Glossary · Operations

Straight-through processing (STP)

Glossary entry · Last reviewed 26 July 2026

Straight-through processing (STP) is the automated handling of a payment from initiation to settlement without manual intervention. Unstructured addresses are a leading STP killer; structured addresses enable reliable parsing, validation and screening. Industry cross-border STP baselines sit near 40%, while ioNova ARS achieves ~98% automatically and >99% with the Exceptions Workbench.

How Straight-through processing (STP) works in practice

The point-of-entry validation shift makes STP the operational battleground: rejected payments no longer queue for downstream repair — they bounce back as exceptions. The EPC’s value statement links structured addresses to error reduction, more accurate screening and better reconciliation, which together drive the higher STP rates.

Source: the ioNova Postal Address Specification v2.0 glossary (STP); §7.1 Table 12; §8 (EPC value statement); ioNova compare hub (40% → ~98% journey).

Sources

Standards & regulatory sources

ioNova reference material

See ioNova ARS in action

The complete ISO 20022 Postal Address — Requirements and Specifications Update 2026 consolidates the CPMI harmonisation requirements, the BIS PIE taskforce report, the PMPG Hybrid Postal Address whitepaper and the EPC address guidance into a single reference.

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