If you’re making cross-border payments, you may start to see or hear about pacs.008 and be wondering what it is. At Rutland FX, many of our clients are used to seeing the MT103 on our platform or being asked by suppliers to provide one as proof of payment.

But things are changing. Under SWIFT’s CBPR+ programme, the MT103 is scheduled to be phased out for cross-border payments by November 2025, with pacs.008 becoming the new global standard. While some translation services may exist for a time, the industry is moving decisively towards ISO 20022 and pacs.008.

What is pacs.008?

pacs.008 is a standardised financial messaging format defined by ISO 20022. It represents the FI-to-FI Customer Credit Transfer message, carrying structured XML payment data between financial institutions. On the SWIFT network, pacs.008 is being rolled out under the CBPR+ (Cross-Border Payments and Reporting Plus) initiative as the direct replacement for the legacy MT103. Unlike MT103, which was proprietary to SWIFT, pacs.008 is a global ISO 20022 standard used in both cross-border and domestic payment systems.

From MT103 to ISO 20022 pacs.008

MT103 is the classic customer credit transfer message used on the SWIFT FIN network—proprietary to SWIFT and based on text tags. The industry is now moving to ISO 20022, a standardised and structured XML data model used globally across domestic and cross-border systems. Under SWIFT’s CBPR+ (Cross-Border Payments and Reporting Plus) initiative, SWIFT has adopted ISO 20022 for cross-border use and is replacing MT103 with pacs.008.

What if a supplier still asks for an MT103??

At Rutland FX, accessing the pacs.008 for your payment is straightforward:

• Through your online account – Once a payment has been dispatched, you can log into your Rutland FX account, locate the payment, and click through to the payment confirmation screen. The pacs.008 details will be available there.

• After dispatch only – You will only see the pacs.008 once the payment has actually been sent. It won’t be available while the payment is still pending.

• Via your account manager – If you use telephone dealing or can’t access the platform at the time, you can also ask your Rutland FX account manager to provide the pacs.008 confirmation for you.

This ensures you always have access to the correct proof of payment, whether through the platform or directly from your account manager.

Can I still trace delayed payments with a pacs.008?

Yes — just like the MT103, you can still trace delayed payments using the new format. Instead of providing the MT103, you can give the pacs.008 details or the UETR (Unique End-to-End Transaction Reference) to the receiving bank.

The UETR in particular is very powerful because it allows real-time tracking through the SWIFT gpi network. This means the receiving bank can quickly identify where the payment is in the chain and resolve any delays.

In practice, if a supplier or bank is chasing for payment, simply provide them with the pacs.008 or the UETR, and they will be able to trace the funds just as they would have done with an MT103.

You may have been asked by Rutland FX — or another financial institution — to complete something called a “Penny Test.” If you’re unsure what that means or why it’s required, you’re not alone. In this article, we’ll break down what the penny test is, who it applies to, and why it’s an important part of financial compliance — especially for clients based in the European Economic Area (EEA).

What Is a Penny Test?

A Penny Test is a simple but essential verification step used to confirm that you have access to a valid, active bank account in the name of the registered entity. To complete it, you’ll need to send a small payment — typically as little as €0.01 (or the equivalent in another currency) — from your business or personal bank account, as long as the account name matches the name of the applicant.

This one-time step allows us to verify ownership of the account and meet regulatory requirements. Once complete, your account will be fully enabled for outbound payments and regular use.

Who Needs to Complete a Penny Test with Rutland FX?

At Rutland FX, only clients based in the European Economic Area (EEA) are required to complete a penny test. This is due to additional regulatory obligations we must meet when onboarding clients through our payment partner, Currencycloud B.V., in the Netherlands.

To be clear:

• The payment must come from a bank account held in your name.

• It must be sent from a bank located in the EEA.

We cannot accept funds from third parties or unrelated accounts for this verification.

Why Do We Require a Penny Test?

