pacs.004 is the ISO 20022 message that returns the funds of an already settled payment to the sending bank, for reasons such as a closed account, a wrong account number or an accepted recall. It carries a reason code and references to the original payment. In SEPA it is used for credit transfer returns and for direct debit returns and refunds.
R-transactionsR-transactions are SEPA payments that fail or are reversed after initiation: rejects before settlement, returns, refunds, refusals, reversals, requests for cancellation and, for credit transfers, recalls. Each carries an ISO reason code. Core direct debit returns must be made within five interbank business days of settlement, and refunds follow consumer refund rights.
Payment recallA payment recall is a request from the payer's bank to the payee's bank to return a credit transfer already executed, for example after a duplicate, a technical error or fraud. In ISO 20022 it travels as a camt.056 and is answered by a pacs.004 return or a negative camt.029. The payee's bank, and often the payee, must agree.
pacs.008 (FI to FI customer credit transfer)pacs.008 is the ISO 20022 message one bank sends to another to move a customer credit transfer, carrying payer, payee, amount, charges and remittance information. It replaces the Swift MT 103 in cross-border payments and is also the core message of SEPA credit transfers, instant payments and high-value systems such as T2 and CHAPS.
ISO 20022ISO 20022 is the international standard for financial messages, built from a common business dictionary and usually expressed in XML. Payment messages are grouped as pain (customer to bank), pacs (bank to bank) and camt (cash management, such as statements). It is the format of SEPA, T2, CHAPS and Swift cross-border payments.
SEPA (Single Euro Payments Area)The Single Euro Payments Area (SEPA) is the area in which people, companies and public bodies make and receive euro credit transfers, instant payments and direct debits under the same rules, whether domestic or cross-border. It covers the EU, the European Economic Area and several other European countries, and rests on European Payments Council schemes and the SEPA Regulation.