confirmations are mandatory on Swift network.

Usage

Cross-border Letters of Credit (LCs) are mainly issued using the Swift network, and in 2022, around 3.2 million LCs were issued.

Key standards

ISO 20022 is the main standard for financial messaging, with MX messages defined for the Swift network[1], while MT messages are traditional Swift message types.[2]

Platforms

Payment confirmations can be obtained through various methods, including using the Swift gpi Tracker, which allows banks to track their payment instructions in real-time; Swift interfaces through MT199 messages transitioning to MX formats; batch confirmations; and API calls via the gpi connector. Additionally, an ISO 20022-compliant messaging standard is available to provide confirmations to the Tracker, simplifying the transition from MT.

Other

Payment confirmation today is straightforward, merely verifying a specific sum in a designated account, lacking safeguards against fraud, notably authorised push payment fraud. Some national systems exchange identifiers to help identify beneficiaries, but this approach is confined to domestic schemes. Addressing identity challenges in cross-border payments is a key focus for regulators, financial institutions, and corporations in this space. The ongoing FSB cross-border payments initiative underscores this commitment.

 

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  1. An MX is an XML message definition for use on the Swift network. Most MX messages are also ISO 20022 messages.
  2. An MT (message text) is a traditional message type for use on the Swift network. The message text standards have been developed to support the business transactions of Swift users.