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This document is published by Bank of Ireland, and both it, and its’ contents, are the property of Bank of Ireland.This document may not be reproduced or further distributed, in whole or in part, without the express written permission of Bank of Ireland.

SEPA Direct Debit Creditor Reports Guide

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Contents

This guide is designed to enable you to understand and access the reports available to you as a SEPA (Single Euro Payments Area) Direct Debit creditor.

Section 1: Reports Overview

1. What reports are available for SEPA Direct Debit originators?

Section 2: File Rejection Report

1. What is a File Rejection Report?

2. How do I view my File Rejection Report?

Section 3: Creditor Settlement Report

1. What is a Creditor Settlement Report?

2. How do I view my Creditor Settlement Report?

3. Can I print and download a Creditor Settlement Report?

Section 4: PAIN.002 Report

1. What is a PAIN.002 Report?

2. How do I view and download a PAIN.002 Report?

3. What are R-messages?

4. What is the difference between the PAIN.002 Report and the Creditor Settlement Report?

Section 5: SEPA Related Questions

1. How does SEPA settlement work and how does it differ to IRECC (Irish Retail Electronic Payments Clearing Company Limited) settlement?

2. How does SEPA file reconciliation work and how does it differ to IRECC reconciliation?

Section 6: SEPA Reports Queries

1. If I have a query on a report, who should I contact?

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Section 1: Reports Overview

What reports are available for SEPA Direct Debit originators? File Rejection Report: details where a file has failed pre-processing validationCreditor Settlement Report: is used to reconcile unpaid bulk entries at account levelPAIN.002 XML Report: is used to reconcile unpaids at file level. This report highlights the individual transaction level failures.

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Section 2: File Rejection Report

1. What is a File Rejection Report?

The File Rejection Report is a report which is generated when a PAIN.008 collection file fails pre-processing validation checks.

This report will be available on Business On Line Payments Plus and provides you with the reason why a file has failed the pre-processing stage.

The following table is a listing of pre-processing validation error messages on SEPA Direct Debit files. If your file has failed any of these checks, the File Rejection Report will detail one or more of the following error messages.

Reason Text Reason Description

File Error Error with Creditor IBAN, either incorrect IBAN used, or IBAN is not registered for your Creditor ID.

File Error This is a duplicate file. Please review your file and re-submit.

File Error File Error, please check number and value of transactions and the IDs at file and batch level.

File Error Incorrect code/value used at transaction level.

File Error You have exceeded your Credit Control Limit or maximum file limit. Please review your file and re-submit or contact your relationship manager.

File Error An error was encountered with your file. Please review your file and re-submit or contact your relationship manager.

File Error The nominated account number is not registered under this Creditor ID or there are inconsistent Originator Creditor IDs present on this file.

Once the file has been rectified at source, it will need to be re-submitted to Business On Line Payments Plus via Business On Line File Gateway or Connect Direct, depending on how you have uploaded the file.

2. How do I view my File Rejection Report?

To watch our online demo, please visit: www.bankofireland.com/business-on-line-payments-plus-demo

A. Logon to Business On Line Payments Plus using your User ID and Digipass

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B. Click on ‘File Rejections Reports’ under the Reports Tab, to view all files which have failed initial validation

C. Click on the file you wish to view: these will be listed with the most recent first.

You can see the following fields to assist you choosing the correct file:• File Creation Date and Time• File ID• File Value €• Transactions per File

D. File failure reasons are displayed with the option to print.

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Section 3: Creditor Settlement Report

1. What is a Creditor Settlement Report?

The Creditor Settlement Report is available on Business On Line Payments Plus to allow for SEPA Direct Debit account reconciliation. Unpaid transactions are presented on the creditor account in the form of a bulk debit.

The Creditor Settlement Report is produced per creditor account, per day. Unpaid SEPA Direct Debits are bulk debited from the creditor account at the end of each day, where there have been unpaids. The Creditor Settlement Report provides a breakdown of this bulk debit.

The report contains the settlement date of the bulk debit, the creditor name, the creditor IBAN and details the R-messages that make up the bulk debits using the File ID, Batch ID, End to End ID and debit amount.

