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MD01 reason code: direct debit without a valid mandate

Last updated: 28 October 2026

MD01 means “no valid mandate”. The payer's bank returns the SEPA direct debit because there is no mandate, it was cancelled or has expired, or the mandate data do not match. Under SEPA B2B, MD01 can also mean that the payer has not confirmed the mandate with their bank.

Code
MD01
Meaning in the rulebook
No valid mandate; under B2B also: mandate not confirmed; for refunds: unauthorised transaction
ISO name
No Mandate
Type of R-transaction
Reject, return or refund up to 13 months after the debit
Schemes
SEPA Core and SEPA B2B
Collect again?
No, only with a valid mandate

What MD01 means

The European Payments Council lists these cases: there is no mandate; the payer cancelled the mandate; the mandate expired because no collection was presented under it for 36 months; under SEPA B2B the payer has not confirmed the mandate with their bank; under SEPA Core the payer asks for a refund of an unauthorised direct debit, up to 13 months after the debit.

Incorrect mandate data also lead to MD01: as causes on the creditor's side the EPC mentions a missing mandate reference and a mandate reference that does not match the mandate information. A German savings bank also states that it reports MD02 (mandate data missing or incorrect) as MD01.

What the payer and the creditor see

As the payer

If you notice a direct debit without a mandate, under SEPA Core you can request a refund up to 13 months after the debit. Your bank can ask for a copy of the mandate through the creditor's bank.

If MD01 comes because you did not confirm a B2B mandate, no debit appears on your account.

As the creditor

Your bank debits the amount back and shows MD01. For a refund of an unauthorised transaction, this can happen many months after the collection.

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 MD01 No valid mandate−40.00
5 NovReturn fee−3.00
Example: how a return with MD01 can appear on the creditor's bank statement. Layout and fees differ from bank to bank.

Typical causes

  • There is no signed mandate.
  • The payer cancelled the mandate.
  • The mandate expired: 36 months without a collection.
  • The mandate reference is missing or does not match the mandate, for example after renumbering without an amendment indicator.
  • SEPA B2B: the payer has not confirmed the mandate with their bank.

What you can do as the payer

  1. Check whether you gave the creditor a mandate. If they collected without one, ask your bank for a refund: within eight weeks without a reason, afterwards up to 13 months after the debit.
  2. If you agreed to a SEPA B2B direct debit, confirm the mandate with your bank in the way it requires.
  3. If you want to keep paying by direct debit, sign a new mandate.

What you can do as the creditor

  1. Do not collect again before you have a valid mandate. Without one, the payer can reclaim every SEPA Core collection for up to 13 months.
  2. Check the mandate reference, signature date and creditor identifier in your file. The free SEPA file check reports missing mandate references, characters that are not allowed, signature dates in the future and invalid creditor identifiers. Whether a signed mandate exists, it cannot know.
  3. Obtain a new mandate, for example with the free SEPA direct debit mandate template.
  4. SEPA B2B: ask the payer to confirm the mandate with their bank before you resubmit.
  5. Mind the 36-month rule: if you present no collection under a mandate for 36 months, you may no longer use it and need a new one.

Deadlines

Deadlines around MD01
CaseSEPA CoreSEPA B2B
Reject or returnbefore the debit or up to 5 bank business days afterbefore the debit or up to 3 bank business days after
Refund of an unauthorised collectionup to 13 months after the debitno refund for authorised collections
Mandate without collectionsexpires after 36 monthsexpires after 36 months

Related reason codes

Frequently asked questions

How long can a direct debit without a mandate be reclaimed?

Under SEPA Core up to 13 months after the debit. In the first eight weeks a refund is possible anyway, without a reason.

When does a SEPA mandate expire?

When no collection has been presented under it for 36 months, counted from the last collection, even if that one was rejected, returned or refunded. It also ends when cancelled, and a one-off mandate covers one collection only.

Does the free check help with MD01?

It finds missing or incorrect mandate data in the file, such as a missing mandate reference or a signature date in the future. Whether a signed mandate exists only the creditor can check.

Sources