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SEPA mobile

Corporate SEPA
Instant Payments:
The Pressure is Real

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It’s 4:45 PM on a Friday, and a large corporate client initiates a €2 million payment to a key supplier. The goods are waiting, the trucks are loaded, and the supplier needs the funds now to release the shipment.

The request hits the bank’s systems.

Behind the scenes, the Payment Engine springs into action, coordinating the flow of this high-stakes transaction. But corporate payments are anything but simple. Unlike retail payments, this isn’t about a single account. The bank must:

  • Aggregate balances across a web of accounts in the corporate hierarchy.
  • Apply group-level policies and limits.
  • Ensure compliance with regulations like AML, CTF, and GDPR.

All of this happens under immense time pressure, with SEPA Instant Payments mandating a strict SLA of just 10 seconds to process or fail the transaction.

This is where Transaction Limits Management (TLM), Intellect’s real-time risk and exposure control, and payments decisioning system, plays a critical role. TLM ensures every transaction adheres to predefined limits, aggregates balances across multiple accounts in the corporate account hierarchy, and determines the gross and net positions to deliver a precise pay/no pay decision instantly.

How It Happens: The 10-Second Journey

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  1. Pre-Processing, Enrichment, and Validation (0-1 Second)
    The Payment Engine receives the payment request and initiates the preliminary steps:
    • Enrichment ensures all required details, such as IBAN and payment references, are accurately populated.
    • Validation checks for format consistency, missing information, and potential errors to ensure smooth downstream processing.
  2. Fraud, Sanctions, and Compliance (1-3 Seconds)
    After validation, the transaction undergoes critical regulatory and risk checks:
    • Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules are applied.
    • Sanctions screening ensures no restricted or high-risk entities are involved.
    • GDPR-compliant IBAN matching safeguards regulatory compliance.
  3. Funds Check (3-5 Seconds)
    • TLM aggregates balances across the corporate hierarchy—central, regional, and subsidiary accounts—to meet the payment requirement.
      Example: €1.2 million in a central account, €500,000 in a regional account, and €300,000 in a subsidiary account combine to fulfill the €2 million payment.
    • Corporate-defined policies and group-level limits are applied.
    • TLM determines the gross and net positions to ensure risk thresholds are maintained.
    • Once the required funds are locked (earmarked), TLM instantly delivers a pay/no pay decision, keeping the process moving without delays.
  4. Interbank Processing and Funds Reconciliation (5-10 Seconds)
    • The Payment Engine sends the validated and approved transaction to the clearing and settlement network.
    • The beneficiary bank receives the payment and reconciles it.
    • Funds are credited, and the corporate client is notified, completing the transaction seamlessly within the SLA.
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The Unique Complexity of Corporate Payments

Corporate payments demand more than speed:

  • Multiple Accounts: Payments check funds from a network of accounts, not just one.
  • Hierarchical Policies: Group-level limits and policies must be enforced in real time.
  • Critical Timelines: Failure to meet the SLA doesn’t just delay payments—it disrupts business operations and erodes trust.

How TLM and the Payment Engine Work Together

TLM handles the Complexity:

  • Aggregates balances and limits across corporate hierarchies
  • Provides precise pay/no pay decisions within milliseconds
The Payment Engine coordinates the flow:
  • Orchestrates real-time interactions between TLM, compliance systems, and interbank networks
Corporate SEPA Instant Payments are complex, but with TLM and a robust Payment Engine, banks can deliver precision, speed, and reliability—all in 10 seconds.
Empower Your Bank's Potential with the TLM
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Frequently Asked Questions

SEPA Instant Payments enable real-time, 24/7 payments across Europe with a strict 10-second SLA. For corporations, they ensure faster supplier payments, seamless operations, and improved cash flow management.
TLM aggregates balances across corporate hierarchies, applies group-level limits, and ensures real-time risk control, delivering precise pay/no pay decisions within milliseconds.
Processing corporate payments involves managing multiple accounts, enforcing hierarchical policies, adhering to regulatory compliance, and meeting stringent SLAs, all while maintaining precision and reliability.
The Payment Engine orchestrates the entire payment process—validating, enriching, and routing transactions, while seamlessly integrating with TLM and compliance systems to meet SLAs.
Compliance checks, including AML, sanctions screening, and GDPR adherence, are automated and performed in real-time, ensuring regulatory requirements are met without delaying transactions.

Empower Your Bank's Potential with SEPA Instant Payments

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