This translation has been prepared with the greatest possible care; however, in case of doubt, the German text is the authoritative version.

Transcription

1 The Deutsche Bundesbank s procedural rules for the clearing and settlement of SEPA direct debits via the RPS SEPA-Clearer ( Procedural rules for SEPA direct debits ) Version 2.3 valid from 30 September 2013 Notes on the English translation This translation has been prepared with the greatest possible care; however, in case of doubt, the German text is the authoritative version. Version 2.3 Page 1 of 34

2 Overview of versions Date Version Comments 6 July October Comments on SCL-Directory (section II, No 5) Duplication checks and cross-reference check (section III, No 4.2.2) Distinction between Core and B2B Elimination of Annexes 2 and 3 (section VI, Communication agreements) Acceptance reports for calculating the multilateral balancing payment (section V) Clarifications and notes 1.2 Inclusion of EPC Scheme Rulebook and Implementation Guidelines, version 3.3 Definition of participants Elimination of separate test forms (section II, point 4.1) Clarifications and notes 1 November Inclusion of EPC Scheme Rulebooks and Implementation Guidelines for SDD Core (version 4.0) and SDD B2B (version 2.0) Reference to the future publication of the SCL- Directory in rocs data record format (see section II, point 5) Definition of addressable BIC holders (section II, points 2 and 4.2.3) Clarifications and notes 19 November Inclusion of EPC Scheme Rulebook and Implementation Guidelines, version 5.0 Settlement of payment messages exchanged via TARGET2 Exclusive provision of SCL-Directory as an XML file in rocs data record format Earlier start of the first delivery window (new: starting at around 10.15; previously: starting at around 12.15) Clarifications and notes 17 November Inclusion of EPC Scheme Rulebook and Implementation Guidelines, versions 6.0 and 4.0 Change of delivery and settlement times for fourth delivery window (section IV, point 3.3), already effective since 20 February 2012 Clarifications and notes Version 2.3 Page 2 of 34

3 30 September Start of the second delivery window as early as around (section IV, point 3.2) 4 November 2013 Direct SEPA-Clearer participants can ask for the SEPA-Clearer to send them the SCL-Directory on a regular basis via the communication channel used for exchanging files; already effective since 8 July 2013 (section II, point 6) Use of Cor1 option Clarifications and notes 1 February 2014 Version 7.0 of SEPA Core Direct Debit Scheme enters into force (reference documentation) Version 5.0 of SEPA B2B Direct Debit Scheme enters into force (reference documentation) Version 2.3 Page 3 of 34

4 Reference documentation Document Title 1 EPC SEPA CORE DIRECT DEBIT SCHEME RULEBOOK, version 7.0 of 30 November EPC SEPA CORE DIRECT DEBIT SCHEME INTERBANK IMPLEMENTATION GUIDELINES, version 7.0 of 30 November EPC SEPA BUSINESS TO BUSINESS DIRECT DEBIT SCHEME RULEBOOK, version 5.0 of 30 November EPC SEPA BUSINESS TO BUSINESS DIRECT DEBIT SCHEME INTERBANK IMPLEMENTATION GUIDELINES, version 5.0 of 30 November EBA CLEARING 6 EBA CLEARING 7 Deutsche Bundesbank 8 Deutsche Bundesbank 9 Deutsche Bundesbank STEP2 Multi-purpose direct debits, Core service and B2B service, Functional Description (Core 7.0 and B2B 5.0) STEP2 Multi-purpose direct debits, Core service and B2B service, single transaction processing, Interface Specifications (Core 7.0 and B2B 5.0) General Terms and Conditions Procedural rules for communication with payment service providers with a bank sort code via EBICS Procedural rules on communication via SWIFTNet FileAct for the electronic Retail Payment System (RPS) and the RPS SEPA-Clearer (SCL) 10 TARGET2 User Detailed Functional Specifications 1st book (version 5.01) 11 TARGET2 Routing/Mapping of Payments and Ancillary System Transactions (version 3.0) 12 TARGET2 User Guide for Collection of Static Data (version 4.4) Version 2.3 Page 4 of 34

5 Glossary Abbreviation Meaning B2B Business to Business BIC Business Identifier Code (ISO 9362) BPS Bulk (logical file) CD CSM CUG CUG RPS DNF DS-0n DVF EBA CLEARING EBICS EPC File Bulk Payments Service (SWIFTNet FileAct) Settlement-specific file with group header Calendar day Clearing and Settlement Mechanism Closed User Group (SWIFTNet FileAct) SWIFTNet FileAct Closed User Group of the RPS (Retail Payment System) Debit Notification File Numerical dataset designation pursuant to the Rulebook and EPC Implementation Guidelines Debit Validation File Euro Banking Association CLEARING Electronic Banking Internet Communication Standard European Payments Council Physical file with file header FLAM Frankenstein Limes Access Method IBAN International Bank Account Number (ISO 13616) IDF ISD rocs SCL SCT SDD SDF SEPA TD XML Input Debit File Interbank Settlement Date Routing, clearing and settlement XML message format for routing tables SEPA-Clearer SEPA credit transfer SEPA direct debit Settled Debit File Single Euro Payments Area TARGET day Extensible Markup Language Version 2.3 Page 5 of 34

