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Tap to Pay on iPhone
Accept contactless payments right on your iPhone with the Mollie app
Accept payments
Embedded payments
Grow your business
Technical resources
About Mollie
Tap to Pay on iPhone
Accept contactless payments right on your iPhone with the Mollie app
Accept payments
Embedded payments
Grow your business
Technical resources
About Mollie
What you need to know about direct debits processing
What you need to know about direct debits processing
What you need to know about direct debits processing
Direct debits payments are the backbone of business in the UK and Europe.
Direct debits payments are the backbone of business in the UK and Europe.
Jul 29, 2022
How are direct debits processed?
Here’s what the direct debit processing cycle looks like.
For this example, let’s say the payment is due on Wednesday, 17 March.
16 March: A payment request from your bank is submitted between 7:00 am and 10:30 pm.
17 March: Your customer’s bank receives the request around 6:00 am and prepares to debit their account.
18 March: Both banks take action. Your account is credited. If the payment doesn’t go through, your bank will receive a note explaining why.
How long does a direct debit take?
The time it takes to process a direct debit depends on the region and the banking systems used. In the United Kingdom, the process is done through the Bacs system which runs on a three working day cycle.
The European Union uses the Single Euro Payments Area (SEPA) Direct Debit scheme. Processing SEPA Direct Debits depends on the type of transaction and usually takes one to two business days.
Here’s what the direct debit processing cycle looks like.
For this example, let’s say the payment is due on Wednesday, 17 March.
16 March: A payment request from your bank is submitted between 7:00 am and 10:30 pm.
17 March: Your customer’s bank receives the request around 6:00 am and prepares to debit their account.
18 March: Both banks take action. Your account is credited. If the payment doesn’t go through, your bank will receive a note explaining why.
How long does a direct debit take?
The time it takes to process a direct debit depends on the region and the banking systems used. In the United Kingdom, the process is done through the Bacs system which runs on a three working day cycle.
The European Union uses the Single Euro Payments Area (SEPA) Direct Debit scheme. Processing SEPA Direct Debits depends on the type of transaction and usually takes one to two business days.
Here’s what the direct debit processing cycle looks like.
For this example, let’s say the payment is due on Wednesday, 17 March.
16 March: A payment request from your bank is submitted between 7:00 am and 10:30 pm.
17 March: Your customer’s bank receives the request around 6:00 am and prepares to debit their account.
18 March: Both banks take action. Your account is credited. If the payment doesn’t go through, your bank will receive a note explaining why.
How long does a direct debit take?
The time it takes to process a direct debit depends on the region and the banking systems used. In the United Kingdom, the process is done through the Bacs system which runs on a three working day cycle.
The European Union uses the Single Euro Payments Area (SEPA) Direct Debit scheme. Processing SEPA Direct Debits depends on the type of transaction and usually takes one to two business days.
Here’s what the direct debit processing cycle looks like.
For this example, let’s say the payment is due on Wednesday, 17 March.
16 March: A payment request from your bank is submitted between 7:00 am and 10:30 pm.
17 March: Your customer’s bank receives the request around 6:00 am and prepares to debit their account.
18 March: Both banks take action. Your account is credited. If the payment doesn’t go through, your bank will receive a note explaining why.
How long does a direct debit take?
The time it takes to process a direct debit depends on the region and the banking systems used. In the United Kingdom, the process is done through the Bacs system which runs on a three working day cycle.
The European Union uses the Single Euro Payments Area (SEPA) Direct Debit scheme. Processing SEPA Direct Debits depends on the type of transaction and usually takes one to two business days.
Are direct debits processed on weekends?
No, direct debits are not processed on weekends or public holidays. The payment is taken the next business day instead.
No, direct debits are not processed on weekends or public holidays. The payment is taken the next business day instead.
No, direct debits are not processed on weekends or public holidays. The payment is taken the next business day instead.
No, direct debits are not processed on weekends or public holidays. The payment is taken the next business day instead.
