In our February FedFocus issue, we introduced you to new funds transfer industry standards in “Remittance best practices help facilitate end-to-end processing.” We learned that if every player in the funds transfer payment chain follows a set of agreed-upon best practices, it will help to ensure that extended remittance data can flow from end to end, facilitating straight-through processing (STP). We’re continuing the best practices topic with a series of FedFocus articles that break down the best practices for every player in the funds transfer payment flow, starting with the originator of the funds transfer (see the Fedwire Funds Transfer Flow diagram below).
High-level concepts from the Wire Transfer Extended Remittance Information (ERI) - Domestic Best Practices document for the originator are highlighted below. For more details on each best practice, refer to the Best Practices Document.
Implementing each of the best practices above will help to save time, reduce expenses and expedite reconciliation. Including the remittance information along with the payment will eliminate the printing and mailing of remittance information and reduce inquiries for missing remittance information. If you and your beneficiary modify your accounts payable and receivable processes to automate the sending and receiving of payment and remittance information, you will help facilitate STP.
We will feature best practices for the other parties in the funds transfer process in future FedFocus issues. In the meantime, Fedwire Funds Service customers can review background information and guidance on preparing for the new expanded remittance information format in our online resource center. Testing and implementation details will also be provided by the Federal Reserve Banks in coming months. Sign up to stay informed about upcoming developments related to the new business remittance information message format. If you have additional questions about our Fedwire Service Offerings, contact your account executive.
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