The European Payments Council (EPC) released version 2.0 of the document ‘Guidance on Reason Codes for OCT Inst R-transactions’ in November 2025. It applies to the current applicable 2025 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. In version 2.0, some clarifications have been added to the reason codes BE04 and BE07 on invalid addresses of the payee and of the payer respectively.