Introduction to Temenos Payments

Temenos Payments is an enterprise payment hub solution that provides the bank with a single solution to configure different payment types without any software changes. The payment management features enable the users to prioritise and specify date execution, override changes manually, and manage service level agreements through parameterisation.

It is designed to maximise Straight-Through Processing (STP) to configure automated actions for exceptions and minimise manual interventions to reduce risk and improve efficiency. It can also eliminate redundancies and help in consolidation of different payment systems in a single solution. This is performed when the solution is deployed as follows:

• ‘Embedded’ with Temenos Core Banking
• ‘Standalone’ with an external DDA or accounts system

This section is designed to help the Temenos Transact users to understand the application features, navigation and functionalities related to the Temenos Payments module in Temenos Transact. The user can process all payment types in a single system by using the following features:

• Receive, process, and send cheque requests between same or different banks
• Add a code word to the payment message to convey processing information that can help the financial institution
• Execute dynamic routing between different payment types
• Maximise STP by using automated exception handling
• Handle large volumes of payment requests or transactions
• Process instant payments with 24/7 processing and real time connectivity to clearing
• Screen a payment before processing to monitor and control risk
• Debit an account on regular basis based on the requirement
• Support cross-border payments that involves fund transfer between customers and banks in different countries with different currencies
• Allow manual intervention to continue the process of payment
• Define a charge type based on the customer to apply on different transactions
• Check an account for sufficient funds to perform a debit posting
• Schedule future payments in advance
• Transfer different or same currency between accounts within the bank
• Investigate the status of the payment and generate a report
• Identify a channel to send the payment to its customer

Illustrating Model Parameters

This section covers the high-level specifications required for the Temenos Payments module.