Rutland FX is a cross-border payments specialist operating in partnership with Currencycloud. For customers based in the European Economic Area (EEA), services are provided by Currencycloud B.V., which is authorised and regulated by De Nederlandsche Bank (DNB) for the issuing of electronic money (Relation number: DNB R142701).

As part of the regulatory obligations under this licence, Currencycloud B.V. must verify that each client holds a legitimate, named bank account within the EEA. This requirement helps to:

• Prevent fraud and money laundering

• Ensure any returned funds are sent securely to a verified source

• Comply with EU regulations governing electronic money institutions

Without this verification, Currencycloud cannot process outbound payments or fully activate your account. This safeguard is a standard compliance measure for most EMIs.

How Long Does the Penny Test Take?

Once we receive your penny test payment, verification is typically completed within 1–2 hours during business hours. If it hasn’t been verified within that time, please contact your Rutland FX Account Manager for assistance.

Please note that this timeframe begins only after the funds arrive in your account. The time it takes for your penny test to reach us depends on the payment method you choose:

• SWIFT payments are usually received the same day, especially for major currencies, and can be a quicker option overall — though fees may apply depending on your bank.

• SEPA transfers (EUR) can also arrive the same day, but in some cases may take a bit longer to process, depending on your bank’s cut-off times and processing cycles.

If you’re sending €0.01 specifically for the penny test, it may be more cost-effective to use SEPA, as many banks do not charge a fee for small SEPA transfers, whereas SWIFT transfers can incur charges even for tiny amounts.

Still not sure?

Our team is here to help. If you have any questions or need assistance with choosing the right payment option for your transfer, feel free to reach out to us at support@rutlandfx.com or call us on 0203 026 0112.

When sending international payments via the Rutland FX platform, you have the flexibility to choose between two types of payment methods: Regular and Priority. But what’s the difference? In this article, we will break down these two payment types and explain when each one can be used depending on your requirements. Each option comes with its own set of benefits, and the right choice depends on your specific needs.

Here’s a quick overview if your short on time:

Local Payment Rails: A Closer Look

When you select the Regular payment option on the Rutland FX platform, the system will automatically use a local payment rail. For instance, if you are sending Euros via the “Regular” option, the transaction will be processed through the SEPA network. This means the funds are routed domestically within the Eurozone, making the payment appear as though it were sent locally rather than internationally.

In practice, this often involves us dispatching the funds from a local bank in the recipient’s country, rather than from a UK-based bank. By selecting a local payment rail, you benefit from avoiding correspondent bank charges, which can save costs. However, there are a few important factors to consider:

• No tracking or traceability: Unlike priority payments, regular payments cannot be tracked or traced on the platform.
• Sender name appearance: In some cases, when the funds arrive with the recipient, it may not show your name but may instead appear as being sent from “CurrencyCloud,” our payment partner.
• Add a reference: To ensure the recipient knows the payment is from you, we recommend including a reference, such as an invoice number or your name, when making the transfer.
• May take longer: Regular payments, using local payment rails, may take longer to reach the recipient compared to priority payments, depending on the country and payment network used.

Priority Payments: Our Most Transparent Transfer Method

When you choose the Priority payment option on the Rutland FX platform, your transfer will be processed through the SWIFT GPI network, offering the highest level of transparency and speed. This option ensures that you have complete control and visibility over your payment, making it ideal if you prioritise tracking and accountability.

Key Benefits of Priority Payments:

• Full Traceability: Priority payments allow you to track the transaction from start to finish directly through our platform. You can monitor the progress in real time, ensuring you know exactly where your funds are at every stage.
• Faster Processing: Payments sent via SWIFT GPI typically reach the recipient faster than those using local payment rails, making it the preferred option when timing is important.
• Transparency: Every step of the payment is visible, including when it is received by the intermediary and recipient banks. You can rest assured that your funds are moving as expected.
• Recallable and Amendable (in some cases): In certain situations, priority payments may be recalled or amended if needed, providing flexibility and added security. However, this is not guaranteed and depends on various factors such as the recipient bank’s policies.

