Onward forwarding

In cases where the beneficiary isn't a customer of the receiver and the payment has reached the EXECUTED state, a payout method needs to be defined, providing clear instructions for how the payment will be forwarded through a domestic channel payout method such as:

  • Real-time gross settlement system
  • Real-time net settlement system
  • Mass net payment system
  • Book transfer
  • Cash payout
  • Wallet payment

There are different operating rules depending on the payment type and these need to be accounted for.

When forwarding a payment through a domestic channel, payment sub-states advise the payment participants on the status of the payment. Multiple updates can be recorded in the RippleNet Payment Object (RPO) with the payment sub-state functionality.

For payments forwarded through a domestic channel, the receiving institution might not receive confirmation of the final beneficiary credit. In such cases it's advised that the forwarding participant provides a message confirming submission to the channel partner.

However, if the channel partner does provide confirmation of final credit, the forwarding member should inform the sending institution that the payment has been submitted into the domestic channel for final payout.

Onward forwarding considerations

When forwarding a payment through domestic channels, consider the following:

  • Compliance requirements and whether they can support Payments Originating Overseas
  • Supported address schemas (bank account number, MSISDN, etc.)
  • Upper and lower limits for payments
  • Operating hours, cut-off times, and bank holiday arrangements
  • Time to settle payments
  • Supported payment confirmation methods

Cash payout

Where cash payout is offered to beneficiaries as a payout method, identity verification checks must be performed when the beneficiary arrives at the domestic channel location to collect the cash. Sometimes the information provided by the originator and sending institution is incorrect and must be amended before the cash payout can take place.

RippleNet accommodates this situation without requiring payment cancellation by the following process:

  1. Once a payment reaches the EXECUTED state, the receiving institution should advise the sending institution that the beneficiary information is incorrect. This can be done through the Finalize payment operation.
  2. The sending institution should provide updated information (this doesn't replace or overwrite the previously provided information) to the receiving institution that allows the correct checks to be made and the cash payout to take place. This can be done through the Add payment sub-state operation.

This process can only take place prior to the payment reaching a COMPLETED state.

The new information will be propagated to all RippleNet instances, providing transparency.

For each update provided by the sending institution, the following information should be captured for each update:

sub_state Describes the action taking place:
memo Stores a memo about the update provided.
info Stores updated information concerning the RPO payload. This should follow the same structure as that outlined in the RPO Schema.

For more information and a complete list of sub-states, see Payment sub-states.