Bank PASA Rules

This article will explain how the bank codes and transaction rules are being processed on the SwitchTransact system by means of the banking regulations.

This article will focus on how "SwitchTransact" handles Unpaid and Disputed transactions and what the rules imply when a subscription will be cancelled/stopped and paused.

BANK CODE MEANINGS

Unpaid Code Descriptions document can be downloaded from this link: UNPAID - Bank Codes

Reason Codes for Returned Transactions.

Unpaid Reason Codes

02 - Not provided for (equivalent to R/D on a cheque)
03 – Debits are not allowed to this account
04 – Payment stopped (by a/c holder)
05 – Account dormant
06 – Account frozen (as in divorce etc.)
08 – Account in sequestration (private individual)
10 – Account in liquidation (company)
12 – Account closed (with no forwarding details)
16 - Account transferred (to another banking group)
18 – Account holder deceased
22 – Account effects not cleared
26 – No such account
56 – Not FICA compliant

User withdrawal request Code

28 – Recall/Withdrawal

Disputed Transaction Codes

30 – No authority to debit
32 – Debit in contravention of payer’s authority
34 – Authorisation cancelled
36 – Previously stopped via stop payment advice

TRANSACTION RULES ON THE SYSTEM

Unpaid Transactions

- An Unpaid transaction is any User EFT transaction (Debit or Credit) that, for some valid reason, has been returned by the homing bank, this is considered a financial transaction. Unpaid transaction notifications will be returned electronically in the output file.

- Unpaid items will be returned within 96 hours (4 Days) from the transaction's action date (depending on the bank). These are due to various reasons found in the section (Bank Code Meanings).

- 2 consecutive tries on the transaction, the subscription will be "Canceled"

- These are the unpaid transaction codes implemented on the system to " CANCEL" a subscription.

a) 02 - Not provided for (equivalent to R/D on a cheque)

b) 03 – Debits not allowed to this account

c) 05 – Account dormant

d) 06 – Account frozen (as in divorce etc.)

e) 08 – Account in sequestration (private individual)

f) 10 – Account in liquidation (company)

g) 12 – Account closed (with no forwarding details)

h) 16 - Account transferred (to another banking group)

i) 18 – Account holder deceased

j) 22 – Account effects not cleared

k) 26 – No such account

l) 56 – Not FICA compliant

- Note: - The Third Party can still dispute items.

Disputed Transactions

- When a Third Party disputes a transaction within 40 days of the action date, the transaction will be returned immediately for one of the following reasons:

a) The transaction is not mandated.

b) The transaction is in contravention of the mandate.

c) The mandate for the transaction has been cancelled.

d) The transaction has been previously stopped via stop payment advice.

- When the dispute is lodged later than 40 calendar days after action date the Third Party’s bank shall give the User’s bank 30 days' written notice to that effect. If the User’s bank fails within such period to prove to the satisfaction of the Third Party’s bank the validity of the relevant authorisation then the Third Party’s bank shall immediately reverse the debit to the User’s account.

- These are the disputed bank codes implemented on the system to " PAUSE" a subscription.

a) 030 - no authority to debit

b) 032 - debit contravenes the client's authority

c) 034 - authorisation cancelled

d) 004 - payment stopped

e) 036 - previously stopped as stopped payment

REFERENCE

In reference to this article = ABSA BI EFT User Manual