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MD06 reason code: refund of a direct debit at the payer's request

Last updated: 28 October 2026

MD06 stands for a refund at the payer's request. Under SEPA Core the payer can ask their bank to refund a direct debit within eight weeks of the debit, without giving a reason.

Code
MD06
Meaning in the rulebook
Disputed authorised transaction
ISO name
Refund Request By End Customer
Type of R-transaction
Refund after the debit
Schemes
SEPA Core only
Collect again?
Only after clarifying with the payer

What MD06 means

The eight-week refund is a right of the payer under SEPA Core. Their bank refunds the amount without questions and recovers it through the creditor's bank.

The refund says nothing about the claim itself. The rulebook makes clear that it does not relieve the payer of resolving any dispute with the creditor. The European Payments Council lists a difference between the pre-notified amount and the collected amount as one possible cause.

Under SEPA B2B this refund right does not exist, so MD06 does not occur there.

What the payer and the creditor see

As the payer

On your account you first see the debit and, after the refund, a credit of the same amount.

You request the refund from your bank, with many banks also in online banking. You do not have to give a reason.

As the creditor

Your bank debits the amount back with return reason MD06, often weeks after the collection: the refund can be requested up to eight weeks after the debit and settled two bank business days later.

So a SEPA Core collection is not final when it is credited. Plan for this period.

Creditor's bank statementAssociation current account
DateTransactionAmount EUR
3 NovSEPA direct debit collection, 214 itemsMembership fees 11/2026+8,560.00
22 DecSEPA direct debit returnMandate M-0412, membership fee 11/2026Return reason MD06 Refund request−40.00
22 DecReturn fee−3.00
Example: how a return with MD06 can appear on the creditor's bank statement. Layout and fees differ from bank to bank.

Typical causes

  • The collected amount differs from the pre-notification.
  • The payer disputes the claim or considers the contract ended.
  • They do not recognise the direct debit, for example because of an unfamiliar name in the transaction details.
  • They want to stop the payment for other reasons; the refund right needs no reason.

What you can do as the payer

  1. You do not have to give your bank a reason. Do tell the creditor why you asked for the refund.
  2. If you owe the amount, pay it another way or agree on a new direct debit. The refund does not end the claim.
  3. If you no longer want direct debits from this creditor, cancel the mandate with the creditor.

What you can do as the creditor

  1. Ask the payer why. Check whether amount and date matched your pre-notification.
  2. If the claim is valid, request the amount again: by invoice or, if the payer agrees, with a new collection under the same mandate. Announce the new collection with amount and due date (pre-notification), at least 14 calendar days in advance unless agreed otherwise.
  3. Expect that a new SEPA Core collection can be refunded too. After repeated refunds, agree on another way to pay.
  4. If your customer is a business, SEPA B2B may suit future payments, as it has no refund right. It needs its own mandate, which the payer confirms with their bank; see the SEPA mandate template.

Deadlines

Refund deadlines for SEPA direct debits
CaseSEPA CoreSEPA B2B
Refund without a reason (MD06)up to 8 weeks after the debitnot possible
Refund without a valid mandate (MD01)up to 13 months after the debitno refund for authorised collections

Related reason codes

Frequently asked questions

How long can a direct debit be refunded?

Under SEPA Core, eight weeks from the debit without a reason, and up to 13 months if there was no valid mandate. Under SEPA B2B there is no refund for authorised collections.

Is the claim settled after MD06?

No. The refund only concerns the payment. Whether the amount is owed is for creditor and payer to settle.

Can I collect again after MD06?

If the mandate was not cancelled, yes, with a new pre-notification. It is best to talk to the payer first, because the new collection can be refunded as well.

Does MD06 exist under SEPA B2B?

No. Under SEPA B2B the payer can refuse a collection up to the due date but cannot have it refunded afterwards.

Sources