SEPA Direct Debit (SDD)
SEPA Direct Debit Core Scheme (SDD Core)
On this page, you find the SDD Core Rulebook version 9.3 and associated documentation.
To view the SDD Business to Business (B2B) Rulebook version 7.3 and associated documentation, refer to this EPC Website page: SEPA Direct Debit Business to Business Scheme (SDD B2B).
The SDD Core Rulebook version 9.3 is in effect until 19 November 2017.
The version 9.3 of the SDD Core Rulebook remains unchanged from a functional or technical point of view, i.e. changes introduced into this version have no operational impact whatsoever. The version 9.3 of the SDD Core Rulebook contains as main change an updated version of the SEPA Scheme Management Internal Rules (SMIRs), which describe the internal organisation, structure, rules, and processes that make up the scheme management of the SCT and SDD schemes.
The implementation guidelines relevant to the SDD Core Rulebook version 9.3 are based on the 2009 version of ISO 20022.
The SDD Core Rulebook and associated documentation to take effect on 19 November 2017 are available on this EPC Website page: 2017 SDD rulebooks.
The EPC launched the SDD schemes in November 2009. For a definitive source of information regarding the rules and obligations of the schemes, refer to the SDD rulebooks and the accompanying documentation approved by the EPC.
EU Regulation defines mandatory deadlines for migration to SEPA
The migration to SEPA is over since 31 October 2016. The SEPA Regulation ('Regulation (EU) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009', adopted in 2012) defines 1 February 2014 as the deadline in the euro area for compliance with the core provisions of this Regulation, and 31 October 2016 as the deadline in non-euro countries. Existing national euro credit transfer and direct debit schemes are now replaced by SCT and SEPA Direct Debit (SDD). Similarly all euro-denominated credit transfers and direct debits initiated in SEPA countries and sent to accounts in other SEPA countries now rely on the SCT and SDD schemes. For more information on the SEPA Regulation, refer to this page.
The SDD Core scheme in a nutshell
The SDD Core scheme, like any other direct debit scheme, is based on the following concept: "I request money from someone else, with their prior approval, and credit it to myself". The payer and the biller must each hold an account with a payment service provider (PSP) located within SEPA. The accounts may be held in euro or in any other SEPA currency, however the transfer of funds (money) between the payer's PSP and the biller's PSP always takes place in the euro currency. The SDD Core allows a biller to collect funds from a payer's account, provided that a signed mandate has been granted by the payer to the biller. A mandate is signed by the payer to authorise the biller to collect a payment and to instruct the payer's PSP to pay the agreed collections. Payers are entitled to instruct their PSPs not to accept any SEPA direct debit collections on their accounts. The mandate expires 36 months after the last initiated collection. The signed mandate must be stored by the biller as long as the mandate is valid and for a minimum of 14 months after the last collection. The mandate can be issued in paper or electronic formats.
The PSPs executing the direct debit transaction must formally participate in the SDD Core scheme. It is optional for PSPs to offer services based on the SDD B2B scheme.
The SDD Core scheme may be used for single (one-off) or reoccurring direct debit collections. The SDD Core scheme grants payers a 'no-questions-asked' refund right during the eight weeks following the debiting of a payer's account. During this time therefore, any funds collected via the SDD Core scheme will be credited back to the payer's account upon request. In the event of any unauthorised direct debit collections, the payer's right to a refund extends to 13 months.
Use of scheme options
The SDD Core Rulebook provides PSPs participating in the scheme with the opportunity to offer optional scheme features. The list of individual SDD Core scheme participants, groups of individual SDD Core scheme participants and communities using the option(s) as well as information about how these participants apply the option(s) can be found on this EPC Website page: SDD Core Options.
Use of SDD R-transaction reason codes
One of the main benefits of the SDD schemes is that the scheme rules streamline exception handling, at both process and dataset level. This allows straight-through-processing and automated exception handling end-to-end. Possible exceptions to the normal execution of a direct debit collection include refunds, returns, rejects, refusals and reversals (commonly referenced as R-transactions). The SDD rulebooks specify reasons which trigger an R-transaction, i.e. data elements required to convey information to the payee (biller) with regard to the R-transaction. The correct application of these reason codes by a debtor bank, (the bank of the payer), informing a creditor bank, (the bank of the biller), about a failed SDD collection is crucial to allow the biller to determine its reaction. Scheme participants, i.e. PSPs that have formally adhered to the schemes, are therefore reminded to apply the specific SDD R-transaction reason codes described in the rulebooks when reporting a failed collection. More information can be found in the document ‘Guidance on reason codes for SDD R-transactions’ (see links included with the ‘EPC technical documents’ below).
Selection of articles from the EPC Newsletter and other sources
- EPC Publication: Shortcut to SEPA Direct Debit (SDD)
- EPC Video: SEPA for Billers. This Film Highlights Aspects Relevant for Businesses and Public Entities Transitioning to SEPA
- EPC Newsletter: Case Studies Highlighting Successful SEPA Migration Projects of Bank Customers
- EPC Newsletter: Articles Published in the Section ‘SEPA Credit Transfer (SCT) & SEPA Direct Debit (SDD)'
- Summary Workshop on Minimum Requirements for Cross-Border ‘BIC from IBAN Derivation’ Solutions (September 2013)
EPC technical documents
- SEPA Direct Debit Core Rulebook Version 9.3
- SEPA Direct Debit Core Scheme Inter-Bank Implementation Guidelines Version 9.0
- SEPA Direct Debit Core Scheme Customer-to-Bank Implementation Guidelines Version 9.0
- SEPA Direct Debit Core Scheme e-Mandate Service Implementation Guidelines Version 9.0
- SEPA Direct Debit Core Scheme Advance Mandate Information Service Implementation Guidelines Version 9.0
- EPC Clarification Paper: SEPA Credit Transfer and SEPA Direct Debit
- EPC Clarification Letter on Electronic Mandates to SEPA Direct Debit Scheme Participants
- EPC Clarification Paper on the Use of Electronic Mandate Solutions
- EPC Clarification Paper on the Change of Creditor or Creditor Reference Party
- EPC Recommendations on the Validity of Electronic Mandates in a Cross-Border Context
- EPC Recommendation on Customer Reporting of SCT and SDD
- EPC Guidance on Reason Codes for SEPA Direct Debit R-Transactions
- Explanatory note on use of ‘COR1’ and ‘SMNDA’ in SDD R-transactions
- SEPA Requirements for an Extended Character Set (UNICODE Subset) - Best Practices
- Creditor Identifier Overview