Reasons for reversal of payment
Reasons for reversal of payment
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| Reason | Description | Action | Moment | R type |
|---|---|---|---|---|
| AC01 | IBAN incorrect. | Recover IBAN or ask debtor for the right IBAN. | D+1 | Reject, Return |
| AC04 | Account holder has closed the account. | Ask debtor for the right IBAN | D+1 | Reject, Return |
| AC06 | 1-Bank of debtor has blocked account for direct debit. If an eMandate was issued, this indicates that the debtor no longer wishes to continue with the authorisation under this eMandate. -2-Account holder has blocked account for direct debit-3-Account holder is a minor. | Contact the debtor. Note: If an eMandate was issued, discuss with the debtor why the direct debit was blocked. | D+1 | Reject, Return |
| AC13 (B2B) | Business account holder has specified a private debit account. | Account cannot be used for business direct debits. Contact the debtor. | D+1 | Reject, Return |
| AG01 | Debit account is no checking account but a savings account. | Account cannot be used for business direct debits. Contact the debtor. | D+1 | Reject, Return |
| AG02 | -1-First, the type “FRST” was used, after the type “RCUR” had already been entered.-2-First, the type “RCUR” was used without using a “FRST” before. -3-The direct debit mandate ID that was used, had already been used for a one-off direct debit. | Incorrect transaction type used: use “OOFF”, “FRST’’ or “RCUR”. Payee ID incorrect: select different ID. | D+1 | Reject, |
| Return | ||||
| AM04 | Balance is insufficient (sometimes a MS03). | Balance is insufficient: contact the debtor. * If desired, a revised direct debit can be executed with this feedback. * The action undertaken by the banks when the balance is insufficient is explained at Resubmitted direct debit banks | Van D+1 tot D+5 | Reject, Return |
| AM05 | Submitted twice. | Check whether it was indeed submitted twice. | D+1 | Reject, Return, Reversal |
| BE05 | Payee ID modified without amendment indication. | Payee ID incorrect: submit with the right ID. | D+1 | Reject, Return |
| MD01 (core) | -1- Transaction contains “RCUR”, but “FRST” has not been received yet. -2- No authorisation issued. -3- Authorisation not valid. | Check your administration, determine the cause and the follow-up action: -1- Submit transaction again as “FRST” -2- Make a direct debit attempt with this authorisation again. Contact the debtor in both cases. | D+1 | Reject, Return, Refund |
| MD01 (B2B) | -1- Transaction contains “RCUR”, but “FRST” has not been received yet. -2-Authorisation has not been registered at the debtor’s bank yet. -3- The direct debit is not within the specified limits. | Check whether the transaction was submitted with the right sequence type. If so, contact the debtor for the right registration at the debit bank. | D+1 | Reject, Return, Refund |
| MD02 | Authorisation or part of the data of the authorisation is incorrect (B2B). | Contact the debtor in order to have the complete and correct authorisation, (specified limits included) registered at the debtor bank. | D+1 | Reject |
| MD06 | Debtor exercises his right of reversal of payment (8 weeks). | Contact the debtor. | From D+1 to D+56 days and D+13 months. | Refund |
| MD07 | Debtor deceased (sometimes MS03). | Do not make direct debit attempt anymore. | D+1 | Reject, Return |
| MS02 | Debtor refuses direct debit transaction. | Contact the debtor. | From D+1 to D+56 days and D+13 months. | Reject, Return, Reversal, Refusal |
| MS03 | Insufficient balance (or other reason, for example in the event of death). | Insufficient balance: contact the debtor. * If desired, a revised direct debit can be executed with this feedback. * The action undertaken by the banks when the balance is insufficient balance is explained at Resubmitted direct debit banks. | From D+1 to D+5. | Reject, Return, Reversal |
| RR01 | Debtor data unknown or identification not in order. | Contact your bank. | D+1 | Reject, Return |
| RR02 | According to national laws, name and/or address are required, and this information is missing. | Contact your bank. | D+1 | Reject, Return |
| RR03 | According to national laws, name and/or address are required, and this information is missing. | Contact your bank. | D+1 | Reject, Return |
| RR04 | Transaction does not meet statutory requirements. | Contact your bank. | D+1 | Reject, Return |
| SL01 | -1- Limiting values have been exceeded. -2- Account holder has blocked account for direct debit. If an eMandate was issued, this indicates that the debtor no longer wishes to continue with the authorisation under this eMandate. | Contact your debtor. Note: If an eMandate was issued, discuss the reason for the direct debit blockage with the payer. | D+1 | Reject, Return |
| PY01 | Authority does not recognize account number. | Ask the consumer whether the account number is correct. Also check whether this account supports SEPA Direct debits/euro payments. | D+1 | Reject, Return |
