You are allowed to try again to collect payment for a failed direct debit. Consent for this is implicit in the direct debit mandate you collected at the first payment. Once a payment has failed, the merchant could create a new payment for the same mandate to retry the payment.

Here’s how to collect a failed direct debit in the EU

Because you get much less information in the failure notification, it can be more difficult to evaluate the likelihood of a successful collection. 

Also, it is common for the bank to charge a small fee every time a direct debit fails. 

The third factor is time. Depending on which countries the two banks are in, it can take up to 14 days to get the message that the direct debit has failed. This leaves only 14 days to take action before the time limit is reached. It is good practice to inform your customer that you will be trying the payment again, but it is not required. You can also charge them a fee for having to retry the payment. 

What is a direct debit reversal?

A direct debit reversal occurs when a previously collected direct debit payment is returned to the customer's account. It can be triggered by various reasons, such as insufficient funds, incorrect account details, or a dispute over the payment. When a direct debit is reversed, the funds are returned to the customer's account, and the business may incur additional fees.

It's important for businesses to monitor their accounts for reversals and act accordingly to solve any problems as soon as possible. This may involve contacting the customer to understand the reason for the reversal and arranging an alternative payment method. Understanding the process of direct debit reversals is essential for businesses to maintain healthy cash flow and customer relationships.