Version
v5.0

Guidance on reason codes for SEPA Direct Debit R-transactions

The  released the updated version 4.1 of the document ‘Guidance on Reason Codes for Single Euro Payments Area Direct Debit R-transactions’ in September 2018. In May 2019, the version 5.0 of this document was published and applies only to the two 2019 rulebooks becoming effective as of 17 November 2019.

To give some background: one of the main benefits of the Single Euro Payments Area ( ) Direct Debit ( ) schemes is that the scheme rules streamline exception handling, at both process and dataset level. This allows straight-through-processing and automated exception handling end-to-end. Possible exceptions to the normal execution of a direct debit collection include refunds, returns, rejects, refusals and reversals (commonly referenced as ‘R-transactions’ and described in detail in the rulebooks).

The Core and Business-to-Business (B2B) rulebooks specify reasons which trigger an R-transaction, i.e. data elements required to convey information to the payee (biller) regarding the R-transaction. These data elements identify the type of the R-transaction; name the initiator; and detail the reason for the R-transaction.

The correct application of these reason codes by a debtor bank (the bank of the payer), informing a creditor bank (the bank of the biller), about a failed collection is crucial to allow the biller to determine its reaction. 

The version 4.1 of the document  covers mainly editorial changes to harmonise the wording where relevant with the guidance documents on reason codes for and for Inst R-transactions. 

The version 5.0 contains the new reason code ED05 used for clearing and settlement-specific issues that was accepted during the 2018 rulebook change management cycle. The also conducted an annual review of the other reason codes and made only minor editorial changes.

The rulebooks also formally state that this guide prescribes which ISO code should be used for each of the reasons under each R-transaction type.

View the Spanish translation of the document made by the Spanish banking association.

 

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