What ISO 20022 means for you
ISO 20022 are the new wire messaging standards that will go into effect for all U.S. banks in 2025. These unified global standards for financial messaging provide consistent, rich and structured data that can be used for every kind of financial business transaction. All inbound and outbound wires will be required to adhere to these new standards.
We have been working to minimize the impact on you and will explain these changes as they’re implemented. Our team is here to guide you through these updates to ensure your processing is uninterrupted.
Capital One is pursuing fully structured address information for our wire payments as it puts us and our customers in the best possible position to minimize change based on future network and industry standardization. Using fully structured address also provides the most flexibility and helps maximize the benefits as outlined below, such as expedited processing times.
Enhanced data and structure provides more detailed wire instructions and improved transaction accuracy
Reduced processing times and improved automation capabilities for faster and more reliable transactions
A common standard for both domestic and international facilitates smoother and faster cross-border payments
Changes required will depend on the services you use. Capital One will be providing specific instructions for each client. Check back for regular updates.
What do I need to do right now?
Commercial Bank clients who send and receive wires should’ve already received a letter addressing these upcoming changes.
To start preparing, you can
When will these changes take place?
These changes will require that all Capital One inbound and outbound wires adhere to new domestic and international wire messaging standards. Each service you use may have different timelines which we’ll share with you.
Starting today, will the way I see information reporting for wires change?
You’ll continue to see your information related to your wires on the same screens, with transaction information for domestic wires on the “Account Summary” page or within the “Prior Day” and “Current Day” reports in Intellix.
What will the changes entail?
ISO 20022 will include new field lengths that avoid abbreviations and structured address fields. It’ll also create new fields for the ultimate creditor, ultimate debtor and the initiating party, with a structured address for each party.
What are the advantages to moving to a global standard for wire data transmissions?
ISO 20022 will provide a common language across the global payments industry, making it easier and safer to send wires. Plus, the new field lengths will reduce the need for abbreviations in wire data fields and help reduce potential fraud.
The new ISO 20022 standards allow for greater detail around the parties involved in a wire transaction. It also increases field lengths to capture data describing the transaction and provides structured fields to define address details.
Is there someone who can help me transition to ISO 20022?
As Capital One makes changes to meet the new formatting standards, we’ll be in touch to share updates and help you understand and navigate each change to help you meet these new standards. Reach out to your Relationship Manager, Treasury Management consultant, or service contact with questions.
What does a “fully structured address” mean?
A fully structured address is where each component of the address (e.g. building number, street name) has an independent space in which it can be entered, without commingling the various address components into a single line (e.g. address line 1, 2, 3).
What are the benefits of having structured fields?
It improves the data quality of wires, which leads to improved transaction accuracy, better analytics, reduced processing times, improved automation and it describes the transaction more clearly.
With the release of ISO 20022 expect to see the following new parties available for wire initiation
Ultimate party to which an amount of money is due.
Ultimate party that owes an amount of money to the (ultimate) creditor (e.g. a party whose name appears on an invoice).
Party that initiates the payment out of the debtor’s account (optional).
If you have any questions, please contact your Treasury Management service team or send us an email.