Reversals of payment types in banking terminology
| By whom | Before execution | After execution |
|---|---|---|
| Initiative by payee | * Cancellation by payee (Revocation)* Cancellation request by payee (Cancellation) | * Reversal by payee, within 5 working days. (Reversal) |
| Initiative by the bank of the payee | * Refusal by payee (Refusal)* Rejection by bank of payee (Reject) | * Refund by bank: within 2 or 5 working days (* Refund by payee: within 8 weeks (* Request for refund by payee at Report Unjustified Direct Debit (MOI) within 13 months (Refund) |
Reasons for reversals Banks
| Before settlement | After settlement |
|---|---|
| -1- Reject (Transaction type: C501) -a- Rejected due to technical reasons and detected by Creditor Bank, the CSM or Debtor Bank (for exampe invalid format, incorrect IBAN check digit). -b- Debtor Bank cannot process direct debit transfer (for example account closed, direct debit blockage or account holder deceased). -c- Debtor Bank cannot process the direct debit transfer in accordance with Article 78 of the Payment Services Directive. | -5- Return Refund initiated by the Debtor Bank. (Reject, Return or Refund). |
| -2- Refusal Refusal initiated by the Debtor. Received by Debtor Bank: -a- Before settlement, then processed as Reject (see 1) -b- After settlement, then processed as Refund (see 6) | -6- Refund (Transaction type: N522) Refund initiated by Debtor. Can be executed during the ‘no questions asked period’ of 8 weeks and for ‘non-authorised transactions’ up til 13 months after the direct debit. |
| -3- Request for cancellation Creditor Bank requests CSM to not perform the direct debit(s). Bilateral agreement between Creditor Bank and CSM. | -7- Reversal (Transaction type: C501) Reversal initiated by Creditor or Creditor Bank. Original transaction should not have been executed. Ruleboek does not oblige Creditor Banks to offer a Reversal to payees. Debtor Banks have to be able to process the transactions. Where appropriate, they do not have to perform checks. |
| -4- Revocation Revocation of the direct debit assignment(s) by Payee. Bilateral agreement between Creditor Bank and payee, among others within which periode this is possible. |
Extraordinary reasons for reversal
The reasons below are extraordinary reasons for reversal due to incorrect bank-related data.
| Reason | Description | R Type |
|---|---|---|
| CNOR | Creditor Bank is not registered under this BIC in the CSM | Reject |
| DNOR | Debtor bank is not registered under this BIC in the CSM | Reject |
| ED05 | Settlement of the collection failed | Reject |
| FF01 | Invalid file format | Reject |
| RC01 | BIC incorrect/unknown | Reject, Return |
| DDT | Direct Debit Item | Not available |
| FF01 | Operation/transaction code incorrect, invalid file format | Reject |
| FF05 | Direct debit type incorrect | Reject |
| N064 | World payment OUR no BIC | Reject |
| N633 | Not in use any more - Removed from transaction list on 19-04-2016 | - |
| PY01 | Unknown BIC in routing table - If the creditor agent is not an RB of the instructing agent or if DP/RB is not present in the routing table | Reject |
| XD19 | Invalid IBAN format - An IBAN in the transaction has failed the ISO 13616 | Reject |
| XT13 | Unsupported XML field - The transaction contains at least one unsupported field; At least one mandatory field is not present in the transaction; The offending XML tag is present with the error code (if available). | Reject |
| XT33 | Invalid data format - The content of at least one XML element is not in the required format. The offending XML tag is present with the error code. | Reject |
| XT73 | Invalid country code - The two characters for country code are not a valid ISO3166 country code. | Reject |
| XT75 | Invalid original transaction status, action not required | Reject |
| XT77 | The Interbank Settlement Amount is not the same as the original debit | Reject |
| XT78 | Check on compensation amount in refunds failed | Reject |
| XT79 | Debtor Agent not allowed to receive DD - If the admission profile does not admit the sending of a DD or Participant in R-ONLY status, or the participant is not allowed to use an option (NLGO) | Reject |
| XT80 | Creditor Agent not allowed to send DD - The Creditor Agent is not allowed to send Direct Debit as per the information available in the Routing Table, or the Participant is not allowed to use an option (NLGO) | Reject |
| XT81 | Field not permitted in SDD Service | Reject |
| XT87 | R-Message not following same DP route/sending DP not identical to Instructing/Instructed Agent of the original transaction | Reject |
| XT88 | The number of transactions cancelled with camt.056 message must not exceed the number of transactions in the original Debit Batch | Reject |
| XT90 | Invalid use of a Technical BIC | Reject |
| XT91 | Creditor Agent or Debtor Agent of the original transaction is not allowed to be part of the SEPACOM Closed User Group | Reject |
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