Chapter 34: Banking and Payment Systems in COBOL -- Further Reading

Books

"Payments Systems in the U.S." by Carol Coye Benson, Scott Loftesness, and Russ Jones This comprehensive guide covers every major payment channel in the United States -- ACH, wire transfers, checks, cards, and real-time payments -- with clear explanations of the processing rules, message formats, and settlement mechanisms for each. While not COBOL-specific, it provides the domain knowledge that every banking systems programmer needs. Available through major online booksellers.

"Murach's Mainframe COBOL" by Mike Murach and Associates The file handling and VSAM chapters are directly applicable to banking systems programming. The treatment of KSDS file operations (READ, WRITE, REWRITE, DELETE with INVALID KEY handling) mirrors the account master file access patterns used in core banking. Available from the Murach website and major technical booksellers.

"COBOL Unleashed" by Jon Wessler This reference includes a section on building transaction processing systems in COBOL that covers many of the patterns used in banking: control total verification, batch balancing, sequential file matching/merging, and report generation. The discussion of signed packed decimal arithmetic is particularly relevant to monetary transaction processing. Available through major online booksellers and technical libraries.

Online Resources

NACHA Operating Rules NACHA (the National Automated Clearing House Association) publishes the rules and file format specifications that govern ACH transactions. The file format documentation defines the exact layout of each record type (File Header, Batch Header, Entry Detail, Addenda, Batch Control, File Control) that COBOL programs must parse and generate. Available through the NACHA website; the operating rules require a paid subscription, but format summaries are freely available.

Federal Reserve Financial Services -- Fedwire Funds Service The Federal Reserve publishes documentation on the Fedwire Funds Service, including message formats, processing schedules, and operating procedures. This is essential reference material for COBOL programs that process domestic wire transfers. Search for "Fedwire Funds Service" on the Federal Reserve Financial Services website.

SWIFT MT103 Message Standard The SWIFT MT103 is the standard message type for customer credit transfers in international banking. The message specification defines the tagged fields, validation rules, and formatting requirements that COBOL wire transfer programs must implement. Available through the SWIFT website and financial messaging reference materials.

IBM Documentation

IBM Redbook: "Banking on z/OS" This Redbook provides an architecture overview of banking systems running on IBM z/OS, covering core banking, payment processing, and regulatory compliance. It includes discussion of CICS for real-time transaction processing, batch processing patterns for end-of-day cycles, and integration between legacy COBOL systems and modern channels. Search for this title on the IBM Redbooks website.

IBM Redbook: "CICS Transaction Server for z/OS -- Performance Guide" For banking systems that use CICS for real-time transaction processing (ATM authorization, teller transactions, online banking), this guide covers performance tuning for high-volume transaction environments. Understanding CICS performance is critical for the real-time components of core banking. Available on the IBM Redbooks website.

Regulatory References

Bank Secrecy Act / Anti-Money Laundering (BSA/AML) Examination Manual Published by the Federal Financial Institutions Examination Council (FFIEC), this manual describes the regulatory requirements for BSA/AML compliance that COBOL programs must implement: Currency Transaction Reporting (CTR), Suspicious Activity Reporting (SAR), and OFAC screening. Available on the FFIEC website.

Regulation E -- Electronic Fund Transfer Act The Federal Reserve's Regulation E governs consumer electronic fund transfers, including error resolution procedures, unauthorized transfer liability limits, and periodic statement requirements. Banking COBOL programs that process ATM, debit card, and ACH transactions must comply with these rules. Available through the Consumer Financial Protection Bureau website.

Regulation CC -- Availability of Funds and Collection of Checks Regulation CC specifies how quickly banks must make deposited funds available and governs the check collection process. COBOL programs that process check deposits must implement the hold period calculations and availability schedules defined in this regulation. Available through the Federal Reserve Board website.