Core platform overview
The PagoNxt Payments Hub is a cutting-edge solution designed to streamline and secure financial transactions across various message types, such as pacs.008, pacs.004, and camt.056, among others. This platform is equipped with a dynamic configuration system that tailors validation rules per client and message type, ensuring a high degree of flexibility and precision in transaction processing.
The validations described are performed before any processing is done. As such semantic, syntactic or clearing related validations are excluded and covered in ´Connect to PagoNxt Payments Hub´
Overview of Validation Services
Our validation services are powered by a specialised micro-service, known as the validator, which plays a crucial role in maintaining the integrity and reliability of the payment processing system. The validator is designed to conduct a wide array of checks before allowing any ISO message to proceed through the system. These validations are critical in preventing errors, unauthorised transactions, and ensuring compliance with international banking standards.
Key Validation Checks
The advanced validation checks carried out by PagoNxt Payments Hub are meticulously designed to cover various aspects of transaction processing, providing a comprehensive shield against unauthorised activities and errors. Below is an overview of the key validation checks:
Transaction Number Limits: A cap is set on the number of transactions a customer can execute. Once this limit is reached, subsequent payments are automatically rejected to prevent over-transaction and maintain system integrity.
Currency and Transaction Amount Thresholds: For each currency, there is a predefined threshold for transaction amounts. Payments that exceed this limit are rejected, ensuring compliance with regulatory and internal risk management policies.
BIC-Specific, Currency, and Transaction Amount Thresholds: This validation imposes a threshold based on the combination of BIC, currency, and transaction amount. When a transaction meets these criteria and surpasses the designated threshold, it is rejected, adding an extra layer of specificity and security to transaction processing.
Counterparty BIC Country Exclusions: Payments associated with BICs from certain countries can be blocked by listing those countries in an exclusion list. This measure is crucial for complying with international sanctions and regulatory requirements, ensuring that transactions do not violate geopolitical restrictions.
Reference Validity for Cancellations and Refunds: The system checks for the existence of original messages referenced in camt.056 cancellation or pacs.007 refund/return messages. This validation is key in maintaining the traceability and legitimacy of transaction modifications.
Status Checks for Refunds/Returns: It verifies that refunds or returns have been previously completed and accepted when processing related camt.056 or pacs.007 messages, ensuring that such requests are legitimate and preventing duplicate processing.
In-flight Cancellation, Return, or Refund Checks: The system monitors for any in-progress cancellations, returns, or refunds when processing new requests, preventing conflicts and ensuring transaction continuity.
IBAN and BIC Validity Checks: This includes verifying the length of the IBAN against in-country account number length rules, the check digit of the IBAN, the country code of the BIC, and adherence to an exclusion list of country codes for the BIC. These checks are fundamental for ensuring the correct routing and processing of transactions.
Original Transaction Detail Checks for Payment Returns: When processing a payment return, the system verifies the details of the original transaction. This step is crucial for ensuring that returns are accurately matched to their corresponding transactions, maintaining transaction integrity.
Through these validation checks, the PagoNxt Payments Hub ensures that all transactions are scrutinised for adherence to regulatory standards, accuracy, and security, thereby safeguarding the interests of all stakeholders involved in the payment ecosystem.
These validations are configurable per customer and message type, when requested these validations can be disabled completely
Why Validation Matters
The robust validation framework of the PagoNxt Payments Hub ensures that every transaction is scrutinised for compliance, accuracy, and legitimacy. These measures not only protect against financial fraud but also enhance operational efficiency by reducing the likelihood of transaction disputes and processing delays. By implementing comprehensive checks, the PagoNxt Payments Hub provides a secure and reliable platform for financial transactions, supporting clients in maintaining high standards of financial integrity and customer trust.