SEPA - Payment Instruction from SHA to OUR

[Former Member]

Hi All,

we are using SEPA payment procedure. Now what I know there is something in this procedue that if SHA is the payment instruction, then bank deduct changes from vendor & if payment instruction is OUR, then charges are deduct from payee.

We need to change it from SHA to OUR. I am not sure where this is maintained & how we can change it.

Any suggestion on this.

Regards

Deepak

[Former Member]

Hi Deepak,

Per the EU Payment Services Directive (PSD) which defines the rules that govern SEPA payments, the only code allowed is SHA.  This means that If you send a SEPA instruction to a bank with OUR, they will either reject the payment or convert it to SHA.

For non-SEPA payment methods, you can use the DME instruction keys to define the charge codes (e.g. SHA, BEN, OUR).

Hope this helps,

Jack

[Former Member]

Hi Jack,

thanks for your reply.

Could you please advise where I can see the configuration of SHA so that I can let know further.

Regards

Deepak

[Former Member]

Hi Deepak,

I assume you're using the PMW - what file format are you using?

SWIFT MT? SEPA_CT? CGI_XML_CT? Something else?

Thanks,

Jack

[Former Member]

Hi Jack,

I am not aware how to check this. Could you please let me know how to check this.

Regards

Deepak

[Former Member]

Hi Jack,

I hope it is ISO XML file created in our system.

Regards

Deepak

[former_member229024]

HI Deepak,

In XML payment file, check for the node which has "SHA" value , It should be a constant node. Just Change the contant node to "OUR".

mostly this node will be under Pmtinf - > CdtTrfTxInf ->RmtInf

Cheers,

[Former Member]

Hi Ravish,

I checked further in t code DMEE. We have format tree - Z_SEPA_CT_V3.

I checked there in above path but SHA was not there in any node.

Could you please advise where I can check further.

Regards

Deepak

[former_member229024]

Hi Deepak,

Mostly the node name will be "ChrgBr" found in PmntInf node. If not available, then check with your house bank tech people, about the node. They should be able to inform.

Cheers,

[Former Member]

Hi Ravish,

I checked in DME file created in F110 but there is no field of SHA.

Does it means this field would not be in DME but configured somewhere else.

Reagrds

Deepak

[former_member229024]

HI Deepak,

This node or equivalent one ( pls. check with your house bank ) should be in DMEE for it to written in payment file and sent to house bank.

Ask your house bank for the details,

Cheers,

[Former Member]

Hi Deepak,

For SEPA transactions, only one charge code is allowed: SLEV.  You cannot use BEN, OUR or SHA for  SEPA payments.  See the screenshot below where SLEV is always used if the payment is SEPA.
If you are using the XML format (pain.001.001.03 - ISO 20022) for other payment types, then the screenshot shows how charge codes CRED, DEBT, SHAR can be used instead of BEN, OUR, SHA.

Hope this helps.

Jack