Local Payments

This connector handles two types of local payments:

• Interbank Local payments, which are implemented through the Currencycloud system.
• Intrabank Local payments, which are implemented through Mambu transfers.

An Interbank Local payment is a transfer of funds in the same currency, processed via Currencycloud’s connections to the most important national and international payments schemes - such as SEPA for Euro, ACH for US Dollars, or FPS for Pound Sterling. Check Currencycloud’s documentation for supported currencies. Local payments also refer to regular payments made using the local bank network. Regular payments are normally received by the beneficiary within five working days of the settlement date.

Interbank local payments

Interbank local payments flow

For starting the payment flow the client provides all the required data via digital channels or the banking UI.

Withdrawal and AML extension (optional)

The 1.1. [Entry Point] LOCAL Payment (Withdrawal + AML) Mambu Process Orchestrator (MPO) process starts with gathering details about the deposit account and client in Mambu, and the beneficiary in Currencycloud using the ID. Once the Mambu deposit account is identified and validated and only if the deposit account currency matches the transaction currency, is the withdrawal is started in Mambu. Based on the value of the Currencycloud configuration property subAccountEnabledInCC, the beneficiary details are retrieved with or without the on_behalf_of parameter, as follows:

• When subAccountEnabledInCC is true: beneficiary details will be retrieved with the on_behalf_of parameter that stores the value of Currencycloud contact ID, only if a valid link exists between the Mambu client and Currencycloud contact ID. In case no link is found on the client level - for example, if the contact ID custom field does not exist or is empty - an error is thrown and a notification is sent.
• When subAccountEnabledInCC is false: beneficiary details will be retrieved without the on_behalf_of parameter and there is no link between the Currencycloud contact ID and the Mambu client.

Once the details for the withdrawal transaction are validated, the Mambu client deposit account is debited with the payment amount using a withdrawal transaction with accounting in multi-currency. The next step depends on the amlExtensionUsed and checkThreshold parameter:

• If amlExtensionUsed is set to false: the transaction will be monitored by using an external AML system, the process ends and the second part of the local payment flow should be triggered on demand by the client.
• If amlExtensionUsed is set to true and enableTransactionMonitoring is set to true: the transaction will be monitored using the Generic FinCrime extension. If the checkThreshold parameter is set to true, then the transaction calculation threshold is compared with the value stored in Mambu configuration for the threshold parameter. If the threshold calculated value is:
  • less than or equal to the home base currency threshold amount then the transaction will not be sent to be monitored.
  • greater than the home base currency threshold amount then transaction will be monitored.
  • When checkThreshold parameter is set to true and the value of threshold parameter is an empty string ("") or 0 (number), or/and the value of mambuHomeCurrency is an empty string ("") then all transactions will be monitored.
• If amlExtensionUsed is set to true and enableTransactionMonitoring is set to false: no monitoring will be performed on the transaction, and the local payment continues with the second part of the flow.

This first part can be triggered by a Sync API call corresponding to the MPO process: CurrencyCloud_Vx.y.z > [PREFUND] LOCAL Payment > Local - INTERbank payment > 1.1. [Entry Point] LOCAL Payment (Withdrawal + AML).

Create payment and transfer

After the withdrawal transaction is posted in Mambu and the transaction is Accepted by the AML system, the MPO process 1.2. LOCAL Payment (CCy Payment + Transfer) is triggered automatically if it is being used. Based on the value of the Currencycloud configuration property subAccountEnabledInCC, the payment is created in Currencycloud as follows with the currency amount:

• When subAccountEnabledInCC is true in the payment creation: the on_behalf_of parameter will be used, therefore the payer details parameters should not be sent. These will be populated using the details from the sub-account.
• When subAccountEnabledInCC is false in the payment creation: the on_behalf_of parameter will not be used, therefore the payer details should be sent, which are mapped from Mambu client or group details.

The following payer details should be sent for a client entity:

{
        "payer_entity_type": "individual",
        "payer_first_name": "Travis",
        "payer_last_name": "Earl",
        "payer_date_of_birth": "1979-11-28",
        "payer_country": "DE",
        "payer_city": "Berlin",
        "payer_address": "Karl-Liebknect Straße 5"
}

The following payer details should be sent for a group entity:

{
        "payer_entity_type": "company",
        "payer_company_name": "MyGroup",
        "payer_country": "LT",
        "payer_city": "Vilinius",
        "payer_address": "Konstitucijos pr. 21b",
        "payer_identification_type": "incorporation_number",
        "payer_identification_value": "45RTFVHYN"
}

Once the payment is created in Currencycloud and the manual journal entries are posted in Mambu, the details are stored in the 1. [COMMON] Payments SD state diagram with an intermediate status of ready_to_send. Based on the transaction currency the accounting will be posted on a dedicated transaction channel for that currency. Both Transit GL and CC Settlement GL prefixes should be defined in your Mambu configuration. For example, if the transit GL account reference is 1234, then the transit GL account for payments in Euros will be 1234_EUR.

