Instant Credit Transfer

SEPA Instant Credit Transfer
SEPA Instant Credit Transfer, also referred to as SCT Inst., is a credit transfer scheme created in November 2016 by the European Payments Council, enabling pan-European Euro credit transfers where the funds are made available on the beneficiary account, with the below three key characteristics (details available in the SCT Inst EPC rulebook):
A target maximum execution time of 10 seconds
A maximum amount of 100,000.00 euros per transaction
Availability 24/7/365 (including during inter-bank holidays)
When setting up your instant transfer, you can choose to fallback to a standard transfer in case the instant transfer can't be completed.
Additionally, we can't complete instant transfers between two Swan accounts.
Incoming SEPA Instant Credit Transfer
When a Swan account receives a SEPA Instant Credit Transfer request from an issuing bank, Swan performs a few automated controls and then responds positively or negatively to the request. When the issuing bank confirms the response from Swan, a transaction is created in the concerned Swan account with the SepaInstantCreditTransferIn type:
Either in the Booked status
Or in the Rejected status, with a detailed rejection reason code when the credit transfer cannot be credited (for example because of a SwanTimeout or of a DebtorBankTimeout)
Outgoing SEPA Instant Credit Transfer
An outgoing SEPA Credit Transfer has three mode options, two of which are instant.
InstantWithoutFallback: if the Instant SEPA Credit Transfer is rejected, the transaction is rejected and a new transaction must be initiated by the sender
InstantWithFallback: if the Instant SEPA Credit Transfer is rejected for most reasons, a regular SEPA credit transfer will be initiated automatically
Regular: regular SEPA credit transfer, which can take up to three business days
The issuing of an outgoing SEPA Instant Credit Transfer can be triggered using the initiateCreditTransfers API mutation with an input mode of either InstantWithoutFallback or InstantWithFallback.
A transaction with the SepaInstantCreditTransferOut type is created in the Swan account in the Upcoming status when the requestedExecutionAt input contains a future date, or in the Pending status when the requestedExecutionAt input is empty.
A set of controls is then performed in real-time by Swan:
Swan verifies the capacity of the beneficiary bank to receive SEPA Instant Credit Transfer transactions (also referred to as reachability). In case the beneficiary bank is not reachable on the SCT Inst. scheme, the SepaInstantCreditTransferOut transaction is moved to the Rejected status with the BeneficiaryBankNotReachable rejection reason code
The SepaInstantCreditTransferOut transaction is checked against Swan's payment risk engine. A hit on the risk engine usually leads to a manual review by a Swan Compliance Officer for regular SEPA Credit Transfer transactions, but that is not possible for SEPA Instant Credit Transfer transactions as Swan would not be able to guarantee instantaneity. As a result, and in case of a hit on Swan's payment risk engine, the SepaInstantCreditTransferOut transaction is moved to the Rejected status, with a RegulatoryReason rejection reason code. The recommended action is for the Swan account holder to issue a regular SEPA Credit Transfer transaction
When and if all controls pass, Swan issues the SepaInstantCreditTransferOut transaction to the beneficiary bank, which can then decide to:
Accept the transaction: the SepaInstantCreditTransferOut transaction is then moved to the Booked status
Reject the transaction: the SepaInstantCreditTransferOut transaction is then moved to the Rejected status, with a rejection reason code detailing the reason for rejection (for example AccountClosed)
We use EBA-RT1 and TIPS Clearing & Settlement Mechanisms (CSM), which are two of the major CSMs for SEPA Instant Credit Transfers accounting for 90% of the total reachability.
We can send SEPA Instant Credit Transfers to all banks connected to either EBA-RT1 or TIPS, but we cannot send instant transfers if the bank is not connected to at least one of these CSMs.
Attempts to send SEPA Instant Credit Transfers to banks not connected to EBA-RT1 or TIPS are rejected with the reason BeneficiaryBankNotReachable. If you chose InstantWithFallback when setting up your transfer, we'll send it as a regular transfer. Otherwise, you'll need to initiate a new transfer.
Fallback to regular transfer
For all instant SEPA credit transfers where mode is InstantWithFallback, an instant transfer will fallback to a regular transfer if the instant transfer is rejected.
