Thankfully, technology has led to the rapid evolution of payment systems. Financial institutions can now provide accurate information almost instantly and comply with increasingly high customer expectations.
Payment confirmation is a kind of message or alert that lets all the parties involved in a transaction know that a payment has successfully pushed through. These parties involve the following:– the originating bank– the receiving account– the owner of the account from the originating bank
Why Did SWIFT Make Payment Confirmations Mandatory?
Banks are major facilitators of the exchange of money, which is one of the driving forces of modern trade.Payment confirmations are all but necessary to ensure that the money has been properly debited from and credited to the correct accounts.
All customer payments (MT 103 on FIN) will require a payment confirmation by the end of 2020. This means that members whose branches—including all country corridors—aren’t all signed up to SWIFT GPI yet still need to provide confirmations.