---
title: "SEPA chargebacks"
url: "https://docs.adyen.com/risk-management/chargeback-guidelines/sepa-chargebacks"
source_url: "https://docs.adyen.com/risk-management/chargeback-guidelines/sepa-chargebacks.md"
canonical: "https://docs.adyen.com/risk-management/chargeback-guidelines/sepa-chargebacks"
last_modified: "2025-06-17T11:36:00+02:00"
language: "en"
---

# SEPA chargebacks

[View source](/risk-management/chargeback-guidelines/sepa-chargebacks.md)

SEPA (Single Euro Payments Area) Direct Debit is a bank account-based payment method available across the Eurozone, which can be used for both ecommerce and recurring payments.

Unlike cards, SEPA does not have an additional authentication layer, such as a CVC check or 3D Secure. Consequently, it is important to have good risk management tools in place to offset the threat of fraud. There is no dispute management process available for SEPA.

A shopper can initiate a chargeback online up to eight weeks after the SEPA purchase with no questions asked. Shoppers have thirteen months to dispute an unauthorized or incorrect SEPA payment when they provide evidence to their bank.

SEPA payments can be charged back by the shopper even if a refund has already been carried out. This happens when the issuing bank does not take the refund into account. Consequently, it is risky to refund a SEPA transaction if there is an ongoing dispute with the customer. When you receive a SEPA chargeback, we recommend that you contact the shopper directly to solve the issue.

### Chargeback reasons

The following are the most common reason codes that you can receive for SEPA chargebacks. See the full list of SEPA chargeback codes at [Dispute reason codes](/risk-management/understanding-disputes/dispute-reason-codes#sepa).

| Reason Code | Reason                                   | Description                                                                                                                        |
| ----------- | ---------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- |
| AC01        | Incorrect Account Number                 | Format of the account number specified is not correct.                                                                             |
| AC04        | Closed Account Number                    | Holder has closed the account.                                                                                                     |
| AC06        | Blocked Account                          | Account specified is blocked.                                                                                                      |
| AG01        | Forbidden Transaction                    | Transaction forbidden on this type of account (formerly No Agreement).                                                             |
| AM04        | Insufficient Funds                       | Insufficient funds.                                                                                                                |
| DNOR        | Debtor bank is not registered            | Debtor bank is not registered.                                                                                                     |
| MD01        | No Mandate                               | Invalid mandate.                                                                                                                   |
| MD06        | Refund Request By End Customer           | Refund request by end customer.                                                                                                    |
| MS02        | Not Specified Reason Customer Generated  | Refusal by the Debtor.                                                                                                             |
| MS03        | Not Specified Reason Agent Generated     | This code can replace other reason codes (AC04 and AM04 amongst others) in certain countries/regions for data protection purposes. |
| SL01        | Specific Service offered by Debtor Agent | Bank is blocking any Direct Debit which is not pre-approved by the bank account holder.                                            |

### SEPA chargeback webhook

When a SEPA chargeback occurs, we notify you by sending a webhook. This webhook contains:

* `pspReference`: Adyen's unique reference associated with the payment request.
* `eventCode`: **CHARGEBACK**
* `paymentMethod`: **sepadirectdebit**
* `reason`: Reason for the chargeback.
* `success`: **true**

Here is an example of a webhook that a SEPA chargeback occurred because the shopper's account number was incorrect.

**SEPA chargeback webhook**

```json
{
   "live":"false",
   "notificationItems":[
      {
         "NotificationRequestItem":{
            "additionalData":{
               "chargebackReasonCode":"AC01",
               "modificationMerchantReferences":"",
               "chargebackSchemeCode":"sepadirectdebit",
               "defensePeriodEndsAt":"2021-05-06T22:09:50+02:00",
               "defendable":"false",
               "disputeStatus":"Lost"
            },
            "amount":{
               "currency":"EUR",
               "value":1000
            },
            "eventCode":"CHARGEBACK",
            "eventDate":"2021-05-06T22:09:50+02:00",
            "merchantAccountCode":"YOUR_MERCHANT_ACCOUNT",
            "merchantReference":"YOUR_REFERENCE",
            "originalReference":"BB7XNCQ8HXSKGK82",
            "paymentMethod":"sepadirectdebit",
            "pspReference":"R5CZ2NWPJTGV9D82",
            "reason":"AC01:IncorrectAccountNumber",
            "success":"true"
         }
      }
   ]
}
```

### Preventing SEPA chargebacks

Although dispute management is not available for SEPA, precautionary measures can help to prevent SEPA chargebacks:

* If you are a retailer, we recommend you hold shipment for seven days to avoid a loss if the payment is unsuccessful.
* Depending on your business model, consider a maximum transaction value for SEPA. A good indicator could be the average transaction value of your chargebacks.
* Be sure to state clearly in your return/refund policy that refunds will take a few days. This will reduce the chance of a customer performing a chargeback in the meantime.
