Updated: Jan 5, 2021
October 1, 2020
T O : All PESONet Participating Banks/Institutions
R E : VALIDATION OF ACCOUNT NUMBERS FOR BULK PAYMENTS USING PESONET
1. In connection with the request of the Social Security System (SSS) that was coursed through the Development Bank of the Philippines (DBP), we wish to inform that the PESONet ACH Steering Committee in its meeting of 16 September 2020 approved the initiative of the Clearing Operator (PCHC) to include pre-validation of account numbers for PESONet bulk transactions to address concerns of both the originating financial institution or OFI (DBP in this first use case) and the receiving financial institution (RFI) when disbursing/crediting payouts (benefits/loans from SSS in this case).
2. For PCHC to fulfill this initiative, we would like to request all PESONet participant banks to provide account number lengths and/or algorithms that will enable the PESONet Bulk Payments Service to validate account numbers that are submitted by the OFIs for processing.
3. Key features of the PESONet Bulk Payments Service that will be developed is an SFTP interface that will be able to process up to 1 million transactions per batch while allowing for pre-processes that will help mitigate issues with data quality that are inherent when processing large volumes of transactions.
4. Among the pre-processes in the PESONet Bulk Payments Service, it will include simple validation of the account numbers contained in the Bulk Payment File against algorithms that are provided by the RFIs.
5. The PESONet Bulk Payments Service allows for three (3) validation types that RFIs may select based on their own preference and internal considerations, to wit:
a. Account Number Length Validation – a validation that checks whether the account number provided by an OFI in the Bulk Payment File corresponds to the proper length provided by the RFI; or
b. Fixed Algorithm Validation – a validation where the length and format of the account number provided by an OFI in the Bulk Payment File is validated against a format provided by the RFI (e.g. ann nn nnnnnn); or
c. Complex Algorithm – a validation that may be able to validate that the account number corresponds to a specific product type, while also allowing for the capability to validate modulo and check digits provided by the OFI in the Bulk Payment File against the rules provided by the RFI
6. Using the PESONet Bulk Payments Service , RFIs will benefit from more efficient processing as the possibility of receiving invalid account numbers from Bulk Payments is greatly reduced, thus allowing RFIs to provide faster turnaround when receiving Bulk Payments and allowing them to meet the timelines for submitting the PESONet Status Update File.
7. Participant banks may accomplish the attached form, scan/convert into pdf format and send via secured mail (or send with password) to PCHC on or before October 11, 2020. Rest assured that all provided information shall be kept in strict confidence.
8. We count on the full cooperation of all PESONet participating banks.