New Remittance Data Enables AR To Automate Cash App of Wire Transfer Payments
On the positive side, wire transfer payments are reliable and fast, which explains why over $600 trillion is transferred in over half a million payments annually via Fedwire and over $1 trillion a day in interbank payments via CHIPS (Clearing House Interbank Payments System).
On the negative side (in addition to high cost), the tiny data field in wire transfers could accommodate only minimal information about payments, a big obstacle to speedy and accurate cash application. Even if a customer included detailed remittance information, the short data field cut it off.
Added Remittance Detail
Until now, that is.
In a first step in what will be a measured process, on November 21, 2011, the two wire clearing networks instituted structure in their wire formats to handle an added 9,000 characters of remittance detail in multiple fields, embedded in the transaction itself. Prior to the change, wire transfers could hold only about 140 characters in a single field.
The change, which will require a good deal of work on the part of AR pros to take advantage of, offers the potential, for the first time, to receive full remittance detail in ...