Create RfP File

To create a FedNow Instant and Real-Time Payments (RTP) Request for Payment (RfP) file before uploading it into your business bank’s system, you will need to follow a structured process. The Request for Payment (RfP) must comply with the required file formats and data structure, typically based on ISO 20022 standards for FedNow and RTP.

Here’s a step-by-step guide on how to create the RfP file, validate it, and prepare it for uploading to your bank:

Step 1: Gather the Required Payment Information

Before creating the RfP file, gather the necessary details for each transaction. The following key information will be included in the RfP:

• Payee Information:
  • Payee Name
  • Payee Bank Account Number
  • Payee Bank Routing Number (ABA)
• Payer Information:
  • Payer Name
  • Payer Bank Account Number
  • Payer Bank Routing Number (ABA)
• Payment Information:
  • Payment Amount
  • Payment Currency (e.g., USD)
  • Payment Due Date
  • Invoice Reference Number or any other identifying information related to the payment

Step 2: Create the RfP File in ISO 20022 XML Format

For FedNow and RTP, ISO 20022 XML is the standard file format. Below is a simplified XML structure for a Request for Payment (RfP):

Example ISO 20022 XML Structure for a Single RfP:

xml

<?xml version="1.0" encoding="UTF-8"?>

<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pain.013.001.07">

  <ReqForPaymt>

    <PayeeInfo>

      <Name>ABC Corp</Name>

      <AcctNumber>123456789</AcctNumber>

      <RoutingNumber>987654321</RoutingNumber>

    </PayeeInfo>

    <PayerInfo>

      <Name>John Doe</Name>

      <AcctNumber>987654321</AcctNumber>

      <RoutingNumber>123456789</RoutingNumber>

    </PayerInfo>

    <PaymentInfo>

      <Amount>500.00</Amount>

      <Currency>USD</Currency>

      <DueDate>2024-10-01</DueDate>

      <InvoiceRef>INV-1001</InvoiceRef>

    </PaymentInfo>

  </ReqForPaymt>

</Document>

Key XML Elements Explained:

1. Document: This is the root element of the XML file.
2. ReqForPaymt: Contains the details of the Request for Payment.
3. PayeeInfo: Contains information about the party requesting the payment (the payee).
4. PayerInfo: Contains information about the party responsible for making the payment (the payer).
5. PaymentInfo: Holds the payment details, including the amount, currency, due date, and invoice reference.

Step 3: Automate the Creation of RfP Files (Optional)

If you need to create multiple RfP files for batch uploads, you can automate the creation of these files using a script. Below is a Python script that generates ISO 20022 XML files from a list of transactions in CSV format.

Example Python Script to Generate RfP XML Files from CSV:

python

import pandas as pd

import xml.etree.ElementTree as ET

 

# Load the CSV containing payment details

data = pd.read_csv('rfp_data.csv')

 

# Function to create an XML file for each RfP

def create_rfp_xml(row):

    root = ET.Element("Document", xmlns="urn:iso:std:iso:20022:tech:xsd:pain.013.001.07")

    rfp = ET.SubElement(root, "ReqForPaymt")

 

    # Payee Information

    payee = ET.SubElement(rfp, "PayeeInfo")

    ET.SubElement(payee, "Name").text = row['PayeeName']

    ET.SubElement(payee, "AcctNumber").text = str(row['PayeeAccount'])

    ET.SubElement(payee, "RoutingNumber").text = str(row['PayeeRouting'])

 

    # Payer Information

    payer = ET.SubElement(rfp, "PayerInfo")

    ET.SubElement(payer, "Name").text = row['PayerName']

    ET.SubElement(payer, "AcctNumber").text = str(row['PayerAccount'])

    ET.SubElement(payer, "RoutingNumber").text = str(row['PayerRouting'])

 

    # Payment Information

    payment = ET.SubElement(rfp, "PaymentInfo")

    ET.SubElement(payment, "Amount").text = str(row['Amount'])

    ET.SubElement(payment, "Currency").text = row['Currency']

    ET.SubElement(payment, "DueDate").text = row['DueDate']

    ET.SubElement(payment, "InvoiceRef").text = row['InvoiceRef']

 

    # Create an ElementTree object and save the XML to a file

    tree = ET.ElementTree(root)

    tree.write(f'rfp_{row["InvoiceRef"]}.xml')

 

# Generate XML files for each row in the CSV

for _, row in data.iterrows():

    create_rfp_xml(row)

Sample CSV Format:

csv

PayeeName,PayeeAccount,PayeeRouting,PayerName,PayerAccount,PayerRouting,Amount,Currency,DueDate,InvoiceRef

ABC Corp,123456789,987654321,John Doe,987654321,123456789,500.00,USD,2024-10-01,INV-1001

XYZ LLC,2233445566,654321987,Jane Smith,1122334455,321654987,300.00,USD,2024-09-25,INV-1002

Step 4: Validate the RfP File

Before uploading the file to your bank, it’s important to validate that the XML file is compliant with the ISO 20022 standard and follows the specific requirements of FedNow or RTP.

• Use XML validators to check for any formatting errors or missing fields.
• Some banks provide tools to test your RfP files for format compliance before submission.

Step 5: Upload the RfP File to Your Business Bank’s Dashboard

Now that your Request for Payment files are ready, follow these steps to upload them to your bank’s dashboard:

a) Log in to Your Business Bank’s Dashboard:

• Log in to your bank’s online platform using your credentials.

b) Navigate to the Payments Section:

• Go to the section labeled FedNow Payments, Real-Time Payments (RTP), or Request for Payments (RfP).

c) Upload the RfP File:

• Select the Batch Upload or File Import option, depending on your bank’s setup.
• Choose the XML file (or multiple files) you generated.
• Review the file details to ensure everything is correct.

d) Submit for Processing:

• Once the file has been uploaded and validated by the bank’s system, submit the RfP file for processing.

Step 6: Monitor and Reconcile Payments

Once the RfP file is processed:

• FedNow and RTP provide real-time notifications for payment approval and settlement.
• Monitor the status of the payment requests via your bank’s dashboard (statuses may include Pending, Completed, or Rejected).
• If any requests are rejected, you will receive error messages indicating the issue (such as incorrect account information).

After the payments are completed, reconcile them in your internal accounting system.

Key Considerations:

• Data Accuracy: Double-check all details such as account numbers, routing numbers, and payment amounts.
• Format Compliance: Ensure that your XML file follows the correct ISO 20022 schema required by your bank.
• Batch Limits: Some banks may have limits on the number of transactions in a single batch file. Check with your bank to ensure compliance with these limits.
• Security: Use secure methods to transmit files, especially if your bank offers API-based uploads.

Conclusion

By following this guide, you can efficiently create and upload Request for Payment (RfP) files for FedNow Instant Payments and Real-Time Payments (RTP). This will allow you to request and process payments in real-time through your business bank, ensuring faster and more efficient payment operations.