SEPA-Transfer

SEPA Direct Debit and Bank Transfers

The SEPA Mandate

You need a SEPA mandate to collect a SEPA direct debit. By signing the SEPA direct debit, the payer confirms that you are allowed to debit his account.

A SEPA direct debit mandate contains, inter alia, the following information:

  • Creditor ID (provided by your bank)
  • Unique mandate reference

You can easily print them on any printer, ready for dispatch.

Example:

Municipal utilities collect the discounts for electricity costs by direct debit. To do this, the administration requires written permission from their customers. This is the SEPA mandate. On this mandate, the direct debit for the monthly electricity bill and the debit date (e.g. on the 15th of each month) are agreed.

Mandate Variants

A basic distinction is made between single mandates and multiple mandates:

  • A single mandate, also known as a single debit memo, is only valid for one transaction. This can be a one-time payment for goods, for example. If it is not used within 36 months of being issued, it is regarded as expired.
  • A multiple mandate is valid until it is revoked. Here, too, the mandate must be used within 36 months of being granted, otherwise it expires. The multiple mandate can cover a large number of SEPA direct debits.

In addition, a distinction is made between basic direct debits and company direct debits. A company direct debit is designed for payment transactions between companies and may therefore only be used in the B2B area. The basic direct debit, on the other hand, is used for payment transactions between companies and private consumers.