Validation for Returns and Reversals in FTM CPS

Bank of Nova Scotia (aka Scotia Bank) in Canada is implementing IBM FTM CPS to support electronic payments processing compliant with Payments Canada Standard 005.

According to the standard (Standard 005 - link), **certain fields marked with * or ** are mandatory and must be validated during the processing of Return and Reversal transactions to ensure proper correlation with the original (forward) payment.

However, during implementation testing, it was found that the current product version does not validate many of these mandatory fields out-of-the-box.

For Return Transactions, the following fields are NOT being validated:

• Originating Direct Clearer's User ID

• Originator's Cross Reference Number

• Stored Transaction Type

• Institutional Identification Number

For Reversal Transactions, the following fields are NOT being validated:

• Institutional Identification Number

• Stored Transaction Type

• Originator's Short Name

• Payee Name

• Originator's Long Name

• Originating Direct Clearer User ID

• Originator's Cross Reference Number

• Originator's Sundry Information

• Originator-Direct Clearer Settlement Code

• Invalid Data Element Number

Ideally CPS should validate all the fields and functionality as per CPA standards and customers should have the ability to by-pass if they feel like specific validation is not required for them.

Proposed Enhancement to support these validation at product level and enhance process logic to prevent updating the original transaction’s status if any of the mandatory validations fail.