Interest or fee compensation via camt.029.001.08

As of November 2021, the Bundesbank announced that a flavour of pacs.008 would be used for a requested interest or fee compensation via camt.029.001.08. A CPG.classic customer asked us for help because the company has to deal with two core banking systems (CBS) that are very time-consuming and costly when such adjustments are made. This article describes how a payments system can take over the functions of a CBS.

The business transaction for interest or fee compensation via camt.029.001.08

As already described in another article about camt.029 ISO20022 message, this message type is used for different business transactions. In the present case, after a previous transfer (pacs.008), the Deptor Bank asked to correct the value date or to settle the interest at the Creditor Bank (camt.087). The Creditor Bank agrees to the correction, but at the same time demands an interest adjustment and / or a fee from the Deptor Bank. This is communicated with the camt.029.001.08:

In the next step, the debtor bank must now pay the required fee or the interest adjustment via pacs.008.

In our practical case, one CBS is now able to generate this credit itself, but the other one is not. The CBS each serve different types of accounts, each with its own IBAN number range.

The Task

A payments systems normally does not generate any transactions itselve and least of all credits transfers. Since the credit must be made for this business transaction and all the necessary data can be found in camt.029.001.08, CPG.classic can support the core banking system.

The following steps must be carried out:

• Examination of all incoming camt.029.001.08 for a required interest or fee adjustment
• Sorting according to CBS using the IBAN number range
• Generation of a pacs.008 for the relevant CBS
• Generation of booking information about the transaction

The Special Request from the Bundesbank for Interest or fee compensation via camt.029.001.08

The credit transfer for the interest adjustment must be made in the same scheme version (pacs.008.001.02) as a “normal” pacs.008, but with a different field assignment in the “Category Purpose” field. The values ​​are

• ‘FCOL’ for a fee
• ‘INTE’ for interest adjustment or
• ‘FCIN’ for fees and interest adjustment

The Solution for Interest or fee compensation via camt.029.001.08 in CPG.classic

The flexible payment route control in CPG.classic and the ability to manage different scheme versions are a very good basis to meet the requirements (see also here). The special field assignment for the pacs.008 message will be introduced as a separate scheme version in CPG.classic. If a fee and an interest adjustment are required at the same time, two pacs.008 are generated.

All incoming camt.029.001.08 are displayed separately in the GUI and processed from there analogous to the customer’s approval processes. The resulting pacs.008 messages are sent to the SEPA Clearer with all other credits in a bulk file. The entire process with all stations is shown in the transaction history, so that transparency is maintained.