Like any other type of payment, a SEPA direct debit can fail.
There are various types of R-Transactions which can occur at various points in the SEPA direct debit flows.
What to do in the event of rejection/refusal?
It depends on the reason.
You can retry. This means that a new attempt will be made to collect the rejected/refused payment. You can contact our customer services to automate the process and ensure an automatic retry in the event of refusal.
You can also suggest a payment alternative. This means that if the first payment is refused, you can suggest another method such as a card payment.
For more information on R-Transactions, click here.
Automatic Retry: a SlimPay solution to manage your R-Transactions
An example with a direct debit
The Automatic Retry solution allows creditors to easily reduce the number of failed transactions though an automated process, thus boosting turnover and optimizing each customer's value.
R-transactions cannot be completely eradicated as they are part and parcel of commercial life.
But the majority of these R-transactions (50%) can be retried in a simple, automated way with tools such as Automatic Retry. This maintains the successful transaction rate for the business and prevents customer loss.
The Retry process is therefore automated to ensure it is carried out transparently and securely for both the paymaster and creditor.
How does it work?
- Text or email alert
SlimPay sends a text or email reminder to inform the customer of an upcoming new attempt to collect the direct debit.
- New direct debit attempt
SlimPay can make a number of repeat direct debit attempts following an R-transaction. The creditor can then decide if they wish to inform their customer of each of these attempts.
What are the possible options ?
Automatic Retry settings to fit with your activity. Different configurations are available :
1. Number of Automatic Retry
Set up the number of Automatic Retry to execute in order to maximize your chances of recovering failed payments.
Example: Payments can fail for some reason, but the Automatic Retry can make the revenue grow substantially if high amounts are at stake. It is worth it to try more than once to recover these failed payments.
2. Delay to execute Automatic Retry
Define the right delay after the R-Transaction is received to execute the Automatic Retry.
Example: If payments tend to fail at the end of the month, merchants can set up a delay of 3 to 5 days to increase their chances to recover them, as customers will have received their salary.
3. Reject alert
Communicate transparently with your customers to notify them via email or SMS of the failed payment and inform them about the Automatic Retry.
Example: A customer with insufficient funds is aware that he needs to replenish his account to avoid a service interruption.
4. Template customization
Adapt your communications to your brand identity and personalize your messages by email or SMS.
Example: Merchants can adapt the template and the content according to the offer they are pushing, or to a specific audience.
5. Business day of the Automatic Retry
Choose the business day to execute the Automatic Retry.
Example: If payments tend to be more successful at the beginning of the month, it is then more strategic to execute the Automatic Retry between the 1st and 5th day of the month.
6. Amounts of the transactions to be retried
Define the ranges of failed transaction amounts you would like to retry.
Example : Some transaction of low value won’t have an impact on your revenues. Choose to retry only the transactions over 100 euros.
7. Country codes of IBANs to be retried
Choose the country codes of IBANs associated to failed transactions that you would like to retry.
Example : Only authorize the Automatic Retry for French IBANs.
8. R-Transactions codes to be retried
Choose among the list of replayable codes by SlimPay, the R-Transaction codes you want to retry.
Example : Only authorize the Automatic Retry on AMO4 R-Transaction code (insufficient funds) as they are the most frequent ones.