Version
v4.1

Guidance on reason codes for SEPA Direct Debit R-transactions

The European Payments Council 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.

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 of the R-transaction; 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 ‘Guidance on Reason Codes for Single Euro Payments Area Direct Debit R-transactions’ covers mainly editorial changes to achieve the same wording where relevant with the guidance documents on reason codes for and for Inst R-transactions.
    
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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