SEPA Direct Debit Form
In order to collect a SEPA core direct debit or a SEPA business-to-business direct debit, the payees (creditors) require a direct debit authorization from the debtor (debtor). Since the introduction of SEPA, only the SEPA direct debit mandate is considered a valid direct debit authorization. Simple, informal or verbal direct debit authorizations lose their validity with SEPA. The SEPA direct debit mandate gives the creditor’s payment service provider permission to collect a direct debit from the debtor’s account. The SEPA direct debit mandate can be issued to the creditor in paper form or electronically, as long as it complies with the written form and is specifically signed. Pre-formulated direct debit forms can be used, but are not mandatory as long as the EPC (European Payments Council) content requirements are included in the direct debit mandate. However, they do have the advantage that they are already clearly prepared, specify all the necessary information and are defined for different direct debit mandates.
Requirements and specifications
A direct debit mandate requires the use of a standard authorization text in the language of the payer in order to be valid. This must authorize the payee to make collections from the debtor’s account by SEPA direct debit and instruct the debtor’s credit institution to honor SEPA direct debits. Furthermore, the authorization text of a SEPA core direct debit must inform the customer of the eight-week return period for direct debits. This reference is omitted in the case of the SEPA business-to-business direct debit. In addition, the direct debit mandate may contain information authorizing the payee to make one-off, multiple or permanent direct debit collections. The debtor must enter his personal details in the mandate, date it and sign it personally. The required personal information includes the account holder’s name, address and account information (IBAN and BIC). On the part of the creditor, the name, his creditor identification number and the mandate reference must be entered in the direct debit mandate.
