Special Scenarios

There are two specific payment scenarios which require additional attention. In Nexus, the roles of Source PSP, Source SAP, FX Provider and Destination SAP are designed as separate roles, but one entity can perform multiple roles in the same payment. This leads to two special scenarios which require specific processing.

Scenario A: The Source PSP is also the Source SAP

This scenario could arise because:

• (a) the Source PSP is acting as SAP to a third-party FXP, and the Source PSP chooses that FXP's quote for this payment This is for example the case when the Source PSP provides access to an FXP in its own currency, but does not have access to the IPS in the destination currency. It therefore uses that FXP's quote and pays funds into the account that it maintains for that FXP.

  OR

• (b) the Source PSP is acting as FXP to itself

In cases where the Source PSP is also the Source SAP:

• the first leg of the Nexus transaction will be booked internally by the Source PSP, who will debit the Sender’s account and credit the FXP’s account. (Both accounts are held with the Source PSP.)

  • Similar to a normal Nexus payment, the Source PSP has the option to either (a) initially reserve the funds against the Sender's account and book the payment upon the receipt of a positive confirmation from Nexus or (b) book the payment prior to sending the transaction, and reverse it if the payment fails, as described in Booking flow for Source PSPs. The Source PSP must fill in its information in both the Instructing Agent and the Instructed Agent sections of the pacs.008 payment instruction before sending it to Nexus.

• The Source PSP will then send the payment instruction to the Source IPS

• The Source IPS will see that the Instructed Agent (Source PSP) and Instructing Agent (Source SAP) are the same financial institution. It will therefore:

  • skip the domestic processing and:

  • forward the instruction to Nexus

• Upon receiving the pacs.002 confirmation from the Nexus Gateway, the Source IPS must forward the confirmation to the Source PSP.

  • The Source IPS should not send the confirmation to the Source SAP (as it is the same party as the Source SAP) and skip any domestic processing (for a 5-step settlement IPS).

Payment processing when the Source SAP is also the Source SAP

Scenario B: The Destination PSP is also the Destination SAP

This scenario could arise because:

• (a) the Destination PSP is acting as SAP to a separate FXP This is for example the case when the S-PSP selects an FXP, who uses a Destination SAP which happens to be the same as the Destination PSP.

  or

• (b) the Destination PSP is also the third-party FXP for this payment.

In cases where the Destination PSP is also the Destination SAP:

• When Nexus transforms the pacs.008 for the Destination IPS, Nexus will set both the Destination SAP and Destination PSP to the same institution (the Destination PSP).

• The Destination IPS will recognize that the Instructing Agent (Destination SAP) and Instructed Agent (Destination PSP) is the same entity and skip the domestic processing.

• The Destination IPS will forward the Nexus Payment directly to the Destination PSP.

• The Destination PSP is able to directly book the payment between the FX Provider’s account and the Recipient’s account. (Both accounts are held with the Destination PSP.) The Destination PSP will send a pacs.002 confirmation back to the Destination IPS.

• The Destination IPS will correlate the confirmation from the Destination PSP with the original pacs.008 received by Nexus.

• The Destination IPS should not send the confirmation to the Destination SAP (as it is the same party as the Destination PSP) and skip any domestic processing (for a 5-step settlement IPS).

• The Destination IPS will then forward the pacs.002 confirmation directly to the Nexus Gateway.

  

  Payment processing when the Destination SAP and Destination PSP are the same institution