Incoming payment details are notifications that a company is going to receive a payment it didn’t originate—meaning the receiving funds were not initially requested. The purpose of an incoming payment detail is to notify businesses about the incoming funds before they settle and show up in a bank statement. There is a growing need for businesses to properly attribute inbound payments to a counterparty and their virtual account, IPDs help to address that need.
How do Incoming Payment Details Work?
When incoming payment detail notifications are enabled, a company receives notification of an incoming payment that was originated by someone or an organization outside of its company.
These notifications provide transaction information about the funds before the funds clear in an account. By knowing ahead of time that funds are en route, payment operations or finance teams can flag the funds before they settle. If an incoming payment is not expected, or the sender is unknown to a company, this can indicate a fraud risk. Companies can mitigate this risk by returning the incoming funds before they settle.
The information provided in an incoming payment detail notification varies depending on the particular bank a company uses. Generally though, they include the transaction amount and the originator of the transaction. Other details in the notification can include the currency of the transaction, trace numbers, or virtual account numbers.
Incoming payment details are one of the many ways that Modern Treasury makes it easier for you to manage their business’s financial transactions.
Modern Treasury is a payment operations platform built to modernize the entire cycle of money movement. Our APIs and software applications directly integrate with your bank accounts, allowing you to process payments using ACH, RTP, Wires, and multiple other payment methods 2x faster than your existing solution. Modern Treasury automates payment reconciliation and accounting, giving you back time and control over your payment operations.