Please note that bulk debits may contain R-messages relating to different PAIN.008 collection files and different Creditor IDs. For further information on how to reconcile SEPA Direct Debit unpaids at file level, please see Section 4: PAIN.002 Report.

Bulk debits are posted on the settlement date of the associated batch if they are pre-settlement R-messages, or else posted that same day if they are post settlement R-messages. There may be more than one bulk debit per day.

Bulk debits are posted on settlement date or any day there after (up to D+80) where R-messages occur.

Please contact us if you require a copy of the Creditor Settlement Report file specification.

2. How do I view my Creditor Settlement Report?

To watch our online demo, please visit: www.bankofireland.com/business-on-line-payments-plus-demo

The Creditor Settlement report is available under the Reports tab on Business On Line Payments Plus.

A. Logon to Business On Line Payments Plus using your User ID and Digipass

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B. Click on ‘Creditor Settlement Reports’ under the Reports Tab

C. Select the IBAN and date (month and year) you wish to view on your report. Once selected, click ‘continue’.

D. A list of reports will be displayed, ordered by date, for the selected time period. Click on a date to view the breakdown of the bulk debits for that particular day.

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E. These details can be printed or exported as a CSV file.

3. Can I print and download a Creditor Settlement Report?

Yes, a Creditor Settlement Report can be both printed and downloaded as a .CSV file from Business On Line Payments Plus.

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Section 4: PAIN.002 Report

1. What is a PAIN.002 Report?

The PAIN.002 Report can be used to manually or automatically reconcile collections and to re-present payments. This is produced daily where an R-message has been received against the original PAIN.008 file. For further information on R-messages, see question 3 below.

This report is available in two formats, an XML file and a reader friendly HTML report, which can be used to automatically or manually reconcile SEPA Direct Debit transactions and re-present SEPA Direct Debits where necessary.

The PAIN.002 Report will be available through the Business On Line File Gateway (BOL File Gateway) application. BOL File Gateway allows users to configure their settings to receive email notifications each time a PAIN.002 report is available for download.

If you have not already done so, contact us to sign up to email notifications.

Based on this information, you, the originator can decide whether to re-present the collection again or to contact the debtor.

These R-messages can be received via BOL File Gateway from the time of submission of the PAIN.008 collection file until 80 calendar days later.

The PAIN.002 Report only reports on R-messages generated on that particular day and does not contain R-messages previously reported. If there are no R-messages generated for a PAIN.008 file, no PAIN.002 Report is generated.

The PAIN.002 XML Report does not include the settlement date of the R-message; however, this can be viewed in the HTML version of the report. The R-messages contained in a PAIN.002 XML can be reconciled to the original transactions using the End to End ID.

The PAIN.002 cannot be used for account reconciliation as it will not match the bulk debits to the originators account. The Creditor Settlement Report should be used for this.

Please contact us if you require a copy of the PAIN.002 XML file specification.

2. How do I view and download a PAIN.002 Report?

To watch our online demo, please visit: www.bankofireland.com/business-on-line-payments-plus-demo

A. Logon to Business On Line File Gateway using your 7 digit User ID, starting with ‘S’ and your password.

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B. Click on the Download Files Tab, to view PAIN.002 reports available.

Note: You will receive an email notifying you when a PAIN.002 report is available, once you have ‘opted in’ for email notifications.

C. Display of files within this tab will automatically default to the most recently received file; this can be changed by you by using the filters under mailbox.

PAIN.002 Reports will be provided in an XML format and a reader friendly HTML version, each is distinguished by the appropriate file name ending, either .XML or .HTML.

To download and/or view a file, double click the appropriate line from the listing.

D. PAIN.002 can either be opened for viewing or saved to your local directories.

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3. What are R-messages?

Rejects are collections that are diverted from normal execution, prior to inter-bank settlement.

Returns are collections that are diverted from normal execution after inter-bank settlement and are initiated by the debtor bank.

Refunds are claims by the debtor for reimbursement of a direct debit.

Reversals: When the creditor concludes that a collection should not have been processed a reversal may be used after the clearing and settlement by the creditor to reimburse the debtor with the full amount of the erroneous collection.

