SDD Reason Codes
When following up on recurring payments (direct debits,...), there is a limited percentage that will fail. The bank returns this feedback in different types of "R-transactions". An "R-transaction" is an error message that comes back from the bank when a Sepa Direct Debit or Sepa Direct Debit fails.
What are R-transactions
- Reject: A Sepa direct debit that can be executed due to an error detected during execution at one of the banks.
- Refusal: A refusal by the debtor to his bank before the payment is executed.
- Refund: A refusal by the debtor to his bank before the payment is executed.
- Return: A revocation of payment by the debtor during the statutory period (especially for CORE mandates during 8 weeks)
For the sake of completeness, we also mention 2 R-transactions that are only used by the creditor to recall a batch at his own bank. (Revocation and Reversal). Each type of R-transaction contains "Reason codes". These codes provide more detail about exact reason why something fails.
Following up on these error messages takes time and is best automated. Twikey has developed a very comprehensive solution to manage this fully automatically.
An Overview of Sepa Direct Debit Error Messages or Reason Codes
Incorrect account number
The account specified is closed
The account specified has been blocked for direct debits
Debtor account is a consumer account (For SDD B2B collections only)
Direct Debit forbidden on this account for regulatory reasons
Operation code/transaction code/sequence type incorrect, invalid file format
Insufficient funds on the account
Incorrect creditor identifier
Creditor Bank is not registered under this BIC as a Sepa direct debit bank
Debtor Bank is not registered under this BIC in the Sepa direct debit system
File format incomplete or invalid
Mandate data missing or incorrect
Disputed authorized transaction (For SDD Core collections only)
Refusal by the debtor
Reason not specified
Bank identifier (BIC) incorrect
Debtor name and/or address mandatory for regulatory reasons is incomplete or missing
Creditor name and/or address mandatory for regulatory reasons is incomplete or missing
Specific service offered by the debtor bank