Payment instruction codes are changing

Last updated: 14 January 2025

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

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:

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 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:

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.

What you need to do

These changes are being made as part of our phased adoption of the ISO 20022 standard for payments. For accounts in Thailand and the UK, these changes will apply from February 2025.

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 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.

Do you use the ‘Instruction to bank’ fields in payments?

We’d also like to remind you about best practices when using ‘Instruction to bank’ codes to help make sure your payment instructions are sent successfully.

Using codewords in ‘Instruction to bank’ fields ❯

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.