Payment Facilities Overview

Table of Contents

Payment Facilities

Payment Facilities must be established by a Participant* for the settlement of funds via the CSP for the following:

If a Participant initiates a request for the settlement of funds and that Participant has not established a Payment Facility, then the CSP will reject their request.

*In relation to the Payments Facilities Functional Specification, Participant represents one of the following:

  • Settlement Participant and/or Controlling Participant; or
  • Product Issuer Settlement Participant (PISP).

Payment Providers

Prior to setting up a Payment Facility in the CSP, all Participants are required to establish a payment relationship with a Payment Provider. For Payment Facilities with a Payment Facility sub-type of either Batch (BATC), mFund Application (MFAP) or mFund Redemption (MFRD), the relevant Bank Account details being set-up by the Payment Provider are not captured or stored in the CSP, but are managed by the Payment Provider outside of the CSP. In addition to the Participant Bank Account details being set-up outside of the CSP, a Payment Provider is responsible for establishing and maintaining details of the Payment Facility per the Payment Facility Details Report which they will receive from the CSP.

For Bilateral Demand Settlement Instructions, the relevant Bank Account details will be captured and stored in the CSP against the specific Payment Facility and Payment Facility sub-type. The Bank Account details will be included in the Settlement Request (i.e. payment message) sent to the payment service (CHESS RTGS).

Payment Facility Creation

A Participant must submit a Create Payment Facility form to ASX Operations who will process the form in accordance with the Create Payment Facility ProcessThe Create Payment Facility Request form must stipulate the type of Payment Facility and Facility sub-types that are to be created.

Once the CSP has created a Payment Facility, details for the Payment Facility will be notified to the Participant and Payment Provider.

Payment Facility Type

The following Payment Facility Types can be created:

Payment Facility TypeDescription
Account Specific**

At least one Account (HIN) must be associated with an Account Specific Payment Facility. An Account Specific Payment Facility may be associated with more than one Account (HIN).

A Participant may establish any number of Account Specific Payment Facilities. 

A single Account (HIN) can only be associated with one Payment Facility sub-type combination. Refer to Payment Facility Set-up Examples for further details.

Nominated

All existing Accounts (HINs) for a given Payment Facility sub-type, (excluding those associated with an Account Specific Payment Facility) and every Account (HIN) created subsequently, are associated to the Nominated Payment Facility.

A Nominated Payment Facility may be created with multiple Payment Facility sub-types, however there must only be one Nominated Payment Facility for a particular sub-type.

**A single Payment Facility Request form for an Account Specific Payment Facility is limited to 200 Accounts (HINs). However, where more than 200 Accounts (HINs) need to be associated to an Account Specific Payment Facility, the Participant will need to subsequently submit a Payment Facility Update Request form, so ASX Operations can associate the additional Accounts (HINs) to the specified Payment Facility.

Payment Facility Sub-types

For each Payment Facility Type a Participant may request up to three Payment Facility sub-types to be associated. Once a Payment Facility sub-type is associated, the CSP will allow the corresponding transactions to be processed.

The table below outlines the different parties that represent the Payer and Payee for each Payment Facility sub-type.

Payment Facility Sub-typePayment Facility UsePayerPayeeBank Account Required
Batch (BATC)Batch SettlementSettlement ParticipantSettlement ParticipantNo
Bilateral Demand Payer (BDSP)RTGSSettlement ParticipantSettlement ParticipantYes
Bilateral Demand Payee (BDSR)RTGSSettlement ParticipantSettlement ParticipantYes
mFund Application (MFAP)Batch SettlementSettlement ParticipantProduct Issuer Settlement ParticipantNo
mFund Redemption (MFRD)Batch SettlementProduct Issuer Settlement ParticipantSettlement ParticipantNo

A standalone Payment Facility must be used for each mFund sub-type. A single Payment Facility cannot be for used for both mFund Applications and mFund Redemptions.

Payment Facilities used for mFund Applications or mFund Redemptions must also be separate from Payment Facilities created for Batch Settlement and/or Bilateral Demand Settlement Instructions.

