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For customers with accounts in Saudi Arabia: Purpose of Payment code requirement for type O and N ACH Credit transactions

Last updated: 4 June 2018

العربة

As previously communicated, the inclusion of Purpose of Payment codes will be mandatory as of 30 June 2018 for type O and N (non-Wages Protection System WPS) ACH transactions from accounts in Saudi Arabia.

This change is in accordance with local regulatory requirements issued by the Saudi Arabian Monetary Authority. This requirement does not affect your Wages Protection System (Saudi WPS ACH ) payments (type S - Salary and B - Bonus).

What does this mean for me?

Effective 30 June 2018, type O and N ACH Credit payments without a valid Purpose of Payment code will be rejected.

Since 3 December 2017, if a type O and N ACH Credit payment is sent to Repair (via the Payment Summary service), the payment creator is required to input a valid Purpose of Payment code to be able to proceed with the payment.

View the list of Purpose of Payment codes for type O and N ACH Credit transactions in Saudi Arabia >

What do I need to do?

To avoid payment delays or rejections, we recommend that you include a valid Purpose of Payment code in your type O and N ACH Credit instructions before 30 June. This applies for payments submitted on-screen in HSBCnet or via the File Upload service.

Payments created on-screen in HSBCnet

For your type O and N ACH Credit instructions, provide the Purpose of Payment code in the ‘Purpose of Payment’ field. You can update your payment templates with this information as soon as possible.

Payments submitted via the File Upload service

The following table outlines the Purpose of Payment file formatting requirements for your type O and N ACH Credit payments, effective since 3 December 2017:

Find out more

To request an updated Message Implementation Guide (MIG) for formatting your payment files, please contact your Client Services Representative.

If you have questions about Purpose of Payment code requirements for your ACH transactions in Saudi Arabia, please contact your local HSBCnet Support Centre or your SABB representative.

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