How are payments changing?

Credit transfers

The methods currently used for credit transfers by the banks (DTA) and PostFinance (EZAG) are to be harmonised by applying the ISO 20022 standard, bringing them into line with the new ISO-standard XML format. All providers of payment services in Switzerland will be required to make this switch. From 2021 onwards, the IBAN will be the only primary feature used to identify a bank account. Already widely used, it is to replace all country-specific account number formats. 

Payment instructions will be able to generate automatic status messages in future, providing information on any errors, warnings or adjustments. Instructions must be issued in the ISO-compliant format in order to receive status messages.

 

 

Technical information 

The ISO 20022 standard requires payment instructions to be transmitted as pain.001 messages. As recommended by SIX Interbank Clearing AG (or “SIX” for short), the existing DTA standard will continue to be supported until mid-2018, but Bank CIC will continue to support it until the end of 2018. Payment instructions that comply with the SWIFT MT standard are not being affected by the changes to Swiss payments and will still be supported.

Direct debits and eBill

The Swiss financial industry currently uses a variety of different direct debit (LSV) schemes. The standardisation process will see banks and PostFinance implement a single scheme throughout Switzerland with a common direct debit message (pain.008 format) based on the ISO 20022 standard. Direct debits are also to be integrated into e-billing processes gradually, enabling companies to settle their direct debits and e-bills via the same portal in future. 

Existing direct debit mandates will remain in force.

 

 

LSV+/BDD (Business Direct Debit) 

It is expected that direct debit instructions in LSV+/BDD format will no longer be accepted as of 2019. Any instructions currently in place will be switched to the new format automatically without any action required on the part of companies or private individuals.

Payment slips – New: QR-bill

The current range of red and orange payment slips is being replaced by the new QR-bill with integrated QR code with effect from 30 June 2020. The QR-bill provides the basis for more efficient payment transactions – for everyone involved.

Take the necessary precautions at an early stage, so that you and your company can pay incoming QR-bills and issue QR-bills yourselves with effect from 30 June 2020. Find out what you need to do to ensure that your company can benefit from the QR-bill: QR-bill.

otifications and reporting

So-called cash management (“camt”) messages are to be used for account statements. Account statements in SWIFT or PDF format are still available. Details of which message types Bank CIC will be offering and in what particular form can be found here.

 

Technical information 

So-called cash management (“camt”) messages are to be used for account statements. The end-of-day account statement using camt.053 messages will be available with or without detailed information as standard. Intraday account statements and debit and credit notifications will be provided as camt.052 and camt.054 messages respectively.