Can I take a direct debit in advance?
You can create a mandate via the Mandates API and then create a Direct Debit payment without consent of the consumer.
But in reality, direct debits cannot be taken in advance of the agreed payment date, unless you have notified the customer at least 10 days in advance.
You can create a mandate via the Mandates API and then create a Direct Debit payment without consent of the consumer.
But in reality, direct debits cannot be taken in advance of the agreed payment date, unless you have notified the customer at least 10 days in advance.
You can create a mandate via the Mandates API and then create a Direct Debit payment without consent of the consumer.
But in reality, direct debits cannot be taken in advance of the agreed payment date, unless you have notified the customer at least 10 days in advance.
You can create a mandate via the Mandates API and then create a Direct Debit payment without consent of the consumer.
But in reality, direct debits cannot be taken in advance of the agreed payment date, unless you have notified the customer at least 10 days in advance.
When do I find out a direct debit was declined?
If a direct debit payment bounces, one common reason is usually that the customer’s account doesn’t have enough money to cover the payment. When this happens, you will receive a notice that the direct debit failed and the payment will be reversed. The customer’s bank then reverses the payment. Since you’ll likely use a payment processor like Mollie to manage your direct debits, it should be pretty straightforward to find and automate responses to these messages. You’ll just need to make a formal request via our help centre.
Failed direct debit reason codes (EU)
AM04 – insufficient funds
MS02 – debtor refuses collection
MS03 – reason not specified – banks may use this code instead of AM04 or MS02 for data privacy reasons (full list of codes)
What happens if a direct debit bounces?
If a direct debit bounces, most likely due to insufficient funds, the payment is not processed and the business does not receive the funds as expected. The business will likely receive a notification of failure and why it happened (e.g., reason code AM04 – insufficient funds). Banks may charge a small fee each time a direct debit fails. Additionally, in some countries, it can take up to 14 days to receive notification of a failed direct debit.
If a direct debit payment bounces, one common reason is usually that the customer’s account doesn’t have enough money to cover the payment. When this happens, you will receive a notice that the direct debit failed and the payment will be reversed. The customer’s bank then reverses the payment. Since you’ll likely use a payment processor like Mollie to manage your direct debits, it should be pretty straightforward to find and automate responses to these messages. You’ll just need to make a formal request via our help centre.
Failed direct debit reason codes (EU)
AM04 – insufficient funds
MS02 – debtor refuses collection
MS03 – reason not specified – banks may use this code instead of AM04 or MS02 for data privacy reasons (full list of codes)
What happens if a direct debit bounces?
If a direct debit bounces, most likely due to insufficient funds, the payment is not processed and the business does not receive the funds as expected. The business will likely receive a notification of failure and why it happened (e.g., reason code AM04 – insufficient funds). Banks may charge a small fee each time a direct debit fails. Additionally, in some countries, it can take up to 14 days to receive notification of a failed direct debit.
If a direct debit payment bounces, one common reason is usually that the customer’s account doesn’t have enough money to cover the payment. When this happens, you will receive a notice that the direct debit failed and the payment will be reversed. The customer’s bank then reverses the payment. Since you’ll likely use a payment processor like Mollie to manage your direct debits, it should be pretty straightforward to find and automate responses to these messages. You’ll just need to make a formal request via our help centre.
Failed direct debit reason codes (EU)
AM04 – insufficient funds
MS02 – debtor refuses collection
MS03 – reason not specified – banks may use this code instead of AM04 or MS02 for data privacy reasons (full list of codes)
What happens if a direct debit bounces?
If a direct debit bounces, most likely due to insufficient funds, the payment is not processed and the business does not receive the funds as expected. The business will likely receive a notification of failure and why it happened (e.g., reason code AM04 – insufficient funds). Banks may charge a small fee each time a direct debit fails. Additionally, in some countries, it can take up to 14 days to receive notification of a failed direct debit.
