Report unjustified direct debit (MOI)

      Report unjustified direct debit (MOI)

        Article summary

        If an amount was wrongfully debited, a request for reversal of payment can be made at the bank where the debit took place up til 13 months afterwards. This only applies to an authorisation that was not issued via a digital direct debit authorisation or on paper.

        The bank that received the complaint starts a Report Unjustified Direct Debit procedure (MOI procedure) with the bank of the payee. The payee is the person to whom the money was paid. In case you have a collecting contract with Buckaroo, Buckaroo will receive these messages (often by email). Based on the information in this message, the mail is forwarded to the appropriate Merchant. This Merchant will be asked to provide the signature for the payment obligation by means of an authorisation. So the Merchant is responsible for the monitoring of a valid authorisation via digital direct debit authorisation or on paper. It is important that the Merchant shares this information directly with the bank; Buckaroo is no party in this. If it is concluded that the direct debit was indeed unjustified, the money will be refunded to the account of origin.

        The Report Unjustified Direct Debit (MOI) can be carried out between 56 days and 13 months after the collection date. Because this involves a substantial administrative burden, banks charge high extra costs. Buckaroo will pass these costs on to the Merchant. These costs will be displayed on bank statements under the transaction code I503.

        Example of transaction stages

        In the example below, the direct debit is collected on 21-7-2015 11:48. On 6-12-2015 00:00 the bank gives notice to Buckaroo that the transaction has to be reversed. That is after the 56 days payment reversal period. Thus, we’re dealing with a Report Unjustified Direct Debit (MOI), which is charged to Buckaroo with high extra costs. These costs are then passed on to the Merchant under transaction code “I503 transaction: Report Unjustified Direct Debit”.

        Date/timeMerchant nameNameAmountInvoiceTransaction typeDescription Unjustified Direct Debit Report (MOI)MOI
        6-12-2015Merchant.nlP.Jansen-19.9520xxx587C501 SEPA Direct Debit Reversal of payment201xxx21
        21-7-2015Merchant.nlP.Jansen19.9520xxx587C008 Simple SEPA Direct Debit201xxx21

        Reversals of payment

        Reversals of payment are not to be confused with a Report Unjustified Direct Debit (MOI). These are covered by the “no questions asked period” and can be carried out for various reasons. A debtor is therefore not required to provide a reason for a reversal of payment.

        Reasons for submitting a Report Unjustified Direct Debit (MOI)

        The payee has to provide a reason for submitting a Report Unjustified Direct Debit (MOI). The following reasons have to be taken as mere examples. Every bank has its own procedure.

        • No authorisation was granted
        • A one-off direct debit authorisation was granted instead of a recurrent direct debit authorisation (or vice versa)
        • The authorisation was granted by an unauthorized party
        • The authorisation has been cancelled
        • The name of the payee is not mentioned in the authorisation
        • The authorisation was granted for something different than what was collected
        • The amount differs from the obligation specified in the sales agreement
        • It concerns an additional amount

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