ISO 20022
Upcoming Changes to Wire Payments: ISO 20022
Mercantile Bank focuses on you and that's why we want to inform you on a global standardized messaging format update for payments.
What is ISO 20022?
ISO 20022 is a standardized global messaging format for payments. This global standard is designed to provide faster processing and enhanced transparency in wire payment instructions and details. All United States financial institutions are being required by the Federal Reserve to use this format for sending and receiving payments.
Does this apply to ACH Payment?
No, this does not apply to ACH Payments.
Why is it important?
Messages in the ISO 20022 MX format are more likely to post automatically, reducing manual touchpoints while providing more data about each transaction. Potential benefits include the following.
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Increased payment efficiency and automation. Payments move seamlessly through domestic and cross-border payment systems.
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Reduced costs and risk. Automated file posting reduces manual intervention for greater operational efficiency and accuracy.
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Enhanced analytics and reconciliation. Data-rich payments provide consistent, detailed transaction information. ISO 20022 MX messages can contain up to 10,000 KB of transaction information, compared with 100 KB for proprietary messages today.
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Improved compliance. The common language reduces the chance of false positives during sanctions screening.
How does this impact you?
The implementation of ISO 20022 will require the full physical address of the Recipient and the Beneficiary Financial Institution, and if applicable, the Intermediary Financial Institution for all wire transactions. The physical address requirements include the full street number and name, the city/state/ZIP, and country.
What to do now?
Please review your recipients, templates, and recurring wires to ensure a physical address for the Recipient, Beneficiary Financial Institution, and if applicable, Intermediary Financial Institution is present for all recipients.
See how to update recipient details with the instructions below.
When do I need to be compliant by?
Please complete changes before Monday, July 14, 2025.
Need help?
Contact our Treasury Support Services Team at 800-453-8700 option 2 or by email at TreasurySupport@mercbank.com. Our Treasury Support Services Team is here to assist you during the business hours of 8:00 AM to 5:30 PM ET, Monday through Friday.
Additional Resources:
This page is intended to provide awareness to the upcoming change to ISO 20022. For additional detailed information, please visit the Federal Reserve website (Fedwire® Funds Service ISO® 20022 Implementation Center).