R TRANSACTIONS

1. General
R transactions are financial transactions differing from the default flow. This means either a fail at some point of financial process (due to e.g. technical error, missing information or insufficient permissions), cancellation or return of the transaction. The following chapter list some of the possible R transactions per transaction type.

2. Credit Transfers
The table below summarizes the R transactions as described in EPC CT cheme ruleboo! ".#.$. R type Reject Description Reporting %. & 'Reject( occurs when a credit transfer is not accepted for normal e)ecution before -an! reports to interban! ettlement. *f the re+ection is at the Customer point at which the ,riginator instructs the ,riginator -an!, for the purposes of the cheme, the ,riginator -an! need only inform the ,riginator of the reason. .. *f the /Reject/ occurs in the C 0 (Clearing and ettlement) must C 0 send the /Re+ect/ message to the ,riginator -an! at the latest on the ne)t -an!ing -usiness 1ay following re+ection. 2nless the ,riginator -an! is able and is willing to repair and resend the payment instruction within the E)ecution Time, the ,riginator -an! must inform the ,riginator that the instruction has been re+ected and credit the ,riginator(s account according to the timing agreed with the ,riginator.

Return

& /Return/ occurs when a credit transfer is di"erted from normal e)ecution after interban! ettlement, -an! reports to and is sent by the -eneficiary -an! to the ,riginator Customer -an! for a credit transfer that cannot be e)ecuted for "alid reasons such as wrong account number or account closed with the conse3uence that the -eneficiary account cannot be credited on the basis of the information contained in the original credit transfer message. The Return procedure must not be used in cases where the -eneficiary(s account has already been credited and the -eneficiary wishes to return the funds. *nstead, the procedure of initiating a new Credit Transfer applies.

Recall

& /Recall occurs when the ,riginator -an! realizes the need to recall CTs and re3uests to cancel a EP& Credit Transfer. The Recall procedure can be initiated only by the ,riginator -an!, which may do it on behalf of its customer.

4appens between ban!s. 5o reporting to customer by default. *f recall is made by customer re3uest, the re3uest may be re+ected by the ban!.

!. Direct De"it
Re+ects, Returns and Refunds of Collections must be cleared and settled "ia the C 0 used for the Clearing and ettlement of the initial Collection, unless otherwise agreed between ban!s. & process for Re+ect, Return and Refund must be offered by any C 0 which is to offer ser"ices relating to the cheme. The table below summarizes the R transactions as described in EPC 11 cheme ruleboo! ".#.$. R type Reject Description Reporting Rejects are Collections that are di"erted from normal e)ecution, prior to inter6ban! ettlement, for the following reasons7 Technical reasons detected by the Creditor -an!, the C 0, or the 1ebtor -an!, such as in"alid format, wrong *-&5 chec! digit The 1ebtor -an! is unable to process the Collection (e.g. account closed, Customer deceased, account does not accept direct debits). The 1ebtor made a Refusal re3uest to the 1ebtor -an!. The 1ebtor -an! will generate a Re+ect of the Collection being refused. Refusals are claims initiated by the 1ebtor before ettlement, for any reason, re3uesting the 1ebtor -an! not to pay a Collection. This Refusal must be handled by the 1ebtor -an! in accordance with the conditions agreed with the 1ebtor. *f the 1ebtor -an! agrees to handle the claim prior to inter6ban! settlement, the Refusal results in the 1ebtor -an! re+ecting the associated Collection. (5ote7 *n addition to this ability to refuse indi"idual transactions, the 1ebtor has the right to instruct the 1ebtor -an! to prohibit any direct debits from his ban! account). 8hen handled after ettlement, this Refusal is referred to as a Refund claim. ( ee description underneath in the Refund section). Returns are Collections that are di"erted from normal e)ecution after inter6ban! ettlement and are

Refusal

Return

Re#ersal

Re#ocation

Re$uest for cancellation

Refund

initiated by the 1ebtor -an!. Re#ersals7 8hen the Creditor concludes that a Collection should not ha"e been processed a Re"ersal may be used after the Clearing and ettlement by the Creditor to reimburse the 1ebtor with the full amount of the erroneous Collection. The Ruleboo! does not oblige Creditor -an!s to offer the Re"ersal facility to the Creditors. 9or 1ebtor -an!s, it is mandatory to handle Re"ersals initiated by Creditors or Creditor -an!s. Creditors are not obliged to use the Re"ersal facility but if they do so, a Re"ersal initiated by the Creditor must be handled by the Creditor -an! and the 1ebtor -an!. Re"ersals may also be initiated by the Creditor -an! for the same reasons. 1ebtor -an!s do not ha"e to carry out any chec!s on Re"ersals recei"ed. Re#ocations are re3uests by the Creditor to recall the instruction for a Collection until a date agreed with the Creditor -an!. This forms part of the bilateral agreement between Creditor and Creditor -an! and is not co"ered by the cheme. Re$uests for cancellation are re3uests by the Creditor -an! to recall the instruction for a Collection prior to ettlement. This forms part of the bilateral agreement between Creditor -an! and C 0 and is not co"ered by the cheme. Refunds are claims by the 1ebtor for reimbursement of a direct debit. & Refund is a"ailable for authorised as well as for unauthorised direct debit payments in accordance with the rules and procedures set out in the Ruleboo!. & re3uest for a Refund must be sent to the 1ebtor -an! after ettlement and within the period specified in section :.;. The 1ebtor -an! has the right to recei"e compensation, called the Refund compensation, from the Creditor -an! for the related interest loss incurred by the 1ebtor -an!. ee PT6$:.%# for the detailed description.