The customer access mechanism (CAM)

In addition to the TARGET2 payment system Bundesbank (individual payments) and RPS (retail payment system), the Bundesbank operates the CAM, an application of its own, for its customer business which offers the following range of services.

• In principle, all domestic and foreign account holders can take part in the Bundesbank's CAM and be accessed by it. It was, however, developed especially for the Bundesbank’s non-bank customers and provides them with a means of access to TARGET2. For an interim period – a maximum of four years after the start of the Bundesbank’s participation in the TARGET2 single shared platform on 19 November 2007 - it will also be possible for credit institutions to indirectly participate in TARGET2 via the CAM under the terms and conditions which apply to non-banks.

• Furthermore, the CAM is used for the Bundesbank's correspondent banking in order to settle incoming and outgoing euro and foreign currency payments. This service is available both to domestic and foreign credit institutions as well as to non-banks.

At a later date, we intend to also integrate the settlement of RPS/STEP2 payments of non-banks into the CAM.

Submission and delivery of payments

The following payments may be submitted to or delivered from the CAM for processing as Prior1 payments – no minimum amount applies.

• Euro payments
• Foreign currency payments

Payments in the CAM are submitted and delivered using the Bundesbank’s Electronic Access communication procedure, ie via data telecommunication. In addition, it is possible for credit institutions to submit or receive payments via SWIFT. Although the Bundesbank promotes the paperless settlement of payments for reasons of efficiency, it is also possible to submit or receive paper-based payments.

Owing to the connection of the CAM to TARGET2, payments can be made to/received from all TARGET2 participants. In order to address the beneficiaries’ credit institutions, the party submitting the credit transfer does not need to know the routes established by the beneficiary’s credit institution or its accessibility via TARGET2.

Payments submitted in the CAM for Bundesbank account holders who are at the same time TARGET2 participants are, as a rule, delivered via TARGET2.

Processing and settlement of payments

Processable payment exchange files submitted via data telecommunication or payments submitted via SWIFT are processed differently depending on their payment type and the method of submission.

If a payment is submitted by Electronic Access (via data telecommunication) or in paper form during business hours, it is processed on the same day; value date specifications in the data section of the payments are not considered. For payments that are submitted via SWIFT, it is necessary to specify an execution date, which can be up to nine payment transaction business days after the day of submission.

Erroneous data telecommunication payments are credited back to the submitter. Erroneous SWIFT payments are rectified using CAM repair if possible; if not, the payment is likewise credited back to the submitter’s account.

Payments without cover remain in a queue until cover is available. Payments that are still in the queue at the cut-off time for receipt of cover (dependent on the payment type) are automatically deleted. The submitters receive a notification of this.

Euro payments

The processing of euro payments occurs on the basis of individual record transactions and in real time.

Foreign currency payments

The execution of foreign currency payments which are to be debited to a euro account occurs in accordance with the established practice.
For submissions by Electronic Access (via data telecommunication), processing is started on the day of submission and the payment is executed two payment transaction business days later. If the submission occurs via SWIFT, processing is started - if possible - two payment transaction business days before the execution date given in the payments, but not before the day of submission.

If the day of submission is not at least two payment transaction business days before the execution date given in the payment, the payment is not rejected, but is marked with the day of submission and processed further. In this case, the exchange rate from two payment transaction business days before the execution date is used and the euro countervalue is blocked on the submitter's Bundesbank account one payment transaction business day before the execution date. On the settlement day, the account is debited, an invoice is created and the block is lifted. SWIFT messages to the correspondent banks are always sent on the settlement day.

Foreign currency payments to the debit of an account managed in the same currency are executed in the same way as payments in euro.

The Bundesbank processes its cross-border foreign currency payments via accounts maintained with foreign correspondent banks in the respective national currency (nostro accounts). Foreign payments in euro are processed via euro accounts which the Bundesbank holds for foreign correspondent banks (loro accounts). It is also possible for the account holders to access TARGET2 via these euro loro accounts.

Further information about the CAM is available in the Specifications for electronic payment transactions of the Deutsche Bundesbank.