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SWIFT NETWORK for Payments and Base products

#SWIFT #Payment #mt #mx #mtmx

SWIFT network or SWIFTnet is a private internet network that is utilized for making payments between financial institutions and is mainly used for Cross Border payments between nations. SWIFT consists of four essential products for Payment transactions, Confirmation, Reports, and Query-Response activities required by customers, financial institutions, and corporates. These are :

  1. FIN for MT messages transfers

  2. InterAct for MX message transfers

  3. FileAct for file of any format to be transferred

  4. Browse, to let FIs let users to view Fl's web portal over SWIFTnet.

All of above product only works in worldwide private internet network established SWIFTnet which uses public-key integration (PKI) and certificates given to client interfaces or application to authenticate the product and network usage.

FiN and interACT have message validation functionality with which network rules, routing, and Usage rules are validated. if the sender is in close contact with the receiver in an agreement called Closed User Group (CUG).

FIN: it’s a product for messaging which allows for the MT standard of messages to be transferred between customers or Financial institutions. It provide features for storing and sending a message once the FI has come online.

InterAct: it’s a product for messaging which allows for the MX standards of messages to be transferred between customers or financial institutions. It provide the feature not only for storing and sending messages when the receiving FI has come online, but also REAL time messaging. CUG and message validation is also provided.

FileAct : it’s a product for messaging which allows any file formats to be sent between applications recognized by SWIFT network, this is mainly used by the corporates sending payment transactions in bulk, cheque images and security files , even for reporting or any other file types can be sent.

Browse: this is a function which is given to Financial institutions FI to let their customer browse their products over HTTPS protocol over the internet.

Different message (Bulk or single) Transfer types :

  1. Y-copy

  2. T-copy

  3. Real-time messaging

  4. Store and Forward

  5. Query and response

Some basic ideas about these different types of message transfers :

  • Y-Copy - This transfer type is mainly used to confirm the routing to the destination end or any kind of validation before the message is sent to a destination end-point.

  • T-Copy - This transfer type is mainly used in clearing and settlement infrastructure or where one copy of a message or transaction has to be present.

  • Real-time where the message has to be sent immediately keeping the receiver status available.

  • Store and Forward - Central Storage is used for storing the message till SWIFTnet.

  • Query and Response - Real-time querying and response or status message required by system /applications of FIs or Corporate.

The messages which are transferred between FIs or corporate applications/system

is governed by relationship agreement maintained in RMA application which is utilized by each entity as registration and relationship management. Relationship management helps to prevent fraudulent transactions and managing the inflow /outflow of messages. Apart from customers ids, it can also manage messages types or file format types to be used.

More about RMA application you can find in this link.

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