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Payments NZ Rules and Standards

Regulator Payments NZ
Jurisdiction NZ
Status live
Applicability Platform

Payments NZ is the industry body that governs New Zealand's core payment clearing and settlement systems. Participation in these systems requires compliance with the applicable scheme rules and technical standards.

The three principal schemes relevant to a bank's retail and treasury operations are:

  • BECS (Bulk Electronic Clearing System) — governs direct debit and direct credit origination and receipt, including return codes, processing windows, and settlement. Used for payroll, recurring billing, and account-to-account transfers.

  • AFT (Automated Funds Transfer) scheme — the interbank real-time and same-day payment infrastructure, including account-to-account faster payments.

  • HVCS (High Value Clearing System) — governs high-value, time-critical payments settled through the Exchange Settlement Account System (ESAS) at the Reserve Bank of NZ. Used for RTGS, treasury, and large corporate payments.

Obligations under scheme participation include: originating and processing payments within prescribed technical standards, handling returns and dishonours according to defined return codes and timeframes, maintaining settlement positions, and meeting fraud prevention obligations set out in the Payments NZ fraud rules.


Compliance register

This register maps the material obligations under Payments NZ scheme rules to the platform controls and institutional processes that satisfy them.

Scope legend

Symbol Meaning
🤖 Automated Platform enforces or performs the obligation. Primary control mode is GATE, AUTO, CALC, or ALERT. Human action is not required in the normal case.
📊 Evidenced Platform captures the evidence trail automatically. Human compliance decision sits on top. Primary control mode is LOG.
🏛 Institutional Obligation is met by a process entirely outside the platform — treasury operations, legal. Platform may generate evidence inputs but does not own the process.

Build legend

Symbol Meaning
Module built and deployed
🔨 Module planned — not yet built (build_status: Not started)
Uncontrolled gap — no module attributed

BECS — direct debit and direct credit

Obligation Scope Policy Platform controls Build
Originate direct debit and direct credit instructions in prescribed BECS file format within processing windows 🤖 Automated PAY-001 MOD-020 (GATE) — no payment leaves the bank without passing all pre-flight checks; enforced as sequential gate. MOD-071 (GATE) — payment details presented for customer confirmation before submission; no payment initiated without explicit authorisation 🔨
Apply BECS return codes correctly; return instructions must be processed within prescribed timeframe and funds credited to the originator 🤖 Automated PAY-009 MOD-122 (AUTO) — returned payments (invalid account, account closed) credited back to the originating account automatically with customer notification 🔨
Payment fraud prevention — BECS direct debits must comply with Payments NZ fraud obligation framework 🤖 Automated PAY-005 MOD-020 (GATE) — fraud score gate applied before every payment; high-risk payments blocked or challenged. MOD-021 (GATE) — velocity limits prevent account takeover fraud patterns 🔨
Retain payment records in the prescribed format for audit and dispute resolution 📊 Evidenced PAY-001 MOD-001 (GATE) — payment posting enforces settlement finality; entry is atomic and irreversible. Every payment record retained in the immutable ledger 🔨

AFT scheme — interbank faster payments

Obligation Scope Policy Platform controls Build
Submit interbank payment instructions to the Payments NZ clearing network meeting scheme validation requirements 🤖 Automated PAY-001 MOD-122 (GATE) — all outbound NZ interbank payments pass pre-payment validation (balance, sanctions, daily limits) before submission to the Payments NZ clearing network 🔨
Apply fraud screening to all AFT payments before submission 🤖 Automated PAY-005 MOD-122 (AUTO) — NZ interbank payments pass through the transaction fraud scorer before submission; high-risk payments trigger a review hold 🔨
Process AFT returns and dishonours according to prescribed return code definitions and timeframes 🤖 Automated PAY-009 MOD-122 (AUTO) — returned payments credited back to the originating account automatically with customer notification 🔨
Maintain settlement position with Payments NZ; ensure settlement obligations are met within prescribed windows 🏛 Institutional PAY-001 Treasury and settlement management is institutional. MOD-082 (AUTO) — nostro account positions reconciled against correspondent bank statements on every settlement cycle; discrepancies flagged automatically for treasury review 🔨

Open banking — Payments NZ API Centre

Obligation Scope Policy Platform controls Build
API Centre participants must implement the prescribed open banking API standards and consent model 🤖 Automated PAY-010 MOD-061 (GATE) — enforces customer consent scope at the API layer; all third-party data requests blocked without valid, active consent 🔨
Customer consent for open banking data sharing must be captured, maintained, and revocable 🤖 Automated PAY-010 MOD-061 (GATE) — consent scope validated at the API gateway before every third-party request 🔨

HVCS — high value clearing

Obligation Scope Policy Platform controls Build
High-value ESAS payments submitted to HVCS must meet RBNZ prescribed message formats (ISO 20022) and be settled within the ESAS session window 🏛 Institutional PAY-001 HVCS participation and ESAS settlement management are institutional treasury operations. No dedicated HVCS platform module — high-value payment origination is handled at the institutional treasury layer with support from MOD-082 for nostro position management

Institutional obligations (not platform scope)

Obligation Owner Platform evidence input
Payments NZ scheme membership maintenance and fee payments Head of Payments Not platform scope
ESAS settlement account management (RBNZ HVCS) Head of Treasury MOD-082 nostro positions feed the treasury dashboard
Scheme audit and compliance attestation to Payments NZ Head of Payments / Chief Compliance Officer MOD-020, MOD-122 payment records; MOD-082 settlement reconciliation
Incident reporting to Payments NZ for scheme disruption events Head of Payments / Head of Technology MOD-150 operational risk register and incident records

Coverage summary

Area Total obligations Platform automated 🤖 Platform evidenced 📊 Institutional 🏛 Gap ❌
BECS 4 3 1 0 0
AFT scheme 4 3 0 1 0
Open banking API Centre 2 2 0 0 0
HVCS 1 0 0 1 0
Total 11 8 (73%) 1 (9%) 2 (18%) 0

All attributed modules are currently build_status: Not started.


Policy Title
PAY-001 Payment Operations Policy
PAY-005 Payment Fraud Prevention Policy
PAY-008 Payment Routing & Sponsor Abstraction Policy
PAY-009 Payment Exceptions, Returns & Reversals Policy
PAY-010 Open Banking & API access

See D06 Payments & Settlement for the full risk domain.


Official documentation


Policies referencing this standard

  • PAY-001 — Payment Operations Policy
  • PAY-008 — Payment Routing, Sponsor & Card-Scheme Abstraction Policy
  • PAY-009 — Payment Exceptions, Returns & Reversals Policy
  • PAY-010 — Open Banking & API access

Compiled 2026-05-22 from source/entities/regulations/nz-payments-nz-rules.yaml