Request for Payment File

Creating a batch of ACH, Real-Time Payments (RTP), and FedNow Request for Payment (RfP) files for submission into your business bank requires following specific steps for each payment type. Below is a detailed guide to creating and submitting a batch RfP file for each payment method into your bank's online platform.

1. Batch Request for Payment (RfP) File Overview

For all three payment methods, the batch file will contain multiple payment requests, including details about payers, payment amounts, and other relevant information. The format of these files differs by payment method:

• ACH: Requires the NACHA file format.
• Real-Time Payments (RTP): Uses the ISO 20022 XML format.
• FedNow: Also uses ISO 20022 XML.

2. Step-by-Step Process for Creating and Importing Batch Payment Files

A. ACH (Automated Clearing House) Batch Request for Payment File

1. Collect Payment Information:

• Gather the necessary information for each payment:
  • Payer’s bank account number and routing number.
  • Payment amount.
  • Date for the payment to be processed (if future-dated).

2. Create the NACHA File:

• ACH payments use the NACHA format, which is a structured text file containing all the transaction details.
• Use software that supports creating NACHA files. Some options include:
  • QuickBooks Desktop (if ACH is enabled).
  • Third-party accounting/ERP systems like Sage or Xero.
  • Dedicated payment processing software like Dwolla or Plaid.

3. Format the NACHA File:

• A NACHA file consists of multiple records:
  • Header Record: Information about the batch (e.g., origin, company ID, date).
  • Entry Detail Records: Details about each individual payment (e.g., bank account info, routing number, amount).
  • Batch Control Record: Summary information about the batch.

Example structure:

mathematica

101 091000019 1234567890123456 2005190930A094101Bank Name  

5225 9876543210ABC0000000000000 Payment Information ...    

62698765432109876543210000000050000000000Payment Info

822000000500009876543210000000500000000000000000000

4. Upload to Your Bank:

• Log in to your business bank's online platform.
• Navigate to the ACH section and find the Batch Upload or Import File option.
• Upload the NACHA file and review it.
• Submit the file for processing.

B. Real-Time Payments (RTP) Batch Request for Payment File

1. Collect Payment Information:

• Gather the necessary information for each payment:
  • Payer’s bank account information.
  • Payment amount.
  • Remittance details (e.g., invoice number, reference).

2. Create the RTP Batch File in ISO 20022 XML Format:

• RTP payments require the ISO 20022 XML format, which is structured for financial messaging.
• Use an XML creation tool or ERP/payment software that supports ISO 20022:
  • Finix Payments.
  • Finastra or Volante Technologies.
• Structure the XML file with the necessary elements, including:
  • Payment Information: Payer, amount, and remittance data.
  • Transaction ID and Request for Payment identifiers.

Sample RTP XML format:

xml

<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pacs.008.001.02">

  <FIToFICstmrCdtTrf>

    <GrpHdr>

      <MsgId>Batch001</MsgId>

      <CreDtTm>2023-09-13T10:15:00</CreDtTm>

      <NbOfTxs>5</NbOfTxs>

      <CtrlSum>15000.00</CtrlSum>

      <InitgPty>

        <Nm>MyBusinessName</Nm>

      </InitgPty>

    </GrpHdr>

    <CdtTrfTxInf>

      <PmtId>

        <InstrId>0001</InstrId>

        <EndToEndId>EndToEnd001</EndToEndId>

      </PmtId>

      <Amt>

        <InstdAmt Ccy="USD">1000.00</InstdAmt>

      </Amt>

      <CdtrAcct>

        <Id>

          <IBAN>US123456789012345678</IBAN>

        </Id>

      </CdtrAcct>

      <RmtInf>

        <Ustrd>Invoice 123</Ustrd>

      </RmtInf>

    </CdtTrfTxInf>

  </FIToFICstmrCdtTrf>

</Document>

3. Upload to Your Bank:

• Log in to your bank’s business platform.
• Navigate to the RTP section or look for Real-Time Payments.
• Upload the ISO 20022 XML file in the Batch Upload section.
• Validate and submit the batch for processing.

C. FedNow Batch Request for Payment File

1. Collect Payment Information:

• Gather the necessary information for each payment:
  • Payer’s bank account details.
  • Payment amount.
  • Remittance details.

2. Create the FedNow Batch File in ISO 20022 XML Format:

• FedNow, like RTP, uses the ISO 20022 XML format.
• Use payment processing software that supports FedNow or a third-party API to generate the ISO 20022 XML file.
• The structure will be similar to the RTP batch file.

Sample FedNow RfP XML structure:

xml

<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pacs.008.001.08">

  <FIToFICstmrCdtTrf>

    <GrpHdr>

      <MsgId>Batch001</MsgId>

      <CreDtTm>2023-09-13T10:15:00</CreDtTm>

      <NbOfTxs>10</NbOfTxs>

      <CtrlSum>25000.00</CtrlSum>

      <InitgPty>

        <Nm>BusinessName</Nm>

      </InitgPty>

    </GrpHdr>

    <CdtTrfTxInf>

      <PmtId>

        <InstrId>0002</InstrId>

        <EndToEndId>EndToEnd002</EndToEndId>

      </PmtId>

      <Amt>

        <InstdAmt Ccy="USD">2500.00</InstdAmt>

      </Amt>

      <CdtrAcct>

        <Id>

          <IBAN>US123456789098765432</IBAN>

        </Id>

      </CdtrAcct>

      <RmtInf>

        <Ustrd>Invoice 567</Ustrd>

      </RmtInf>

    </CdtTrfTxInf>

  </FIToFICstmrCdtTrf>

</Document>

3. Upload to Your Bank:

• Log in to your bank’s platform and navigate to the FedNow Services section.
• Find the Batch Upload option for real-time payments and upload the ISO 20022 XML file.
• Review the payment details and submit the batch for processing.

3. Validate and Monitor Batch Payments

Once the batch file is uploaded:

• Validation: Your bank’s system will typically validate the file format, check for any errors, and confirm that the file is compliant with the required structure.
• Review Errors: If any errors are found (e.g., incorrect account numbers or missing information), correct them and re-upload the file.
• Track Payment Status: After submission, you can monitor the batch payment status in your bank’s platform. For FedNow and RTP, payments are processed in real-time, so you'll receive immediate confirmation. For ACH, the process may take 1-2 business days.

4. Batch File Tools and Software

Several tools and services can assist with creating and managing batch payment files, including:

• QuickBooks Desktop (for ACH payments).
• Plaid and Dwolla (for ACH and real-time payments).
• Finix Payments and Volante Technologies (for RTP and FedNow).
• Payment processors and ERP systems like Sage, NetSuite, or SAP with batch payment capabilities.

·        Conclusion

·        By following these steps, you can create and submit a batch of ACH, Real-Time Payments (RTP), and FedNow Request for Payments (RfP) files into your business bank. Each payment type requires a specific file format (NACHA for ACH, ISO 20022 XML for RTP and FedNow). After preparing the file, upload it to your bank's online platform for batch processing. With the right tools and file formats, you can streamline payment processing for your business.