Last changed: Tue, 3 Jan, 2017 at 11:15 AM
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 stages of the SEPA Direct Debit flow (see SEPA Direct Debit Timeline).
- 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: A single transaction may be rejected (the mandate remains valid for further transactions) or a revocation of the mandate may occur, 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 initiate a refund if they claim to have never signed a mandate.