It is unfortunately not always possible to successfully complete a transaction. A direct debit payment can fail for a number of reasons. A transaction can be rejected until 5 working days after the direct debit date. When a direct debit fails, Mollie informs you via the webhook.
Via our payments API you can retrieve the reason code; a code that indicates the reason for the rejection. The following reasons are possible:
| Reason code | Reason | Follow-up action | Comments | |||
| AC01 | IBAN incorrect or unknown | Ask consumer for correct account number. | – | |||
| AC04 | Holder has closed account | Ask consumer for different account. | – | |||
| AC06 | Account blocked for direct debit | Ask consumer for different account. | – | |||
| AG02 | Incorrect information | Resubmit the transaction with correct information. | You stated FRST when it should have been an RCUR transaction (or vice versa), or you failed to use a unique mandate reference. | |||
| AM04 | Insufficient funds | Contact the consumer and/or try again. | Can also be reported as a MS03. | |||
| MD01 | Invalid mandate | Resubmit the transaction, only this time with FRST or contact the consumer. | Transaction was RCUR but there never was a FRST, mandate has expired (after 36 months), or there is no mandate. | |||
| MD06 | Payment reversal | Contact the consumer. | Can take place within an 8-week period. | |||
| MD07 | Customer has died | Do not carry out any more direct debits. | In this case, some banks report MS03. | |||
| MS02 | Transaction refused | Contact the consumer. | The consumer has refused the transaction in advance. | |||
| MS03 | Other reason | Contact the consumer. | Can also be the result of insufficient funds, transaction refusal, etc. | |||
| SL01 | Refused by debit bank | Contact the consumer. | The account could be blocked for direct debit, or a limit has been reached, prompting the consumer's bank to refuse the transaction. |
Comments:
- These are the most common reasons. Officially, there are a few more reason codes, but those are in practice almost never sent.
- Experience has shown that MS03 is frequently used for a variety of reasons, for instance in case of insufficient funds. The bank then sends an MS03 instead of an AM04.
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