AM04 Reason Code: Insufficient Funds

Official definition

What it means in practice

In a pacs.004 payment return, a return reason code explains why funds that were already settled are being sent back. It sits in TxInf/RtrRsnInf/Rsn/Cd, and bank statements (camt.053, camt.054) repeat it in RtrInf/Rsn/Cd.

There were not enough funds to cover the amount. In a payment status report it usually means the ordering customer's account, or the sending bank's settlement account, did not hold enough when the payment was due.

In direct debits it is the classic unpaid reason: the debtor's account could not cover the collection.

What to do

• For your own payment order: fund the account and send the payment again; check whether any other payments in the same batch failed for the same reason.
• For a returned direct debit: contact the debtor before you collect again and check how many times the scheme lets you re-present.

Messages and fields that use ExternalReturnReason1Code

Related reason codes

• AM01Zero Amount
• AM02Not Allowed Amount
• AM03Not Allowed Currency
• AM05Duplication
• AM06Too Low Amount
• AM07Blocked Amount
• AM09Wrong Amount
• AM10Invalid Control Sum

AM04 in other code sets

• AM04 in ExternalStatusReason1Code
• AM04 in ExternalPaymentCancellationRejection1Code

AM04 questions

What does AM04 mean in ISO 20022?

AM04 is Insufficient Funds in the ExternalReturnReason1Code code set: Amount of funds available to cover specified message amount is insufficient.

What should I do when I get AM04?

For your own payment order: fund the account and send the payment again; check whether any other payments in the same batch failed for the same reason. For a returned direct debit: contact the debtor before you collect again and check how many times the scheme lets you re-present.

Where does AM04 appear in a message?

For example in pacs.004, element TxInf/RtrRsnInf/Rsn/Cd.