After the withdrawal transaction custom fields are updated with paymentId and paymentShortRefId values from Currencycloud, a transfer is created in Currencycloud based on the value of the subAccountEnabledInCC Currencycloud configuration property. The purpose of the transfer transaction is to move funds from the house account to a sub-account:

• When subAccountEnabledInCC is true: A transfer will be created with the Currencycloud contact ID as a destination_account_id, Currencycloud House Account ID as the source_account_id, and the sell_currency amount.
• When subAccountEnabledInCC is false: The transfer will be skipped in the Interbank Local payments flow.

Payment status updates

Whenever the status of a payment is changed in Currencycloud, a payment webhook is triggered. The webhook triggers the 3. [COMMON] Currency Cloud WEBHOOK receiver for PAYMENTS [Linked to CCy webhook] process, which updates the payment status of the associated Mambu withdrawal transaction.

A payment that has been marked as completed by Currencycloud can be later rejected by the beneficiary bank. This triggers a failed payment webhook which starts the refund flow in MPO. For this flow the refunded amount (deposit transaction in Mambu) will have the value of the failure_returned_amount field, not the initial amount of the withdrawal and the transaction will not be monitored. In case the value in failure_returned_amount is empty or 0 the original withdrawal amount will be used for the refund. The linkage between the deposit transaction and withdrawal is done by two custom fields CCy Original Transaction Id and CCy Original Transaction Amount. On the same deposit transaction the reason for the rejection will be saved in a new custom field CCy Reason.

Applying fees

The connector supports two types of fees which can be applied when a local payment is initiated:

• Arbitrary fees.
• Manual fees with no amount defined.

Manual fees are charged under the fee encodedKey specified in the config object productFee, corresponding to the transaction currency. If no fee encodedKey is mentioned for the transaction currency then the fee will be charged as an arbitrary fee.

If a manual fee is used then all the deposit accounts from where the local payments are initiated must be of the same deposit product under which the fee, with the encodedKey specified in the config, is defined. The same type of fee will be applied to all the transaction types in a specific currency.

The fee amount is calculated using the formula feeAmount = fixed_amt + (variable_percent * transferred_amount / 100). The fixed amount and the variable amount are specified as values for the corresponding properties fixed_amt and variable_percent, which are defined under the required fees input object.

If the fees object is empty, or properties fixed_amt and variable_percent have zeros as values then no fee is charged. Negative values are not valid values for properties fixed_amt and variable_percent. If a property has a negative value then a notification with specific details will be created and the fee will not be applied.

At the fee transaction level the withdrawal transaction id is detailed in the notes field. The fee amount is specified at withdrawal transaction level in a dedicated custom field. If a fee cannot be posted, due to an MPO error or insufficient funds, a notification is created and the error details are saved in a dedicated state diagram. The fee transaction then needs to be manually applied.

In case failed status is received for a local payment transaction for which a fee was applied then the fee transaction is adjusted as part of the refund flow.

Interbank local payment payload

{
    "amount": 11,
    "beneficiaryId": "cabfa20f-6b27-4ff0-a78c-46787920dadc",
    "currency": "EUR",
    "depositAccountId": "XIWF285",
    "payment_type": "priority",
    "reason": "Money to repay my mortgage",
    "reference": "Mortgage",
    "term_agreement": true,
    "purpose_code": "CHC",
    "charge_type": "ours",
    "fees": {
        "fixed_amt": 10,
        "variable_percent": 0.33
        }
}

Webhooks

The Interbank Local payments flow only uses the payments webhook as no conversion is involved in the payment. The payments webhook receiver process is used to update the Mambu withdrawal transaction with the status of the payment changes in Currencycloud. More information on this webhook can be found in the Payments Webhook receiver section of the connector architecture page.

Failed interbank local payments

Failures are recorded in a state diagram in MPO. Based on the nature of the failure there are different remediation steps to take. In each case, if notifications have been enabled, a notification will be sent to the nominated user.

Intrabank Local Payments

The Intrabank Local Payments flow implemented as part of the connector is not routed through the Currencycloud system. Instead, a Mambu transfer is made to move the money from one client to another.

The entry point for these payments is the 1. [COMMON] Payment router (FX, LOCAL (INTER & INTRAbank) & House transfer) process, which is in the [COMMON] processes folder. This part can be triggered by a Sync API call corresponding to the CurrencyCloud_Vx.y.z > [PREFUND] LOCAL Payment > Local - INTRAbank payment > [Entry Point] INTRAbank transfer process.

