Straight-through processing, or STP, allows a payment to move from instruction through validation and processing without manual re-entry or repair. High STP depends on complete structured data, valid identifiers, consistent formats, available routing, and rules that can make routine decisions automatically.
Quick reference for Straight-through processing (STP)
| Check | What it means for the transaction |
|---|---|
| Category | Global B2B payment operations |
| Record to keep | Keep the instruction, party and account identifiers, validation result, timestamps, institution references and reconciliation outcome. |
| Do not infer | Initiation, processing, clearing and settlement are different events. One status should not be used as proof of another. |
Straight-through processing (STP) and nearby terms
- Payment processing: Payment processing is the sequence of checks, messages, account entries, and routing steps used to carry a payment from initiation toward completion.
- ISO 20022: ISO 20022 is an international standard and methodology for financial messages.
- Payment repair: Payment repair is the manual or automated correction of incomplete, inconsistent, or invalid payment information so an instruction can continue processing.
