The European Payments Council ( ) released the version 4.0 of the document ‘Guidance on Reason Codes for R-transactions’ in November 2022. It applies to the current applicable 2021 Single Euro Payments Area ( ) Instant Credit Transfer ( ) rulebook.
To give some background: one of the main benefits of the 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 transaction include rejects, recalls and requests for recall by the originator (commonly referenced as ‘R-transactions’ and described in detail in the rulebook).
The 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 ( ) (the of the payee), informing an Originator (the of the payer), about a failed transaction is crucial to allow the Originator to determine its reaction. Therefore, scheme participants must apply the specific R-transaction reason codes described in the rulebook when reporting a failed transaction.
Section 3 of the document provides guidance to scheme participants about the reason codes to report specific transaction issues.
The only change covered in the version 4.0 concerns a more appropriate root cause for the reason code BE04 ‘Missing Creditor Address’.