pain.002.001.10 Customer Payment Status Report: Statuses and Reason Codes

pain.002.001.10 is the ISO 20022 Customer Payment Status Report, and it is the reply a bank sends after it receives and checks a pain.001 file. The report tells the customer whether each instruction was accepted, rejected, or is still pending, and it gives a reason code whenever an instruction fails. Without pain.002, a corporate treasury team would have no reliable way to know whether a payment of EUR 250,000 to a supplier in Lyon had been accepted for execution or had been stopped because the debtor account number was wrong. The report closes the loop between instruction and execution, and it lets the customer correct and resend a failed instruction quickly. A pain.002 report can operate at group level, at payment information level, or at transaction level, and the level determines how much detail the customer receives. A group level report says the whole file was accepted or rejected, which is enough when a file fails a header check such as a wrong control sum. A transaction level report gives a status for each individual instruction, so a file with 180 payments can show 178 accepted and 2 rejected, with a separate reason for each rejection. Treasury systems depend on transaction level reporting, because they must know exactly which two suppliers were not paid and why, rather than learning only that something in the file failed. The most common status values in pain.002 are ACCP for accepted, RJCT for rejected, PDNG for pending, and ACSP for accepted settlement in process. ACCP means the bank has accepted the instruction and will process it, while ACSP means settlement has started and the money is moving. RJCT means the bank will not execute the instruction, and the report must carry a reason code that explains why. PDNG means the bank has received the instruction but has not yet decided, often because it is waiting for a cut off, a funds check, or a sanction screening result. A payment can move from PDNG to ACCP and then to ACSP as it passes each check. Reason codes in pain.002 use the ISO external code lists, and each code points to a specific problem that the customer can fix. AC01 means the account number is incorrect, and it appears when a creditor IBAN fails the check digit test. AM09 means the amount is wrong, for example when a payment exceeds a limit the customer agreed with the bank. BE01 means the creditor name does not match the account, and it is used when a name check fails. CUST means the customer asked for the payment to be cancelled, and it is a legitimate reason rather than an error. A clear code such as AC01 lets the customer correct the IBAN and resend the EUR 18,900 payment the same day, instead of waiting for a manual investigation. The timing of pain.002 reports matters as much as their content, because a late rejection can break a supplier commitment. Banks usually send an initial pain.002 shortly after receiving the pain.001 file, reporting acceptance or rejection at the validation stage. A second pain.002 may follow after execution, reporting that the payment has been settled or has failed at the clearing stage. For a salary file of EUR 420,000 covering 350 employees, an early rejection report lets payroll correct two wrong account numbers before the pay date, while a report that arrives after the pay date forces an emergency manual payment and a difficult conversation with the affected employees.