Simple and secure sending of payments and receipt of status

• 24/11/2024
• 9 minutes to read

All banks support manual file exchange, but not all banks support direct communication. The difference between the two ways is described here.

Manual communication via files

This form of communication is the traditional (old) solution - here you have to load and unload the files manually, both in Continia Payment Management and in your bank's payment system.

This means that once you have created a payment suggestion and sent the payments to the bank, you must specify a location for the file. To send the file to the bank, then launch your bank's online system, select the function to upload payment files, select the file you have exported and then send the file.

Your payment files will be validated so that they comply with the banks' requirements for file formats, but if there are errors, you will have to go through the whole process again to resubmit the files. The opposite procedure applies when you receive e.g. status or bank statement files from the bank to be imported into Payment Management.

Manual communication is thus a lot more comprehensive, less secure than direct communication, as the files can be manipulated during the process, and much more elaborately if you e.g. finds an error in a payment as the whole process has to be performed again.

Unfortunately, there are banks that do not offer other communication than manual upload of files so it is not always possible to avoid this form of communication.

Direct communication

Also called web service or sftp communication, is clearly the best solution - here all communication between with the bank takes place completely automatically and completely transparent.

This means that you do not have to worry about the location of files and their import and export. When you e.g. has created a payment suggestion and sends the payments to the bank, communication between Payment Management and the bank takes place completely automatically.

Your payment files will of course be validated so that they comply with the banks' requirements for file formats. You will receive the status back immediately, so you can see on your individual payments whether they have been received, sent or paid at the bank.

Direct communication will thus for the vast majority be preferable to the heavier process of manual file management. If your bank supports direct communication, we recommend that you choose this solution.

Secure communication with your bank

Direct communication is the safest solution you can choose. Your payments can not be manipulated during the process and everything is sent with encryption and via secure protocols, either via web service or sftp.

With manual communication, the files can be manipulated during the process, e.g. while on a hard disk or a network drive. You thus lose the security that someone does not change e.g. account numbers or similar in the files before they are uploaded to the bank's online system.

Which solution you should choose may be determined by what your bank offers

All banks support manual communication via file exchange, but not all banks support direct communication.

Continia offers direct communication to a large number of the largest banks in the Nordic region, but not all banks offering web service or sftp communication are supported by Continia.

Importing status files and bank statements

Both the direct and manual communication, supports importing of status files and account statements, but if you use the direct communication, the files are imported completely automatically in a single operation.

The manual import of account statements is also supported in the Basic module, where validation is run according to the formats used. You will be well on your way here when importing account statements, as the file format import setup is already established for you.

Typical process of sending payments by direct communication

With the use of direct communication, you will experience a workflow that is very simple and real-time updated. E.g:

1. The payments are approved in Payment Management and sent to the bank's online system, in one operation and without leaving Business Central on-premises (or approved in the bank's online system).
2. You will receive a status answer returned immediately, which contains a receipt for receipt of the payment.
3. If there is an error in a payment, you will receive a detailed description of what the error is, and you will correct the error directly in Payment Management, after which you simply send the payment again. You do not have to log in and find them in the bank's online system.
4. You can continuously, and with a single click, update the status of your payments in the payout journal.
5. Depending on which bank you use, which payment method is used, and of course the payment due date, the bank updates the status at different times of the day.
6. In the setup, you choose whether you want to post your payments when the status is Sent, Received or Paid.

In the same way, importing account statements will be much easier, as you do not have to export the files from the bank's online system first, but simply get Payment Management to import the files.

Automatic updating of banks and payment methods

When Continia releases new, or updates existing banks, validations and payment methods, Payment Management is automatically updated on the next payment to the bank.

New banks and payment methods

When Continia continuously develops integration with new banks, or expands with more payment methods at an existing bank, Continia implements this in Payment Management using external components located on Continia Online: Continia Bank Integration Component (CBIC) and Continia Bank Communication Components (CBCC).

Banks and payment methods, as well as their validation rules, are thus not programmed directly in Payment Management, but are outside the program. For you, it has the advantage that you do not have to update your Business Central on-premises code every time there are improvements in either banks or payment methods integrated with Payment Management.

Fewer operating costs for you

The direct communication means that you always have an updated system with the latest payment methods and validations, but also that you have fewer operating costs on your Microsoft Dynamics 365 Business Central on-premises, as there is no need to invest in either installation, programming or customization of from Payment Management.

If you do not have access to your bank's online system

If you do not have access to your bank's online system, you can read more on the bank's website about how to get started with establishing an agreement with your bank, what requirements they make, prices and much more. If necessary, contact your banking consultant for further guidance.