Under SEPA regulations, customers enjoy strong consumer protection rights when it comes to direct debit payments. One of the key rights is the ability to request a refund for any authorised SEPA Direct Debit within eight weeks of the debit date - no questions asked.
As the merchant, you may only learn about a refund after your bank notifies you that the funds have been withdrawn from your account. While the original payment may still appear as successful in your Kinnovis system, it's important to reflect this reversal correctly in Kinnovis by marking the payment as disputed. This helps ensure your records remain accurate and that any outstanding balances are properly tracked.
When to Mark a Dispute
You should mark a SEPA Direct Debit as disputed when:
A customer successfully revokes a SEPA Direct Debit with their bank within the 8-week window.
You’ve been notified by your bank that the funds have been withdrawn from your account due to a customer-initiated reversal.
How to Mark a SEPA Direct Debit as Disputed
1. Go to the invoices tab & find the affected payment/invoice
You can filter by payment option "SEPA via XML", search by customer name, invoice number, unit number, or invoice amount. The affected invoice with the disputed payment should still appear as successful, unless already adjusted.
2. Select the affected invoice
3. Click on SEPA XML actions in the table
4. Click on “Mark payment as disputed” option
Example: Marking payment as disputed
5. After this action, the payment will be marked as "Lost Dispute", and the invoice will return to either "Open" or "Past due", depending on whether the due date has already passed.
Example - Change of Invoice Status after a Dispute was recorded (Invoice Overview):
Example - Payment marked as "Lost Dispute" (Invoice Detail Page):
What Happens After Marking a Dispute?
The payment and invoice status will change.
The customer will once again have an open balance for the reversed amount.
You can choose to follow up with the customer for repayment and reissue the SEPA Direct Debit (if appropriate and authorised).