After years of industry research and collaboration among stakeholders at financial institutions, corporations and payment groups, the wait is almost over for implementation of a new Fedwire Funds Service customer transfer plus (CTP) message that will support an improved cover payments solution, extended business remittance information, payment notification and easier mapping to SWIFT. The message format changes will also include other global changes that apply to all Fedwire Funds Service messages.
Beginning November 21, 2011, the Fedwire Application Interface Manual (FAIM) version 3.0.2 message format will be effective for all Fedwire Funds Service messages and all customers must be ready to send and receive messages using the new format. Are you ready to send and receive the new format? Have you given any thought to the business opportunities available with the new CTP message?
With the November implementation date in sight, customers are asking what they can do to prepare for and take advantage of the format changes. Follow the steps below to help ensure that you are ready:
Nearly all (94 percent) of corporate survey respondents said it is ‘valuable’ to include remittance information with wire payments; 65 percent said it is ‘very valuable.’ On average, respondents indicated they would be willing to pay an additional $1.67 for a wire that includes remittance information. Nearly one third (32 percent) of respondents were willing to pay an extra $3 or more for a wire that includes that information.2
For background information, guidance on preparing for the new extended remittance information format and testing and implementation details, visit our online resource center. You can also refer to the Business-to-Business Wire Transfer Payments: Customer Preferences and Opportunities for Financial Institutions (PDF) brochure. Your designated Wholesale Operations Site and Wholesale Testing Unit can also help answer questions regarding these changes and their impact on your institution. If you have additional questions about our Fedwire Service Offerings, contact your account executive.
1This requirement only applies to Tier 1 customers that are also required to participate in three business resumption tests per year. If you are in this category, you have been notified separately.
2Source: “Business-to-Business Wire Transfer Payments: Customer Preferences and Opportunities for Financial Institutions” (PDF) summarizes market research conducted by The Clearing House Payments Company and the Federal Reserve Banks in 2006.
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