What is ISO 20022?
ISO 20022 is a global standardized messaging format for payments. All United States financial institutions are being required by the Federal Reserve to use this format for sending and receiving payments. ISO 20022 provides faster processing and enhanced transparency in payment instructions and details.
When is this happening?
To allow for further industry preparation and client readiness, the Federal Reserve has postponed the ISO 20022 implementation from March 10th, 2025 to July 14th , 2025.
How does this impact you?
With the implementation of ISO 20022, it will be required to list the Beneficiary Bank with its physical address, as well as the Receiving Bank with its physical address. In most cases, Beneficiary Bank and Receiving Bank will be the same institution, but it is important to verify with your vendor. In addition, the purpose of the wire will become a required field.
ISO 20022 New Terminology:
Since ISO 20022 is a global standardized messaging format, terminology will be changing. Please reference the chart below:
|
Previous Terminology |
New Terminology |
Definition |
|---|---|---|
| Originator | Debtor | Person or entity sending the money. |
| Originating Bank | Debtor Agent | The financial institution of the person or entity sending the money. |
| Beneficiary | Creditor | Person or entity receiving the money. |
| Beneficiary Bank | Creditor Agent | The financial institution of the person or entity receiving the money. |
| Receiving Bank | Instructed Agent | The financial institution that receives the money before being sent to the beneficiary bank (only applicable in some cases) |
What To Do Now?
- Please review your wire templates and delete any that are no longer needed.
- Consider contacting vendors for updated payment instructions to meet requirements, including bank information and physical addresses.
- Be on the lookout for communication on ISO 20022 from us. We will provide additional details regarding any changes to your wire origination process as we approach the July 14th, 2025 deadline.
Questions?
Please contact us if you have any questions.
Email us at [email protected] // Call us at 800.330.9890 to speak to a representative.