The bank code AC01 is a specific SEPA reason code that indicates an incorrect account number in banking transactions. This code is crucial for identifying and addressing issues related to erroneous beneficiary account details during payment processing.
Understanding AC01: Incorrect Account Number
When a payment instruction includes an account number that is either invalid, non-existent, or does not match the intended recipient, banks often use the AC01 code to communicate this error. It's a fundamental code within the Single Euro Payments Area (SEPA) framework, designed to standardize error reporting for various payment operations.
Key Aspects of AC01
- Description: The primary meaning of AC01 is that the provided account number for the creditor (recipient) is incorrect. This could be due to a simple typographical error, an outdated account number, or an entirely invalid International Bank Account Number (IBAN).
- Applicable Operations: When an AC01 error occurs, the payment will typically be:
- Rejected: The transaction is not processed and is immediately stopped by the bank.
- Returned: If the payment initially went through but was later identified as having an incorrect account number, the funds will be sent back to the originator's account.
This code helps streamline the process of identifying why a payment failed and provides a clear reason for the originating party to correct the information and re-initiate the transfer.
Practical Implications and Examples
Imagine a scenario where a company initiates a SEPA Credit Transfer to pay a supplier. If the accounts payable department accidentally types one digit wrong in the supplier's IBAN, the bank processing the payment will likely flag this error using the AC01 code.
- Scenario 1: An individual tries to send money to a friend but makes a typo in their friend's IBAN. The originating bank might immediately reject the transfer with an AC01 reason, informing the sender that the account number is incorrect.
- Scenario 2: A business submits a batch of direct debit instructions. If one of the customer's account numbers is no longer valid (e.g., the account was closed), the bank might return that specific direct debit with an AC01 code.
Correcting an AC01 Error
To resolve an AC01 error, the primary action is to verify and correct the beneficiary's account number. This typically involves:
- Contacting the recipient to confirm their accurate and current bank account details.
- Double-checking the IBAN against official records or previous successful transactions.
- Ensuring that no digits are missing or incorrectly placed.
Once the correct account number is obtained, the payment instruction can be resubmitted.
