Discover the benefits of SEPA direct debit

The SEPA direct debit is an automatic payment method where bills such as due dates. It is part of the SEPA (Single Euro Payments Area) scheme and enables uniform payments throughout the SEPA zone.

To set up a SEPA direct debit, you need a SEPA direct debit mandate. You grant this to the biller by providing them with your IBAN and authorizing the debit. This allows the other contract partner to automatically debit the amount from your account on the due date. The company's creditor identification number is also provided, so that you can clearly assign the payment.

The process is secure and transparent. You can track each debit in your account and, in case of an incorrect debit, contact your bank to return a direct debit or object to the payment.

Automatic debits via SEPA direct debit provide numerous benefits:

• Time savings: You no longer have to worry about the transfer yourself.
• Timely payments: The amounts are debited from your account on time, so you never forget a payment and avoid reminder fees.
• Cost efficiency: Payment via SEPA core direct debit or SEPA business direct debit is free.
• Full control: All transactions are visible on your bank statement, and you can track your payments at any time.
• Flexibility: The SEPA direct debit mandate can be terminated or changed at any time.
• Suitable for recurring payments: The SEPA direct debit is particularly suitable for recurring payments such as rent or membership fees.
• Valid throughout Europe: You can use direct debits in over 36 countries within the SEPA zone.

 

If a SEPA direct debit was collected in error, or if you do not agree with the debit, you have the right to return it.

• Within 8 weeks after the debit, you can return an authorized direct debit without providing any reasons.
• In the case of unauthorized direct debits (if you have not issued a SEPA mandate) you can arrange a chargeback up to 13 months after the debit.

A phone call or a message in your bank's app is usually enough. The amount will then be credited back to your account.

The SEPA direct debit is one of the securest payment methods in the entire SEPA zone. Several security mechanisms are in place to ensure that you are optimally protected:

• Creditor Identification Number (CI): Every provider that collects SEPA direct debits requires a unique creditor identification number that identifies them as the authorized payee
• Clear mandate: Each payment is based on a SEPA direct debit mandate that the payee has issued. Without this mandate, no money may be debited from your account.
• Right of return: In the event that a direct debit does not occur, or if there is an unauthorized debit, you can easily object within the respective deadlines and get your money back.
• Transparency through bank statements: All payments collected by direct debit are clearly visible on your bank statement. This way you can check at any time whether all debits are correct.

Through these mechanisms, the SEPA procedure ensures that your payments remain secure and traceable. Make sure your account has sufficient funds so that you can avoid unwanted chargebacks and additional costs.

In order for a direct debit to be successfully collected, your account must have sufficient funds. If this is not the case, the direct debit will not be debited and return debit fees may apply. Banks generally do not attempt to collect the payment again. For this reason you should ensure that your account is sufficiently covered.

The SEPA direct debit is a convenient, stress-free and secure solution for paying bills. With a SEPA direct debit mandate, you can ensure that payments are always made on time. At the same time, you have full control over your debits and can return unauthorized direct debits at any time or object to them.