Things to Keep in Mind:

While Rutland FX does not charge extra for choosing the Priority option, there may be correspondent bank fees involved. As your payment moves through the SWIFT network, intermediary banks may apply small deductions, which are out of our control. This means that in some cases, the full amount might not arrive with the recipient due to these charges.

Despite this, priority payments remain the best option if you want a fully traceable and transparent transfer process that ensures both speed and reliability.

Still not sure?

Our team is here to help. If you have any questions or need assistance with choosing the right payment option for your transfer, feel free to reach out to us at support@rutlandfx.com or call us on 0203 026 0112.

We wanted to inform you about some important updates to our platform that will enhance the security of your transactions. Starting from 21 October 2024, some outbound payments made via our online platform may require Two-Factor Authentication (2FA). This additional security step will help ensure your payments are processed safely and securely.

If you’re short on time, here’s a quick overview of the key changes:

For customers who prefer to deal via telephone or email, this change does not apply to payments instructed on your behalf by your account manager. These transactions will continue to be handled without the need for 2FA.

What is Two-Factor Authentication (2FA)?

2FA is an extra security measure where, in addition to your regular login credentials, you’ll need to confirm your identity by entering a unique code sent to you via SMS or the Authy app, similar to how you already access the platform.

When will you need to use 2FA for payments?

• Payments to new beneficiaries.
• Payments over EUR/GBP/USD 30 (or equivalent in another currency).

For these transactions, you’ll be prompted to authorise the payment using 2FA before it can be completed.

What payments are excluded from 2FA?

• Payments to “trusted beneficiaries” that you’ve successfully paid before.
• Low-value transactions under EUR/GBP/USD 30 (or equivalent).

Why are we making this change?

At Rutland FX, keeping your payments secure is our priority. By adding 2FA for certain payment authorisations, we are further protecting your transactions from unauthorised access and potential fraud.

Still not sure?

Our team is here to help. If you have any questions or need assistance with setting up 2FA, feel free to reach out to us at support@rutlandfx.com or call us on 0203 026 0112

When making foreign exchange transactions for cross-border payments, businesses often need to manage cash flow and the settlement of currency conversions. At times, circumstances arise where the settlement date of an FX transaction needs to be adjusted. In this article, we will explore the process of changing or extending settlement dates and explain how a Roll to Forward order can help achieve this.

What is a Roll to Forward Order?

A “Roll to Forward” order is a request from a customer to a financial institution to extend the settlement date of a foreign exchange contract, such as a spot trade or a maturing forward contract, to a future date. The process involves closing the original contract and rebooking it with a new settlement date at the current market rate. Any gains or losses from market changes during this process are offset when the original trade is settled.

How to Instruct a Roll to Forward Order

The process of instructing a roll to forward order may vary depending on the platform you are using. Some banking platforms, such as Lloyds Bank Arena and Barclays BARX, offer a built-in “roll to forward” function that allows users to manage FX contract extensions directly.

For customers of Rutland FX, who are typically business owners and not currency traders, we understand that handling settlement dates and currency management can be time-consuming and complex. That’s why we take care of the process on your behalf. To roll a spot trade or a forward contract, simply contact your account manager, and we will handle the roll for you.

Managing the financial health of a business, depending on its size and the number of currencies it deals with, can be a complex task. It often involves handling multiple bank accounts, receiving and sending out various currencies, or sometimes managing the same currency across different accounts. In the context of a finance director’s role or within a treasury department, cash management is a primary aspect of the day-to-day operations of a business.

In this article, we will expand on the specifics of what cash management is and explore its importance and the key practices that contribute to effective financial oversight.

What is Cash Management?

Cash management refers to the process of collecting, managing, and optimising cash flows to ensure that a business has sufficient liquidity to meet its obligations and operate efficiently. It involves a range of activities, including:

• Cash flow forecasting
• Maintaining adequate cash reserves
• Managing bank accounts
• Handling currency risks
• Moving funds to the right accounts at the right times

Effective cash management helps organisations minimise costs, maximise returns on excess cash, and ensure financial stability.

