Intelligent retry strategies for SEPA Direct Debit payment failures and R-transactions

Auto Rescue for SEPA

Auto Rescue for SEPA automatically handles failed SEPA Direct Debit payments, including R-transactions (returns, refusals, and reversals). SEPA Direct Debit has unique timing requirements and failure modes that require specialized retry strategies.

SEPA Direct Debit Lifecycle

Understanding the SEPA payment lifecycle is essential for effective recovery:

R-Transaction Types

SEPA returns (R-transactions) have specific codes and meanings:

Return Codes (Most Common)

Code	Name	Description	Retryable
`AC01`	Incorrect Account Number	IBAN is wrong	No
`AC04`	Closed Account	Account has been closed	No
`AC06`	Blocked Account	Account is blocked	Maybe
`AG01`	Transaction Forbidden	Not authorized for DD	No
`AG02`	Invalid Bank Operation Code	Technical error	Yes
`AM04`	Insufficient Funds	Not enough balance	Yes
`AM05`	Duplicate Collection	Already debited	No
`BE05`	Unknown Creditor ID	Creditor not recognized	No
`FF01`	Invalid File Format	Technical error	Yes
`MD01`	No Mandate	Mandate not found/cancelled	No
`MD06`	Refund Request	Customer requested refund	No
`MS02`	Reason Not Specified	Customer refused	Maybe
`MS03`	Reason Not Specified	Agent refused	Maybe
`RC01`	Bank Identifier Incorrect	BIC is wrong	No
`SL01`	Service Not Allowed	DD not permitted	No

R-transactions typically arrive 2-5 business days after the debit date. Plexy automatically monitors for returns and initiates Auto Rescue when appropriate.

How Auto Rescue Handles SEPA

Enabling Auto Rescue for SEPA

curl -X POST https://api.plexypay.com/v2/payments \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 4999,
    "currency": "EUR",
    "customer": "cus_abc123",
    "payment_method": "pm_sepa_debit_xyz789",
    "payment_method_options": {
      "sepa_debit": {
        "mandate": "md_abc123"
      }
    },
    "auto_rescue": {
      "enabled": true,
      "max_retries": 3,
      "retry_window_days": 21
    },
    "metadata": {
      "subscription_id": "sub_monthly_123"
    }
  }'

SEPA-Specific Configuration

Retry Timing

SEPA has minimum timing requirements:

Constraint	Requirement
Minimum retry delay	2 business days after R-transaction
Due date lead time	D-2 for Core, D-1 for B2B
Pre-notification	14 days before first debit, unless agreed otherwise
Settlement time	2-5 business days

Configure timing accordingly:

curl -X POST https://api.plexypay.com/v2/payments \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 4999,
    "currency": "EUR",
    "customer": "cus_abc123",
    "payment_method": "pm_sepa_debit_xyz789",
    "auto_rescue": {
      "enabled": true,
      "sepa_options": {
        "min_retry_interval_days": 5,
        "send_prenotification": true,
        "prenotification_days": 5
      },
      "max_retries": 3
    }
  }'

R-Code Strategies

Configure different strategies based on R-transaction codes:

curl -X POST https://api.plexypay.com/v2/payments \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 4999,
    "currency": "EUR",
    "customer": "cus_abc123",
    "payment_method": "pm_sepa_debit_xyz789",
    "auto_rescue": {
      "enabled": true,
      "r_code_strategies": {
        "AM04": {
          "retry": true,
          "schedule_days": [5, 12, 20],
          "notify_customer": true
        },
        "AC06": {
          "retry": true,
          "max_retries": 1,
          "schedule_days": [7],
          "escalate_on_failure": true
        },
        "MD01": {
          "retry": false,
          "action": "contact_customer",
          "deactivate_mandate": true
        },
        "MD06": {
          "retry": false,
          "action": "process_refund"
        }
      }
    }
  }'

Webhook Events

payment.sepa_return_received

Sent when an R-transaction is received.

