For SEPA direct debits, all communications are made with the banking system directly. Receiving and understanding these messages is crucial for collecting payments by SEPA direct debits. If there is a problem while setting the mandate or following a payment order, the bank will send us a message to notify us. These messages are received as "R" codes and mean: Refund, Refusal, Reject, Return, Reversal, Request for cancellation or Revocation. Here is a short description for each.
| Payment failure type | R-transaction |
|---|---|
| Mandate | Reject : Direct debits rejected by the debtor bank. • Technical reasons, for example a wrong IBAN, missing mandatory information. • The debtor bank cannot proceed with the collection, for example for the following reasons: closed account, deceased debtor, mandate canceled, no mandate. Refusal : The debtor asks for the payment to be refused (possible until the end of the working day before the direct debit date). An example would be the case when the debtor refuses to pay. |
| Payment issues (before the direct debit) | Revocation : The merchant or his/her bank revokes the direct debit (for example when a payment request is made by mistake). You have to check with your creditor bank the availability this service. Request for cancellation : The merchant’s bank revokes the direct debit ( for example when a duplicate request is made by mistake). You have to check with you creditor wether this service is available. |
| Payment issues (after the direct debit) | Return : initiated by the debtor’s bank, for example because of insufficient funds. The deadline to make a Return in the Core system is at the latest 5 interbank working days after the collection deadline. Reversal : The merchant has cancelled the direct debit after the direct debit by the intermediary of a credit authorization (for example in the case of an unintended collection). Reversals has to be submitted within 5 days after the direct debit date. Reversals can be treated only after the payment and within 5 working days after the direct debit date. You have to check with your creditor bank the availability this service. |
| Refund | Refund : Return by the debtor’s bank (for example because of the payer blocking the payment). |
When receiving one of these errors, you have to try and fix the data in your database with the help of the debtor and then submit the request once again. Errors caused by incorrect data in you order: These codes inform you there is a mistake in the data you transfered. Some can be solved with the debtor, when other are errors in your internal data or linked to the way you compiled the request file.
| Proof code | Description | More details | Required action |
|---|---|---|---|
| AC01 | Wrong account ID | The IBAN code or bank account details given by your client is not correct. You can verify them by yourself before transfering them. | Contact your client to confirm the right IBAN. |
| RC01 | Invalid bank acccount details | The bank account details provided by you client is incorrect. You can verify them by yourself before transfering them. | Contact your client for the right bank account details. |
| RR01 | The debtor account or ID required by the regulation is insufficient or missing. | Details of the debtor account are missing. You can verify them by yourself before transfering them. | If information is missing, modify the direct debit order and send the request once again. If it is a failure to comply with regulation, contact your client bank. |
| RR02 | The debtor’s name or adress details required by the regulation are insufficient or missing. | Details concerning the debtor’s name or adress are missing. you can verify them by yourself before transfering them. | If it is caused by missing information, modify the file and submit it once again. If it is caused by regulatory reasons, contact the client’s bank. |
| RR04 | Regulatory reason | RR04 can only be used for a regulatory reason other than RR01, RR02 or RR03. | You have to contact your bank to be able to contact the debtor’s bank and know the reason for the refusal. |
| BE01 | The debtor’s name does not match the account holder’s name. | The client name of your order does not match the given actual account holder’s name. | Contact your client to verify this information. |
These error codes are sent to you when you transfer incorrect data about the creditor, a file in an invalid format or transactions incorrectly sequenced. When receiving one of these error codes, you have to try and fix the data in your database or file, and then submit the request once again.