By efficiently managing these accounts, businesses can ensure that funds are available when needed and used from the appropriate accounts to optimise cash flow and minimise costs.

Managing Currency Balances and Timing Expenditures

A key part of cash management is timing large purchases and aligning them, if necessary, with large receivables while ensuring there are sufficient funds in the correct places to pay the expenses that need to be paid. Additionally, it involves avoiding unnecessary currency conversions where they are not required, in situations where there are sufficient funds to cover the costs.

By aligning cash inflows with outflows, businesses can maintain a healthier cash flow and reduce the risk of liquidity issues.

Enhancing Cash Management with Rutland FX

Conclusion

In summary, cash management is about strategically overseeing cash inflows and outflows, ensuring liquidity, and making informed decisions to support the financial health and operational efficiency of the business. This includes not only managing current cash but also planning for future cash needs and timing expenditures effectively to optimise financial performance.

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback to discuss your requirements.

We’d like to inform you about some important updates regarding our services and terms of use, which reflect recent developments within our payment service infrastructure. Our payment service provider, CurrencyCloud, has been acquired by Visa. This acquisition is expected to enhance our services and improve efficiencies. As part of this transition, we will be gradually integrating these new capabilities into our system.

Here’s a quick overview:

Changes to Service Providers

Some Rutland FX services that were previously provided by Currency Cloud Inc. and Community Federal Savings Bank (“CFSB”) will now be provided by Visa Global Services Inc. (“VGSI”). The services affected by this change for now include:

USD Top-Up Service

The USD Top-Up Service lets you send USD from your US bank account to your Rutland FX account. You can also receive USD payments directly into your Account from a third party. You’ll be notified when we receive and settle your funds.

USD Collection Service

The USD Collection Service allows you to receive USD into your Rutland FX Account using Virtual IBANs that will now be provided by VGSI. Your payers can send USD to these Virtual IBANs, and the funds will be credited to your Account once its received.

ACH Pull Service

The ACH Pull Service enables us to debit USD directly from your US bank account via an ACH transaction and transfer the funds to your  Rutland FX Account. There is a $100,000 transaction limit, and funds are credited three business days after settlement. We will notify you when funds are received and credited.

We expect further changes in the future as we continue to integrate Visa’s capabilities into our systems and will keep you updated on any developments.

What This Means For You?

These changes will impact all customers who send and receive USD through their Rutland FX account. However, there is no need for concern, as all your account details will remain unchanged. You will not need to update or make any changes to your account information.

New Terms and Conditions

We will require your agreement to the new Visa Global Services Inc. terms and conditions associated with these changes. The updated terms will be emailed to you around the 27th of July. We encourage you to review these terms carefully and submit the electronic signature at the end of the document.

What is Visa Global Services Inc. (“VGSI”)?

Visa Global Services Inc. (“VGSI”) is a subsidiary of Visa Inc., a global leader in digital payments. VGSI specialises in providing advanced payment solutions and services that cater to the evolving needs of businesses and consumers worldwide. By leveraging Visa’s extensive network and innovative technologies, VGSI delivers secure, reliable, and efficient financial services. VGSI is registered as a Money Services Business (“MSB”) with FinCEN and is a licensed money transmitter in applicable U.S. jurisdictions. The transition to VGSI aims to enhance the capabilities and reach of the services you receive, ensuring a seamless and improved user experience. Through VGSI, you can expect continued excellence in payment processing, enhanced security features, and access to a broader range of financial solutions in the future.

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback to discuss your requirements.

If you make payments as a business or an individual, you may have come across the term RTGS. Understanding what RTGS means and how it works can help for managing time-sensitive transactions effectively. In this article, we will explain what RTGS means, provide examples of how it is used, and explore alternative payment methods.

What Does RTGS Mean?