Table	Description
PP.FEETYPE	Configures various types of fee that are involved in processing a transaction Conditional fee – For example, non-STP fee Unconditional fee – For example, transaction fee
PP.SWIFT.TRANS.TYPECODE	Specifies the codes to be used for MT940 (Tag61:Subtag6) and is linked with booking code (identified in Payment Order) Once determined, the corresponding SWIFT transaction type code can be retrieved
PP.CURRENCY	Configures various currencies used in processing domestic or international transfers Select other information such as the country to which the currency belongs to, specify FX limit, configure weekend days and so on
PP.PARTY.ROLE	Determines the various parties involved in a SWIFT or SEPA transfer For example, ordering customer, sending institution, beneficiary
PP.PROCESSING.SEQUENCE	Defines a set of pre-defined steps that influences payment processing by setting various fields and indicators that are subsequently read and considered for payment processing.
PP.STATUS.ACTION	Stores the action to be performed for the corresponding status codes of the payment Has information about the error codes and status code
PP.PROGRAM.CHARACTERISTIC	Has information about programs executed in Temenos Payments Details include name of the program, type of the program, name of the component to which the program belongs and path where it needs to be executed
PP.REJECT.RESPONSE.ACTION	Defines parameters for determination of Reject Response Action field Allowed values are: R – Sent to repair C – Sent for cancellation
PP.MANUAL.AUTH.REQUIRED	Indicates whether manual authorisation is required by COA Officer to process the payment Allowed values are: N – Manual authorisation request cannot be requested Y - Manual authorisation request can be requested NOTE: If not defined, by default, manual authorisation request can be requested.
PP.FILTERING.PRODUCT	Configures the filtering products Used in PP.FILTERING.PAYMENTS table and derived as one of the output in product determination
PP.FILTERING.PAYMENTS	Defines different filtering payments
PP.BANKCHARGES	Maintains the bank charges where, inn case of OUR payments, the processing bank either receives charges from the sending bank or sends charges to the receiving bank as all charges are borne by the originating party
PP.BANK.CONDITIONS	Defines the way in which a payment should be processed in the payment engine for a correspondent bank Various bank conditions include STP flow, charge account, statements and advices with correspondent bank
PP.BANKCLAIMSCONTROL	Stores the configuration required for bank preferences for claims processing
PP.MSGPAYMENTTYPE	Defines various valid messages payment types such as 101, 103, 202, BACSCT, BACSDD supported by Temenos Payments
PP.MSG.FORMAT	Defines various message formats NOTE: Only when the message format is defined, other particulars of the message format can be defined in other tables of Temenos Payments.
PP.CHANNEL	Stores various channels using which a message is received from or sent to from Temenos Payments
PP.SOURCEPRODUCTGROUP	Configures the source product group, which is used to group different sources Every source in Temenos Payments is categorised in a source group As a result, source product group needs to be defined before defining a source
PP.IN.CHANNELS	Has configurations according to queue name specified with its folder path to receive messages
PP.INBOUND.CODEWORD	Stores inbound code word details for different types of incoming payments that alters the characteristics of the payment such as priority and processing indicator
PP.BALANCE.CHECK.REQUIRED	Configures Balance Check Required field based on certain characteristics of the payment Allowed values are: Y – Balance check required N – Balance Check not required
PP.AUTHORIZATIONPRINCIPLE	Holds the levels of authorisation of a manually processed payment or a cancelled warehouse payment. Allowed values are: 1 – 4 Eye Principle 2 – 6 Eye Principle
PP.MSG.FORMAT.PER.CHANNEL	Has various message formats in accordance with various channels available in Temenos Payments. There are many relationships between the message formats and channels.
PP.MSGMAPPINGPARAMETER	Defines parameters for mapping messages received in Temenos Payments using API
PP.SOURCE	Stores the details of various source from which a message is received in Temenos Payments A source can be defined only along with Channel Name, Source Product and Source product group
PP.MSG.ACCEPTANCE.PARAM	Configures parameters related to Message Acceptance process Specifies if duplicate check is to be performed for the incoming message
PP.SPECIFIC.WEIGHT	Stores specific weight to be used for payments to enforce special processing rules. Two types of weight are assigned to every payment: High level weight – Refers to an overall classification of the payment on a very broad level Specific weight – Refers to a detailed weight assigned to a payment to trigger different flavors of a component for certain groups of a payment
PP.PROGRAMS.PER.WEIGHT	Specifies physical programs to be invoked by each component according to weight and specific weight of the payments leading to reduction in processing time Defines whether a component needs to be skipped
PP.NODA.LIST	Defines list of message types that needs to skip debit authority check If a record is present in this table, the payment is authorised straightforward
PP.MSGPAYMENTTYPECHANNEL	Stores many-to-many relation between message payment type and channels
PP.SOURCE.SETTING	Defines whether a Customer Status Report needs to be generated for a particular source
PP.CLEARING.RETURNCODE	Configures clearing return code for the respective clearing
PP.CLEARING.NATURE.CODE	Defines clearing nature code along with description for all clearings defined in Temenos Payments Stores other details related to the clearing such as Cheque Type, DD Collection and so on
PP.CLEARING.SETTING	Defines generic settings for clearing such as Direction, Currency, Clearing Account Number and Automated Return Indicator
PP.CHANNEL.CUTOFF	Defines cut-off time for various channels used in Temenos Payments Ensures the time beyond which the channel cannot be used to route a normal payment to the recipient
PP.CLEARING	Stores the various clearing used for settlements in Temenos Payments based on currency and country code
