General
SEPA Payment Suite offers the possibility for creditors to cancel SDDs that have not yet been sent or to reverse previously transmitted SDDs. In the latter case, SEPA Payment Suite automatically generates a reversal. If the statutory refund period has been exceeded, SEPA Payment Suite can automatically generate a SEPA transfer (SCT).
These requests relate to both SDDs created through debit applications and SDDs generated from a payment schedule.
The request submitted to SEPA Payment Suite must contain the following information:
A transaction reference, The initial SDD end-to-end reference, And any comments (optional) made by the creditor to the debtor.
The exchange methods supported for this operation are presented in this table.
Cancellation or reversal request processing
For each cancellation/reversal request, SEPA Payment Suite performs the following checks:
the uniqueness of the end-to-end reference, existence of an initial SDD; statutory deadline for sending of a reversal has been adhered to (SDD payment date + 2 working days); deadlines for sending to creditor’s bank have been adhered to.
If the checks are successful:
If the original transaction has not been sent to the creditor’s bank, SEPA Payment Suite updates the status of the original transaction to “Cancelled”. This transaction will not be transmitted by SEPA Payment Suite.
If the original transaction has already been sent and the statutory refund period has not been exceeded, SEPA Payment Suite automatically generates a reversal to be issued. If absent from the request, the refund reason code is set by default to “MS02” ("Reason not specified"). The status of the original SDD is changed to “Reversed”. The refund is also checked against the original SDD.
If the original transaction has been paid and the statutory refund period has been exceeded, SEPA Payment Suite automatically generates a SCT to be issued. The status of the original SDD is changed to “Refunded”. The SCT is also checked against the original SDD. This action is configurable.
Once the checks have been completed, SEPA Payment Suite generates a response to the issuer of the cancellation/reversal request in accordance with its exchange method. For each rejected cancellation or reversal request, a result code indicates the reason for the rejection:
No associated original transaction;
Duplicate: request reference already exists in database;
Cancellation request received too late.