6 Contents OVERVIEW OF VERSIONS... 2 REFERENCE DOCUMENTATION... 4 GLOSSARY... 5 I INTRODUCTION... 7 II BASIC PRINCIPLES PRELIMINARY REMARKS SCOPE AND PARTICIPATION SERVICES PARTICIPATION IN AND ADMISSION TO THE PROCEDURE Admission to the test procedure Authorisation for live operation BUSINESS DAYS SETTLEMENT OF PAYMENTS ROUTING TABLE (SCL-DIRECTORY) SECURITY PROCEDURES SYSTEM MALFUNCTIONS III ELECTRONIC SUBMISSION PAYMENTS FILE STRUCTURE FOR SUBMISSIONS TO THE SEPA-CLEARER FURTHER PROCEDURAL RULES FOR SUBMISSION Specifications Submission windows Duplicate copies, enquiries VALIDATING SUBMISSIONS Schema validation Checks in the RPS SEPA-Clearer IV ELECTRONIC DELIVERY PAYMENTS FILE STRUCTURE FOR DELIVERIES FROM THE SEPA-CLEARER FURTHER PROCEDURAL PRINCIPLES APPLYING TO DELIVERY Specifications Delivery windows Back-up V STATISTICAL REPORTS TECHNICAL SPECIFICATIONS SPECIFICATIONS APPLYING TO THE STRUCTURE AND CONTENT OF THE REPORTS File name File structure VI SDD/SCL TECHNICAL SPECIFICATIONS VI COMMUNICATION AGREEMENTS SWIFTNET FILEACT EBICS ANNEX SDD/SCL technical specifications Version 2.3 Page 6 of 34

7 I Introduction The Deutsche Bundesbank s procedural rules for the clearing and settlement of SEPA direct debits via the RPS SEPA-Clearer (Procedural rules for SEPA direct debits) comply with the SEPA Direct Debit Core and Business to Business (B2B) Scheme Rulebooks adopted by the European Payments Council (EPC), which, in consultation with the German banking industry, drew up and refined a strategy for implementing SEPA in the context of interbank payment transactions which takes due account of the aforementioned rulebooks. In terms of the project s technical implementation, the Bundesbank adhered to this joint strategy, determining its range of services for the settlement of SEPA direct debits accordingly. The Bundesbank s procedural rules for SEPA direct debits apply to the exchange of SEPA direct debits in the context of interbank payment transactions and comprise the following documents. The Bundesbank s technical specifications for the clearing and settlement of SEPA direct debits in interbank payment transactions Schema files on XML message types based on ISO for the processing of interbank SEPA direct debits Collection of sample files based on the valid schema files The aforementioned reference documents contain additional information on the clearing and settlement of SEPA direct debits. The Bundesbank s services for processing SEPA direct debits (Core and/or B2B) can be used independently of its services for processing SEPA credit transfers. Version 2.3 Page 7 of 34

8 II Basic principles 1 Preliminary remarks (1) The joint project of the European Commission, the European Central Bank (ECB) and the European banking industry, represented by the European Payments Council (EPC), to establish a Single Euro Payments Area (SEPA) has given rise to a European common market in which the processing of cross-border and domestic euro payments is effected in a uniformly simple, cost-effective and secure manner. To facilitate the processing of SEPA direct debits, the EPC adopted standard rulebooks and SEPA data formats based on XML in accordance with ISO In principle, uniform standards for the processing of domestic and cross-border eurodenominated direct debits are available in all SEPA 1 countries. (2) With its Retail Payment System SEPA-Clearer (RPS SEPA-Clearer), the Bundesbank provides a competitively neutral, high-performance and cost-effective payment system for the clearing and settlement of domestic and cross-border SEPA direct debits within the Single Euro Payments Area. For the purpose of settling SEPA direct debits to or from other SEPA countries, the Bundesbank s SEPA-Clearer exchanges these payment orders with the systems of other Clearing and Settlement Mechanisms (CSMs). 2 Scope and participation (1) The following procedural rules apply to the processing of SEPA direct debits via the Deutsche Bundesbank s RPS SEPA-Clearer and to any necessary routing of payments via other CSMs. In addition, the following documents apply in their current version a) the General Terms and Conditions of the Deutsche Bundesbank b) the following reference documents adopted by the EPC SEPA Core Direct Debit Scheme Rulebook SEPA Core Direct Debit Scheme Interbank Implementation Guidelines SEPA Business to Business Direct Debit Scheme Rulebook SEPA Business to Business Direct Debit Scheme Interbank Implementation Guidelines (2) In order to obtain authorisation to process SEPA direct debits in the RPS SEPA-Clearer, each participant is required to adopt the relevant SEPA Direct Debit Scheme (Core/B2B) by signing the relevant adherence agreement, thereby accepting the regulations set out in the 1 See General Terms and Conditions of the Deutsche Bundesbank, section I subsection 26 (7). Version 2.3 Page 8 of 34