Refusals are claims initiated by the debtor before settlement, for any reason, requesting the debtor bank not to pay a collection.

Revocations are requests by the creditor to recall the instruction for a collection until a date agreed with the creditor bank.

Requests for cancellation are requests by the creditor bank to recall the instruction for a collection prior to settlement.

For detailed information on SEPA Reason codes, please refer to the following PDF on our website: http://www.bankofireland.com/fs/doc/wysiwyg/bxxxxx-mss130386-sepa-reason-codes-july-2013.pdf

4. What is the difference between the PAIN.002 Report and the Creditor Settlement Report?

The PAIN.002 and the Creditor Settlement Reports are both available to originators for the purposes of reconciliation and re-presenting payment collections where necessary.

• The PAIN.002 is used to manually or automatically reconcile file collections and to re-present payments.

• The Creditor Settlement Report is used to manually or automatically reconcile the originator’s account at the end of each day.

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Section 5: SEPA Related Questions

1. How does SEPA settlement work and how does it differ to IRECC (Irish Retail Electronic Payments Clearing Company Limited) settlement?

Under the SEPA scheme (implemented before the 1st February 2014) originators are credited with the full value of the collection batch on settlement date. Bulk debits for any pre-settled R-messages are posted on settlement date, and any post settlement R-messages are posted at the end of the day of receipt.

SEPA Direct Debits must be issued six (first or one-off collections) or three (recurring or last collections) TARGET* days prior to settlement of the file.

The originator may receive pre-settlement rejections as well as post settlement R-messages (returns and refunds) from the day of submission until 80 calendar days later on a PAIN.002 Report.

Where a batch is submitted with a settlement date more than 30 days in the future or 30 days past, each collection within the batch will be rejected (and reported on the PAIN.002), but will not be settled for either a bulk credit or bulk debit in this instance.

Under SEPA, it is possible to submit a single file with multiple settlement dates and creditor account numbers. For this reason, files are then grouped into batches based on the settlement date, the creditor account and the sequence type (i.e. First, One-Off, Recurrent, Last).

The bulk credit applied to the originator account is applied per batch on settlement date. For example, if a file contains three batches, the originator account will receive three separate bulk credits.

Under IRECC, originators were also credited with the full value of the collection file on settlement day. Bulk debits for any unpaids returned were posted to the originators account on settlement date + 2 (D+2)

For further details on reconciling bulk debits on an account, see Section 3: Creditor Settlement Report. For further details on reconciling unpaids at file level, see Section 4: PAIN.002 Report.

* TARGET days are all days excluding the following: Saturdays and Sundays and the following public holidays in all participating countries: New Year (1 January), Good Friday, Easter Monday, Labour Day (1 May), and the first and second days of Christmas (25 and 26 December).

2. How does SEPA file reconciliation work and how does it differ to IRREC reconciliation?

Under SEPA the originator has access to two reports, the PAIN.002 for file reconciliation and the Creditor Settlement Report for account reconciliation.

The PAIN.002 report will allow for file reconciliation, and will detail the R-messages on the day the R-message is received. The Creditor Settlement Report will be produced per originator account, per day and will breakdown the bulk debits posted to the account for that given day.

Under IRECC, the unpaid bulks were posted to the originators account and detailed to originators in the Unpaid Reconciliation Report via Connect Direct, Secure Email or Blast Software. This report detailed the breakdown of the bulk debits to the originators account and allowed for both file and account reconciliation.

Under SEPA, the Creditor Settlement and the PAIN.002 Reports provide originators with this same information. Not all direct debit originators would have received Unpaid Reconciliation reports under IRECC. However, all SEPA Direct Debit originators will have these reports available to them.

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Section 6: SEPA Reports Queries

1. If I have a query on a report, who should I contact?

Please contact the Business On Line Helpdesk if you have a query on the SEPA Report:

1890 818 265 (ROI)

0845 309 8123 (NI)

0845 309 8124 (UK)

+353 1 460 6445 (International)

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Disclaimer: This document is for information purposes only and no guarantee or warranty is given in respect of the accuracy or completeness of this document, or its’ content, which are subject to change. Bank of Ireland accepts no liability for any losses howsoever arising in reliance on this document or its content.