X9C Proposes Improved Code Designation for Instant and Alternative Payments

Today, the Accredited Standards Committee X9 Inc. (X9) announced a proposed revision to the Balance and Transaction Reporting Standard (BTRS) code set (previously BAI2) for Instant and Alternative Payments.  The X9C-1 BTRS Workgroup is reaching out to you to get your feedback on the impact this will have on your company.

Please provide feedback using this link BTRS Feedback and to download a version of the code list.

A growing number of new payment rails—both in the U.S. and globally—are changing the way payments are made. To keep pace with this evolution, the X9C-1 BTRS Workgroup proposes updates to the Balance and Transaction Reporting Standard (BTRS) code set. The goal is to ensure that new payment types (like Alternative and Instant Payments) are: clearly recognized, properly categorized, and easier to reconcile.  To do this, we are renaming certain existing BTRS categories related to Alternative and Instant Payments. No new codes are being added.

What Is the Impact?

No new codes are introduced, so there are no added costs, no format changes, and no long transition periods. Since BTRS files use only 3-digit codes (not code names), there is no change to file formats.  Banks currently mapping payments to general-purpose codes (like 399 or 699) may now choose more specific and accurate codes.  Also, there are no changes to ISO or SWIFT mappings and no impact to the official ANSI format guide: ANSI X9.121-2021 – BTRS Version 3 (BTR3)

A. Recognizing Alternative Payments

The X9C-1 BTRS Workgroup is proposing an update to better reflect how modern, non-traditional payment methods are being used.

What’s Changing?

We’re renaming the existing “Email or Mobile” payment codes to “Alternative Payments.” These are payments that do not use traditional bank account and routing numbers.

Alternative Payments include:

• Push to Card – sending funds directly to a debit or prepaid card using its number
• Push to Wallet – sending payments to a PayPal or Venmo wallet via email or mobile number
• Push to Zelle® – sending funds to a Zelle® token (email or mobile number)

These types of payments will now be grouped under the renamed Alternative Payment codes.  (Note that the workgroup decided not to create separate return codes for Alternative Payments at this time due to limited user feedback. Banks can continue to use 197/497 for returns. This decision can be revisited as needed.)

B. Clarifying Real-Time Payment Codes

Currently, payments made through FedNow® should be reported using the same codes as RTP® (The Clearing House’s Real-Time Payments system)—similar to how Fedwire and CHIPS share the Money Transfer category.  This will include both U.S. and global instant rails, including RTP® and FedNow®, SPEI (Mexico), RTR (Canada), FPS (UK), IMPS (India), and RTC (South Africa).

What’s Changing?

We’re renaming the “Real Time Payment” category to “Instant Payment” to eliminate confusion that this category might have only included RTP® payments.

The X9C-1 BTRS Workgroup encourages your support for this revision and is reaching out to you to get your feedback.  Please send your comments are welcome. Please provide feedback using this link <BTRS Feedback.