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

The European Payments Council (EPC) released the version 5.0 of the document ‘Guidance on Reason Codes for SCT Inst R-transactions’ in November 2023. It applies to the current applicable 2021 Single Euro Payments Area (SEPA) Instant Credit Transfer (SCT Inst) rulebook and the 2023 SCT Inst rulebook entering into force on 17 March 2024 at 03:30 CET.

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

The SCT 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 Payment Service Provider (PSP) (the PSP of the payee), informing an Originator PSP (the PSP of the payer), about a failed SCT Inst transaction is crucial to allow the Originator to determine its reaction. Therefore, SCT Inst scheme participants must apply the specific SCT Inst R-transaction reason codes described in the rulebook when reporting a failed SCT Inst transaction.

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

The only changes covered in the version 5.0 concern editorial changes in section 1.

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