[ARCHIVE] Purpose of BankingSchedulePaymentRecurrenceEventBased

Archived 2022.12.11. Content moved to CDS Guide, Scheduled Payments

Question

What is the the intent of the BankingScheduledPaymentRecurrenceEventBased recurrenceUtype?

Our system has Interest Only payments, for loans and credit cards. In our system these are considered event driven. Should we use the BankingScheduledPaymentRecurrenceEventBased recurrenceUtype?

Answer

According to the CDS description of the BankingScheduledPaymentRecurrenceEventBased schema, this uType indicates that the schedule of payments is determined by an external event that cannot be predetermined. The field describes the event that results in a payment.

If the payment schedule can be pre-determined, another recurring interval schedule recurrenceUtype may be more suitable. How an individual bank determines this depends on how customers see this in their existing digital banking channels.

The following convention may also be relevant: CDS-DC-0008 Scheduled payment. 

See:

• CDS BankingScheduledPayment
• CDS BankingScheduledPayment recurrenceUtype
• CDS BankingScheduledPaymentRecurrence
• CDS BankingScheduledPaymentRecurrenceEventBased
• CDS-DC-0008 Scheduled payment