9 relevant rulebook as the contractual basis between himself and the EPC as well as between himself and all other participants. Direct participation in the SEPA-Clearer is restricted to credit institutions within the meaning of article 4 (1) of Directive 2006/48/EC. Only other credit institutions within the meaning of article 4 (1) of Directive 2006/48/EC may be connected to the SEPA-Clearer as indirect participants via a direct participant. Furthermore, a direct participant is also able to submit SEPA direct debits to the SEPA-Clearer as well as receive such direct debits on behalf of other payment service providers (addressable BIC holders). SEPA direct debits submitted or received by an indirect participant or an addressable BIC holder via a direct participant are deemed equivalent to payments submitted or received by the direct participant himself. The direct participant is bound by such payment orders, regardless of the content of any contractual or other arrangements between the direct participant and any indirect participant or addressable BIC holder using the direct participant as an access point to the SEPA-Clearer. Each direct participant must ensure that any indirect participant or addressable BIC holder using him as an access point to the SEPA-Clearer has also signed the corresponding adherence agreement (Core/B2B) with the EPC. The Bundesbank is to be notified immediately of any changes to the status of a direct participant or to the status of an indirect participant or an addressable BIC holder that uses him as an access point to the SEPA-Clearer. 3 Services The available services comprise electronic submission (section III) electronic delivery (section IV) and the settlement of SEPA direct debits via the RPS SEPA-Clearer. 4 Participation in and admission to the procedure 4.1 Admission to the test procedure General information Outlined below are the framework conditions applying to the integrative tests, which have to be performed successfully before SEPA functions can go live in terms of interbank clearing operations between credit institutions or their commissioned IT service providers (hereinafter institutions ) and the Bundesbank. Mandatory test scenarios and the performance features of the tests themselves are geared to reveal any different interpretations of the SEPA requirements by the participating institutions, thereby allowing the software and/or the procedures to be adapted upfront. Here, Version 2.3 Page 9 of 34

10 the ultimate aim is to bring the participating institutions' software in line with the relevant EPC documents and the requirements specified in these procedural rules. To ensure interoperability, the Bundesbank's procedural rules are closely aligned to EBA CLEARING s specifications regarding the correct completion of dataset fields etc and take account of individual national requirements Registration for performing the test Applications for initiating the test procedure are to be made using form 4831 Test procedure application form. The data required for the test procedure are taken from the applications for productive participation, which must be submitted via the account-holding branch. The completed form 4831 is to be sent to Deutsche Bundesbank Customer Test Centre Z 421 Postfach Düsseldorf, Germany Tel: Fax: testzentrum@bundesbank.de Applications to perform the requisite upfront communication tests should also be sent to this address Performing the test Permission to participate in the integrative tests with the Bundesbank's RPS SEPA-Clearer is restricted to institutions which satisfy the following criteria. The necessary infrastructure (notably hardware, software, communication channel) is in place. The required communications tests (SWIFTNet FileAct or EBICS) with the Bundesbank have been completed successfully. In-house quality assurance tests have been carried out successfully. Registration with the Bundesbank as a test participant stating the requisite data (SDD scheme, BIC, IBAN, bank sort code, contact person(s) etc). If participation is to occur via SWIFTNetFileAct, registration either with SWIFT s generic service or with its Bulk Payments Service (BPS) as part of the RPS Closed User Group (CUG RPS) is also necessary. The tests are coordinated by the Customer Test Centre (section II, point 4.1.2) and feature the following test scenarios which each have to be performed successfully at least once for Version 2.3 Page 10 of 34

11 the requested SDD scheme (Core/B2B) in sender and receiver mode in conjunction with the SEPA-Clearer. - pacs SEPA direct debit, original message - pacs scl Rejection of a SEPA direct debit prior to settlement (delivered via the SEPA-Clearer, with reference to a pacs payment message sent by the submitter) - pacs Rejection of a SEPA direct debit prior to settlement by the debtor bank - pacs Return of a SEPA direct debit after settlement by the debtor bank - camt Cancellation of a SEPA direct debit prior to settlement by the creditor bank - pacs Direct debit reversal by the creditor bank The individual sub-processes of the test participant in its capacity as the debtor bank and creditor bank are reviewed as part of the SEPA direct debit test and the associated R- transactions. The test day in the applications of the test participants is the relevant calendar date. In addition to the mandatory test scenarios listed above, further discretionary tests may be performed on the test participant s initiative, provided the necessary resources are available at the Customer Test Centre. All participating institutions must ensure that the test schedule is documented Test definition SEPA payments are routed to other CSMs solely as part of the Bundesbank's test activities involving these CSMs Initial certification and renewal of the test certificate Participating institutions are notified of the successful completion of the required authorisation tests in writing (initial certification). Similarly, each institution is required to confirm to the Bundesbank (Z 11 Customer services section for payment systems and account management) that the test has been carried out successfully. This certification solely encompasses the test cases mentioned in section II, point and confirms the successful performance of the tests in conjunction with the SEPA-Clearer under the conditions (in particular with regard to hardware, software and the communication channel) applying at the time of testing. Version 2.3 Page 11 of 34

12 If an institution makes adjustments after initial certification, in particular with regard to hardware, software or the communication channel, it must obtain new certification and confirm successful completion of the test. The scope of the testing required to renew the initial certification is based on the test scenarios specified in section II, point and is to be coordinated between the respective institution and the Bundesbank s Customer Test Centre on a case-by-case basis. To this end, the relevant institution must contact the Customer Test Centre in good time before the adjustments go live using the contact details specified in section II, point Registration for performing the test. 4.2 Authorisation for live operation Registration Institutions wishing to participate directly in the RPS SEPA-Clearer must submit form 4791 Application for participation in the Deutsche Bundesbank s RPS SEPA-Clearer for the SEPA Core direct debit and/or SEPA B2B direct debit service(s). Authorisation for live operation is contingent on successful completion of the test procedure described in section II, point 4.1. Moreover, it must be possible to settle payments using a corresponding account on the TARGET2 single shared platform (hereinafter SSP ) (see section II, point 5). Besides SEPA Core direct debits with the standard lead times (D-5 and D-2), SEPA Core direct debits with a shorter lead time of at least one TARGET2 business day before the due date (D-1) can be processed via the SEPA-Clearer, regardless of the sequence type (oneoff, initial, subsequent or last direct debits). An optional settlement option (the SCL Cor1 option) was built into the SEPA-Clearer s SDD Core service to process these SEPA Cor1 direct debits. Participants need to have registered for the SEPA-Clearer s SDD Core service in order to register for the SCL Cor1 option. By registering to participate, the applicant bindingly accepts the conditions set out in these procedural rules and confirms that he has signed the relevant SEPA Direct Debit Adherence Agreement (Core and B2B separately) with the EPC. Applications are to be submitted to the responsible Bundesbank customer service team together with the relevant TARGET2 forms 2 (1014 and 2002) which must be completed to effect settlement with the SEPA-Clearer using the TARGET2 SSP. Individual bank branches may also apply to participate through the Bundesbank customer service team responsible for their main office, in which case the relevant forms are to be signed by authorised persons representing the credit institution as a whole. Through its connection to the STEP2 pan-european clearing house of the Euro Banking Association (EBA CLEARING) as a direct participant, the Bundesbank offers institutions the 2 Only applicable where a participant uses his own TARGET2 PM account for the purpose of settlement. See also section II, point 5 as well as the TARGET2 reference document User Guide for the Collection of Static Data. Version 2.3 Page 12 of 34

