Introduction
Like any payment method, SEPA Direct Debit may experience unsuccessful transactions. These are called R-transactions. There are different types of R-transactions that can happen at various stage of the SEPA Direct Debit timeline.
R-transactions
- Rejection (REJ): The debtor's bank rejects the SEPA Direct Debit. An SDD can have the status REJ before the execution, between D-1 and D.
- Return (RET): The debtor's bank returns the SEPA Direct Debit because there was an issue while processing the SDD. An SDD can have the status RET after the execution date, between D and D+5.
R-transactions can have various root causes. Here is an overview of the most common type of R-transactions:
(These reason codes are extracted from the EPC guide on R-transactions)
Code | Rejection | Return | Refund | Reason specified in the Rulebook | Suggested Creditor action |
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AC01 | ![]() |
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Account Identifier incorrect (i.e. invalid IBAN of the Debtor) |
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AC04 | ![]() |
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Account closed |
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AC06 | ![]() |
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Account blocked |
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AC13 | ![]() |
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Debtor account is a consumer account (For SDD B2B collections only) |
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AG01 | ![]() |
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Direct Debit forbidden on this account for regulatory reasons |
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AG02 | ![]() |
Operation code/transaction code/sequence type incorrect, invalid file format |
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AM04 | ![]() |
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Insufficient funds |
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AM05 | ![]() |
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Duplicate collection |
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BE05 | ![]() |
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Identifier of the Creditor Incorrect |
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CNOR | ![]() |
Creditor Bank is not registered under this BIC in the CSM |
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DNOR | ![]() |
Debtor Bank is not registered under this BIC in the CSM |
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FF01 | ![]() |
File format incomplete or invalid |
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FOCR | ![]() |
Following a cancellation request (by the creditor) | |||
MD01 | ![]() |
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MD02 | ![]() |
Mandate data missing or incorrect |
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MD06 | ![]() |
Disputed authorized transaction (For SDD Core collections only) |
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MD07 | ![]() |
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Debtor Deceased (Only for SDD Core collections) |
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MS02 | ![]() |
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Refusal by the Debtor |
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MS03 | ![]() |
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Reason not specified |
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RC01 | ![]() |
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Bank Identifier (BIC) Incorrect |
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RR01 | ![]() |
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Regulatory Reason |
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RR02 | ![]() |
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Regulatory Reason |
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RR03 | ![]() |
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Regulatory Reason |
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RR04 | ![]() |
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Regulatory Reason |
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SL01 | ![]() |
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Specific Service offered by the Debtor Bank |
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Find out more technical details about R-transaction codes here or on the EPC website.
If you want to learn more about the subject, read our blog post here.