Important Update
Wire Transfer to ISO 20022 - Effective July 14, 2025
ISO 20022 is a global standard for financial messaging that aims to improve payment processing by using richer, more structured data. It provides a common language for banks, payment systems, and their customers, leading to more efficient, transparent, and secure transactions. Essentially, it's an effort to make payments faster, more reliable, and easier to manage for everyone involved.
What benefits are offered with ISO 20022 and how will it impact your business?
- Standardized language: ISO 20022 is a universal language for financial messages, like those used for payments, that allows different systems to communicate more effectively.
- Richer data: It enables the inclusion of more detailed information within payment messages, such as invoice details, recipient information, and more.
- Harmonization: It aims to standardize how financial institutions exchange information, making cross-border payments smoother and more efficient.
- Faster payments: By streamlining the payment process, ISO 20022 can lead to quicker transaction processing times.
- Improved accuracy: The structured data format reduces errors and the need for manual intervention, leading to more accurate payments.
- Enhanced security: More detailed information within messages can help with fraud detection and prevention.
- Better reconciliation: The richer data makes it easier to match payments with invoices and other financial records.
- Greater transparency: Customers can benefit from more information about their transactions, providing greater clarity and control.
- Increased efficiency: Overall, ISO 20022 contributes to a more efficient and user-friendly payment experience.
- Improved services: Over time, you'll likely experience faster, more reliable, and more transparent payment services.
As part of this update, you’ll see some changes in wire transfer terminology:
| Current Terminology | New Terminology (effective July 14, 2025) |
|---|---|
| Credit Account Name | Creditor |
| Originator | Debtor |
| Originating Bank/Sending Bank | Debtor and Instructing Agent |
| Beneficiary Bank | Creditor Agent |
| Routing Number | Agent ID |
| Reference Beneficiary | End-to-End ID |
| Address Line 1 | Building Number, Street Name |
| Address Lines 2-3 | Department, Subdepartment, Building Name, Floor, Room, Town Location Name, District Name |
| City | Town Name |
| State | Country Subdivision |
| Zip Code | Post Code |
| Country | Country Code |
| Account Number | Account Number |
| Amount | Amount |
| Remarks | Remittance Information |
What needs to be done to prepare for the ISO 20022 conversion?
- Review saved wire transfer payment templates: With ISO 20022 messaging formats, full street addresses are required for the Beneficiary Financial Institution as well as any Intermediary Financial Institution (if applicable). We ask that you please review your templates ahead of the migration to reduce any potential impact when originating a wire transfer through digital banking.
- Ensure that any future-dated wire(s) scheduled to be sent after 07/14/2025 are cancelled and re-entered after migration is complete on 07/14/2025: If a wire is created ahead of the conversion, it will not be in the updated ISO 20022 format and will not be sent. Unfortunately, there is no way to retrofit a wire scheduled to be sent out in the previous format.
Timeline of Key Changes
- On July 11, 2025, at 3:30 p.m. CT, the system lockout begins. Any wires entered during the lockout will be cancelled and require re-entry on Monday. Wire and template functionality will be temporarily unavailable until July 14, 2025, at 12:01 a.m. CT.
- On July 14, 2025, the ISO 20022 goes live. Log in to ensure your wire templates and settings are working correctly.