13 chance to participate in EBA CLEARING s STEP2 SEPA Direct Debit Service (STEP2 SDD service) and/or in the STEP2 Cor1 option on an indirect basis. 3 To register for the STEP2 SDD service, the relevant EBA CLEARING forms are to be submitted via the responsible Bundesbank customer service team. Interested parties can register with EBA CLEARING using an eight or eleven-character BIC. If registration occurs on the basis of an eightcharacter BIC, the participant must specify all transactions where the first eight digits match the registered BIC. If participation is to occur via SWIFTNetFileAct, registration either with SWIFT s generic service or with its Bulk Payments Service (BPS) as part of the RPS Closed User Group (CUG RPS) is also necessary. The currently valid forms for these services can be downloaded from The original document used to register for the relevant SWIFT service should be sent to SWIFT directly; a copy of this is to be attached to the Application for participation in the Bundesbank s RPS SEPA-Clearer Dates The Bundesbank will inform the institution of the date of initial participation. For new participants in the SEPA Direct Debit Schemes (Core/B2B), this is largely determined by the date on which the institution joins the respective scheme. As a general principle, to avoid inconsistencies between the data content of individual CSM data pools, admission is only possible on the monthly activation dates stipulated in the SCL-Directory (see section II, point 7). The requisite authorisation tests need to have been completed successfully prior to participation in the RPS SEPA-Clearer Connecting additional payment service providers Where an indirect participant or an addressable BIC holder is to be connected to the SEPA- Clearer via a direct participant, it is also necessary to complete the following forms 4792 Application for routing changes (RPS SEPA-Clearer) and 4793 Declaration of consent (RPS SEPA-Clearer) and submit these to the aforementioned Bundesbank branch. The routing path that has been set up applies equally to SEPA Core direct debits and SEPA B2B direct debits. If form 4792 is submitted by a payment service provider which has no contractual relationship with the Bundesbank, a routing system will be set up and maintained on the basis of the direct participant s declaration of consent. Responsibility for checking and confirming the legitimacy of the indirect participant s/addressable BIC holder s powers of representation lies with the direct participant. 3 Note: SEPA direct debits submitted in the SEPA-Clearer can only be transmitted to EBA CLEARING s STEP2 SEPA Direct Debit Service in cases where the creditor bank participates indirectly in this service via the Deutsche Bundesbank in its capacity as a direct STEP2 participant. This applies similarly to R-transactions. Version 2.3 Page 13 of 34

14 5 Business days (1) The TARGET2 calendar is the sole relevant schedule for processing payment instructions. National, regional and local public holidays in Germany which are not simultaneously TARGET2 holidays are not observed by the SEPA-Clearer. (2) Processing days in the SEPA-Clearer correspond to calendar days, provided the latter is are TARGET2 business days. 6 Settlement of payments The SEPA-Clearer is connected to the TARGET2 SSP as an ancillary system. All submitted, delivered and yet to be delivered payment messages are settled exclusively via accounts held in the Payments Module (PM accounts) of this platform using procedure 6 which is specifically provided for the settlement of ancillary systems. Settlement is possible either via the participant s own PM account or the PM account of another direct TARGET2 participant, provided the latter has given his approval beforehand. If this is the case, the SEPA-Clearer participant must specify the details of the TARGET2 participant s PM account that is to be used for settlement using form 4792 Application for routing changes (RPS SEPA-Clearer). The same details must be entered on form 4793 Declaration of consent (RPS SEPA- Clearer) by the TARGET2 participant. Payments are booked several times a day using standardised settlement procedures specific to the TARGET2 SSP by means of a technical sub-account assigned to the PM account. In each case, a procedure consisting of several consecutive settlement cycles is automatically set in process after the cut-off time in a given processing window. For example, the countervalues of all SEPA direct debits that generate debit entries and those of all SEPA direct debits that result in credit entries are settled in separate cycles. At the start of each SDD settlement cycle, the liquidity needed for settlement is transferred automatically through the SEPA-Clearer by means of a current order from the PM account 4 to the assigned sub-account, making it unnecessary for the account holder to take independent steps to manage the liquidity of the sub-account. If an account holder nevertheless initiates liquidity transfers or standing orders in favour of the sub-account, these are not taken into account by the SEPA-Clearer s automated procedure for managing the liquidity of this sub-account. Upon successful completion of all the credit and debit entries passing through a processing window (SCT and SDD settlement cycles), ie once the entire settlement procedure has run its course, any funds that remain available are automatically transferred from the sub-account back to the designated PM account. Notes on the referencing of settlements in the booking information and electronic account statements provided by the TARGET2 SPP can be found in the annex to the procedural rules SDD/SCL technical specifications (section 12). 4 Only applicable if the required cover is available on the PM account. If need be, partial amounts equivalent to the funds available on the PM account can be transferred to the sub-account. Version 2.3 Page 14 of 34

