ISO 20022 Payment Status Reports

An ISO 20022 payment status report, also known as an ISO 20022 direct debit acknowledgment, is an electronic message format that is based on the ISO 20022 message format called CustomerPaymentStatusReport (pain.002.001.03). The payment status report is sent by your bank or payment system

The payment status report conveys the processing status, either directly or by inference, of every ISO 20022 direct debit settlement received by your bank or payment system. The payment status message format allows banks to specify an overall status for the direct debit settlement batch and individual statuses for some or all of the transactions. For example, it's possible for a direct debit settlement batch of five transactions to have an overall status of ACCEPT, while two individual transactions in the payment file have statuses of REJECT. In this case, the two transactions in the acknowledgment file failed, but by inference the other three batch transactions that were not in the acknowledgment file are inferred to have a status of ACCEPT.

Banks and payments systems use the payment status report to specify the following processing statuses:

• Positive: Received, Accepted, or Accepted with Change

• Pending

• Negative: Rejected

• Positive and negative: Partially Accepted

The use of the payment status report is always governed by a bilateral agreement between your company and the bank. A bilateral agreement specifies how your company wants to receive acknowledgments from the bank, whether:

• Your company wants only one acknowledgment at any milestone.

• Your company wants to receive acknowledgments at each milestone within the clearing process, such as the bank receiving the payment file, passing technical validations, passing business validations, and accepting or rejecting transactions.

A bilateral agreement can also specify whether your company wants to receive:

• An acknowledgment for accepted transactions only

• An acknowledgment for rejected transactions only

• An acknowledgment that has details of both accepted and rejected transactions

Payments processes the payment status report message according to the message structure specified in ISO 20022 payments message standards for the CustomerPaymentStatusReportV03 (pain.002.001.03).

The following aspects of payment status reports are discussed in this topic:

• Accepted status

• Rejected status

• Rejection and refund transactions

• ISO 20022 direct debt transaction flow

• Mapping of ISO 20022 reason codes to payment status and error codes

Accepted Status

Per ISO 20022 guidelines, group status represents the settlement file status. Several group statuses are provided that represent success. If you receive the payment status report message with the group statuses of ACCP, ACSP, or ACWC, the batch status and the transaction status of all the transactions within the batch are updated as Accepted.

Payments supports the following success statuses at the transaction level of the payment status report:

• ACCP: Accepted with technical validation

• ACSP: Accepted by the clearing system

• ACWC: Accepted with a change

Rejected Status

The group status of RJCT applies to the batch. If you receive the payment status report message with the group status of RJCT, the batch status and the transaction status of all the transactions within this batch are updated as Rejected.

Payments supports the following failure status at the transaction level of the payment status report: RJCT: Rejected

Rejection and Refund Transactions

ISO 20022 direct debit collections that are diverted from normal execution before interbank settlement are known as rejection transactions. Rejection transactions and their associated rejection reasons appear in the payment status report. Payments supports the following rejection and refund transactions:

• Invalid format of the ISO 20022 direct debit collection message

• Incorrect IBAN check digit

• Closed account

• Deceased customer

• Nonacceptance of direct debits by customer account

• Claim by your customer for reimbursement of a direct debit to its account

ISO 20022 Direct Debit Transaction Flow

The following table describes the point where the payment status report appears in the flow of ISO 2022 direct debit transactions between Oracle Receivables, Payments, and Oracle General Ledger.

Step	Receivables	Payments	General Ledger
1	Receivables creates a batch of ISO 20022 direct debit receipts.	N/A	N/A
2	Using the Auto-Remittance Batch process, Receivables submits the ISO 20022 direct debit receipts to Payments for processing.	N/A	N/A
3	N/A	Payments creates a settlement batch using an ISO 20022 SEPA or CGI settlement format and transmits the ISO 20022 direct debit collection message to your bank or payment system.	N/A
4	N/A	Your bank or payment system acknowledges receipt of the ISO 20022 direct debit settlement batch by sending you a payment status report, which is formatted as an XML message and follows the Customer Payment Status Report (pain.002.001.03) format.	N/A
5	N/A	To retrieve acknowledgments from your bank or payment system, you can schedule and run, typically once a day, the Retrieve Funds Capture acknowledgment process, which is a link in the Tasks pane of the Funds Capture work area, Overview page.	N/A
6	N/A	You can view the results of the Funds Capture Acknowledgment process in the Funds Capture Processes section of the Funds Capture work area, Overview page by clicking View Output. If View Output indicates Successful, the ISO20022 direct debit settlement or settlement batch transaction was accepted by your bank or payment system and the payment processing status is reflected in the Status column in the Search Results section on the Manage Settlements or Manage Settlement Batches page. If View Output indicates Rejected, the ISO20022 direct debit settlement or settlement batch transaction was rejected by your bank or payment system and the payment processing status is reflected in the Status column in the Search Results section on the Manage Settlements or Manage Settlement Batches page. Payments notifies Receivables of the accepted or rejected ISO 20022 direct debit transactions.	N/A
7	Receivables updates the status of its receipts according to the payment status information it receives from Payments. If the ISO 20022 direct debit transactions are rejected, the receipt amounts are unapplied and register as funds outstanding.	N/A	If the ISO 20022 direct debit transactions are accepted, the funds are accounted for in Oracle Fusion General Ledger.

