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. This can happen for several reasons, such as:
- A closed bank account
- An expired mandate
- Insufficient funds
- A customer-initiated dispute
Unlike failed payments that bounce immediately, returned direct debits are processed after settlement and require manual follow-up.
How Continia Banking handles returns
Continia Banking automatically detects returned direct debits during CAMT statement import. It uses reversal indicators and standardized return reason codes to identify the issue. The system matches the returned transaction to the original payment using the end-to-end ID and stores it for further action.
To learn how Continia uses bank transaction code rules, see Accounts identification methods.
To configure system responses
You can define how the system responds to returned direct debits on the Banking Import Setup page. For example, if a customer frequently reverses payments, you can automatically place their related invoices on hold.
For more details, see the Handling returned direct debits article.