Handle SEPA Direct Debit Rejections

SEPA Direct Debit payments can experience different types of rejections. Follow these steps to identify and manage them:

1. Pre-Settlement Rejections

Pre-settlement rejections occur when a payment is rejected by the scheme before it is settled and booked on your account. These rejections appear in the Rejection report and include the reference used in your payment request.

Steps to handle pre-settlement rejections:

1. Check the rejection report before the payment due date.
2. Locate the payment using USER_REFERENCENUMBER or PAYMENT_REFERENCENUMBER.
3. Review the STATUS and STATUSREASON fields to understand why the payment was rejected.

Example of a pre-settlement rejection:

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2. Post-Settlement Rejections

Post-settlement rejections, including returns and chargebacks, occur after the payment has been settled and booked. These can be initiated by the scheme or the debtor and are visible in your Reconciliation report.

Steps to handle post-settlement rejections:

1. Check your reconciliation report for returned payments or chargebacks.
2. Match transactions to the original payment using USER_REFERENCE_NUMBER.
3. Review PAYMENT_DETAILS or the remittance information for the rejection reason.

Example of post-settlement rejection including fees:

Tip: The USER_REFERENCE_NUMBER is consistent across the original payment, chargeback, and any applicable chargeback fee. The rejection reason is available in the remittance information (PAYMENT_DETAILS_2).

Identifying Payment Types

Each transaction has a unique transaction reference, which indicates the payment type:

Use these references to quickly classify and process rejections.