Introduction to Debit Collection

Debit Collection (DB) application initiates single direct debit collection requests for processing through Temenos Payments. It perform the following functions:

Capture DD collection requests (manually)
Validate and pre-process DD requests
Route the DD requests only to Temenos Payments system
Channel facing API is not released for the DB application

DB supports capturing collection request for different types of clearings, such as Automated Clearing Houses (ACH) and Instant Payments. It supports only creation and capture of single DD collection requests. DB does not deal with inward collection processing (that is, collection requests initiated in another bank and received in DB bank through clearing or bilateral partner bank).

NOTE: Collection requests initiated through the DB application are executed using Temenos Payments only.

DD.DDI module of Temenos Transact allows to initiate collection requests from Transact modules that can be processed through Temenos Payments or any third party payment system. Thus, DD.DDI enables other applications in Transact to send collection requests to Temenos Payments or any third party payment system. Since the purpose of the DD.DDI module and the DB application are not the same, they continue to co-exist.

Architectural Diagram of DB Application

Item	Description
Debit Collection Source	Accept payments from Branch − These are collection requests initiated by a bank’s branch or back-office user in response to an over-the-counter instruction. NOTE: Collection requests from Temenos Transact business applications are currently processed using the `DD.DDI` module.
Debit Collection Application	Receives (using standard Temenos Transact interface), validates, and routes the request to Temenos Payments.
Payment Processing System	Validates, books and routes collection requests to an appropriate clearing system. Payment system can only be Temenos Payments. In-house collection requests are settled directly within the bank’s core banking instead of sending it to clearing.
Clearing Systems	Captures collection requests that can be cleared using different domestic clearings. NOTE: Domestic clearings can be an instant payment clearing system or Automated Clearing Houses (ACH) that process bulk payments.

Capturing Payment Initiation Requests Manually

DB supports capturing of Payment Initiation requests for domestic clearings and instant payments. It provides the Collection Capture page for each type that offers specific fields and appropriate to the collection or clearing. The user can request DB to perform the following:

Validate (before submission) the captured collection information.

NOTE: If an error occurs, DB can interactively inform the user to manually correct them before submitting for further approvals. This helps in reducing Supervisor’s rejections or Straight Through Processing (STP) failures in payment processing.

Submit all collection initiations for Supervisor’s approval.
After approval, it sends the payment to the payment system for determining the clearing and distribution.

NOTE: Temenos project or implementation teams can develop custom collection capture pages for specific clearings based on the bank’s requirements.

Collection Request Processing

The following are the stages to process a collection request:

Stage1 – Collection Capture

The collection request is captured in DB or channel during the first stage of processing a collection request.

Item	Description
Collection Capture	The following is the mode to capture collection requests: Manual capture – The user needs to perform the following actions: Initiates the collection using the DB page. If an error occurs during validation, it is displayed (interactively) on the page for user action. On submission, the Supervisor needs to approve the order (according to authorisation configuration). NOTE: Read the Capturing a Debit Collection Request Manually section in theWorking with Debit Collection topic for more information.
Create Collection Request (not shown in diagram)	Maps the collection requests received to DB fields and stores it. The following are the main attributes: Collection amount Currency Requested collection date Business product Payee customer details Creditor account details Payer bank details Payer details Temenos Transact system audit information Any payment information specific for the given clearing Payment source and initiating channel
Product Determination	Represents the type of collection (book transfer) or clearing through which collection request is processed. The product allows to configure specific validation or process the rules for collection request linked with the product. The collection product can either be: Linked to a specific DB version Assigned explicitly (by the user) using DB page or channel Read Product for more information.
Supervisor Approval	Supervisor needs to approve all manually captured payments

Stage 2 – Collection Request Pre-Processing

The pre-processing of the captured collection request is performed in second stage.

Item	Description
Routing	Determines the payment system based on the configuration. NOTE: The DB application only supports Temenos Payments as payment system.
Generate Payment Request	Generates collection request message to payment system.
Response from Payment System	Receives responses from payment system. It moves the request to the following statuses: Placed – Payment system accepts the request Completed – Payment system sends a positive or negative acknowledgment indicating the status of the collection. NOTE: If the payment system sends an error code for negative acknowledgement, the user can view it against the request.

Collection Enquiry

The user can search and view the collections as a generic enquiry, or view it by collection order status. The enquiry serves as a single dashboard for all collection types, sources and destinations, as DB aggregates payments from different channels.

DB enquiry allows the user to view collection order and payment system status. It also enables to customise the view based on the bank’s specific requirements (which the bank needs to maintain).

Multi-Bank or Branch Support

DB can work in a multi-bank or branch model that allows users to initiate orders on the following:

Accounts that belong to same branch (where the user logs on)
Accounts that belong to another branch, which is in the same Temenos Transact lead company (where the user logs on)

Checking Reachability

Reachability check is the process of checking whether the counterparty bank is reachable directly or indirectly, to send a debit collection through a clearing during order initiation. This can be enabled by configuring Debit Collection Product.

Reachability directory of the specific clearing should be loaded in Temenos Transact, to perform reachability check for DB application. Refer to the Clearing Directory user guide for more details. The reachability check criteria differ from one clearing to another. Refer individual Clearing user guides for more details.

Given below are the important parameters used as input for reachability check from DB application:

Debtor Agent Bic
Debtor Bank Clearing Code
Clearing Channel
Requested Collection Date
Payment Instrument Type
Debit Collection Order Id
Entire Debit Collection Order Object

NOTE:

System throws an override on initiation screen if the beneficiary bank is not reachable.

Illustrating Model Parameters

This section covers the below model parameters for the Debit Collection (DB) module.

S.No.	Parameters	Description
1.	`DB.DEBIT.COLLECTION.PARAMETER`	It consists of high-level Debit Collection order configuration at the company level. This application facilitates the definition of the Payment Connection method.
2.	`DB.DEBIT.COLLECTION.PRODUCT`	It captures the features that are specific to a collection product.

Illustrating Model Products

This section covers the below model products for the Debit Collection (DB) module.

S.No.	Product Name	Product Attributes
1.	`DB.DEBIT.COLLECTION.ORDER`	Payment connection method in DB.DEBIT.COLLECTION.PARAMETER is set to TPH. Hence, all the Debit collections initiated from DB.DEBIT.COLLECTION.ORDER are routed to TPH for further processing.

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