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.|
- 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.