Payment instruction and Instruction to Bank codes are changing

As part of our ongoing alignment with ISO 20022 standards, the way that instruction codes are used in payment instructions is also changing.

What’s changing?

In line with ISO 20022 standards, the following instruction codes will no longer be supported in payment instructions submitted in HSBCnet, the HSBCnet Mobile app, and HSBC Connect:

Instruction code	Description
PHON	Please advise account with institution by phone
PHOI	Please advise the intermediary institution by phone
TELI	Please advise the intermediary institution by the most efficient means
TELE	Please advise account with institution by the most efficient means
REPA	Payment has related e-Payments reference
INS (File Upload and HSBC Connect only)	The instructing institution which instructed the sender to execute the transaction. Important note: in line with the industry-wide adoption of the ISO 20022 standard, the /INS/ code will no longer be supported in the future. To help avoid payment rejection, please stop using this codeword.
ROC (File Upload and HSBC Connect only)	Ordering customer’s reference. Important note: in line with the industry-wide adoption of the ISO 20022 standard, the /ROC/ code will no longer be supported in the future. To help avoid payment rejection, please stop using this codeword.

All other codewords will remain available for use in HSBCnet and other HSBC payment channels.

Important instruction code notes:

If you use the HOLD code, CHQB should not be used (and vice versa).
If you use the TELB code, then PHOB should not be used (and vice versa).

Instruction code guidelines for payments submitted through HSBCnet File Upload and HSBC Connect:

In payment processing, there is a set priority for including instruction codes. If you’re including any of the following information in your payment files, then it will be given priority in this order:

Instruction field	Instruction code	Character limit
Contract number or Deal reference		16 characters limit
Instruction for Debtor Agent	/REC/	Up to 140 characters
Purpose of Payment	/BUSINESS/ or /PURP/	4 characters
Instruction for Creditor Agent	/ACC/	Up to 140 characters
Any other instruction codes will be prioritised after the above if space allows.

We recommend that you input instructions according to the above guidelines to make sure that important payment information isn’t dropped during processing.

As a reminder, please adhere to the following guidelines when using instruction codes:

Make sure to use an individual code only once in a payment instruction.
Avoid repeating the same instruction codes across multiple lines. Instead, enter new details in subsequent lines without repeating previously mentioned codes.
The /REC/ code should only be used when you have a specific instruction to provide HSBC to implement processing. If using /REC/, make sure to only include it once in a single payment to avoid processing issues.

For payments that need ‘Instruction to bank’ details

The instruction to bank section allows you to provide specific information to different financial institutions involved in completing payment settlement.

What to keep in mind:

Make sure to use an individual codeword only once.
To continue entering information from a previous line, just continue typing in the next line without repeating the codeword or adding forward slashes (/) in front.
Type forward slash (/) in a new line only to select a different codeword. Continue typing in the next line again without repeating the codeword.

Here are the Instruction to bank codewords available in HSBCnet:

Codeword	Description
/ACC/	Instructions are for the account with institution, meaning the beneficiary bank.
/INS/	Instructing institution which instructed the sender to execute the transaction. This codeword should not be applicable to your payments unless they’re being sent from a financial institution. Important note: in line with the industry-wide adoption of the ISO 20022 standard, the /INS/ code will no longer be supported in the future. To help avoid payment rejection, please stop using this codeword.
/INT/	Instructions are for the intermediary institution if you specified one.
/REC/	Instructions are for the receiver of your payment instruction, meaning HSBC Group.
/RTGS/	Transaction should be settled via real time gross settlement. Only applicable when you are paying domestically to a beneficiary bank that is not part of HSBC Group.

What you need to do

To prepare for this change, we recommend that you review your payment instructions as follows:

Payment templates:
If you have any restricted or general templates created, we recommend that you create a new template or modify existing templates as soon as possible to help make sure you can continue to use your payment templates.

If you’re using any of the unsupported codes in your templates, you’ll see an error message when you use the template after the updated screens become available. You’ll need to amend the template before you can proceed with payment processing.
Payments in ‘pending’ status:
If you have payments in ‘pending’ status that include any of the unsupported instruction codes, you will be unable to authorise these payments after the updated screens become available. The payment will need to go back to the creator to update the instruction code(s) before it can be authorised.
Forward-dated payments and standing instructions:
If you have any forward-dated payments or standing instructions that include any of the unsupported instruction codes, you will need to cancel and re-create these payment instructions to include a valid code(s) to prevent payment delays.
Payment files processed in HSBCnet File Upload and HSBC Connect:
To prepare for the upcoming changes, we recommend that payment files comply with the requirements for payments as outlined above. Please review the updated File Format Specifications (formerly known as Message Implementation Guides) in the HSBCnet User Guides portal.

We’re here to help

To learn more about how HSBC is aligning with the ISO 20022 standard, please visit the ISO 20022 migration guide.

If you have any further questions or require additional assistance, please contact your HSBC representative.