Introducing direct debit returns
When an invoice is paid via a Direct Debit Suggestion or Direct Debit Collection, the payment may fail or be returned after initial success. Returned direct debits can occur for several reasons, such as:
- A closed bank account
- An expired mandate
- Insufficient funds
- A customer-initiated dispute
Unlike payments that fail immediately, returned direct debits are processed after settlement and require manual follow-up.
How Continia Banking handles returned direct debits
Continia Banking automatically detects returned direct debits during CAMT statement import. The system uses reversal indicators and standardized return reason codes to determine the cause of the return.
Each returned transaction is matched to its original payment by using the end-to-end ID, ensuring accurate tracking and reconciliation. Once matched, the returned transaction is stored and made available for further processing.
For more information about how Continia Banking identifies transactions, see Accounts identification methods.
To configure system responses
You can define how Continia Banking responds to returned direct debits on the Banking Import Setup page. For example, you can configure the system to automatically place related invoices on hold if a customer frequently reverses payments.
To learn more, see the Handling returned direct debits article.