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Last updated on Aug 26, 2026
When a bank debit fails, the return code helps you determine the next step: retry the payment, update account details, or collect a new authorization. Across BACS, EFT, and SEPA, these codes point to common issues like insufficient funds, closed accounts, or revoked mandates. Recognizing these patterns makes it easier to resolve failures quickly and keep payments moving.
Most bank debit failures fall into one of three categories:
Authorization Problem: The mandate has been revoked, cancelled, or is no longer valid.
Bank Account Issue: The account has been closed, changed, or the details are incorrect.
Temporary Financial Issue: Insufficient funds at the time of the debit attempt.
BACS returns in the UK use a single-character code for each type of failure.
| Code | Meaning | What To Do |
|---|---|---|
| 0 – Refer to payer | Bank does not process debit | Contact your customer to confirm their account status |
| 1 – DD Instruction Cancelled | Mandate cancelled by customer | Customer must create a new Direct Debit mandate |
| 2 – Payer Deceased | Account holder deceased | Stop collections on this account |
| 3 – Account Transferred | Customer moved banks | Obtain new bank details and a new mandate |
| 4 – Account Closed | Account no longer exists | Request updated bank account details from your customer |
| 5 – No Account | Account number invalid | Confirm banking information with your customer |
| 6 – Refer to payer | Bank declined payment | Customer must contact their bank directly |
| B – Invalid account number | Incorrect format | Correct the bank account number on file |
| C – Account number missing | Required field missing | Recreate the Direct Debit instruction |
EFT returns in Canada are governed by Payments Canada rules.
| Code | Meaning | What To Do |
|---|---|---|
| 901 – Non-Sufficient Funds (NSF) | Insufficient balance | Retry the payment |
| 902 – Account Closed | Account no longer active | Request new bank details from your customer |
| 903 – No Account / Invalid Account | Account not found | Verify bank details with your customer |
| 904 – Invalid Branch / Transit | Routing number issue | Correct the transit number on file |
| 905 – Unauthorized Debit | Authorization disputed or revoked | Obtain a new PAD (Pre-Authorized Debit) agreement |
| 907 – Stop Payment | Customer blocked payment | Contact your customer to resolve |
| 908 – Payment Stopped by Payer | Customer intervened | Contact your customer to resolve |
SEPA uses standardized ISO return reason codes.
| Code | Meaning | What To Do |
|---|---|---|
| AC01 – Incorrect IBAN | IBAN invalid or mistyped | Verify bank details with your customer |
| AC04 – Account Closed | Account no longer exists | Obtain a new IBAN from your customer |
| AM04 – Insufficient Funds | Temporary lack of funds | Retry the collection |
| MD06 – Mandate Cancelled | Customer revoked authorization | A new SEPA mandate is required |
| MS03 – Reason Not Specified | Bank declined without explanation | Contact your customer |
| RR03 – Mandate Invalid | Mandate data mismatch | Recreate the mandate |
| SL01 – Bank Restriction | Specific bank service restriction | Customer must contact their bank |
A mandate is your customer's formal authorization allowing you to debit their bank account. Depending on your region, this may be called a Direct Debit Instruction (UK), SEPA Mandate (EU), or PAD Agreement (Canada), but they all serve the same purpose: proof that your customer authorized the withdrawal.
A new mandate is required when the existing authorization is no longer recognized by the bank. This does not always mean your customer intentionally cancelled. Common reasons include:
In all of these cases, you need to collect authorization from your customer again. This typically involves your customer re-entering their bank details or completing a new authorization through your payment portal. Once complete, a new mandate reference is created and future debits can resume.
A cancelled mandate cannot be reused. A new authorization must be collected before attempting another debit.
For further assistance, contact Maxio Support at support@maxio.com.
If you're troubleshooting a US ACH return code instead of a BACS, EFT, or SEPA one, see Understand ACH Return Codes and Best Practices.
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