ISO 20022 Wire Transfer Changes
Effective July 14, 2025, the Federal Reserve will be transitioning wire transfers to a new global standard known as ISO 20022. This change affects how banks send and receive wire payment information and is designed to enhance security, improve the quality of transaction data, and ensure smoother global wire transfers. Here are the highlights:
What is ISO 20022, and why is it changing?
ISO 20022 is a new, international standard for sending payment information between financial institutions. It provides a more structured and comprehensive data format for wire transfers, resulting in fewer errors, enhanced security, and improved tracking and compliance with international standards, while also aligning domestic and international wire processes for greater consistency and efficiency.
Does this affect all types of payments?
No. This change only affects wire transfers. ACH Payments (such as payroll, vendor payments, or recurring debits) are not impacted. If your business or organization does NOT send or receive wires, you don't need to take any action.
Key changes you need to know
Starting July 14, 2025, the following changes will go into effect:
-Wire templates must be updated to the new ISO 20022 format before submitting wires.
-You will need to verify your templates have all the required information.
-Wire template screens in Online Banking will not reflect the new terminology. While you'll still see the old field labels in the wire input form, you'll be required to enter the new ISO-formatted information.
How can I prepare my business or organization?
If you send or receive wire transfers, we recommend taking the following steps to ensure your wire transfers process smoothly without interruption:
- Update your wire templates by July 14, 2025, with the following mandatory information:
-Beneficiary Name
-Beneficiary Address (at least City and State; a full address is preferred for greater accuracy)
-Beneficiary Bank Name
-Financial Institution Address (at least City and State)
- Reach out to vendors or payees to make sure you have all required information on file.
- Communicate with your bookkeeping team to make sure they're aware of these upcoming changes.
- Watch for additional updates from us about changes to our wire submission forms or processes.
Steps to Update Your Wire Templates:
1. Log into your Online Banking account.
2. Navigate to your saved wire templates.
3. Edit each template to include the required information listed above.
4. Save your changes.
New ISO 20022 Terminology Examples
You will start to see new wording in wire instructions and confirmations.
Here is a quick reference of frequently used terms that will be changing:
|
Current Field Name |
New Field Name |
Required Field |
|
Originator Financial Institution |
Debtor Agent |
Yes |
|
Receiver Financial Institution |
Instructed Agent |
Yes |
|
Intermediary Financial Institution |
Intermediary Agent |
|
|
Beneficiary Financial Institution |
Creditor Agent |
Yes |
|
Originator |
Debtor |
Yes |
|
Beneficiary |
Creditor |
Yes |
|
Reference for Beneficiary |
End to End Identification |
|
|
Originator to Beneficiary Info |
Remittance Information |
*While River Bank & Trust’s online wire forms won't display these new terms, we encourage you to become familiar with them.