Payment Building Block Hierarchy
Payments are set up with a hierarchy of building blocks to set certain details at every level. This helps to automate payments by allowing you to select pre-configured blocks of information, and it provides payment security because information can’t be altered at lower hierarchy levels. For example, you can set a monetary limit at the instrument group level that remains in effect down to the payment creation.
Instrument Group
The instrument group is the core element of payments. This specifies the type of transaction (such as ACH, SWIFT, FEDWIRE, or Book) and the file type to use for the transaction. You can also set transaction limits here.
Refer to Payments instrument groups: Manage to learn more.
Wires
Wire instrument groups are used for urgent payments (clears the same day) and payments involving a currency foreign exchange (sent in one currency and received in another).
Wire features:
Additional fees, making them less desirable for small amounts
Globally-applicable guidelines, making them less complex for international payments
Only way to send FX payments
Electronic Funds Transfers (EFTs)
Electronic funds transfer (EFT) instrument groups are used for non-urgent payments (requires up to two days to process).
EFT features:
Less expensive, potentially having no fees, making them more desirable for high volume payments
Regulatory guidelines differ by country, making them more complex for international payments
Instrument Type
Instrument types inherit the instrument group settings and add customized settings to them to prepare for use in your Ripple Treasury Platform. The instrument type adds the manner in which transfers are processed (such as payment or drawdown). This determines the requirements for templates created within the type.
You have the option to add controls such as approvals and what displays on payment templates. However, we recommend leaving most of the optional controls open at this level, instead using it to only establish the formatting requirements for the selected instrument group. Payment templates are typically the vehicle used to establish payment controls.
Refer to Payments instrument types: Create and edit to learn more.
Template Group
Template groups make up search categories that make templates easier to find.
Refer to Payments template groups: Create and edit to learn more.
Template
Templates inherit the controls from the instrument type. Templates are used to establish basic payment information to pass on to the payments created from the template. Details pre-defined in the template don’t need to be entered for the payment, saving time and increasing security through payment controls.
Templates consist of three basic types:
Repetitive: Both credit and debit sides are locked.
Semi-repetitive: Either credit or debit side may be locked, but not both.
Free-form: Neither credit nor debit side is locked.
Refer to Payments templates: Create to learn more.
Payment
Payments inherit controls from the template. Payments contains the actual information of the individual payment.
Payments can be created through:
Single Payments: Manual payment creation through data entry. You can select any existing payment template to create a single payment. Refer to Single payment transactions: Create and edit to learn more.
Multiple Payments: Enter several payments at a time. You can select any existing payment templates to create multiple payments. Refer to Multiple payment transactions: Create and edit to learn more.
Imported Payments: Automated payment entry from a file created in your back-office system. This options allows straight through processing (STP). Most commonly, imported payments are approved in your back-office system before they are imported, so they are trusted and don’t require additional approval in your Ripple Treasury Platform.
Internal Transfers: Transfer funds between your internal accounts. To perform an internal transfer, both accounts must be maintained in the Ripple Treasury Platform. Refer to Payment internal transfer: Create and edit to learn more.
Payment Workflow
The diagram below represents the payment process from creation to closure. All payments created in the Ripple Treasury Platform follow the same process once they are created. Once the payment completes the GIV Release and is approved, extraction takes places and then the item is confirmed.
Only imported payments take a different path. Imported payments are considered trusted so they process immediately without a compliance check.
At any stage of the payment workflow, you can view any transactions you have access to. With view rights, you can search and filter transactions and then drill down into them to view transaction details.
Create Payment
Create a single payment, multiple payments, or an internal transfer using payment templates.
Payments imported from your ERP don’t use templates.
Compliance Check
After you create a payment, it is processed through an automatic global identity verification (GIV) check phase if you set up the compliance check during Payments implementation. This optional GIV check looks for matches against global terrorism lists.
Payments imported from your ERP are considered to be trusted. They skip the compliance check.
Approve
Your payment must be approved via the approval agenda and approval rules you set up. Regardless of your settings, users can’t approve payments they have worked on. If you created or edited a payment, you can’t approve it.
Payments imported from your ERP are considered to be trusted. It is typical to skip approval for imported payments, but you can add approvals if needed.
Once approved, payments are extracted (prepared for transmission to the bank), sent, and then confirmed by the bank.
Closure
Once the payment is confirmed, it is completed. If the payment fails for any reason, it is voided and may be resubmitted.
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