15 7 Routing table (SCL-Directory) To facilitate the processing of SEPA payments via its RPS SEPA-Clearer, the Bundesbank publishes a routing table (SCL-Directory) listing all the payment service providers that can be reached via the SEPA-Clearer. This SCL-Directory contains the BICs of all direct participants in the SEPA-Clearer as well as of all indirect participants and addressable BIC holders. As the EPC has separate and independent admission paths (known as adherence processes ) for each scheme (ie for SEPA credit transfers, SEPA Core direct debits, SEPA B2B direct debits), the reachability of each of the BICs is shown separately for each scheme. In addition, BIC holders reachability for SEPA Cor1 direct debits is shown in a separate document. For the purpose of settling SEPA direct debits, a distinction must therefore be made between participating payment service providers stated as being addressable for SEPA Core direct debits, SEPA Cor1 direct debits and SEPA B2B direct debits. The Bundesbank routes SEPA direct debits (Core/B2B) which cannot be processed in the SEPA-Clearer via other CSMs. The SCL-Directory therefore also includes the BICs of those payment service providers that can be addressed via other CSMs. They are flagged accordingly. As a standard approach, the SCL-Directory is made available to direct participants in the SEPA-Clearer in the Bundesbank's ExtraNet as a downloadable XML file in rocs data record format. Any queries regarding registration for the ExtraNet or the SCL-Directory made available there should be addressed to the Bundesbank s Service Centre for Computer Centre and Retail Payment Systems Operations (Tel: /3388/3953 or by sepa-admin@bundesbank.de). Participants can also ask to be sent the SCL-Directory on the respective publication date directly from the SEPA-Clearer via the communication channel used for transmitting files. To sign up for this service, participants should complete and return form 4791 (Annex 1) for SWIFTNet FileAct and form 4750 for EBICS. The SCL-Directory is intended for internal use only and its contents may only be shared with branches, connected indirect participants and BIC holders who can be reached via participants in the RPS SEPA-Clearer. Commercial use of any data contained therein is prohibited, even where this has been legitimately shared with an indirect participant or addressable BIC holder. The Bundesbank publishes an XML file in rocs data record format containing details of the structure, content and administration of the SCL-Directory in the form of an explanatory notice (SCL-Directory Notice) on its website. Additionally, the Bundesbank posts an excerpt from the SCL-Directory on the internet without assuming any further binding obligations. This excerpt generally allows interested parties to check whether a given bank s BIC is reachable via the Bundesbank's SEPA-Clearer. Version 2.3 Page 15 of 34

16 8 Security procedures Product-specific security mechanisms, as described in the procedural rules on the relevant communication procedure, are used to protect against unauthorised access, to identify the sender, and to safeguard data integrity when exchanging data via EBICS or SWIFTNet FileAct. 9 System malfunctions (1) Customer experiencing malfunctions and problems in connection with the SEPA-Clearer should inform the Bundesbank's RPS coordinator of the Service Centre for Computer Centre and Retail Payment Operations using the following contact data. Deutsche Bundesbank SZ ZVP/EMZ-Betrieb Postfach Düsseldorf, Germany Tel: /2157 Fax: sepa-admin@bundesbank.de In the event of processing malfunctions at the Bundesbank, the RPS coordinator will notify the credit institutions operational/technical contacts, as designated in the Application for participation in the RPS SEPA-Clearer of the Deutsche Bundesbank (form 4791), by telecommunication. (2) If the Bundesbank or a participant is unable to send or receive data or if the data transfer network is not functioning correctly, the back-up resend procedure is the only viable option for making submissions, issuing instructions and/or delivering data. This procedure retransmits the file through the defined regular transmission channel once the ability to send/receive data has been restored or the disruption to the data transfer network has been eliminated. (3) The extent of the Bundesbank's liability is limited to implementation of the back-up procedure. Version 2.3 Page 16 of 34

17 III Electronic submission 1 Payments (1) SEPA direct debits are submitted to the SEPA-Clearer in interbank format. The following transactions are supported. They are settled using the following logical files (bulks). pacs : SEPA direct debit, original message pacs : SEPA direct debit, reject/refusal credit institution (Rejection/refusal prior to settlement by the debtor bank to the creditor bank via the SEPA-Clearer. If the payer initiates the refusal of a SEPA direct debit before it falls due, the debtor bank returns this refusal via the SEPA- Clearer in the form of a rejection.) pacs : SEPA direct debit, return/refund (Return/refund after settlement by the debtor bank via the SEPA-Clearer. If the payer initiates the refund of a SEPA Core direct debit after it falls due, the debtor bank sends this refund back via the SEPA-Clearer in the form of a return.) camt : SEPA direct debit, payment cancellation request (cancellation of SEPA direct debits that have already been delivered before settlement by the creditor bank) pacs : SEPA direct debit, reversal (reimbursement of the countervalue of the direct debit by the creditor bank. If the payee initiates a reversal, the creditor bank forwards the reversal via the SEPA-Clearer.) Only files containing one SEPA direct debit type (Core or B2B) may be submitted. In other words, mixed submission of SEPA Core and B2B direct debits in a single file is not permissible. This also applies to R-transactions contained in a single file. Mixed submission of SEPA Core and SEPA Cor1 direct debits in a single file is permissible. A single bulk may contain only SEPA Core direct debits or only SEPA Cor1 direct debits. This rules applies in equal measure to R-transactions contained in a single file. No limits apply to the amounts of these transactions. (2) When SEPA Cor1 direct debits are delivered, a check is carried out to ascertain whether both payment service providers involved are registered for the Cor1 option; if they are not, the relevant payments are returned to the submitter. The existence or contents of any agreement between the payment service providers involved regarding the exchange of SEPA Cor1 direct debits are not checked. (3) At the end of each SEPA-Clearer business day (around 22.00), each participant receives a Daily Reconciliation Report for SEPA Direct Debits (DRD), broken down by SEPA Core direct debits and SEPA B2B direct debits; see section IV, 1 point 2. These reports provide a Version 2.3 Page 17 of 34

