SEPA Direct Debit

Do we need to have an additional agreement for our direct debits?

It depends on the processing bank used in the background. If you continue to offer direct debits in the same countries, no additional agreements are required.

Can consumers request a payment reversal for up to 13 months if there is no signed mandate in place? Would this reversal be granted without any questions asked, even if the consumer has already received the goods/services?

If you cannot present a signed mandate in paper or electronic form, a consumer can reverse the payment. We strongly advise you to adhere to the mandate requirement, as excessive reversed payments due to the absence of a mandate could harm your relationships with banks.

Do you provide a mandate for us to use with our consumers, or do we need to create one ourselves?

Our GlobalCollect platform generates a unique mandate reference and provides it when you request information related to the token. You should include this reference in the mandate you send to your customers. You're responsible for managing the mandate process. The consumer must sign the mandate and return it to you. You should validate the token as soon as you receive the signed mandate from the consumer.

Can we capture a mandate online in real time?

Yes, the SEPA Direct Debit mandate can be issued on paper or in electronic format. The SEPA Direct Debit rulebooks, created by the European Payments Council (EPC), offer merchants a variety of tools to create user-friendly and compliant templates for SEPA mandates. For guidelines on electronic mandates, you can refer to the EPC website.

Do I need a paper mandate?

According to the European Payments Council (EPC) guidelines, you're responsible for maintaining mandates, which can be in either paper or electronic format. After obtaining a mandate from the consumer, you need to confirm the validation of the token to us. Transactions will not be rejected by us or the banks solely due to the absence of a paper mandate.

Can SEPA Direct Debit mandates expire?

Yes, a SEPA Direct Debit mandate will expire if not used for 36 months.

Are we required to validate the token to collect funds from a consumer's bank account?

Yes, validating the token is necessary and should be done immediately after completing the mandate process. For example, if you present a mandate to a consumer similarly to how terms and conditions are accepted, you can validate the token right after the consumer agrees to the account debit online.

Are we required to send the collected mandates?

You're responsible for managing the mandates. While you do not need to send the collected mandates to us, confirming the signed mandate is necessary. You should keep the mandates on your end to address any future inquiries from the banks.

How should SEPA Direct Debit mandates be stored? And for how long?

If a paper-based mandate is captured, the documents have to be dematerialized. This means that they have to be scanned and stored. You are free to choose their own method of storing digital data.

How can I validate the IBAN and BIC?

You can use the bank account validation option to verify the details submitted in either IBAN or BBAN format.

What does Worldline SEPA compliancy mean to me?

Because we are SEPA compliant, it is currently capable of supporting the required formats for the payment products it offers in SEPA countries. This varies from local formats for direct debits to providing the required bank details for credit transfers.

What is a Unique Mandate Reference?

For each direct debit mandate a Unique Mandate Reference has to be created. This number has to be unique for each Creditor Identifier and therefore is created by Worldline/GlobalCollect.

What is a Creditor Identifier?

The Creditor Identifier is a unique code and is assigned to the company that is listed as the creditor. We will be listed as the creditor and our Creditor Identifier will be used to process direct debits. The Creditor Identifier will be reported to the consumer for each direct debit processed.

What is pre-notification and how must it be communicated?

Pre-notification is a message to the customer that provides details about the direct debit. This includes information about the order, the amount, frequency and date. In addition, information such as the Unique Mandate Reference and Creditor ID associated with the transaction, must be included.

How will recurring transactions work (multiple transactions per mandate)?

For the first transaction, a new mandate reference (token) will be created. This same mandate reference (token) must then be assigned to all subsequent recurring transactions.

How will one-off transactions work in SEPA?

For each one-off transaction, a unique single use mandate reference will be created.

What are the timelines for SEPA Direct Debit processing?

Direct debits must be submitted to the bank 2 days before the value date, requiring advance planning for timely consumer debits.
For variable recurring transactions, it's advisable to process them as recurring rather than one-off.
Bank reversals (refusals, rejections, etc.) will be reported within 5 working days after the value date.
Consumers can reverse transactions without explanation within 56 working days after this date, and they can reverse any unjustified direct debits within 13 months.
If a mandate is unused for 36 months, it becomes invalid, and a new mandate must be signed.
Please note that this is a standard timeline. On an individual processing bank basis there could be slight deviations from this model.

SEPA Direct Debit

FAQ