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    03 — Value stream · VS-430

    Payment-to-Settlement

    Carry a payment a customer or the bank initiates, by batch, wire, instant rail or card, from instruction to final settlement and reconciliation. Disputes and claims that follow a settled payment start a separate case; the enterprise paying its own suppliers is Procure-to-Pay (VS-30).

    • Payment Lifecycle
    • Pay-to-Settle
    • Payments Processing Chain
    • Instruction-to-Finality
    // FIG. 03 · Stage flow
    1Initiate & Valida…2Screen & Authorize3Clear4Settle5Reconcile & Resol…
    1. 01

      Initiate & Validate

      VS-430.10

      Capture the instruction, validate and repair it, and choose the rail by amount, urgency and destination.

    2. 02

      Screen & Authorize

      VS-430.20

      Screen the parties against sanctions lists, score the payment for fraud and, for cards, authorize as acquirer and issuer.

    3. 03

      Clear

      VS-430.30

      Exchange the payment with the other bank or scheme, directly, through a clearing system, a card network or correspondents.

    4. 04

      Settle

      VS-430.40

      Settle positions on settlement accounts and with the card networks, funding intraday positions so the day's payments keep flowing.

    5. 05

      Reconcile & Resolve

      VS-430.50

      Reconcile settled payments to the books, fund merchants, and handle returns, rejects and breaks.