Guidance on reason codes for SEPA Instant Credit Transfer R-transactions

In May 2019, the released the second version of the document ‘Guidance on Reason Codes for R-transactions’. It applies to the current applicable 2019 rulebook.

To give some background: one of the main benefits of the Instant Credit Transfer ( ) scheme 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 transaction include rejects, recalls and requests for recall by the originator (commonly referenced as ‘R-transactions’ and described in detail in the rulebook).

The rulebook specifies reasons which trigger an R-transaction, i.e. data elements required to convey information to the payer (originator) 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 beneficiary bank (the bank of the payee), informing an originator bank (the bank of the payer), about a failed transaction is crucial to allow the originator to determine its reaction. Therefore, scheme participants must apply the specific R-transaction reason codes described in the rulebook when reporting a failed transaction.

Section 3 of the document provides guidance to scheme participants about the reason codes to report specific transaction issues.

The version 2.0 specifies under which circumstances the reason codes AC04, LEGL and NOOR can be used. The also conducted an annual review of the other reason codes and made only minor editorial changes.

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