Guidance on reason codes for One-Leg Out Instant Credit Transfer R-transactions

The European Payments Council (EPC) released version 1.0 of the document ‘Guidance on Reason Codes for OCT Inst R-transactions’ in November 2023. It applies to the current applicable 2023 One-Leg Out Instant Credit Transfer (OCT Inst) rulebook.

To give some background: one of the main benefits of the OCT Inst scheme is that the scheme rules streamline exception handling at both process and dataset level. This allows straight-through-processing (STP) and automated exception handling end-to-end. Possible exceptions to the normal execution of an OCT Inst transaction include rejects, returns and recalls (commonly referenced as ‘R-transactions’ and described in detail in the OCT Inst rulebook).

The OCT Inst rulebook specifies reasons which trigger an R-transaction, i.e. data elements required to convey information to the payer 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 Euro Leg-Based Payee’s Payment Service Provider (PSP) or a Euro Leg Exit PSP, informing respectively an Euro Leg Entry PSP or an Euro Leg-Based Payer’s PSP, about a failed OCT Inst transaction is crucial to allow the payer to determine its reaction. Therefore, OCT Inst scheme participants must apply the specific OCT Inst R-transaction reason codes described in the rulebook when reporting a failed OCT Inst transaction.

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

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