18 summary of the SDD bulk transactions submitted to and delivered from the SEPA-Clearer for the SEPA Direct Debit Scheme in question (Core/B2B). It contains the following information regarding electronic submission. DRD (pacs.003) direct debit bulks sent body, submitted by the participant DRD (pacs.004) return/refund bulks sent body, submitted by the participant DRD (pacs.007) reversal bulks sent body, submitted by the participant DRD (pacs.002) reject bulks sent body, submitted by the participant DRD (camt.056) payment cancellation request bulks sent body, submitted by the participant The daily reconciliation report for Core direct debits makes no distinction between Core and Cor1 bulks. However, the two payment types can be distinguished by the bulk message ID. For bulks submitted via a communication partner, submitters receive a corresponding DRD. Where a participant submits bulks himself as well as via a communication partner, two separate DRD messages are produced. The DRD is not an XML file and it is provided in EBCDIC format. 2 File structure for submissions to the SEPA-Clearer The submitted files must comply with the annex entitled SDD/SCL technical specifications, and in terms of both their structure and content with the schema files described in the annex to this document. Up to 999 logical files (bulks) can be transmitted in a physical file and each bulk may contain no more than 100,000 individual messages (transaction information or underlying) referencing the same type of transaction. File level Description Restrictions File header File, physical file level No restrictions regarding the number of files submitted during a business day Group header assignment Transaction information, underlying Bulk, logical file level Individual message in a bulk Table 1 - File size limits Maximum of 999 bulks per file Maximum of 100,000 individual messages per bulk Note: When exchanging files via SWIFTNet FileAct, it should be noted that the size of a single file (including any compressed files) is limited to 250 MB (see section 1, point 4 of the Procedural Rules on communication via SWIFTNet FileAct for the Deutsche Bundesbank's Retail Payment System (RPS) and the RPS SEPA-Clearer (SCL)). Example: File structure for submitting SEPA direct debits to the SEPA-Clearer Version 2.3 Page 18 of 34

19 File header IDF 5 pacs (direct debit) Group header (bulk 1) SEPA direct debit transaction information camt (payment cancellation request) Group header (bulk 2) SEPA direct debit PCR underlying pacs (reject/refusal) Group header (bulk 3) SEPA direct debit transaction information and status (reject/refusal) pacs (reversal) Group header (bulk 4) SEPA direct debit reversal transaction information pacs (return/refund) Group header (bulk 5) SEPA direct debit return transaction information Table 2 - File structure for submissions (example) The sequence of the bulks within a single file is determined by the file schema BBkIDFBlkDirDeb.xsd. Accordingly, all the messages of type pacs (one or more) have to be listed in their entirety. These are followed by messages of the type camt , pacs , pacs and pacs (one or more in each case). 3 Further procedural rules for submission 3.1 Specifications Submissions to the SEPA-Clearer are only possible by data telecommunication via EBICS or SWIFTNet FileAct. This is governed by the specifications set out in the relevant procedural rules for communication via SWIFTNet FileAct and EBICS (see section VI). 3.2 Submission windows (1) A total of two submission windows are supported in the SEPA-Clearer each operating day. (2) SEPA direct debits submitted through the SEPA-Clearer are accepted between and on Monday to Friday (with maintenance windows for submissions via SWIFTNet FileAct open from to 01.30). In the event of disruption, the Bundesbank offers no 5 Either Core bulks or Cor1 bulks can be submitted in a core file. A B2B file may only contain B2B bulks, however. This also applies to R-transactions contained in a single file. Version 2.3 Page 19 of 34

20 support services between and Instructions transmitted after are buffered by the Bank's processing computer until the validation process of the first submission window commences at around Large files, in particular, should be submitted as early as possible prior to the cut-off time for the preferred submission window so as to ensure smooth processing. Payments are executed in line with the acceptance parameters applying to each submission window and the associated rules for completing fields and/or plausibility checks. (3) Submissions must be made by the final cut-off time (acceptance is deemed to have occurred once submission to the Bundesbank s communication computer has been completed). The countervalues pertaining to submitted SEPA direct debits are settled per logical file (bulk) on the interbank settlement date. First submission window Business day Processing day D D Submission times After on business day D 1 up to on business day D Cut-off time Processing times Settlement times From around on business day D SEPA direct debits (Core/B2B) and R-transactions prior to settlement: from around on the business day prior to the interbank settlement date (value date of the next business day) R-transactions prior to 6 /after settlement: from around Table 3 - First submission window 6 Only affects R-transactions prior to settlement with the interbank settlement date of the current business day, such R-transactions being submitted by SEPA-Clearer participants in the first submission window of the current business day. Version 2.3 Page 20 of 34

