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ISO 20022 reason code

ED05: Settlement failed

Settlement of the transaction failed. ED05 is an ISO 20022 reason code used as a status reason and a return reason: you will see it in pain.002, pacs.004 and camt.053.

ED05 at a glance
CodeED05
NameSettlement failed
ISO code listsExternalStatusReason1Code (status reason); ExternalReturnReason1Code (return reason)
WhereStsRsnInf/Rsn/Cd; RtrRsnInf/Rsn/Cd (pacs.004), TxDtls/RtrInf/Rsn/Cd (camt)

What ED05 means

Settlement of the transaction failed between the banks or in the settlement system. It is reported after the payment was accepted for execution, so the problem lies in the interbank leg, not in your file.

Not to be confused with: ED05 is a failure between the banks after the payment was accepted; TM01 is an instruction too late for the cut-off, and MS03 a bank refusing without a reason.

A reason code always comes with a status or an action: on its own it says why, not what happened. In a status report look at the status next to it (RJCT means the payment will not be executed); on a statement the returned entry tells you the money has come back.

Where ED05 appears

ED05 belongs to two of the ISO 20022 reason code lists, so it can arrive in these places:

  • Status reason (ExternalStatusReason1Code): in a payment status report (pain.002 from a bank to its customer, pacs.002 between banks) that rejects or holds a payment.
  • Return reason (ExternalReturnReason1Code): in a payment return (pacs.004) after the money has moved, and the returned entry on the account statement (camt.053) or notification (camt.054).

In a status report, ED05 explains a status such as RJCT, at transaction level here (the same StsRsnInf block can sit under the group or a payment block):

pain.002.001.10 · a rejected transaction
<OrgnlPmtInfAndSts>
  <OrgnlPmtInfId>PMT-20261028-03</OrgnlPmtInfId>
  <TxInfAndSts>
    <OrgnlEndToEndId>INV-2026-0042</OrgnlEndToEndId>
    <TxSts>RJCT</TxSts>
    <StsRsnInf>
      <Rsn>
        <Cd>ED05</Cd>
      </Rsn>
      <AddtlInf>Free text from the bank, if any</AddtlInf>
    </StsRsnInf>
  </TxInfAndSts>
</OrgnlPmtInfAndSts>

What to do about ED05

  • If you sent the payment or the collection: Ask your bank what happened. It is an interbank problem, not one in your data; the payment can usually be sent again.

Your bank’s implementation guide and the scheme’s rulebook (for SEPA, the EPC rulebooks) say exactly when it may use ED05; banks do not all apply a code the same way.

Look up ED05 from a script or an AI agent

Scripts and AI agents get this code’s name, definition, where it sits and the address of this page from GET /api/v1/explain, keyless, or from the explain_code tool of the MCP server (API and MCP docs; add it to Claude, Cursor or VS Code).

REST · curl
curl -s 'https://iso20022-navigator.com/api/v1/explain?code=ED05&kind=status_reason'