Payment Facility Set-up Examples

Account Specific Payment Facility

Settlement Participant

The following diagram depicts an example of how a Participant may structure an Account Specific Payment Facility. In this example, the Participant has five Accounts (HINs) of which two are associated to Payment Facility 111111, and three are associated to Payment Facility 222222.

All payment instructions that target one or more of the Accounts (HINs) associated with Payment Facility 111111 will be aggregated.

All payment Instructions that target one or more of the Accounts (HINs) associated with Payment Facility 222222 will be aggregated.

In each case, the Accounts (HINs) associated with Payment Facilities 111111 for Payment Facility sub-type Batch Settlement (BATC), cannot be associated with Payment Facility 222222 for Payment Facility sub-type Batch Settlement (BATC) and vice versa.

Nominated Payment Facility

Settlement Participant and Controlling Participant

A nominated Payment Facility associates all Accounts (HINs); not already associated with an Account Specific Payment Facility; to a Nominated Payment Facility.

To enable funds processing of Batch Settlement or a Bilateral Demand Settlement Instruction, a Participant may request to have one or more of these Payment Facility sub-types for a Nominated Payment Facility.

The following diagram depicts the structure of a Participant's Nominated Payment Facility, in the absence of an Account Specific Payment Facility. In this example, the Participant has five Accounts (HINs) that are all associated to Payment Facility 333333.

In this scenario, Payment Facility 333333 is associated with all of the Accounts (HINs) under the Participant’s control. The payment of instructions through Batch Settlement that target one or more Accounts (HINs) for Payment Facility 333333 will be aggregated under Payment Facility 333333.  Additionally, a Bilateral Demand Settlement Instruction that targets an Account (HIN) for Payment Facility 333333 and Facility sub-type of BDSR or BDSP will have it's respective bank account details included in the Settlement Request message that will be sent to the CHESS RTGS feeder system.

A Participant must create a separate Payment Facility to enable the processing of an mFund Application and/or mFund Redemption payments.

In this scenario, all payments made for mFund Applications or mFund Redemptions will be made from Payment Facilities 444444 and 555555 respectively.

Product Issuer Settlement Participant (PISP)

The following diagram depicts an example of how a PISP may structure a Nominated Payment Facility. A PISP cannot create an Account Specific Payment Facility.

A PISP must create a separate Payment Facility to enable the processing of an mFund Application or mFund Redemption.

In this scenario, all payments made by a PISP for mFund Redemptions or received for mFund Applications will use Payment Facilities 777777 and 666666 respectively.

Mixed Payment Facility Structure

Settlement Participant and Controlling Participant

A Participant may establish a combination of Account Specific Payment Facilities in addition to a Nominated Payment Facility, as depicted in the diagram below. In this example, the Participant has 10 Accounts (HINs) of which two are associated to Payment Facility 111111, three are associated to Payment Facility 222222, and the remaining five are associated to Payment Facility 333333.

The Participant also has separate Payment Facilities set-up to enable the processing of mFund Application or mFund Redemption payments, Payment Facilities 444444 and 555555.

Payment Facility Updates

The CSP facilitates three different update processes for existing Payment Facilities through the Update Payment Facility Process:

  • the addition or removal of Payment Facility sub-types; or
  • the association or disassociation of new or existing Accounts (HINs) to a Payment Facility type and Payment Facility sub-type; or
  • the addition or removal of Bank Accounts for allowable Payment Facility sub-types.

Once a Payment Facility is updated, the Participant and Payment Provider will be notified through a Payment Facility Details Report.

Change in Payment Provider

The CSP facilitates a change in Payment Provider for a Payment Facility where a Participant submits a Change Payment Provider form to ASX Operations through the Update Payment Provider Process. Where successful, the nominated Payment Facilities will have their Payment Provider changed to the New Payment Provider. The Participant, previous Payment Provider and New Payment Provider will be notified of a change in Payment Provider through a Payment Facility Details Report.

Payment Facility Cancellation

A Participant may also request to cancel a Payment Facility through the Cancel Payment Facility Process. Where successful, the targeted Payment Facility will be closed and no longer available for use. The Participant and Payment Provider will be notified of the cancellation through a Payment Facility Details Report.



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