Understanding and resolving SEPA error codes

Introduction: What are SEPA error codes?

SEPA error codes are error messages you receive when a SEPA direct debit fails. Each code consists of letters and numbers (for example AM04 or MS03) and tells you what went wrong. It's like an error message on your computer: the code indicates where the problem is, so you can fix it.

Why understand SEPA error codes?

You need to understand SEPA error codes because:

• You'll know why a payment failed
• You can solve the problem and try again
• You can correctly inform the customer about what went wrong
• You prevent the same error from happening repeatedly
• You'll know whether the problem lies with you, the customer, or the bank
• You can act faster and more professionally with payment problems

Note: The error codes come from banks and are standardised, but sometimes a code doesn't point to the exact cause. Consult your bank if a problem persists.

Overview of SEPA error codes and solutions

Below are all common SEPA error codes with explanations and solutions.

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AM04: Insufficient Balance

What does this mean? The customer doesn't have enough money in their account to pay the direct debit.

What can you do?

Option 1: Contact the customer

• Call or email the customer
• Explain that the payment failed due to insufficient balance
• Ask when there will be enough money in the account
• Schedule a new direct debit for a later moment

Option 2: Request alternative payment

• Ask the customer to transfer manually
• Or offer another payment method (credit card, cash)
• Mention the invoice number and amount clearly

Option 3: Try again

• Wait a few days or a week
• Try the SEPA again
• Note: Don't do this too often, as each attempt may cost money

Prevention:

• Send customers a pre-notification of the direct debit
• This way they can ensure there's enough money in the account

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MS03: Administrative reason

What does this mean? There is an administrative problem. This can have multiple causes.

Possible causes and solutions:

Cause 1: Maximum amount exceeded

Problem: The customer has set a limit and your direct debit is higher Solution:

• Contact the customer
• Ask if they can raise the limit
• Or split the payment into multiple smaller amounts

Cause 2: Insufficient balance (with some banks)

Problem: Some banks return MS03 instead of AM04 Solution: See the solutions for AM04 above

Cause 3: SEPA Core used instead of SEPA B2B

Problem: You're using the wrong SEPA type for a business customer Explanation:

• SEPA Core: For private customers
• SEPA B2B: For business customers with business accounts Solution:
• Check whether the customer has a business account
• If yes: Use SEPA B2B instead of SEPA Core
• If no: Continue using SEPA Core

Cause 4: Incorrect IBAN number

Problem: The IBAN number you entered is incorrect Solution:

• Verify the customer's IBAN number
• Ask the customer for a bank statement or screenshot
• Update the IBAN in Easyflor
• Try again

Cause 5: Incorrect IBAN details (name)

Problem: The name on the account doesn't match the name in your system Solution:

• Check whether the name in Easyflor exactly matches the name on the bank account
• Pay attention to capitals, prefixes, initials
• Adjust the name so it's exactly the same
• Try again

Example:

• Wrong: "John de Vries" while account is in the name of "J. de Vries"
• Correct: Adjust to exactly "J. de Vries"

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MD01: Incorrect mandate

What does this mean? There is a problem with the direct debit mandate (customer's authorisation).

Possible causes and solutions:

Cause 1: No mandate known or revoked

Problem: The customer has not given a mandate, or has revoked it Solution:

• Contact the customer
• Ask whether they have given a mandate
• If no: Ask them to sign a new mandate
• If yes (but revoked): Ask why and resolve the problem
• Register the new mandate in your system

Cause 2: Maximum amount too low

Problem: The customer has set a lower maximum than your direct debit Example: Customer has set max €500, but you want to debit €750 Solution:

• Ask the customer to raise the maximum
• Or split the payment into smaller amounts (2x €375 in this example)

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MD02: Incorrect mandate

What does this mean? Similar to MD01, but with a slightly different reason.

Causes and solutions: See MD01 above — the solutions are the same:

• Check whether there is a valid mandate
• Request a new mandate if needed
• Check whether the mandate has not been revoked

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AG02: Incorrect file format

What does this mean? There is something wrong with the technical setup of the SEPA. This concerns "first" and "recurring" direct debits.

Background information:

• FRST (First): The very first direct debit with a new mandate
• RCUR (Recurring): All subsequent direct debits (recurring payments)
• OOFF (One-Off): One-time direct debit

Possible causes and solutions:

Cause 1: One-Off after FRST/RCUR

Problem: You're trying to do a one-off direct debit, but a FRST or RCUR has already taken place Solution:

• Use RCUR instead of OOFF
• A customer with a recurring mandate must always receive RCUR

Cause 2: FRST after RCUR

Problem: You're trying to do a "first" direct debit, but recurring direct debits have already taken place Solution:

• Use RCUR instead of FRST
• FRST is only for the very first time
• All subsequent times must be RCUR

Prevention:

• Easyflor should handle this automatically
• If it goes wrong: Check your SEPA settings
• Or contact Easyflor support

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AC06: Account number block

What does this mean? The customer has blocked you from automatic direct debit.

What can you do?