{
  "id": "evt_abc123",
  "type": "payment.sepa_return_received",
  "created_at": "2026-03-28T09:15:00Z",
  "data": {
    "payment": "pay_xyz789",
    "customer": "cus_abc123",
    "amount": 4999,
    "currency": "EUR",
    "mandate": "md_abc123",
    "r_transaction": {
      "code": "AM04",
      "reason": "Insufficient Funds",
      "received_at": "2026-03-28T09:15:00Z",
      "original_debit_date": "2026-03-25"
    },
    "auto_rescue": {
      "enabled": true,
      "will_retry": true,
      "next_retry_at": "2026-04-02T10:00:00Z"
    }
  }
}

payment.rescue_retry (SEPA)

Sent when a SEPA retry is being attempted.

{
  "id": "evt_def456",
  "type": "payment.rescue_retry",
  "created_at": "2026-04-02T10:00:00Z",
  "data": {
    "payment": "pay_xyz789",
    "customer": "cus_abc123",
    "payment_method_type": "sepa_debit",
    "retry_number": 1,
    "previous_r_code": "AM04",
    "debit_date": "2026-04-07",
    "prenotification_sent": true,
    "retry_strategy": {
      "r_code_category": "insufficient_funds",
      "timing_reason": "payday_alignment"
    }
  }
}

payment.rescue_succeeded (SEPA)

Sent when a SEPA payment is successfully recovered.

{
  "id": "evt_ghi789",
  "type": "payment.rescue_succeeded",
  "created_at": "2026-04-10T14:30:00Z",
  "data": {
    "payment": "pay_xyz789",
    "customer": "cus_abc123",
    "amount": 4999,
    "currency": "EUR",
    "retry_number": 1,
    "total_attempts": 2,
    "days_to_recover": 15,
    "settlement_date": "2026-04-10"
  }
}

sepa_mandate.requires_attention

Sent when a mandate issue is detected.

{
  "id": "evt_jkl012",
  "type": "sepa_mandate.requires_attention",
  "created_at": "2026-03-28T09:20:00Z",
  "data": {
    "mandate": "md_abc123",
    "customer": "cus_abc123",
    "issue": "mandate_cancelled",
    "r_code": "MD01",
    "triggered_by_payment": "pay_xyz789",
    "recommendation": "Contact customer to set up a new mandate"
  }
}

Handling R-Transaction Types

Insufficient Funds (AM04)

The most common return reason, often resolved with proper timing.

curl -X POST https://api.plexypay.com/v2/payments \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 4999,
    "currency": "EUR",
    "customer": "cus_abc123",
    "payment_method": "pm_sepa_debit_xyz789",
    "auto_rescue": {
      "enabled": true,
      "r_code_strategies": {
        "AM04": {
          "retry": true,
          "schedule_days": [5, 16, 26],
          "max_retries": 3,
          "notify_customer_after_attempt": 1
        }
      }
    }
  }'

Account Closed (AC04) or Incorrect (AC01)

Permanent issues requiring new account details.

app.post('/webhooks/plexy', async (req, res) => {
  const event = verifyWebhook(req);

  if (event.type === 'payment.sepa_return_received') {
    const { r_transaction, customer } = event.data;

    if (['AC01', 'AC04'].includes(r_transaction.code)) {
      // Deactivate the payment method
      await plexy.paymentMethods.update(event.data.payment_method, {
        active: false,
        deactivation_reason: r_transaction.reason,
      });

      // Contact customer for new account details
      await sendEmail(customer, 'sepa_account_invalid', {
        reason: r_transaction.reason,
        update_url: 'https://yoursite.com/update-payment',
      });
    }
  }

  res.status(200).send('OK');
});

Mandate Issues (MD01, MD06)

Mandate-related returns require special handling.

