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.

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 of the R-transaction; 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 the document provides guidance to Inst scheme participants about the reason codes to report specific Inst transaction issues.
 

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