Step 1: Contact the customer

• Call or email the customer
• Ask why they've blocked you
• Possible reasons:
  • Unexpected direct debit (customer didn't know it would happen)
  • Dissatisfied with product/service
  • Wrong amount debited
  • Customer's mistake

Step 2: Resolve the problem

• Solve the underlying problem
• For example: Correct an incorrect amount
• Or: Explain why the direct debit was justified

Step 3: Lift the block

• Ask the customer to lift the block at their bank
• The customer must do this themselves; you can't
• Optionally provide the customer with instructions on how this works at their bank

Step 4: Alternative payment

• Meanwhile, ask for manual transfer
• Or use another payment method

Prevention:

• Always send pre-notifications of direct debits
• Communicate clearly about amounts and dates
• Prevent surprises for customers

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MS02: Disagreement with payment

What does this mean? The transaction has been refused by the customer or the bank.

What can you do?

Step 1: Find out the reason

• Contact the customer
• Ask why the payment was refused
• Possible reasons:
  • Customer doesn't recognise the direct debit
  • Amount is incorrect
  • Customer disagrees with the invoice
  • Misunderstanding about the delivery

Step 2: Resolve the problem

• Solve the misunderstanding or problem
• Correct any errors
• Explain what the direct debit was for

Step 3: Make new arrangements

• Make payment arrangements
• Possibly use another payment method
• Or a new SEPA after customer approval

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MD06: Disagreement with direct debit

What does this mean? The customer disagrees with the debit. Similar to MS02.

Solution: See the solutions for MS02 above:

• Contact the customer
• Find out why they disagree
• Resolve the problem
• Make new arrangements

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SL01: Administrative reason

What does this mean? There is a general administrative problem. This can have multiple causes.

Possible causes and solutions:

Cause 1: Maximum amount exceeded

Solution: See MS03 cause 1

Cause 2: Blocked by debtor

Solution: See AC06

Cause 3: No mandate known or revoked

Solution: See MD01

General approach: Because SL01 can have multiple causes:

1. Contact the customer
2. Ask what's going on
3. Check all possible causes above
4. Resolve the specific problem

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General tips for all error codes

Tip 1: Document everything

• Note which error code you received
• Note what you did to resolve it
• Save correspondence with the customer
• This helps with recurring problems

Tip 2: Be patient with customers

• Many customers don't fully understand SEPA and mandates
• Calmly explain what's happening
• Help them step by step
• A friendly approach prevents conflicts

Tip 3: Prevention is better than cure

• Send pre-notifications of direct debits
• Check IBAN numbers carefully on entry
• Make sure mandates are correctly registered
• Communicate clearly with customers about amounts and dates

Tip 4: Consult your bank for persistent problems

• Some error codes don't point to the exact cause
• Your bank can see more details in their system
• Call or email your bank for help
• Always pass the error code to the bank

Tip 5: Use alternative payment methods

• If SEPA keeps failing: ask for manual payment
• Credit card, cash, or invoice by post
• Better to receive something than nothing

Tip 6: Check your own settings

• Check whether you're using SEPA Core or B2B correctly
• Check whether customer details are up-to-date
• Verify IBAN numbers regularly
• Update mandates if needed

Frequently asked questions

Question: Can I just try a direct debit again?

• Yes, but solve the problem first
• Otherwise you'll get the same error code again
• Note: Each attempt may cost money

Question: Should I tell the customer about the error code?

• Not the technical code itself
• But yes what it means in understandable language
• For example: "The payment failed because there was insufficient balance"

Question: How do I prevent error codes?

• Good communication with customers
• Send pre-notifications
• Keep customer details up-to-date
• Register mandates correctly

Question: What if the same error code keeps coming back?

• Contact your bank
• There may be a deeper problem
• Your bank can provide more detailed information

Question: Do error codes cost me money?

• Sometimes yes, depending on your bank
• Each direct debit attempt may incur costs
• Check your bank contract
• Try therefore to solve problems first before trying again

Summary

SEPA error codes are messages indicating why an automatic direct debit failed:

Common error codes and meaning:

• AM04 (Insufficient balance): Customer doesn't have enough money → Wait and try later or request manual payment
• MS03 (Administrative): Various causes such as amount too high, wrong IBAN, wrong SEPA type (Core vs B2B) → Check and correct the specific cause
• MD01/MD02 (Incorrect mandate): No valid mandate or revoked, or maximum too low → Request new mandate or raise limit
• AG02 (Incorrect file format): Wrong order (FRST/RCUR/OOFF) → Use correct type, check settings
• AC06 (Block): Customer has blocked you → Contact, resolve problem, let customer lift block
• MS02 (Disagreement with payment): Customer refuses payment → Communicate with customer, resolve misunderstanding
• MD06 (Disagreement with direct debit): Customer disagrees → Same approach as MS02
• SL01 (Administrative): Combination of possible causes → Check all options (maximum, block, mandate)

General approach for error codes:

1. Look at which error code you received
2. Look up the meaning and possible causes
3. Resolve the underlying problem (contact customer, correct details, etc.)
4. Try the direct debit again or request alternative payment
5. For persistent problems: Consult your bank for more details

Note: Error codes don't always point to the exact cause — when in doubt, contact your bank for more information