| Proof code | Description | More details | Required actionAction |
|---|---|---|---|
| AM05 | Duplicate direct debit | Collection has already been made. This can either be caused by a wrong transaction ID, or because two FIRST transactions have been submitted. | Verify the collection really is duplicated. |
| BE05 | Creditor’s ID incorrect | The given creditor’s ID is incorrect or not valid. | Fix the creditor’s ID and submit your request once again. |
| FF01 | Transaction code incorrect or file’s format invalid. | A mandatory field is missing in your order file, or one of the fields is not compliant with the interbank specifications. | Repare the XML file. |
| FF05 | Incorrect direct debit type | The drect debit type shows a value other than COR, COR1 or B2B. | Verify the direct debit type. |
| MD02 | Missing or inaccurate mandate data | The mandate data given by your client are incorrect or there are missing elements. | Update the missing or incorrect information. |
| RR03 | The creditor’s name or adress required by the regulation is incorrect or missing. | Your name or adress is missing. You can verify by yourself before transfering it. | If information is missing, modify the direct debit and submit the request once again. If it is a regulatory error, contact the client’s bank. |
| AG02 | Incorrect transaction code, or sequence error | The sequence type is not compatible with previous direct debits. For example, you send a RCUR payment to a client with no previous FRST payment. | Correct the wrong information and try again. |
| MD01 | No valid mandate or operation not authorized | The mandate is not valide anymore on the client’s account. When it is sent as a response to a RCUR payment, the mandate has been canceled by the client and can not be restored. If not, the mandate may have expired, if not used for 36 months. It is also used when a client asks for a refund, declaring this operation had not been authorized. This can happen until 13 months after the payment. |
Verify a valid mandate is set up. In the case of a refund, contact your client for more details. |
Some bank accounts cannot accept direct debits; They can be closed or blocked for legislative reasons or by the client. If you receive one of these mesages, you cannot set a direct debit mandate on the account. If so, ask the debtor to provide a new bank account details, or to lift the blockade on their account, and then submit a new request.
| Proof code | Description | More details | Required action |
|---|---|---|---|
| AG01 | Direct debits forbidden on this account for legislative reasons | A SEPA direct debit cannot be set on this type of account. It is probably a savings account. | Contact your client for information regarding the account to use. |
| AC04 | Closed account | The account has been closed. The client may have used an old account number, or he has closed the account since the mandate has been set. | Contact your client to get the new account information. |
| MD07 | Client deceased | You tried to set up a mandate on a deceased person’s account. Extremely rare. | End the contract with the deceased client. |
| AC06 | Account blocked for SEPA direct debits by the debtor | The account has been blocked for direct debits either by the bank or by your client. It can be blocked by default, in this case, the debtor can lift the blockade. | Contact your client to ask for a method/ a substitute payment account. |
| SL01 | Specific service offered by the debtor’s bank. | The request is facing specific instructions your client gave to his/her account, for example: blacklisted the creditor or did not whitelist him/her. | Contact your client. |
| AC13 | The debtor account is a physical person’s account | A SEPA B2B direct debit collection has been adressed to a private individual. It may be because the client gave the wrong payment account, the payment account deos not handle B2B direct debits or because the client did not know B2B mandates are restricted to professional accounts. | Contact your client to clarify the situation and agree on another means of payment (for example a SEPA Core direct debit). |
A payment can fail because of measures taken by the client, for example he refuses the direct debit or do not own sufficient funds to make the payment.
These failures are amongst the most common. When you receive one, you have to talk with the debtor in order to agree on when to send the payment order.
| Proof code | Description | More details | Required action |
|---|---|---|---|
| AM04 | Insufficient funds | The debtor’s bank could not pay the direct debit because of insufficient funds. | Contact the client in order for him/her to supply his/her account, and send the payment once again. |
| MS02 | The debtor refuses the direct debit | The debtor refuses this specific direct debit. This code can be received before or after the direct debit, depending on how fast the bank answers the refusal. | Contact your client. |
| MS03 | Reason not specified | One of the most common error codes. Often used when banks chose not to use codes for more specific reasons, such as MD07 and AM04, under the reason of data protection. | Contact your client. |
These codes inform you that the client asked for a refund. They come with a refund message. Funds will be automatically debited from your bank account on the same day as the message is received.
| Proof code | Description | More details | Required action |
|---|---|---|---|
| MD06 | Authorized operation contested | Your client asked for the refund of an authorized operation (Core system only). The order can be received until eight weeks after the direct debit. | Contact your client. |
| MD01 | No valid mandate or unauthorized operation | When receiving a message of failed refund, the client asked for a funds return declaring it was an unauthorized operation. May be received until 13 months after the payment. | Contact your client for more details. |