Introduction to Direct Debits

Single Euro Payments Area (

SEPA

) is a European Union payment initiative for bank transfers denominated in euros.

SEPA

uses the

SEPA

scheme to make payments directly from one bank account to another, such as credits, instant credits, and direct debits. A direct debit is an instruction from a customer to their bank or building society authorizing the organization to collect varying amounts from the customer’s account, as long as the customer is given advance notice of the collection amounts and dates. The customer's consent for the payments is established by the customer agreeing to and signing a mandate.

Direct debits using

SEPA

alternative payment services enables you to manage electronic mandates, withdraw funds from your customer’s bank account, and deposit the funds to your account.

SEPA

direct debits are supported for one-time and recurring payments.

Direct debits are commonly used by customers to make recurring payments for debts such as credit card bills, utility bills, and monthly subscriptions. They can also be used for irregular payments such as occasional online purchases.