When you receive an MD01 return, cancel the mandate via PATCH https://api.plexypay.com/v2/mandates/{mandate_id} and notify the customer to set up a new one. When you receive an MD06 return, issue a refund via POST https://api.plexypay.com/v2/refunds:

curl -X POST https://api.plexypay.com/v2/refunds \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "payment": "pay_xyz789",
    "reason": "customer_request_via_bank"
  }'

SEPA Core vs B2B

Auto Rescue handles both SEPA schemes:

Aspect	SEPA Core	SEPA B2B
Refund right	8 weeks (no questions)	None
Mandate verification	Optional	Required
Minimum lead time	D-2	D-1
Retry approach	More conservative	Can be more aggressive

Configure by Scheme

curl -X POST https://api.plexypay.com/v2/payments \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 4999,
    "currency": "EUR",
    "customer": "cus_abc123",
    "payment_method": "pm_sepa_debit_xyz789",
    "payment_method_options": {
      "sepa_debit": {
        "mandate": "md_abc123",
        "scheme": "b2b"
      }
    },
    "auto_rescue": {
      "enabled": true,
      "sepa_options": {
        "scheme_specific": {
          "core": {
            "max_retries": 2,
            "retry_window_days": 14
          },
          "b2b": {
            "max_retries": 3,
            "retry_window_days": 21
          }
        }
      }
    }
  }'

Pre-Notification Management

SEPA requires customer notification before debits:

curl -X POST https://api.plexypay.com/v2/payments \
  -H "x-api-key: YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": 4999,
    "currency": "EUR",
    "customer": "cus_abc123",
    "payment_method": "pm_sepa_debit_xyz789",
    "auto_rescue": {
      "enabled": true,
      "sepa_options": {
        "send_prenotification": true,
        "prenotification_days": 5,
        "prenotification_template": "retry_notification"
      }
    }
  }'

Pre-Notification Webhook

{
  "id": "evt_mno345",
  "type": "sepa_prenotification.sent",
  "created_at": "2026-03-27T10:00:00Z",
  "data": {
    "payment": "pay_xyz789",
    "customer": "cus_abc123",
    "amount": 4999,
    "currency": "EUR",
    "debit_date": "2026-04-01",
    "is_retry": true,
    "retry_number": 1,
    "notification_type": "email"
  }
}

Best Practices

Timing Around Paydays

In Europe, common paydays include:

End of month (25th-31st)
Mid-month (15th)
Beginning of month (1st-5th)

// Optimal retry schedule for EU paydays
auto_rescue: {
  enabled: true,
  sepa_options: {
    // Schedule debits for 2-3 days after typical paydays
    preferred_debit_days: [3, 17, 28],
  },
}

Monitor Mandate Health

Track mandate-related returns:

// Fetch mandate analytics
const mandateHealth = await plexy.analytics.getMandateHealth({
  start_date: '2026-01-01',
  end_date: '2026-03-31',
});

// Response includes:
// {
//   "total_mandates": 5234,
//   "active": 5012,
//   "cancelled_by_customer": 89,
//   "cancelled_by_r_transaction": 133,
//   "r_transaction_breakdown": {
//     "MD01": 98,
//     "MD06": 35
//   }
// }

Respect Customer Requests

When you receive MD06 (refund request by customer), consider:

Processing the refund promptly
Reviewing the customer's subscription status
Reaching out to understand the reason
Potentially pausing future debits

if (r_code === 'MD06') {
  // Customer went to their bank for a refund - take it seriously
  await pauseSubscription(customer);
  await sendEmail(customer, 'subscription_paused', {
    reason: 'bank_refund_request',
    contact_us: true,
  });
}

Know When to Stop

Unlike cards, SEPA retries should be more conservative:

Factor	Recommendation
Max retries	2-3 (not 4-5 like cards)
Window	14-21 days
After MD01/MD06	Never retry
Multiple AM04s	Consider contacting customer

Next Steps

Auto Rescue Overview - General Auto Rescue concepts
Auto Rescue for Cards - Card-specific strategies
SEPA Direct Debit Guide - Full SEPA integration details

Auto Rescue for SEPA

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