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. It includes the so-called reasoncode; 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.

Was this article helpful?