Introduction to Clearing Interface CPA

It is assumed that the reader of this document:

• Is familiar with the navigation around Temenos Transact product.
• Is familiar with Batch service.

RBC is a financial institution which acts as a direct clearer for other financial institutions in Canada. There are different types of clearing can be done through RBC. In this user guide we are going to focus on the below

• EFT/PAP (pre-authorised payments) clearing and its return process
• Clearing done for clearing paper cheques (MICR).

EFT/PAP (Pre-Authorised Payments) Clearing and its Return Process

The file format used for EFT clearing process is CPA (Canadian Payment Association) Standard 005 format.

Through EFT clearing process following can be done:

• Clearing CAD and USD EFT payments.
• Posting the EFT clearing transactions using a specific effective date.
  • If the incoming transaction date is less than previous working day then system will post the transaction using last working date.
  • If the incoming transaction date is today then system will post using current date
  • If the incoming transaction date is greater than today then system will store the transaction in a temporary file and post the transaction on the due date.
• Post clearing transactions using redirection functionality. There is a parameter to control how re-direction should be checked either it can be first or last.
• Enquiries to perform return item processing.
• System will generate return item extract file for the returns performed for the EFT transactions
• System will generate return item notices files.
• Option to reverse the entire clearing file in case clearing process is done for invalid file.
• Reports can be generated for the items posted in Temenos Transact.
• Purging the records after n number of days.

Through EFT return item processing following can be done

• Processing return item entries – There is a 2 step process for processing the return item entries. First user has to process the item in unauthorised state and then the authoriser or the supervisor has to authorise the item in unauthorised state
• Producing return item extract files – There will be 2 files produced (CAD and USD).
• Producing return item notices file.

Clearing Done for Clearing Paper Cheques (MICR)

The file format used for MICR cheque clearing process is CPA (Canadian Payment Association) Standard 005 format.

Through MICR clearing process following can be done.

• Clearing CAD and USD Cheques.
• Posting the MICR Clearing transactions using a specific effective date.
• Through parameter we can control the authorisation of overdrafts during clearing process.
• Restricting the maximum amount (threshold amount) that can be cleared for each transaction.
• Post clearing transactions using redirection functionality.
• Reject clearing transactions for the accounts that has stop payments, restrictions etc... When system rejects these payments then system will post the rejected entry automatically by debit the reject GL and credit clearing GL.
• Option to reverse the entire clearing file in case clearing process is done for invalid file.
• Reports can be generated for the items posted in Temenos Transact.

Following functionalities are not available as part of MICR clearing process

• Processing return transactions for the rejected or cleared items
• Producing return item files for the rejected or cleared entries.