SEPA Direct Debit: the Green Light

SEPA Direct Debit: the Green Light

EPC launches SEPA Direct Debit Schemes in November 2009

20 April 12

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European banking industry confirms its commitment to

With approval of its Roadmap 2004 2010 the Plenary committed to develop the schemes and frameworks that are the basis of the integrated euro payments market. The schemes developed by define sets of business rules and standards that have to be respected when executing payment transactions. Following the launch of the Credit Transfer Scheme in January 2008 the now makes it possible for banks to start offering Direct Debit services as of November 2009.

The launch of the Direct Debit Schemes represents a major achievement made possible only because of the continued commitment and dedicated work of all members including the payment experts cooperating in the Payment Schemes Working Group (SPS WG). The members of this Working Group have truly mastered the art of European consensus-building: the SPS WG on a daily basis bridges different payment cultures and customer expectations whilst going through the painstaking process of forging agreement on the countless technical and procedural details that make up a payment scheme. In addition, the work accomplished domestically must be validated: only after continuous consultation with banks and their customers at national level did the Plenary conclude on the business rules and standards of the two Direct Debit Schemes. Last but not least, the greatly appreciates the continued feedback provided by the members of the European associations of corporates, SMEs, treasurers and consumers represented in the Customer Stakeholders Forum on the evolution of the Schemes.

calls on public authorities to give support for a successful launch of the Direct Debit Schemes

The had emphasized the need for certainty as regards the acceptability of a multilateral inter-bank fee arrangement for transactions in the long term. In a joint statement on 24 March 2009 the European Commission and the European Central Bank clarified their position on such an inter-bank fee arrangement applicable to Direct Debit transactions after October 2012*. The recognises that the principles outlined in the joint statement of the regulators will affect the banking communities differently due to the fact that banks' existing direct debit business models vary from country to country. This means that some communities are confronted with the obligation to adapt their current direct debit business model significantly as of November 2012.

National and European public authorities must now implement those legal provisions that will allow banks to finalise Direct Debit.  It is very important that national governments complete transposition of the Payment Services Directive (PSD) by 1 November 2009 at the latest.  The PSD provides the harmonised legal environment needed for -wide operation of the Direct Debit Schemes. In addition, Member States must, where necessary, create legislative solutions to ensure the continued legal validity of existing mandates under the Direct Debit Scheme. 

invites major billers to take advantage of Direct Debit services

The Direct Debit Schemes provide a fast, secure and convenient means of making single or recurrent euro payments. The Direct Debit Schemes allow customers - for the first time ever - to make both domestic and cross-border euro direct debit payments throughout the 31 countries. The invites major billers such as tax authorities, insurers, publishers and telecommunication companies, for example, to take advantage of Direct Debit services and to make this new means of bill payment available to consumers.

* The joint statement of the European Commission and of the European Central Bank of 24 March 2009 is available at

Gerard Hartsink is the Chair of the .

Related article in this Newsletter:

The Doors are open. Guidelines for adherence to the SEPA Direct Debit Schemes are now available

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