If a direct debit payment bounces, one common reason is usually that the customer’s account doesn’t have enough money to cover the payment. When this happens, you will receive a notice that the direct debit failed and the payment will be reversed. The customer’s bank then reverses the payment. Since you’ll likely use a payment processor like Mollie to manage your direct debits, it should be pretty straightforward to find and automate responses to these messages. You’ll just need to make a formal request via our help centre.
Failed direct debit reason codes (EU)
AM04 – insufficient funds
MS02 – debtor refuses collection
MS03 – reason not specified – banks may use this code instead of AM04 or MS02 for data privacy reasons (full list of codes)
What happens if a direct debit bounces?
If a direct debit bounces, most likely due to insufficient funds, the payment is not processed and the business does not receive the funds as expected. The business will likely receive a notification of failure and why it happened (e.g., reason code AM04 – insufficient funds). Banks may charge a small fee each time a direct debit fails. Additionally, in some countries, it can take up to 14 days to receive notification of a failed direct debit.
Can I collect a failed direct debit again?
You are allowed to try again to collect payment for a failed direct debit. Consent for this is implicit in the direct debit mandate you collected at the first payment. Once a payment has failed, the merchant could create a new payment for the same mandate to retry the payment.
Here’s how to collect a failed direct debit in the EU
Because you get much less information in the failure notification, it can be more difficult to evaluate the likelihood of a successful collection.
Also, it is common for the bank to charge a small fee every time a direct debit fails.
The third factor is time. Depending on which countries the two banks are in, it can take up to 14 days to get the message that the direct debit has failed. This leaves only 14 days to take action before the time limit is reached. It is good practice to inform your customer that you will be trying the payment again, but it is not required. You can also charge them a fee for having to retry the payment.
What is a direct debit reversal?
A direct debit reversal occurs when a previously collected direct debit payment is returned to the customer's account. It can be triggered by various reasons, such as insufficient funds, incorrect account details, or a dispute over the payment. When a direct debit is reversed, the funds are returned to the customer's account, and the business may incur additional fees.
It's important for businesses to monitor their accounts for reversals and act accordingly to solve any problems as soon as possible. This may involve contacting the customer to understand the reason for the reversal and arranging an alternative payment method. Understanding the process of direct debit reversals is essential for businesses to maintain healthy cash flow and customer relationships.
You are allowed to try again to collect payment for a failed direct debit. Consent for this is implicit in the direct debit mandate you collected at the first payment. Once a payment has failed, the merchant could create a new payment for the same mandate to retry the payment.
Here’s how to collect a failed direct debit in the EU
Because you get much less information in the failure notification, it can be more difficult to evaluate the likelihood of a successful collection.
Also, it is common for the bank to charge a small fee every time a direct debit fails.
The third factor is time. Depending on which countries the two banks are in, it can take up to 14 days to get the message that the direct debit has failed. This leaves only 14 days to take action before the time limit is reached. It is good practice to inform your customer that you will be trying the payment again, but it is not required. You can also charge them a fee for having to retry the payment.
What is a direct debit reversal?
A direct debit reversal occurs when a previously collected direct debit payment is returned to the customer's account. It can be triggered by various reasons, such as insufficient funds, incorrect account details, or a dispute over the payment. When a direct debit is reversed, the funds are returned to the customer's account, and the business may incur additional fees.
It's important for businesses to monitor their accounts for reversals and act accordingly to solve any problems as soon as possible. This may involve contacting the customer to understand the reason for the reversal and arranging an alternative payment method. Understanding the process of direct debit reversals is essential for businesses to maintain healthy cash flow and customer relationships.
You are allowed to try again to collect payment for a failed direct debit. Consent for this is implicit in the direct debit mandate you collected at the first payment. Once a payment has failed, the merchant could create a new payment for the same mandate to retry the payment.
Here’s how to collect a failed direct debit in the EU
Because you get much less information in the failure notification, it can be more difficult to evaluate the likelihood of a successful collection.