PP.CLEARING.FREQUENCY	Configures the cut-off time on which a Nostro settlement process with clearing house is to be started
PAYMENT.ORDER.PRODUCT	Defines payment features specific to a product such as instant, domestic, SEPA and international
PP.POSTING.PRODUCT	Stores posting products that are used while generating posting entries in Temenos Payments Derived as one of the output of product determination
PP.ROUTING.PRODUCT	Defines routing products used in product determination process Product defined is used while configuring client conditions
PP.CLIENTCOND.PRODUCT	Configures a product related to client conditions One of the criteria for selection of a record based on peeling off logic in client conditions table
PP.FEE.PRODUCT	Defines the fee products in Temenos Payments Used in client charges table and derived as one of the output of product determination
PP.LEDGER.PRODUCT.CODES	Setup ledger product codes with product description for a processing company in different languages The ledger codes are used extensively while posting
PP.STATEMENT.FORMAT	Attaches statement lines to the statement format already configured in the posting set in Temenos Payments
PP.RSCHANNEL.SELECTION	Stores the information about routing and settlement channel selection list
PP.CLIENT.CONDITIONRECORD	Specifies special condition or possible options for the customers It can be defined very generic and specific to particular client
PP.CLIENTCHARGES	Defines the charges to be levied on a customer based on the product determined for the payment
PP.POSTING.SET	Defines the posting set to be selected based on Company Code, Posting Product and set of payment file fields that are updated based on client conditions
PP.CONTRACT	Stores the routing and settlement information based on credit party of a payment or for the destination country of a payment. The three contract types are: Party contract – Defined for credit party (most specific) Country contract – Defined for destination country(less specific) Bank contract – Defined for bank policy (least specific)
PP.LIGHTWEIGHTPRODUCTCOND	Defines various characteristics to determine a product for lightweight payment. The determined product is linked to various factors such as Fee, Ledger, Client Condition, Posting and Routing product NOTE: All incoming or re-direct domestic payments using Clearing channels are treated as light weight
PP.HEAVYWEIGHTPRODUCTCOND	Defines various characteristics to determine a product for heavy weight payment The determined product is linked to various factors such as Fee, Ledger, Client Condition, Posting and Routing product NOTE: Usually, all international domestic payments (outgoing or book) are categorised as heavy weight.
PP.MEDIUMWEIGHTPRODUCTCOND	Defines various characteristics to determine a product for medium weight payment The determined product is linked to various factors such as Fee, Ledger, Client Condition, Posting and Routing product NOTE: Medium weight is specifically meant for SEPA
PP.COMPANY.PROPERTIES	Defines each company that should participate in processing payments Also defines attributes such as Local Currency, Company BIC, Country and so on
PP.REGION	Stores different regions within a country A region can be used to differentiate between holidays applicable for different locations within a country If set as ALL, the setup is applicable for all regions of the country.
PP.ERRORTYPES	Configures error messages of type, Warnings and Information in Temenos Payments and they cannot be amended Information – Can be ignored in UI flows Warning – Needs to be accepted before payment authorisation
PP.STATUS.CODE	Stores the various status code in Temenos Payments along with the reason code and is only for informational purpose
PP.COMPONENT.API.HOOK	Configures APIs which enable user defined handling of restrictions on account and customer
PP.TRANSACTION.TYPES	Defines various types of transaction and its description in Temenos Payments Indicates the codification of the transaction type
PP.PAYMENT.ROUTER.COMPANY	Defines the companies, which support message received from payment router channel During validation, if the company code in the message does not match with table the message is available in Repair status.
PP.BATCH.SUSPENSE.ACCOUNT	Stores the suspense account per company or currency for batch messages in Temenos Payments
PP.CLEARING.COMPANY	Configures companies that support a specific clearing house along with other particulars such as National ID and so on NOTE: This table is referred during validation of a clearing file to determine the company ID.
PP.TRANSACTION.TABLES	Defines the list of tables to be retrieved, while invoking OutwardMappingFramework.getAllTransactionData method by an external system
PP.RETURN.MAPPING.PARAM	Configures values which should be mapped or override the values returned by Return API while generating return or reject payments and to attach a hook routine which defines specific logic (conditional mapping) required for populating values in return or reject payment
PP.OUTBOUND.CDWRDGEN	Stores code words to be added as outbound code words to be sent from Temenos Payments Specifies the receiver BIC, message payment type and transaction currency
PP.INBOUND.OUTBOUND.CDWMP	Helps the mapping of the inbound code words received in the incoming redirect payments to the outgoing redirect payment
PP.SLA.PER.CODEWORD	Maintains various Service Level Agreement (SLA) with correspondent banks for each company SLA is defined based on the Message Priority, CodeWord and the message tag in which the code word is specified
PP.NETTING.AGREEMENT	Stores netting agreement, which is a 3-party agreement between the sending bank, the processing bank and the customer Confirms whether the sender of the payment instruction has the authority to mention a third party as the debit party for the payment
PP.CLIENTCOND.PRODUCT	Configures a product related to client conditions This is one of the criteria for selection of a record based on peeling off logic in client conditions table
PP.AGENT	Holds the publicly known Head Office-Branch relationships between banks This is referred using a BIC and not NCC NOTE: If only NCC is available, BIC is derived out of NCC and then this table is referred.