RTGS stands for Real-Time Gross Settlement. It’s a system used for the continuous, real-time settlement of fund transfers individually on an order-by-order basis, without netting. This means that transactions are settled as soon as they are processed, making RTGS one of the fastest methods of transferring money between banks. RTGS systems are becoming more common globally and are increasingly the standard expectation for consumer and business-based domestic payments, as they provide a reliable means for time-critical payments.

What Does “Without Netting” Mean?

In the context of RTGS, “without netting” means that each transaction is processed and settled individually in real-time. Unlike systems that use netting, where multiple transactions are combined and only the net amount is settled at the end of a period (also known as batch payments), RTGS ensures that each payment is settled immediately and in full. Batch payments, on the other hand, wait for a net figure to build up, usually over a specific time frame, such as an hour. Consequently, batch systems are generally slower than RTGS because they require waiting for a payment cycle to complete.

Example of RTGS in the UK: The Faster Payments System

In the UK, an example of an RTGS would be the Faster Payments Service (FPS). Launched in 2008, FPS is designed to reduce the time taken to process electronic payments. It allows individuals and businesses to send payments quickly and securely, with most transactions being processed in minutes. This is a significant improvement over previous systems, where payments could take much longer to clear. Most people in the UK should be familiar with FPS, as it is typically the default payment rail used when making a domestic transfer to pay for goods and services or to send money to a friend.

Key Features of Faster Payments in the UK:

• Speed: Payments are processed in near real-time, typically within a few seconds.
• Availability: The system operates 24/7, including weekends and holidays.
• Accessibility: Available for most types of payments, including online, mobile, and telephone banking.

What is Batch Processing?

Batch processing is the opposite of RTGS. In batch processing, transactions are accumulated over a period and then processed together at specified intervals. This method is efficient for handling large numbers of transactions but lacks the immediacy of real-time systems.

Example of Batch Processing in the UK: BACS (Bankers’ Automated Clearing Services)

One of the most well-known batch processing systems in the UK is BACS (Bankers’ Automated Clearing Services). BACS is widely used for processing large volumes of transactions around 8 in 10 salary payments in the UK are done via bacs.

Characteristics of BACS:

• Batch Processing: Transactions are collected and processed in groups rather than individually.
• Settlement Times: Typically takes three working days for transactions to clear.
• Ease of Use: Businesses can easily export BACS files using their payroll software, which can then be uploaded to their bank’s online portal for processing multiple payroll payments efficiently.

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback to discuss your requirements.

The cross-border payment industry is arguably one of the most important components of the global economy. It facilitates the movement of funds across international borders, enabling the exchange of goods and services, supporting international trade, and fostering global economic integration. Imagine a scenario where all cross-border payment systems were shut down for a month – the impact on the global economy would be catastrophic, halting trade, disrupting businesses, and affecting millions of lives. In this article, we will explore the cross-border payments industry, examining how it is set up and identifying the key players involved in ensuring the smooth flow of funds across the globe.

The Remitter

The first component of the cross-border payments industry is, of course, the remitter—the actual person or business that initiates the transfer of funds. Much like in any business transaction where there must be a willing buyer and a willing seller, the same principle applies to international payments: there must be someone who wants to initiate a payment and someone who wants to receive it. The remitter approaches a financial institution or a payment service provider to transfer funds internationally. The motivations for such transfers include personal remittances, business transactions, investment transfers, and more.

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback to discuss your requirements.

If you’re planning to send money to Mexico, either internationally or domestically, you may have encountered the term “CLABE number.” In this article, we will explain what a CLABE number is, its format, and what the alternatives are for payments to Mexico.

What is a CLABE Number?

A CLABE number (Clave Bancaria Estandarizada) is a standardised 18-digit number required for both international and domestic transactions in Mexico. It functions similarly to an IBAN or an account number in the UK, ensuring that funds are routed accurately to the recipient’s account. You can obtain the CLABE number from your recipient, and it should be listed on their bank statement, chequebook, or a supplier’s invoice.

Where Do I Enter the CLABE Number?

What Other Bank Account Details Will I Need?

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback to discuss your requirements.