SEPA Direct Debit (SDD)
The SDD Mandate
The SEPA Direct Debit (SDD) Schemes allow a creditor (biller) to collect funds from a debtor's (payer's) account, provided that a signed mandate has been granted by the payer to the biller. A mandate is signed by the debtor to authorise the creditor to collect a payment and to instruct the debtor's bank to pay this collection. Mandate forms to be completed by debtors (customers purchasing goods or services) are usually provided by creditors (retailers or service providers) themselves.
The European Payments Council (EPC) offers guidance to creditors on the creation of streamlined, easy-to-use Single Euro Payments Area (SEPA) mandates. In addition, the EPC provides translations of the mandate text, as specified in the SDD Core Rulebook and the SDD Business to Business (B2B) Rulebook, into the SEPA languages. As a result, businesses and public administrations collecting payments in SEPA are in a position to create user-friendly SEPA mandate forms, which best meet their needs.
Streamlining the SEPA mandate
The EPC has issued a guidance document containing practical information on how selected mandate information may be used in various situations (see the document Guidelines for the Appearance of Mandates below).
Translating the SEPA mandate
Translations of the SEPA mandate texts (see ‘EPC technical documents' below), as specified in the SDD Rulebooks into the SEPA languages are available.
SEPA Regulation: using existing mandates under the SDD Schemes
In February 2012, the European Union (EU) co-legislators, i.e. the European Parliament and the Council of the EU representing EU governments, adopted the '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' (see below) (the SEPA Regulation). Article 7 (1) of the SEPA Regulation states: "A valid payee authorisation to collect recurring direct debits in a legacy scheme prior to 1 February 2014 shall continue to remain valid after that date and shall be considered as representing the consent to the payer's PSP to execute the recurring direct debits collected by that payee in compliance with this Regulation in the absence of national law or customer agreements continuing the validity of direct debit mandates." For more information on the SEPA Regulation, visit this dedicated page on the EPC Website: SEPA Legal and Regulatory Framework.
Secure and convenient - the e-mandate option
The SDD Rulebooks provide the possibility to issue mandates created through the use of electronic channels - often referred to as e-mandates. The e-mandate solution is based on secure, widely used online banking services currently offered by debtor banks. The debtor can re-use his online banking credentials. No additional means of identification are necessary. The e-mandate solution is an optional service offered by banks to their customers.
The inclusion of the e-mandate feature in the SDD Schemes offers a variety of benefits for creditors as well as debtors.
Advantages for creditors include:
- The solution allows fully automated end-to-end processing of e-mandates including issuing, amendment and cancellation of such mandates while eliminating the need to deal with a multitude of local, technical or organisational barriers.
- The e-mandate is agreed on in a secure way.
- The confirmation of the debtor's right to access the account is specified by the debtor bank.
- The e-mandate process allows automatic storage and retrieval of e-mandate data.
Advantages for debtors include:
- The debtor avoids the inconvenience of printing, signing and mailing a paper form to the creditor by using a fully electronic process instead.
- The e-mandate facility is based on secure, widely used online banking services of the debtor bank; the debtor, therefore, can simply rely on the online banking procedures he is already familiar with.
For more information, refer to the ‘EPC Clarification Letter on Electronic Mandates to SEPA Direct Debit Scheme Participants’, published in October 2013, and the ‘EPC Clarification Paper on the Use of Electronic Mandate Solutions’, published in May 2015.
Selection of articles from the EPC Newsletter and other sources
- 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
- EPC Newsletter: SEPA Direct Debit for Billers: The SDD Mandate. EPC Newsletter series provides support for billers preparing migration
- The Creditor-Driven Mandate Flow (CMF)
- SEPA Direct Debit Core Mandate Translations
- SEPA Direct Debit Business to Business Mandate Translations
EPC technical documents
- Guidelines for the Appearance of Mandates for the SEPA Direct Debit Schemes
- EPC Clarification Letter on Electronic Mandates to SEPA Direct Debit Scheme Participants
- EPC Clarification Paper on the Use of Electronic Mandate Solutions
- EPC Recommendations on the Validity of Electronic Mandates in a Cross-Border Context
- EPC Clarification Paper on the Change of Creditor or Creditor Reference Party
- EPC e-Mandates e-Operating Model: High Level Definition
- EPC e-Operating Model for e-Mandates: Security Concept
- EPC e-Mandates e-Operating Model: Detailed Specification