ISO 8583 and ISO 20022 are both international standards, but they serve different purposes and are used in different areas of financial services and communication. Let us check the same
- ISO 8583:
- Purpose: ISO 8583 is a messaging standard primarily used in the context of financial transaction processing, particularly for credit and debit card transactions. It defines the format and structure of messages used to exchange information related to these transactions.
- Scope: ISO 8583 focuses on the specific needs of card payments, ATM transactions, and other related financial operations.
- Usage: ISO 8583 is used by payment networks, banks, and financial institutions to authorize, process, and settle card-based transactions.
- ISO 20022:
- Purpose: ISO 20022 is a broader standard used for the development of financial messages and data standards across various financial domains, including payments, securities, trade finance, and more. It aims to provide a standardized and flexible framework for the entire financial industry.
- Scope: ISO 20022 covers a wide range of financial processes and data elements, and it is not limited to card payments. It can be used for wire transfers, securities trading, cash management, and other financial transactions.
- Usage: ISO 20022 is increasingly being adopted as a common language for financial messages, both within and between financial institutions and across different financial systems globally.
In some cases, organizations may need to interface ISO 8583 messages with ISO 20022 messages, especially when integrating various financial systems, but this integration usually involves mapping data between the two standards to ensure compatibility. While they have different scopes, their coexistence helps facilitate seamless communication and interoperability within the financial industry.
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