How High Peak streamlines payment validation in the core banking system

Ayaan Bhattacharjee

Content Writer

How High Peak streamlines payment validation in the core banking system

Table of Contents

Banks struggle with acquiring liabilities and setting competitive transaction charges in the highly competitive banking industry. This leads to failed payments, costing the global economy a staggering $118.5 billion every year. In response to that, High Peak has built an integrated payment processing management solution for the global core banking system.

Now, let’s discover how High Peak’s approach to enhancing payment processing revolutionizes the core banking system.

How High Peak leverages payment orders for seamless transaction management

Effortlessly manage your transactions within the core banking system and streamline payment orders. Seamlessly process messages, generate payment instructions, and ensure secure and efficient transaction management. Now, High Peak has developed the workflow of payment processing. Let’s see in detail:

Simplified message identification

Efficient transaction management requires quick identification of message types for immediate action and timely responses. Standardized labels like ‘PAIN.001’, supported by the core banking system, enable clear categorization and trigger the creation of new payment orders. Thus, this streamlined approach accelerates processing and facilitates efficient message handling.

Smooth communication through payment orders

In order to facilitate smooth communication between system components, incoming information is translated into a universal language that ensures seamless data exchange. Consistent formatting and ISO compliance in generating payment instructions further streamline the transaction management process, promoting compatibility with core banking systems.

Thorough payment order validation

Thorough validation and verification, facilitated by the core banking system, ensure accurate and secure payment orders. Therefore, the key elements of this process include:

Account number verification: Verify sender and receiver account numbers to minimize errors and ensure accurate transaction processing with the core banking system.

Transaction amount assessment: Evaluate transaction amounts against permissible limits set by banks or regulatory authorities using the core banking system, preventing unauthorized transactions and ensuring compliance.

Currency validity confirmation: Confirm the validity of transaction currency with the core banking system to avoid errors caused by currency mismatches.

Active account status: Evaluate the active status of sender and receiver bank accounts with the core banking system to ensure smooth processing and prevent failed transactions.

Beneficiary account details verification: Validate and verify beneficiary account details with the core banking system to eliminate the risk of funds being sent to the wrong account and guarantee secure and successful transactions.

Transaction type validation: Verify the chosen transaction type (e.g., wire transfer or ACH transfer) with the core banking system to ensure proper execution and adherence to specific transaction requirements.

How High Peak uses validation of payment orders to ensure structural integrity and contextual compliance

Validation of payment orders is a crucial process to ensure accuracy, reliability, and adherence to regulations. After completing the financial data exchange, a transaction is sent to this section. This validation process consists of two key stages: ISO and business validation. Hence, let’s dive into each stage to understand how they contribute to the secure and streamlined processing of payment orders.

ISO validation: Ensuring structural integrity

ISO validation is the first level of validation in the core banking system. It aims to guarantee the structural integrity of payment orders through rigorous checks to ensure compliance with ISO rules and regulations. Also, the payment order undergoes examination to verify the correct syntax and format, validating the presence and proper formatting of necessary fields.

By undergoing ISO validation, the payment order is prepared in its fundamental form for further processing. This step rectifies any discrepancies or errors and ensures adherence to the required standards. As a result, the payment order becomes accurate, reliable, and ready for seamless transaction processing.

Benefits of ISO validation in payment processing

Rectifying discrepancies

ISO validation identifies and rectifies discrepancies in the payment order, ensuring the accuracy and reliability of transactions. This reduces the risk of errors or misinterpretations during processing and instil confidence in the user.

Efficient interoperability

ISO validation ensures adherence to ISO rules and regulations, promoting consistency across payment orders and enabling interoperability between different systems and financial institutions. Also, this enhances compatibility and efficiency within the payment processing ecosystem, contributing to an effective and seamless transaction experience.

Streamlined further processing

ISO validation prepares payment orders in their most fundamental and compliant form, making further processing smoother and more streamlined. This contributes to secure, accurate, and efficient transaction processing within the core banking system, saving time and effort for the user.

Business validation: Ensuring contextual compliance

Upon passing ISO validation, the payment order moves to the business validation stage in the core banking system. Here, intricate verifications are conducted to ensure contextual compliance. Also, these checks consider geographic considerations, financial institution rules, and regulations specific to payment channels and clearing systems.

Business validation involves diverse verifications, such as confirming that certain types of transactions can only occur during specific hours or ensuring the availability of sufficient funds in the sender’s account. This stage guarantees that every transaction is executed in accordance with contextual requirements and relevant guidelines.

By performing thorough verifications during the business validation stage, potential issues and non-compliance can be identified and addressed. This ensures that the payment order is executed accurately, securely, and in full compliance with specific rules and regulations.

Benefits of business validation in payment processing

Transaction validation is the most important aspect of the core banking system. Our team developed the business validation check in payment processing to enhance compliance issues related to each transaction. Let’s see them in detail:

Compliance with time-sensitive transactions

Business validation ensures that certain types of transactions can only occur during specific hours. This guarantees compliance with time-sensitive requirements, such as settlement cut-off times or regulatory restrictions. It helps prevent delays or complications in the payment process.

Prevention of insufficient fund issues

Business validation verifies the availability of sufficient funds in the sender’s account. In addition to that, this reduces the risk of insufficient funds for the intended transaction, preventing declined payments and ensuring smoother processing without the need for additional follow-up or resolution.

Regulatory compliance and risk management

The intricate verifications performed during business validation consider geographic aspects, financial institution rules, and regulations specific to payment channels and clearing systems. This ensures compliance with various regulatory guidelines, promoting a secure and compliant payment process. It reduces the potential for fraud, financial risks, or non-compliant activities.

Elevate core banking: Simplify your payment processing and validation with High Peak

Experience the benefits of seamless transaction management, enhanced accuracy, and regulatory compliance with High Peak. Our integrated payment processing management enhances core banking customers. Start empowering your core banking system with secure, reliable, and efficient payment processing today. 

Reach out to High Peak to learn more about how we can simplify your payment processes.

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