Reason code RC01 indicates that a payment transaction could not be processed due to an incorrect bank identifier. Specifically, it means the Payment Service Provider (PSP) identifier is incorrect, often referring to an invalid Bank Identifier Code (BIC).
When a payment instruction includes an RC01 reason code, it signifies a fundamental issue with the routing information for the beneficiary's bank. This typically results in the payment being rejected or returned to the originator.
Understanding RC01: Bank Identifier Incorrect
The RC01 reason code is defined as follows:
| Code | Name | Definition |
|---|---|---|
| RC01 | Bank identifier incorrect | PSP identifier incorrect (i.e., invalid BIC) |
Implications of an Invalid BIC
A BIC, also known as a SWIFT code, is a unique identification code for financial and non-financial institutions. It's crucial for international and often domestic payments to ensure funds are routed to the correct bank. An invalid BIC can arise from several issues:
- Typographical Errors: Simple mistakes when inputting the code.
- Outdated Information: The bank's BIC may have changed due to mergers, acquisitions, or restructuring.
- Non-existent Code: The provided code does not correspond to any valid financial institution.
When an RC01 error occurs, the payment cannot be delivered to the intended recipient's bank.
How to Resolve RC01 Errors
To resolve a payment failure due to an RC01 reason code, the following steps are generally required:
- Verify the BIC: Contact the beneficiary to confirm their bank's correct and current BIC. It's essential to get the exact code.
- Check for Typos: Carefully review the entered BIC against the confirmed code for any discrepancies.
- Resubmit the Payment: Once the correct BIC is obtained and verified, the payment transaction must be re-initiated with the accurate information.
Ensuring the accuracy of bank identifiers like the BIC is critical for smooth and successful payment processing.