PP.LORO.NOSTRO.ACCOUNT	Stores the accounts of the correspondent banks with which the bank shares a Loro and Nostro relationship Linked with BIC table and is also company specific
PP.PREFERREDCORRESPONDENT	Stores referred correspondents that a company uses to route a payment to specific country. More than one preferred correspondent for a country can be provided based on the currency of the transaction and routing group. Preferred Correspondents are also known as Country Correspondents
PP.CLEARINGCORRESPONDENTS	Supports processing or redirecting credit transfer files from Indirect Participant (IP) banks through an IP bulk channel Configures settlement account, BIC and NCC of each IP
PP.RMA	Has the list of correspondent banks to which the bank is authorised to send a SWIFT message The permissions on the RMA table are specific to the SWIFT NET service and message type SWIFT service now can only be SWIFT NET FIN service
PP.NO.RMA	Specifies the list of message types for which RMA check is not required to send a SWIFT Message from Temenos Payments
PP.STANDINGSETTMNTINSTRUC	Configures standing settlement instructions for correspondent banks. They are also known as currency correspondents similar to PP.AGENT Also refers to BIC and not NCC
PP.EXCLUSION.LIST	Validates the extracted bank code (IBAN national ID) from the IBAN against the exclusion list NOTE: In case of an invalid IBAN, the system must return a warning.
PP.DEBIT.VALUE.DATE	Configures setup parameters for calculation of debit value date, which can be processed by Temenos Payments using peeling logic
PP.BOUNDARY.DATE	Defines the interdependency between the various dates used in Temenos Payments so that the same can be processed using peeling logic
PP.EXPOSURE.DATE	Setup parameters for calculation of exposure date, which can be processed by Temenos Payments using peeling logic.  NOTE: Exposure date is the date from which credited funds are available for use by the client.
PP.HOLIDAY.LOGIC	Configures parameters that decide the holidays to calculate the next business day NOTE: This is processed by Temenos Payments using peeling logic.
PP.SEND.DATE	Stores the parameters to be considered to derive the date when the output message is to be sent to the receiving bank or clearing
PP.RISK.FILTER.CONDITIONS	Defines the risk filtering conditions for correspondent banks, country and currency wise
PP.FEETYPECREDITACCOUNT	Stores the credit accounts linked with the fee types defined in Temenos Payments During the fee processing, a lookup is performed to identify the associated credit account (P&L account) This credit account along with the other charge details are used to post entries into the general ledger
PP.OCP.ACCOUNT	Defines open currency positions that are used in posting when currency conversion is involved. OCP accounts are currency specific. Temenos Payments selects the OCP account from the static table based on the currencies involved
PP.CURRENCY.DEALER	Defines the dealer desk code for different types of currencies available in Temenos Payments This code is required exclusively in posting the transaction entries
PP.INSUFFOUTB.OUR.CHARGE	Defines the details of the account to be debited for the outgoing payment with charges option as OUR (receiving bank 71G) if the sending bank has not sent the sufficient charges
PP.POSTING.TOKENS	Configures amount, account, date and statement text tokens used in posting lines generated in Temenos Payments.
PP.CLAIMS	Configures the expected claims account and the expected P&L account for a currency and company code combination
PP.AUTO.REPAIR.INSTANCE	Configures repair instances used in Temenos Payments. External repair tools are primarily designed to enhance straight-through-processing (STP) rate of the bank The output of the repair tool is the input for the fee processing
PP.AUTO.REPAIR.RETURNCODE	Configures the description and meaning of the return codes returned by a repair instance defined in Temenos Payments
PP.RPSSCL.CLEARING.DIRECTORY	Displays details from the files received by the payment system from clearing
PP.IN.ENTRY.PARAM	Configures fields to map the response details received from the external system
PP.NON.CUSTOMER.ACCOUNTS	If a bank’s core-banking system is external to Temenos Transact (that is customer accounts is not in Temenos Transact), the system can skip the interaction with the external system for account validation when non-customer accounts that are frequently used do not undergo much change.
PP.CHAR.CONVERSION	Stores the Source and Target fields with UTF characters. Replaces the Source UTF-8 into Target UTF-8 when any special characters are mentioned in SWIFT and SEPA transfers. In the below example, Ü is converted to AB wherever used in payment message. Source – U+0060 equivalent value is Ü Target1 – U+0041 equivalent value is A Target2 – U+0042 equivalent value is B

Read the Temenos Payment (PP) and Payment Suite (PH) user guides for information on parameter setup for camt.055.

Illustrating Model Products

This section covers model products for Temenos Payments module.

Product Name	Features
International	Process incoming or redirect STP SWIFT message from SWIFT source Can be initiated in Order Entry and Payment Order screens Processed international transfers have a transaction record in Temenos Payments with detailed flow
Book Transfer	Transfer of funds from one account to another at the same financial institution Unlike interbank transfers, these require little or no wait time Can be initiated in Order Entry and Payment Order screens Processed book transfers have a transaction record in Temenos Payments with detailed flow
Cheque	A cheque orders a bank to pay a specific amount of money from an account to another (to which the cheque was issued) Initiated from Teller Financial Services screen Both incoming and outgoing cheques are processed in Temenos Payments
Draft	Payment on behalf of the payer, which is guaranteed by the issuing bank A draft is used when the payee wants a highly secure form of payment Initiated from Payment Order screens Processed drafts have a transaction record with its status code and description in Temenos Payments

Temenos Payments module provide the facility to receive customer cancellation message camt.055 for pain.001 message.