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AC04 reason code: direct debit on a closed account

Last updated: 28 October 2026

AC04 means “account closed”: the account from which the SEPA direct debit was to be collected no longer exists. The payer closed it since the creditor last collected from it and has not given the creditor new account details.

Code
AC04
Meaning in the rulebook
Account closed
ISO name
Closed Account Number
Type of R-transaction
Reject before or return after the debit
Schemes
SEPA Core and SEPA B2B
Collect again?
Only on the new IBAN, as a mandate amendment

What AC04 means

AC04 shows that the IBAN is formally correct but the account has been closed. A direct debit on this account cannot succeed.

The European Payments Council notes that AC04 may not be used in some SEPA countries for data protection reasons; MS03 then appears instead.

If the payer only switched accounts, the mandate remains valid: under the rulebook, a new account at the same or another bank is an amendment of the mandate. The new IBAN must come from the payer.

What the payer and the creditor see

As the payer

You see nothing on your new account, because the direct debit went to the old account and came back. You find out from the creditor, who did not receive the amount.

As the creditor

Your bank debits the amount back and shows AC04 as the return reason, or MS03 in some countries.

Creditor's bank statementAssociation current account
DateTransactionAmount EUR
3 NovSEPA direct debit collection, 214 itemsMembership fees 11/2026+8,560.00
5 NovSEPA direct debit returnMandate M-0412, membership fee 11/2026Return reason AC04 Account closed−40.00
5 NovReturn fee−3.00
Example: how a return with AC04 can appear on the creditor's bank statement. Layout and fees differ from bank to bank.

Typical causes

  • The payer closed the account or switched banks.
  • The bank closed the account.
  • A change of account was not entered in your customer records.

What you can do as the payer

  1. Give the creditor your new IBAN, preferably in writing and with the mandate reference.
  2. Pay the open amount by credit transfer or agree that it will be collected from the new account.
  3. Check which other direct debits still go to the old account and inform those creditors as well.

What you can do as the creditor

  1. Ask the payer for the new IBAN and have it confirmed in writing. Without the payer's instruction you may not debit another account.
  2. Indicate the mandate amendment in the next collection: set the amendment indicator and, for an account at another bank, state “SMNDA” as the original debtor account; for a new account at the same bank, state the old IBAN.
  3. Submit the open collection on the new IBAN. Announce the new collection with amount and due date (pre-notification), at least 14 calendar days in advance unless agreed otherwise.
  4. Check the file before uploading it with the free SEPA file check: it shows whether the new IBAN is valid and the mandate data are complete.

Deadlines

A reject with AC04 arrives before the debit, a return no later than five (SEPA Core) or three (SEPA B2B) bank business days after the due date. Under SEPA B2B the payer must also confirm the mandate with their new bank before you can collect from the new account.

Related reason codes

Frequently asked questions

Do I need a new mandate after AC04?

Not necessarily. A change of account is an amendment of the existing mandate. You need the new IBAN from the payer and indicate the amendment in the next collection.

What is the difference between AC04 and AC01?

With AC01 the IBAN is invalid or unknown at the bank. With AC04 the account existed but has been closed.

Can I resubmit the direct debit to the old account?

There is no point: a closed account stays closed, and the direct debit would come back again.

Sources