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SEPA Direct Debit Deep Dive

D05 Domestic payment systems · 7 lessons

Version 1.0 | Last reviewed 2026-11-05

Mandates, collections, returns and refunds

SEPA direct debit deep dive: mandates, collections, returns and refunds, and the rights that come with them.

What You Can Do After This Chapter

Learning objective. Learner explains SDD Core and B2B, describes mandate flows and the e-mandate service, and traces a EUR 89.99 monthly collection from pain.008 through pacs.003 to settlement, including rejects, returns, refunds and reversals.

Practical assessment. Learner receives a case where Stadtwerke Linden must collect EUR 89.99 monthly from Jonas Weber, then drafts the pain.008 file, the pacs.003 message, and the pacs.002 and pacs.004 reports, including a refund inside eight weeks and a reversal with reason code AM05, with realistic mandate references and due dates. Learner also explains the Core and B2B differences and the e-mandate messages in a short note.

Expected deliverables.

Completion criterion. Learner drafts a correct pain.008 and pacs.003 for the EUR 89.99 collection, explains each reject and return reason, and handles the eight week refund and the AM05 reversal correctly.

In this chapter
  1. SDD Core and B2B: Two Schemes, Two Risk Profiles
  2. The Four-Corner SDD Model and Mandate Flows
  3. e-Mandate Service and Its ISO 20022 Messages
  4. Collections: pain.008 and pacs.003 Step by Step
  5. Rejects, Returns and Refunds: pacs.002, pacs.004 and the 8 Week Rule
  6. Reversals: pain.007, pacs.007 and Reason Codes AM05, MS02, MS03
  7. Worked Example: EUR 89.99 Monthly Utility Collection, End to End and How to Test It

Start Lesson 1: SDD Core and B2B: Two Schemes, Two Risk Profiles →