Payment Scheme


What is a Payment Scheme?

  • Scheme provides set of rules and technical standards for the execution of payment transactions.
  • Payment schemes facilitate funds transfer between its member banks.
  • Banks can be a direct participant or indirect participant to get their payments processed through that scheme.
  • Some standard guidelines in each scheme are:
    • Currency of the funds that can be exchanged
    • Account/Bank identifier standards
    • Standard message formats used to exchange messages
    • Rules for ‘R’ transactions (refunds, returns and rejects)
    • Timelines to be observed by payment service providers when executing a payment transaction
    • E.g. SEPA, CHAPS, CHIPS, Target 2 etc


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