21 Second submission window Business day Processing day Submission times D D After on business day D up to on business day D Cut-off time Processing times Settlement times From around on business day D SEPA direct debits (Core/B2B) and R-transactions prior to settlement: from around on the business day prior to the interbank settlement date (value date of the next business day) R-transactions after settlement: from around (indicating the date of the next business day) Table 4 - Second submission window The above-mentioned settlement times give only a broad indication. The exact settlement times are contingent on the total number of queued payment instructions. 3.3 Duplicate copies, enquiries (1) Participants are obliged to retain a record of the contents of the files they have transmitted for a period of ten business days and must supply a replacement file immediately if requested to do so by the Bundesbank. For the purpose of processing queries and complaints, participants must also be able to provide specific information beyond this period. (2) In back-up cases, data may only be submitted through the original communication channel. Data record or voucher procedures are not supported in back-up cases. (3) Enquiries regarding payment transactions are to be directed to the Service Centre for Computer Centre and Retail Payment Systems Operations (for the relevant contact data see section II, point 8). 4 Validating submissions 4.1 Schema validation SEPA direct debits submitted in the agreed XML data structure (see section III, point 2) are validated against the XSD schema files to be used (syntax checks). The validation procedure is interrupted the moment the first format error is identified, in which case a file reject message specifying error code R10 (parsing error) is generated by the SEPA-Clearer without settlement taking place. This error message is then transmitted to the sender of the file (communication partner). Version 2.3 Page 21 of 34

22 4.2 Checks in the RPS SEPA-Clearer Specifications in connection with the interbank settlement date/due date (requested collection date) One-off direct debits, initial direct debits and subsequent direct debits may be contained in a logical file (bulk) if settlement of the due direct debits takes place on the same interbank settlement date. Mixed submission of SEPA Core and SEPA Cor1 direct debits in a single file is permissible. A mixture of SEPA Core and SEPA Cor1 direct debits in a single bulk is not permissible, however. SEPA B2B direct debits may only be submitted in a separate file. The entry in the interbank settlement date data field within an IDF bulk depends on the submission times. These times are used as the basis for allocating the submitted files to a SEPA-Clearer processing cycle. During processing, the following checks are performed concerning compliance with the deadlines defined in the relevant rulebooks based on the due date (requested collection date). The lead times checked in each case relate to the business day on which processing occurs. First submission window (cut-off time: 10.00; processing from 10.15) Scheme Transaction type Due date allocation SDD Core SDD Core SDD Cor1 SDD B2B Initial/one-off direct debit Subsequent direct debit Initial/oneoff/subsequent direct debits Initial/oneoff/subsequent direct debits Maximum of 14 calendar days before due date (D 14 CD) and minimum of 5 TARGET2 business days before due date (D 5 TD) Maximum of 14 calendar days before due date (D 14 CD) and minimum of 2 TARGET2 business days before due date (D 2 TD) Maximum of 14 calendar days before due date (D 14 CD) and minimum of 1 TARGET2 business day before due date (D 1 TD) Maximum of 14 calendar days before due date (D 14 CD) and minimum of 1 TARGET2 business day before due date (D 1 TD) Table 5a - Transaction-related checks in the first submission window Second submission window (cut-off time: 20.00; processing from 20.15) Scheme Transaction type Due date allocation SDD Core SDD Core Initial/one-off direct debit Subsequent direct debit Maximum of 14 calendar days before due date (D 14 CD) and minimum of 6 TARGET2 business days before due date (D 6 TD) Maximum of 14 calendar days before due date (D 14 CD) and minimum of 3 TARGET2 business days before due date (D 3 TD) SDD Cor1 Initial/one- Maximum of 14 calendar days before due date (D Version 2.3 Page 22 of 34

23 SDD B2B off/subsequent direct debits Initial/oneoff/subsequent direct debits 14 CD) and minimum of 2 TARGET2 business days before due date (D 2 TD) Maximum of 14 calendar days before due date (D 14 CD) and minimum of 2 TARGET2 business days before due date (D 2 TD) Table 5b - Transaction-related checks in the second submission window The entire bulk is rejected if the above-mentioned deadlines are not complied with. The table below shows, by way of an example, how the due date and the interbank settlement date interact. Due date (normal business day) (TARGET2 holiday, Good Friday) (normal business day) (TARGET2 holiday, Friday) Interbank settlement date (Tuesday) (Tuesday) (Monday) Table 6 - Due date and interbank settlement date The entire bulk is rejected if there is a discrepancy between the interbank settlement date, as calculated by the SEPA-Clearer from the direct debit s due date (requested collection date), and the date for settlement stated in the bulk of an IDF Submitting and processing R-transactions Submissions of R-transactions prior to settlement (pacs.002 and camt.056) can still be effected in the first submission window on the interbank settlement date of the original SEPA direct debits. Submissions of R-transactions after settlement (pacs.004 and pacs.007) which are settled in the SEPA-Clearer can already be effected in the first submission window on the interbank settlement date of the original SEPA direct debits. By contrast, R-transactions after settlement which are routed via other CSMs can be delivered no earlier than in the second submission window on the interbank settlement date of the original SEPA direct debits. Information as to whether an R-transaction is processed in the SEPA-Clearer or routed to other CSMs can be found in the SCL-Directory (see section II, point 7) Message transmission in the event of an error Checking rules not contained in the schema are effected in the SEPA-Clearer. They are described in detail in the annex SDD/SCL technical specifications. Version 2.3 Page 23 of 34

