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

The released the first version of the document ‘Guidance on Reason Codes for Inst R-transactions’ in September 2018. In May 2019, the second version of this document was published and applies only to the 2019 Inst rulebook effective as of 17 November 2019.

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

The Inst 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 Inst transaction is crucial to allow the originator to determine its reaction. Therefore, Inst scheme participants must apply the specific Inst R-transaction reason codes described in the rulebook when reporting a failed Inst transaction.

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

The version 2.0 now specifies under which circumstances the reason codes AC04, LEGL and NOOR can be used as of 17 November 2019. The also conducted an annual review of the other reason codes and made only minor editorial changes.

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