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Direct Debit Issues (R-Transactions)


Like any payment method, SEPA Direct Debit may experience unsuccessful transactions. These are called R-transactions. There are 4 types of R-transactions that can happen at various stage of the SEPA Direct Debit timeline (SDD Flow article here).


  • Reject: The debtor bank rejects the SEPA Direct Debit (SDD). This may happen if the bank account is closed, invalid or does not exist.
  • Refusal: There can be a refusal for a single transaction (the mandate remains valid for further transactions) or a revocation of the mandate, meaning additional transactions will be systematically refused.
  • Return: The debtor bank returns the SDD because there was an issue while processing the SDD. The vast majority of returns are because of insufficient funds on the debtor account.
  • Refund: Between D and D+8 weeks, the debtor can ask for a refund without any justification. Between D+8 weeks and D+13 months, the debtor can only initiate a refund in the case where they claims to never have signed a mandate.

The R-transactions can have various root causes. Here is an overview of the most common type of R-transactions:

Type Cause
AM04; MS03   Reject or Return       Insufficient funds (it is the most common in Europe)
AC06; AG01   Reject or Return       Direct Debit not Enabled (ex: SDD impossible on saving accounts)
MD01 Reject or Return       Mandate cancelled
MD02   Reject     Mandate error (ex: missing information) 
AC04 Reject or Return       Bank account closed 
MS02 Reject or Return       Refusal by debtor 
SL01   Reject or Return       Debtor bank rejection (ex: blacklisted account, account limited,…) 
MD06   Refund    Refund requested
MD07 Reject or Return       Debtor deceased 
AC01; RR01; DNOR; RC01; RR04; BE05; RR03  Reject or Return Missing information 

Find out more technical details about R-transactions codes here or on the EPC website.  

If you want to learn more about the subject, read our blogpost here

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