24 If the plausibility checks carried out in the SEPA-Clearer detect any inaccuracies or other errors, the submitting credit institution will receive a pacs scl 7 message specifying an error code via its communication partner. Message type SCL informs the submitting credit institution about submitted SDD bulks which cannot be processed or which have been submitted in duplicate, errors leading to the rejection of individual payments A list of error codes and their meanings is included in the annex SDD/SCL technical specifications of the procedural rules (section 7). Validation and possible rejection of a submitted SEPA direct debit generally takes place immediately following submission to the SEPA-Clearer. It should be noted, however, that the validation of submissions to the first submission window does not commence until around on a given SEPA- Clearer processing day to the second transmission window does not commence until the second submission window has closed. Accordingly, no rejections occur until after these times at the very earliest Duplication checks and cross-reference checks SEPA-Clearer (1) The SEPA-Clearer carries out duplication checks at file, bulk and individual transaction level (see annex SDD/SCL technical specifications ). If a file has been rejected, a new file reference must be created when the file is re-submitted. (2) The SEPA-Clearer makes no cross-reference check between the original SEPA direct debit and an R-transaction, ie there is no check to establish whether a SEPA direct debit referenced via the SEPA-Clearer with the message type pacs , pacs , camt or pacs has also been processed via the SEPA-Clearer beforehand with the message type pacs Other CSMs The Bundesbank routes SEPA direct debits which cannot be processed in the SEPA-Clearer via other CSMs. Further information on reference entries at bulk level (message ID and identification) and individual transaction level (transaction ID, status ID, return ID, reversal ID and cancellation ID) of SEPA direct debits owing to duplication checks and/or cross-reference checks by other CSMs can be found in the annex SDD/SCL technical specifications (section II). 7 Message type pacs scl does not form part of the EPC specifications. Version 2.3 Page 24 of 34

25 4.2.5 Erroneous individual payments Participants receive notification by message type pacs scl of any errors that result in individual payments being rejected. A corresponding counter-entry for a reject initiated by the SEPA-Clearer is automatically shown in the PM account of the instructing agent/assigner specified in the bulk group header in accordance with the gross settlement principle. Files and bulks made up exclusively of erroneous direct debits will be rejected without being settled, assuming the SEPA-Clearer has managed to detect the error. If, while processing SEPA direct debits that are to be routed via other CSMs, additional plausibility checks are conducted that result in rejections, the relevant files or individual payments will likewise be returned using the aforementioned message type. A counter-entry will similarly be made for files/individual payments rejected via other CSMs. All credit institutions which can be reached via other CSMs are shown in the SCL-Directory (see section II, point 7). For SEPA direct debits to be successfully routed to the EBA CLEARING s STEP2 SDD service, both the payer and the payee must maintain an account with a payment service provider that participates directly or indirectly in that service. In addition, SEPA direct debits submitted in the SEPA-Clearer can only be forwarded to EBA CLEARING in cases where the creditor bank participates indirectly in this service via the Bundesbank in its capacity as a direct STEP2 participant. If these requirements are not met and processing via another CSM is not possible, the countervalue of the payment will be returned and the submitting credit institution will be informed by message type pacs scl that the payment was not executed. Rejected individual payments or files may be re-submitted once the error has been rectified. In this context, it is important to note the dependencies pertaining to the relevant submission window, the referencing and entry in the interbank settlement date data field within a bulk, giving particular attention to the entry in the due date ( requested collection date ) data field (see section III point 4.2). Version 2.3 Page 25 of 34

26 IV Electronic delivery 1 Payments (1) SEPA direct debits are delivered from the SEPA-Clearer in interbank format. The following transactions are supported. They are settled using the following logical files (bulks). pacs : SEPA direct debit, original message pacs scl: SEPA direct debit, reject SEPA-Clearer (rejections from the SEPA-Clearer/via other CSMs service owing to erroneous files or individual payments) pacs : SEPA direct debit, reject/refusal credit institution (Rejection/refusal prior to settlement by the debtor bank to the creditor bank via the SEPA-Clearer. If the payer initiates the refusal of a SEPA direct debit before it falls due, the debtor bank returns this refusal via the SEPA-Clearer in the form of a rejection.) pacs : SEPA direct debit, return/refund (Return/refund after settlement by the debtor bank via the SEPA-Clearer. If the payer initiates the refund of a SEPA Core direct debit that has already been executed, the debtor bank sends this refund back via the SEPA- Clearer in the form of a return.) camt : SEPA direct debit, payment cancellation request (cancellation of SEPA direct debits prior to settlement by the creditor bank) pacs : SEPA direct debit, reversal (reimbursement of the countervalue of the direct debit by the creditor bank. If the payee initiates a reversal, the creditor bank forwards the reversal via the SEPA- Clearer.) There is no mixed delivery of SEPA Core, SEPA Cor1 and SEPA B2B direct debits in a single file or bulk. (2) When processing SEPA Cor1 direct debits, a check is carried out to ascertain whether both payment service providers involved are registered for the Cor1 option; if they are not, the relevant payments are returned to the submitter. The existence or contents of any agreement between the payment service providers involved regarding the exchange of SEPA Cor1 direct debits are not checked. (3) At the close of every SEPA-Clearer business day (ie at around 22.00), participants are provided with a DRD for each SEPA Direct Debit Scheme (Core/B2B) containing the following information regarding electronic deliveries. DRD (pacs.003) direct debit bulks received body, delivered to the participant Version 2.3 Page 26 of 34