With few exceptions, a regular transfer is created automatically when an instant transfer is rejected. If the recipient's account can't be found, the account is closed, or the account holder is deceased, the new regular transfer will not be created.
If a regular transfer is sent as a fallback, you'll see two transactions on your statement:
1.Rejected SCT instant
2.Fallback SCT
There is a filter includeRejectedWithFallback you can use when querying transactions. Choose false by default so your customers won’t see the rejected instant transfer on their transaction history.
Recall transactions
When the issuer of a SEPA Instant Credit Transfer towards a Swan account asks their bank to recall the transaction, for example, because it was issued by mistake, Swan receives the request and asks the Swan account holder whether they accept the recall request or not. When the Swan account holder accepts the recall request and if the available balance of the concerned account is sufficient, funds are debited back from the Swan account, through a transaction with the SepaInstantCreditTransferInRecall type created in the Pending status (and then moved to the Booked status) under the same payment ID as the original SepaInstantCreditTransferIn transaction. 
You can simulate the reception of SEPA Instant Credit Transfer recall in the Sandbox using this mutation.
When a user asks Swan to recall a SEPA Instant Credit Transfer that was previously issued for example by error, Swan transfers the request to the bank that received the initial credit transfer so that the bank can ask the beneficiary whether they accept the recall request or not. When the beneficiary accepts the recall request, funds are credited back to the Swan account, through a transaction with the SepaInstantCreditTransferOutRecall type created in the Booked status under the same payment ID as the original SepaInstantCreditTransferOut transaction.
You can simulate the issuing of SEPA Instant Credit Transfer recall in the Sandbox using this mutation.
Sandbox
Simulate issuing a SEPA Instant Credit Transfer
Perform this simulation in the normal API section of the API Explorer.
Request
Response
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mutation MyMutation {
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  initiateCreditTransfers(
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    input: {
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      creditTransfers: {
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        amount: { value: "", currency: "" }
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        sepaBeneficiary: {
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          iban: "$TARGET_IBAN"
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          name: "$ACCOUNT_NAME"
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          isMyOwnIban: false
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          save: false
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        }
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        mode: InstantWithFallback
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      }
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      consentRedirectUrl: "$YOUR_APP_URL"
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      accountId: "$YOUR_ACCOUNT_ID"
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    }
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  ) {
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    ... on ForbiddenRejection {
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      __typename
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      message
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    }
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    ... on AccountNotFoundRejection {
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      id
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      message
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    }
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    ... on InitiateCreditTransfersSuccessPayload {
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      __typename
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      payment {
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        id
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        statusInfo {
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          status
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          ... on PaymentConsentPending {
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            __typename
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            consent {
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              consentUrl
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            }
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          }
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        }
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      }
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    }
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  }
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}
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​
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{
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  "data": {
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    "initiateCreditTransfers": {
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      "__typename": "InitiateCreditTransfersSuccessPayload",
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      "payment": {
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        "id": "TRANSACTION_ID",
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        "statusInfo": {
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          "status": "ConsentPending",
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          "__typename": "PaymentConsentPending",
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          "consent": {
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            "consentUrl": "https://identity.swan.io/consent?consentId=$CONSENT_ID&env=Sandbox"
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          }
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        }
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      }
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    }
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  }
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}
Simulate receiving a SEPA Instant Credit Transfer
Perform this simulation in the Testing API section of the API Explorer.
Request
Response
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mutation MyMutation {
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  simulateIncomingSepaCreditTransferReception(
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    input: {
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      amount: { value: "100", currency: "EUR" }
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      creditorIban: "$CREDITOR_IBAN"
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      creditorName: "$CREDITOR_NAME"
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      debtorIban: "$DEBTOR_IBAN"
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      debtorName: "$DEBTOR_NAME"
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      isInstant: true
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    }
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  ) {
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    ... on SimulateIncomingSepaCreditTransferReceptionSuccessPayload {
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      __typename
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      transactionId
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    }
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    ... on ForbiddenRejection {
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      __typename
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      message
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    }
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  }
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}
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​
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{
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  "data": {
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    "simulateIncomingSepaCreditTransferReception": {
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      "__typename": "SimulateIncomingSepaCreditTransferReceptionSuccessPayload",
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      "transactionId": "$TRANSACTION_ID"
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    }
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  }
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}
Credit Transfer
Direct Debit
Last modified 2mo ago