Mapping of ISO 20022 Reason Codes to Payments Status and Error Codes

When you receive an acknowledgment file from your bank or payment system, it can have accepted or rejected transactions. The batch status, therefore, can be accepted, rejected, or partially accepted.

The rejection reasons that can appear in an acknowledgment file correspond to Payments status and error codes on the following levels:

• Batch level mapping

• Transaction level mapping

Batch Level Mapping

The following table lists the ISO 20022 batch level rejection code that can appear in an acknowledgment file that is received from your bank or payment system, along with the corresponding Payments status code.

ISO Reason Code	ISO Reason Code Name	SEPA Reason	IBY Batch Status (IBY_BATCHES_ALL.STATUS)	IBY Status (IBY_TRXN_SUMMARIES_ALL.STATUS)
FF01	InvalidFileFormat	Operation/Transaction code incorrect, invalid file format Usage: To be used to indicate an invalid file format	1 (Transmission Error)	101 (Batch Transmission Error)

Transaction Level Mapping

The following table lists the ISO 20022 transaction level rejection codes that can appear in an acknowledgment file that is received from your bank or payment system, along with the corresponding Payments status codes.

ISO Reason Code	ISO Reason Code Name	SEPA Reason	IBY Status (IBY_TRXN_SUMMARIES_ALL. STATUS)
AC01	IncorrectAccountNumber	Account identifier incorrect (invalid IBAN)	5 (Payment System Error)
AC04	ClosedAccountNumber	Account closed	19 (Invalid Bank Account)
AC06	BlockedAccount	Account blocked Account blocked for Direct Debit by the Debtor	5 (Payment System Error)
AG01	TransactionForbidden	Direct debit forbidden on this account for regulatory reasons	5 (Payment System Error)
AG02	InvalidBankOperationCode	Operation/Transaction code incorrect, invalid file format Usage: To be used to indicate an incorrect operation/transaction code	5 (Payment System Error)
AM04	InsufficientFunds	Insufficient funds	17 (Insufficient Funds)
AM05	Duplication	Duplicate collection	Ignore. The original transactions should be acknowledged correctly.
BE01	InconsistentWithEndCustomer	Debtor's name does not match with the account holder's name.	5 (Payment System Error)
FF01	InvalidFileFormat	Operation/Transaction code incorrect, invalid file format Usage: To be used to indicate an invalid file format	5 (Payment System Error)
MD01	NoMandate	No Mandate	5 (Payment System Error)
MD02	MissingMandatoryInformationInMandate	Mandate data missing or incorrect	5 (Payment System Error)
MD07	EndCustomerDeceased	Debtor deceased	5 (Payment System Error)
MS02	NotSpecifiedReasonCustomerGenerated	Refusal by the Debtor	5 (Payment System Error)
MS03	NotSpecifiedReasonAgentGenerated	Reason not specified	5 (Payment System Error)
RC01	BankIdentifierIncorrect	Bank identifier incorrect (invalid BIC)	5 (Payment System Error)
RR01	MissingDebtorAccountOrIdentification	Regulatory reason	5 (Payment System Error)
RR02	MissingDebtorNameOrAddress	Regulatory reason	5 (Payment System Error)
RR03	MissingCreditorNameOrAddress	Regulatory reason	5 (Payment System Error)
RR04	RegulatoryReason	Regulatory reason	5 (Payment System Error)
SL01	DueToSpecificServiceOfferedByDebtorAgent	Specific Service offered by the Debtor Bank	5 (Payment System Error)

Note: The reason codes are stored in IBY_TRXN_SUMMARIES_ALL.BEPCODE table.