Load Processing

We understand the importance of timely fund transfers and want to clarify how incoming payments are processed in our bank accounts, including potential delays due to regulatory checks. Below is a detailed breakdown of the process:

• How Funds Are Received in Our Bank Accounts

• Possible Delays in Fund Receipts

• How NymCard Handles Delays

• Best Practices for Smooth Transactions

How Funds Are Received in Our Bank Accounts

A. Transfer Mechanisms in the UAE

In the UAE, fund transfers are processed through the UAE Funds Transfer System (UAEFTS), operated by the Central Bank of the UAE (CBUAE). The system includes:

• Immediate Payment Instruction (IPI): Used for instant, real-time transfers (urgent or instant transfers).

• Intra-Lender Facility for Investments (Intra LFI): Used for interbank management, typically for larger or bulk transactions within the same bank.

B. Clearing & Settlement Process

Initiation by Sender:

• The remitting bank sends a payment instruction via UAEFTS.

• For instant payments (IPI), funds are credited in real-time (subject to beneficiary bank checks).

• For bulk or high-value transactions, clearing may take 1-2 business days (depending on cut-off times).

Beneficiary Bank Processing:

• Our bank (NymCard’s partner bank) receives the payment request.

• The funds are credited to our account after verification.

Final Settlement:

• CBUAE ensures final settlement between banks at predefined cycles (usually same-day or next business day).

C. VIBAN (Virtual IBAN) SME Load Process

NymCard utilizes an automated vIBAN SME load process, improving fund transfer management for SME clients. This system ensures efficient processing and adherence to regulatory requirements, minimizing manual intervention while maximizing security and transparency.

1. Automated Fund Processing: The system streamlines the entire fund transfer journey from initial receipt to final loading, reducing processing time with high accuracy and security.

2. Secure Source-IBAN Management: An advanced API-based Source-IBAN administration system enables full IBAN lifecycle management, including adding and removing SME/IBAN associations. Every IBAN or account update requires supporting documentation and review by our compliance team.

3. Real-time Notifications: Webhooks allow clients to track funds and maintain complete visibility over incoming transfers.

4. Batch Timings for VIBAN Loads:

• Statement Processing: Mashreq's account statements are downloaded and processed automatically via API every hour.

• Fund Loading: Approximately half an hour after the statement extraction, the system proceeds with the fund load once validation is complete.

This process involves a three-tier validation:

• Source-IBAN Validation: Matches the sender's IBAN with registered records.

• Name Validation: If IBAN validation fails, the system checks the sender's name against the identified SME's list of names, using configurable fuzzy logic.

• Manual Validation: If both automated checks fail, the transfer is placed in a queue for manual processing by the Operations team.

For validated transfers, the SME account is credited, and a notification is triggered.

Possible Delays in Fund Receipts

While most transfers are processed smoothly, delays may occur due to:

Request for Information (RFI) by Beneficiary Bank

• If a transaction appears suspicious (e.g., unusual amount, mismatched details), the beneficiary bank may raise an RFI (Request for Information).

• Impact:

  • The incoming payment is placed on hold until the remitting bank provides clarification.

  • NymCard is notified of the RFI, and we work with the beneficiary bank to resolve it.

  • Delays typically range from 24 to 72 hours, depending on response time.

Cut-off Times & Clearing Cycles

• Same-Day Credits: Transfers initiated before the UAEFTS cut-off time (usually 2:00 PM GST) are processed the same day.

• Next-Day Credits: Transactions after cut-off or on weekends/holidays are processed the next business day.

Bank Holidays & System Downtime

• Delays may occur during UAE public holidays or due to UAEFTS/CBUAE system maintenance.

How NymCard Handles Delays

• We proactively monitor incoming transactions and respond to RFIs promptly.

• If a delay occurs, we will:

  • Notify you (if the delay is on our end).

  • Escalate with the beneficiary bank (if the delay is due to an RFI or compliance check).

  • Provide updates until resolution.

• For unreported delays:

  • Weekday transfers: If a delay exceeds 24 hours from initiation time (during business days) without updates, raise a Jira ticket.

  • Weekend/holiday transfers: Wait until Monday’s first batch processing (or next business day after holidays) before escalating via Jira.

Best Practices for Smooth Transactions

To minimize delays:

✅ Ensure sender details (account name, IBAN, reference) match exactly.

✅ Avoid initiating large transfers near cut-off times or holidays.

✅ Avoid making cash or cheque deposits to the accounts as this channel of funding is not accepted.

Glossary

• Beneficiary Bank: The bank that receives funds on behalf of the beneficiary (in this case, NymCard's partner bank).

• Remitting Bank: The bank that sends the funds on behalf of the sender.

• Central Bank of the UAE (CBUAE): The monetary authority of the United Arab Emirates, responsible for regulating the financial system.

• Clearing: The process of exchanging financial transaction information between financial institutions.

• Settlement: The final process where funds are actually transferred between banks to complete a transaction.

• IBAN (International Bank Account Number): A standardized international bank account number used for identifying bank accounts across borders.

• Request for Information (RFI): A formal request for clarification or additional details regarding a transaction.