Deleting a mandate

When you manually delete a mandate under Finance > Installment payments, the invoice is returned to the overdue invoices list.

Automatic mandate deletion

If a customer misses a payment for two consecutive months, regardless of the reason, the mandate is deleted automatically and the invoice is returned to the overdue invoices list.

Payment reminders for installment plans

You can now send a payment reminder for overdue invoices that were payable in installments. The reminder includes a link to reactivate the direct debit. The amount due equals the total of all overdue installments.

For example, someone who is three months behind must pay three monthly installments at once to reactivate the direct debit.
After that, direct debits continue according to the repayment schedule.

Chargebacks versus other reasons for direct debit failure

We now retrieve Mollie’s reason for every failed payment. Depending on the reason, the mandate may be deleted automatically and the invoices returned to the overdue invoices list. The overview below shows the reasons reported by Mollie and the action we take. If no action is listed, nothing is changed.

• AC01    The IBAN is incorrect or unknown. Your customer may have entered their IBAN incorrectly. You should ask your customer to confirm if the IBAN is correct. > mandate is deleted

• AC04    The account holder has closed the account. You should ask your customer for the bank account details of a different account.
  schrap   > mandate is deleted

• AC06    Direct debit is not allowed on this bank account. You will not be able to receive direct debit transactions from this account. You should ask your customer for the bank account details of a different account. > mandate is deleted

• AG02    Transaction information is incorrect. For example, you may have indicated that the transaction is a first payment (FRST) instead of a recurring payment (RCUR). Another possibility is that you didn’t use a unique mandate reference. You should resubmit the transaction with correct information.

• AM04    There’s insufficient funds in the customer's bank account. This can sometimes be indicated with reason code MS03. You can try the direct debit again or contact your customer.

• MD01    The mandate is invalid. There are several reasons why a mandate could be invalid:
  The transaction was recurring (RCUR), but there was never a first transaction (FRST). The mandate expired after 36 months.
  There’s no mandate. You can resubmit the direct debit as a first transaction or contact your customer to create a new mandate. > mandate is deleted

• MD06    The direct debit has been reversed. This a chargeback and is possible within 8 weeks of the direct debit date. If you don't know why the payment was reversed, contact your customer about it. > mandate is deleted and a fee is charged

• MD07    Your customer has passed away. You should cancel any future direct debit transactions. This can sometimes be indicated with reason code MS03. > mandate is deleted

• MS02    Your customer declined the direct debit transaction before it was processed. If you do not know why they declined the transaction, contact your customer. Make sure they know about the amount and reason for the direct debit to prevent this from happening again in the future.

• MS03    MS03 can be used for multiple reasons that already have another reason code, such as insufficient funds (AM04). We recommend that you contact your customer to understand what happened to the transaction.

• SL01     The bank refused the direct debit. Your customer's bank may refuse a transaction when the customer's daily limit has been reached or if direct debits from the account have been blocked. > mandate is deleted

Chargeback fees

The chargeback fee, configured under Settings > Payment options > Installment payments, is now charged only for genuine chargebacks. If a payment fails because the account has insufficient funds, the fee is no longer passed on to the customer.