Unpaid debit orders: reason codes and what to do next
Unpaid debit order reason codes explained (02, 04, 12, 26, 30 and more), what each one means and the right follow-up action for South African businesses.
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- CentraPoint Team
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An unpaid debit order is a collection the customer's bank returned instead of paying, and the reason code tells you why: no funds (02), payment stopped by the account holder (04), account closed (12), no such account (26), no authority to debit (30) and so on. The code decides your next step: some unpaids can be retried, some need new bank details, and some mean you must stop collecting until you've spoken to the customer.
Most unpaids come back within a few business days of the action date. Treat them as a daily task, not a month-end surprise.
Common unpaid reason codes
The codes below are the standard bank return codes as published by Netcash in its unpaid code descriptions. Your provider may add its own codes (for card collections or internal rejections).
| Code | Meaning | Usual cause | Recommended action |
|---|---|---|---|
| 02 | Not provided for (insufficient funds) | Debit ran before payday or account overdrawn | Contact customer, offer a payment link, consider a new collection date |
| 03 | Debits not allowed to this account | Account type doesn't accept debits | Ask for a different account and a new mandate |
| 04 | Payment stopped by account holder | Customer instructed the bank to stop this payment | Stop and talk to the customer before collecting again |
| 06 | Account frozen | Legal or bank action on the account | Contact the customer; collect by another method |
| 08 | Account in sequestration | Individual's estate sequestrated | Stop collecting; seek advice on claiming against the estate |
| 10 | Account in liquidation | Company in liquidation | Stop collecting; seek advice on lodging a claim |
| 12 | Account closed | Customer closed or moved the account | Get new bank details and a new mandate |
| 14 | Account transferred | Account moved within the bank | Confirm new details with the customer |
| 18 | Account holder deceased | — | Stop collecting; handle sensitively with the estate |
| 22 | Account effects not cleared | Deposited funds not yet cleared | Retry after funds clear, if allowed |
| 26 | No such account | Wrong account number or branch | Verify bank details, update the mandate |
| 30 | No authority to debit | Customer says no mandate exists (dispute) | Stop, retrieve your mandate, contact the customer |
| 32 | Debit in contravention of payer's authority | Amount or date outside the mandate | Check the collection against the mandate; fix the process |
| 34 | Authorisation cancelled | Customer cancelled the mandate | Stop; agree a new arrangement or pursue the debt another way |
| 36 | Previously stopped via stop payment advice | Standing stop on this debit | Stop and contact the customer |
Netcash also lists codes such as 50 (account number invalid), 56 (not FICA compliant) and 60 (consecutive unpaid rejection), plus card-specific codes and DebiCheck code F2 (payment instruction disputed by payer). Code 18 is a standard bank code but check your provider's list for exact wording.
Sort unpaids into three buckets
1. Retry-able (funds and timing): 02, 22. The mandate is fine; the money wasn't there. Contact the customer first, then collect again on an agreed date or send a payment link.
2. Fix the data: 03, 12, 14, 26, 50. The mandate points at the wrong or unusable account. Don't resubmit the same details. Get new banking details and a fresh mandate.
3. Stop and review: 04, 06, 08, 10, 18, 30, 32, 34, 36. The customer (or the law) has said no. Resubmitting may breach your provider's rules and can lead to penalties or your service being suspended. Contact the customer, fix the underlying problem, and use another collection method if appropriate.
An unpaid follow-up workflow
- Same day the unpaid arrives: mark the invoice or subscription period as unpaid, and apply any unpaid fee your terms allow (disclosed upfront).
- Within 24 hours: email and SMS the customer with the amount, reason in plain language ("your bank returned the payment due to insufficient funds") and a payment link for card or instant EFT.
- Day 3–5: follow up by phone for larger amounts or repeat unpaids.
- Next collection: decide whether to add the arrears to the next debit (only if your mandate and terms allow it and you've told the customer) or collect separately.
- Escalation: after a defined number of failures, pause the service and move the account into your credit control process.
Keep a log: repeated 02s from the same customer on the same date usually mean the date is wrong, not the customer.
Can I resubmit an unpaid debit order?
For funds-related unpaids, resubmission is often possible, but rules differ by provider, and repeated resubmission can be flagged. Netcash's code 60, for example, indicates a transaction rejected after consecutive unpaids. Check your provider's re-presentment rules and your mandate before automating retries. Never resubmit codes where the account holder stopped, cancelled or disputed the debit.
Tracking your unpaid rate
Measure unpaids as a percentage of collections every month, split by reason code and collection date. A rising rate is an early warning of cash flow trouble and can also affect how your provider treats you (for example higher retention). Our guide on reducing debit order failures covers prevention.
How CentraPoint helps
When Netcash returns an unpaid, CentraPoint records it against the customer's collection history with the reason, marks the related invoice as outstanding, and can trigger dunning emails that include a payment link, so the customer can settle by card or instant EFT straight away. Reports show unpaids by period and reason. See the debit order docs and reconciliation docs.
Frequently asked questions
What does "not provided for" mean on a debit order?
It's reason code 02: the customer didn't have enough available funds on the action date. It's the most common unpaid reason and usually means the collection date doesn't line up with the customer's payday.
How long does it take for an unpaid debit order to come back?
Most unpaids are returned within a few business days of the action date. Your provider's reports show them as they arrive.
Can I charge a customer a fee for an unpaid debit order?
Only if your agreement with the customer allows it and the fee was disclosed upfront. Keep it reasonable and related to your actual cost.
What is the difference between an unpaid and a dispute?
An unpaid is returned by the bank around the action date because it couldn't be processed. A dispute happens after a successful debit, when the customer asks their bank to reverse it.
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