What is the Payment Initiation Process?
Customer to Bank (Initiation): The process begins when a customer (individual or business) initiates a payment instruction, often through their bank's online or mobile banking platform.
Message Creation: The payment information is then converted into an ISO 20022 XML message (e.g.,
pain.001for credit transfers). This message includes details like:Sender and receiver information (including bank details)
Payment amount and currency
Purpose of payment (e.g., invoice, salary)
Any other relevant information required by the receiving bank
Message Transmission: The structured XML message is transmitted to the customer's bank.
Bank Processing: The bank's systems process the message, validate the information, and forward it to the relevant clearing and settlement systems.
Payment Execution: The payment is then executed according to the instructions in the message.
Status Reporting: The bank may also send back a status report (e.g.,
pain.002) indicating the outcome of the payment processing.
How can you initiate a payment with PagoNxt Payments Hub?
There are three ways to initiate a payment with PagoNxt Payments Hub.
1. ISO20022 initiation API
Initiating a payment using ISO 20022 involves sending a structured XML message to a financial institution, typically in the format of pain.001 (for credit transfers) or pain.002 (for direct debits). This message contains all the necessary details of the payment, such as the payer and payee information, payment amount, and other relevant data. The financial institution then processes this message and executes the payment.
How do I connect to the API?
If you are a client of PagoNxt Payments Hub you can find more information in our integrations pages here
2. File Transfer
What is file-parser?
File-parser is a PagoNxt Payments Hub service that allows you to send payments in ISO20022 XML format by uploading files into a SFTP folder.
This service is useful for pain001 (credit-transfer) and pain008 (direct-debit) files that may be too big to send them through a REST API service or where a single file can contain instructions for numerous transactions. The file typically includes details like payer and payee bank information, amounts, and other relevant data.
What do I need to use file-parser?
In order to use file-parser you will have to go through an onboarding process where different configurations will be decided. After that you will be assigned some login credentials and a folder in a SFTP server were you will be able to upload the files.
Key messages for Payment Initiation:
File-parser can process pain.001.001.03, pain.001.001.09, pain.008.001.02 and pain.008.001.08 files, but it is recommended to send pain.001.001.09 and pain.008.001.08 files
How do I connect to the File parser?
If you are a client of PagoNxt Payments Hub you can find more information in our integrations pages here
3. Manual Payment Initiation
The Customer Portal provides access to a managed set of Operations users who can be configured with appropriate roles to generate manual payment instructions for either pacs.008, pacs.009 and pacs.004 returns.
To generate a payment instruction Operations users will manually enter the payment details, including routing information as required.
The Customer Portal will perform syntax and field validations to ensure valid entry, with feedback on errors provided to the Operator on screen. Once completed, the payment message will be submitted to the PagoNxt Payments Hub for processing.
Typically, manual payments are configured to be subject to either 4 or 6 eye checks prior to release.
How do I connect to the Customer Portal?
Access to the Customer Portal is managed via an SSO integration with a client’s Identity Provider (IDP) solution, enabling entities to control and maintain access to the platform directly. This reduces the requirement for operators to maintain multiple user and password combinations.
Client identity providers will be integrated with Cognito as part of the onboarding process.