Also, it is common for the bank to charge a small fee every time a direct debit fails.
The third factor is time. Depending on which countries the two banks are in, it can take up to 14 days to get the message that the direct debit has failed. This leaves only 14 days to take action before the time limit is reached. It is good practice to inform your customer that you will be trying the payment again, but it is not required. You can also charge them a fee for having to retry the payment.
What is a direct debit reversal?
A direct debit reversal occurs when a previously collected direct debit payment is returned to the customer's account. It can be triggered by various reasons, such as insufficient funds, incorrect account details, or a dispute over the payment. When a direct debit is reversed, the funds are returned to the customer's account, and the business may incur additional fees.
It's important for businesses to monitor their accounts for reversals and act accordingly to solve any problems as soon as possible. This may involve contacting the customer to understand the reason for the reversal and arranging an alternative payment method. Understanding the process of direct debit reversals is essential for businesses to maintain healthy cash flow and customer relationships.
You are allowed to try again to collect payment for a failed direct debit. Consent for this is implicit in the direct debit mandate you collected at the first payment. Once a payment has failed, the merchant could create a new payment for the same mandate to retry the payment.
Here’s how to collect a failed direct debit in the EU
Because you get much less information in the failure notification, it can be more difficult to evaluate the likelihood of a successful collection.
Also, it is common for the bank to charge a small fee every time a direct debit fails.
The third factor is time. Depending on which countries the two banks are in, it can take up to 14 days to get the message that the direct debit has failed. This leaves only 14 days to take action before the time limit is reached. It is good practice to inform your customer that you will be trying the payment again, but it is not required. You can also charge them a fee for having to retry the payment.
What is a direct debit reversal?
A direct debit reversal occurs when a previously collected direct debit payment is returned to the customer's account. It can be triggered by various reasons, such as insufficient funds, incorrect account details, or a dispute over the payment. When a direct debit is reversed, the funds are returned to the customer's account, and the business may incur additional fees.
It's important for businesses to monitor their accounts for reversals and act accordingly to solve any problems as soon as possible. This may involve contacting the customer to understand the reason for the reversal and arranging an alternative payment method. Understanding the process of direct debit reversals is essential for businesses to maintain healthy cash flow and customer relationships.
Recover failed direct debits with Mollie
Most payment processors offer some sort of automated direct debit recovery process. Usually, you can configure factors like the number of times you’d like the processor to try again, which error codes trigger the automation and any transaction value limits that prevent it. Mollie makes collecting recurring payments through SEPA Direct Debit easy. Our free, open-source packages and plugins work with most coding languages and ecommerce platforms. This makes for easy integration into any site.
Most payment processors offer some sort of automated direct debit recovery process. Usually, you can configure factors like the number of times you’d like the processor to try again, which error codes trigger the automation and any transaction value limits that prevent it. Mollie makes collecting recurring payments through SEPA Direct Debit easy. Our free, open-source packages and plugins work with most coding languages and ecommerce platforms. This makes for easy integration into any site.
Most payment processors offer some sort of automated direct debit recovery process. Usually, you can configure factors like the number of times you’d like the processor to try again, which error codes trigger the automation and any transaction value limits that prevent it. Mollie makes collecting recurring payments through SEPA Direct Debit easy. Our free, open-source packages and plugins work with most coding languages and ecommerce platforms. This makes for easy integration into any site.
Most payment processors offer some sort of automated direct debit recovery process. Usually, you can configure factors like the number of times you’d like the processor to try again, which error codes trigger the automation and any transaction value limits that prevent it. Mollie makes collecting recurring payments through SEPA Direct Debit easy. Our free, open-source packages and plugins work with most coding languages and ecommerce platforms. This makes for easy integration into any site.
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Simplify payments and money management
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Simplify payments and money management
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Simplify payments and money management
Drive revenue, reduce costs, and manage funds with Mollie.