Overview
On-Behalf-Of (OBO) Across Supported Networks
On-Behalf-Of (OBO) payments occur when the party funding the payment differs from the party that owes the underlying obligation (i.e., Sender ≠ True Payer).
Important
- OBO is only supported for Payment (Credit Transfer), not Payment Request (RFP).
- OBO requirements vary by network rail: RTP is a field-driven, while FedNow utilizes an authorization/compliance-driven model.
- RTP: OBO handling is field-driven; JHA PayCenter currently infers OBO based on Ultimate Debtor/Ultimate Creditor fields.
- FedNow: OBO handling is authorization/compliance-driven using the OBO Account Holder concept (agreement/agency and other constraints); InitiatingParty is not a FedNow network requirement for OBO determination. Please reference FedNow Service Operating Procedures for more details.
Party Role Definitions (ISO 20022 Aligned)
| Role | Description |
|---|---|
| Debtor | The party that owns the account from which funds are withdrawn (funding account owner). |
| Ultimate Debtor | The party that actually owes the obligation being satisfied by the payment, even when another party serves as the Debtor/funding account owner. |
| Initiating Party | The party that submits or initiates the payment instructions on behalf of an account holder, where applicable. |
Note
- The InitiatingParty field is optional and supports OBO-related transparency and scenarios where a party that is not the funding account owner initiates instructions. It applies only to some RTP use cases.
- For OBO implementation, refer to the Payment API.