SEPA Direct Debit (SDD)

The SEPA Direct Debit (SDD) Schemes enable creditors (biller) to collect money from a debtor's (payers) bank account, so long as a signed order has been permitted by the payer to the biller. A mandate is authorized by the debtor to allow the creditor to collect a payment and to direct the debtor's banking institution to pay those collections. Mandate forms to be filled out by debtors (customers purchasing products or services) usually are given by creditors (retailers or service providers) themselves.

The European Payments Council (EPC) provides guidance to creditors on the development of efficient, easy-to-use Single Euro Payments Area (SEPA) mandates. Additionally, the EPC presents translations of the mandate text, as designated in the SDD Core Rulebook and the SDD Business to Business (B2B) Rulebook, into the SEPA languages. Because of this, approximately 16 to 18 million businesses in the euro area alone and all public administrations collecting payments in SEPA are in a position to establish user friendly SEPA mandate forms, which best fulfill their demands.

Streamlining the SEPA mandate

The SDD Rulebooks outline the principles for the content of SEPA mandates. The illustration of the mandate as it shows up in the rulebook features the most extensive design achievable. In actual utilization however, the SEPA mandate form may be efficient in numerous ways without losing any important content while still remaining compliant with the rulebook. In so many cases, the mandate form itself does not have to incorporate all the details needed for the authorization of a SDD, so long as this info is obtainable from other sources. Additionally it needs to be kept in mind that majority of the information incorporated into a SEPA mandate can certainly be supplemented by the creditor personally and as such, may already be part of the mandate form he creates . Clients who finalize and sign such forms will ultimately provide virtually the similar details on a SEPA mandate as in any other mandate given under legacy direct debit schemes these days.

To bring more clarity on this point and to explain how a SEPA mandate form offered by creditors to their clients might actually appear like, the EPC has given a guidance document containing realistic information about how chosen mandate information can be utilized in various situations. You can actually visualize a user-friendly SEPA mandate form.

The EPC has resolved potential complexities experienced by creditors who desire to transfer to the SDD Schemes making use of existing direct debit mandates, which may not be completely compliant with the schemes' demands regarding form and content of SDD mandates. Section 5 .17 of the SDD Core Rulebook and section 5 .17 of the SDD B2B Rulebook present substantial practical assistance to creditors by waiving particular requirements for these legacy mandates if utilized under one of the SDD Schemes.