What is a bank payment file?

A bank payment file is a digital document used in payroll to ensure accurate transferring of an employee’s payment to their preferred bank account.

The file will generally contain all the information relevant to the employee’s payment, including the amount due, the date of the transaction, and any other details the bank may require to make the payment happen.

Bank payment files’ role, in short, is to ensure that payments are made on time, in the right currency and securely.

What is the format of a bank payment file?

The bank payment file’s format will differ depending on factors like the jurisdiction and the unique requirements of each bank. Still, there are some data fields that tend to stay pretty standard, including, for example, the amount paid, the date of the transaction, and any relevant identifiers.

In terms of format, the file will usually be in CSV or XML.

How do bank payment files work?

Bank payment files are generated from the payment data in companies’ accounting or payroll systems. The goal is to translate the data into a format that will be recognizable to the employee’s bank.

Once uploaded to the relevant bank portal, the file is processed and the payment to the employee is made.

Managing payment files for a global workforce

Because of the differences in local tax and regulatory requirements, as well as currency exchange rates and bank systems, ensuring that bank payment files are submitted in the appropriate format and at the right time can be challenging.

Companies with global workforces, therefore, need to make sure they’re equipped with the right technology and knowledge to tackle these differences. The end result should be an ability to streamline the file generation process and ensure that no regulatory requirement is overlooked.