How do chargebacks work with SEPA Direct Debit transactions?

A consumer can reverse a SEPA Direct Debit transaction at any time. This is called a chargeback. A chargeback is allowed up to 8 weeks after the date of the direct debit with a valid mandate and up to 13 months without a valid mandate. At most banks, the consumer does not have to give a reason for the reversal. This makes it difficult to find out why a consumer reverses a payment.

 

How do I recognize a chargeback?

If a consumer reverses a direct debit payment, you will see this in your export of failed transactions in your Mollie Dashboard. You can recognize the reversal by the MD06 reason code. A chargeback costs you € 10,- on top of the original transaction costs.  

 

How can I defend or prevent a chargeback?

You cannot defend a chargeback and they are difficult to prevent. When a chargeback occurs, the consumer will always receive a refund of the amount. Try to communicate well and transparently with the consumer about the status of the order or in case of a complaint. This reduces the chance of possible chargebacks. 

 

Good to know

Your consumer can file an Unauthorized Direct Debit Report. This costs € 65,- excluding VAT. We pay these costs to the consumer’s bank and pass this on to you.

 

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