pacs.004 ISO 20022 message
Published on
15/12/2023
Updated on
23/10/2024
Reading time
4 min
pacs.004 ISO 20022 message: Definition
A pacs.004 ISO 20022 message is used in different scenarios:- Inter-PSP Return
- Inter-PSP Positive Response to a Recall of SEPA Credit Transfer Dataset
- Inter-PSP Positive Response to the Request for Recall by the Originator Dataset
- Inter-PSP Direct Debit Return/Refund
pacs.004 ISO 20022 message: Scope
The pacs.004 is the interbank format used to return an incoming payment (pacs.008 ISO 20022 message) from the PSP (bank) to the recipient (creditor) bank. Alternatively, the pacs.004 is used as a positive respond to a request for recall (camt.056 ISO 20022 message). A distinction is beeing made as to whether the request for recall was initiated by the customer’s bank or by the customer himself. In this case, positive means that the money originally transferred is returned to the debtor of the original payment. One could also say that it is also an answer to a pacs.028 ISO 20022 message, but that’s not entirely true. In the case of a pacs.028, the underlying camt.056 is beeing answered. The pacs.028 only serves as an indication that the answer has not yet been received. In the case of direct debits, an incoming direct debit (pacs.003 ISO 20022 message) can be returned after its execution date (DueDate) with a refund (Return/Refund).pacs.004 ISO 20022 message: Usage
General information
The pacs.004 is the file format in which PSPs can reject a previously sent pacs.008 or return it on request. The pacs.004 is relevant for booking and in SCT one of the few formats for which the PSP is allowed to charge a fee. This fee is stated directly in the pacs.004 and is deducted during settlement.SEPA SCT
The pacs.004 is used in two scenarios in SEPA SCT. Inter-PSP Return SEPA Credit Transfer Dataset – pacs.004.001.09 With a SEPA SCT pacs.004, a previously sent pacs.008 can be returned to the sender (debtor). The money is then credited back to the debtor PSP (debitor bank).
Inter-PSP Positive Response to a Recall of SEPA Credit Transfer Dataset – pacs.004.001.09
Inter-PSP Positive Response to the Request for Recall by the Originator Dataset – pacs.004.001.09
In this case, the SEPA SCT pacs.004 is the positive response to a recall / request for recall by the originator (camt.056.001.01) – or a request for status update on a recall / request for recall by the originator (pacs. 028.001.03) to be answered positively. In this case, the amount from the original pacs.008 is transferred back to the customer of the pacs.008.
SEPA SDD
Inter-PSP Direct Debit Return – pacs.004.001.09SDD Inter-PSP Direct Debit Refund – pacs.004.001.09SDD
For direct debits, the pacs.004SDD is used as the format between the PSPs to return an incoming direct debit (pacs.003) after the value date. The pacs.004SDD cannot be rejected.
Whether it is a return or refund depends on how the field “Return Originator” is filled. If a BIC is specified here, it is a return, if a name is specified, it is a refund.
SEPA SCT Inst
SCT Inst FIToFICustomerCreditTransfer – pacs.004.01.09
Use of the pacs.004 ISO 20022 message in SEPA SCT Inst as a response to a recall
The SEPA SCTInst pacs.004 is always the positive response to a recall / request for recall by the originator (camt.056.001.01). In this case, the amount from the original pacs.008 is transferred back to the customer of the pacs.008.
A reject is executed in SCTInst with a negative pacs.002 ISO 20022 message, so that the pacs.004 cannot be used as a reject in SCTInst.
It should be noted that the pacs.004 must not meet the 10-second time window for SCTInst payments, as you have 5 days (for the PSP) or 10 days (customer) to answer the request for recall.
SWIFT/TARGET2 MX
The pacs.004 is beeing used in two scenarios in SWIFT and Target2 MX as well. FIToFICustomerCreditTransfer – pacs.004.001.09
Use of the pacs.004 message in SWIFT/Target2 as a return
With an MX pacs.004, a previously sent pacs.008 can be returned to the sender (customer). The money is then credited back to the debtor PSP (debitor bank).
Inter-PSP Positive Response to a Recall of SEPA Credit Transfer Dataset – pacs.004.01.09
Use of the pacs.004 message in SWIFT/Target2 as a response to a request for recall
In this case, the MX pacs.004 is the positive response to a recall / request for recall by the originator (camt.056.001.01) – or a request for status update on a recall / request for recall by the originator (pacs.028.001 .03) to be answered positively. In this case, the amount from the original pacs.008 is transferred back to the customer of the pacs.008.