Intrabank Local Payments payload

Data required for executing the MPO process for Local Intrabank Payment:

{
    "amount": 46290.50,
    "debitAccountId": "ABC123",
    "creditAccountId": "DEF456",
    "reason": "handing over some cash"
}

Failed intrabank local payments

Failures are recorded in a state diagram in MPO. If the notification parameter paymentFailedNotification is enabled, a notification will be sent to the nominated user.

Anti-Money Laundering monitoring integration for interbank local payments

The Currencycloud connector can be integrated with external anti-money laundering (AML) monitoring systems such as the Generic FinCrime connector. The outbound transaction is routed through the AML monitoring system to be analyzed and for a decision to be made on whether it should go through.

The Generic FinCrime connector should be installed and configured separately following its own documentation. Make sure that under the transaction mapping object, the payment source outgoinglocalInterbankCCY object contains the corresponding mapping parameters.

The 1.1. LOCAL Payment (Withdrawal + AML) process is configurable through the option enableTransactionMonitoring. The value of this parameter can be either true or false. It is stored in the Mambu configuration and is used to send the transaction through the AML system.

Interbank Local payment flow when enableTransactionMonitoring is true

1. Retrieval of the deposit and client accounts from Mambu.
2. Retrieval of the beneficiary from Currencycloud.
3. Withdrawal transaction in Mambu.
4. Generic FinCrime Connector is called (through the “AML Adaptor” process):
   • If the transaction is Accepted, the payment flow continues.
   • If the transaction is Rejected, it is stored in the Suspended State Diagram (Local Outbound) and the AML status custom field value for withdrawal transaction is updated with the value Rejected, followed by stopping the payment flow.
   • If the transaction is Suspended, it is stored in the Suspended State Diagram (Local Outbound) and the AML status custom field value for withdrawal transaction is updated with the value Suspended, followed by stopping the payment flow until further response.
   • If the transaction returned with Error status, the transaction withdrawal is adjusted and the AML status custom field value for withdrawal transaction is updated with the value Error, followed calling the Reverse Listener if needed.
   • If the transaction returned with Unknown status, the transaction withdrawal is adjusted and the AML status custom field value for withdrawal transaction is updated with the value Unknown.
5. Create Payment in Currencycloud.
6. Post manual journal entries in Mambu.
7. Update withdrawal custom fields transaction in Mambu with Currencycloud Payment details.
8. Create Transfer in Currencycloud (if applicable).
9. Update withdrawal custom fields transaction in Mambu with Currencycloud Transfer details (if applicable)

Link between local payment and Generic FinCrime

In the AML Adapter process, the FinCrime integration [ENTRY POINT/ To be linked to payment connector] process is called. In case of an error, the Reverse Listener is called, if needed.

Anti-Money Laundering listener

The AML Listener process is called from the Generic FinCrime connector. Whenever a transaction with the AML status suspended is analyzed in the Generic FinCrime Connector by interpreting the alerts webhook received from ComplyAdvantage and a final status is identified, the AML Listener process is triggered. This process receives the following parameters as input: AMLid, AMLstatus, and paymentSource. Its main purpose is to route the transaction to the payment connector’s next steps based on the AML status received.

• For Accepted status: the process continues with the second process, 1.2. LOCAL Payment (CCy Payment + Transfer), that creates the payment in Currencycloud.
• For Rejected or Unknown status: the process patches the AML status to the withdrawal transaction in Mambu and the transaction is withheld.
• For Error status: the process patches the AML status to the withdrawal transaction in Mambu, and the withdrawal transaction is adjusted.

Generic FinCrime redeployment

If the Currencycloud connector is reuploaded or redeployed, the process linked to the CCy_AML Listener(Local Outbound) alias in the Generic FinCrime connector corresponding to the outgoinglocalInterbankCCY paymentSource must be updated. The ccy-fincrime-entry-point and ccy-fincrime-reverse-listener linked aliases in the Currencycloud connector must also be updated with their new process IDs by following these steps:

1. Go to your MPO environment and select Aliases from the top-right menu.
2. Search for CCy_FinCrime_Entry_Point and CCy_FinCrime_Reverse_Listener.
3. Right click the specific row and select Edit.
4. Change the Select process field.

Additional details

The data required for Local payment can be provided via your bank’s UI, API calls or by any other means, as long as MPO receives the correct transfer details. The last step of a payment - moving the money from the Currencycloud Collector account to the beneficiary - is handled exclusively by Currencycloud.

If the payment is done after cut-off, then it is not performed on the same day. For more information about cut-off, check the documentation available for Currencycloud Payment timelines. For more information about local payments in Currencycloud, check the documentation available in the Currencycloud Developer Center.