Working with Transactions in an Account

Retail accounts accept credit and debit transactions through channels such as branch, ATM, internet/mobile, international payments network and local clearing. Some examples of the transaction type include,

EXAMPLE:

Depositing or withdrawal of cash
Transferring from account to account
Transferring using internet or mobile
Incoming or outgoing SWIFT or other payments
Depositing cheques
Local clearing

There are various applications, such as FUNDS.TRANSFER, TELLER, Direct Debit Instruction), within Temenos Transact that are used to perform a transaction in a new arrangement account. For example, using the Funds Transfer (FT) module, the new arrangement account is credited by an account transfer. Before it effects the initial transfer, the balance in the arrangement is made zero.

In the example below, in order to perform a transaction in an account,

Provide inputs and authorise an FT that credits the arrangement with the requisite amount (for example, USD 10000).

Once the FT is authorised, the arrangement that is linked to account number 84581 appears with an amount of USD10000 credited to it. Hence, the ledger and available balance is updated, which includes limit amount (of 10,000).

The Current Account Overview page displays the history of the recent transactions.

Non-Sufficient Funds

Non-sufficient Funds (NSF) is the status of an account that does not have enough money to cover debit transactions. If a bank receives a debit item on an account with insufficient funds, the bank can pay or refuse payment and may charge the account holder an appropriate fee.

NSF Exception Processing

NSF exceptions are created during the COB process for the transactions. NSF exception and NSF fee are assessed during the end of day if the account balance remains negative beyond the grace limit. AC.FUNDS.AUTHORISATION are generated at IHLD (hold) status.
The ACFA application tracks all the NSF exceptions and the user is allowed to take action with any one of the following options:
- Approved - Pay NSF items
- Rejected - Reject NSF items and this triggers reversal of original transaction that was processed on batch mode using clearing.
- Pre-Authorized - This option is used when a balance check request is approved in interfaces. (for example, a debit card transaction)
The user has to address these exceptions within the stipulated time defined in NSF.PARAMETER as Expiry Days. If not, the system executes the default decision as defined in NSF.PARAMETER -> Def Fund Decision on T + Expiry Day COB process. Manual interventions are restricted thereafter.

NOTE:

The expiry days are inclusive of the transaction day.
The system decisions are defaulted on the Expiry date if the exception is not actioned.

Any exception that is approved or rejected either manually or by the system is executed by the Activity indicated in NSF.PARAMETER

In this illustration, an account with a number of debits are considered through various channel.

The below table shows the list of decisions and activities initiated for the combination of settlement type and decision during NSF exception processing in NSF.PARAMETER.

Type	Decision	Decision by	Activity
Paid using Limit	Approve	System	ACCOUNTS-UTILISE-LIMIT
Paid using Limit	Reverse	System	ACCOUNTS-UTILISE-LIMIT*REVERSE
Paid outside Limit	Approve	Manual	ACCOUNTS-APPROVE-EXCEPTION
Paid outside Limit	Reject	Manual	ACCOUNTS-REJECT-EXCEPTION
Paid outside Limit	Reverse Approved	Manual	ACCOUNTS-APPROVE-EXCEPTION*REVERSE
Paid outside Limit	Reverse Rejected	Manual	ACCOUNTS-REJECT-EXCEPTION*REVERSE
Force Settlement	Settle	System	ACCOUNTS-FORCE.SETTLE-EXCEPTION
Force Settlement	Reverse	System	ACCOUNTS-FORCE.SETTLE-EXCEPTION*REVERSE

These transactions are recorded as exceptions in ACFA and available in the Account overview for further decisioning.

In the absence of manual decisioning, the system decisioning is performed based on the NSF.PARAMETER depicted in the above table format and NSF processing is completed

Charge Evaluation Process

Activity Charges are triggered based on Fund decision or Rejection Activity, either by the system or manually by the user in the ACFA records

In this illustration, Activity Charges are configured for the Activities,

ACCOUNTS-UTILISE-LIMIT
ACCOUNTS-UTILISE-LIMIT*REVERSE
ACCOUNTS-APPROVE-EXCEPTION
ACCOUNTS-REJECT-EXCEPTION
ACCOUNTS-APPROVE-EXCEPTION*REVERSE
ACCOUNTS-REJECT-EXCEPTION*REVERSE
ACCOUNTS-FORCE.SETTLE-EXCEPTION
ACCOUNTS-FORCE.SETTLE-EXCEPTION*REVERSE

Charges assessed are posted or capped at the values based on the configuration in Pricing Rules which in turn using the periodic attributes for capping the charges

There are nine NSF Processing and Decisioning done in this illustration but there are charges posted for the six transactions complying with the cap of charge amount being 210.

In the event of backdated transactions in an account, the NSF fees are revalued and refunded based on the predefined rules. The process of charge revaluation is depicted below.

In this illustration, consider that there is a back-value dated credit of 30,000 posted to the account.

The NSF Processing is reassessed and charges are reversed for the first three transactions.

NOTE: The cap amount is not re-evaluated and there are no fresh charges booked to Account.

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