SEPA Direct Debit

SEPA Direct Debit enables you to collect payment in euro from domestic and cross-border debtors, across the 33 countries in the Single Euro Payments Area.

About SEPA Direct Debit

The direct debit collection process used within SEPA works through shared rules, service levels and time frames. With SEPA you can collect euro payments within the 33 territories by using a single direct debit service. It’s far more streamlined, and includes a range of other important benefits:

  • Predictable payment dates
  • Immediate reconciliation of payments received
  • Streamlined cash flows and treasury management

For queries about SEPA Direct Debit or any aspect of SEPA implementation, email us now or call the Cash Management Team on +353 1 484 2715.​​​

 
Types of SEPA DD Schemes
  1. SEPA Core Direct Debit (Core)
  2. SEPA Business to Business (B2B)

Core Scheme
The Core scheme can be used by Personal or Business customers. Agreements will automatically be created for customers using the Core scheme when a SEPA DD is received.

A credit facility equivalent a peak 8 week direct debit collection period is required for all Danske Bank sponsored SEPA Direct Debit creditors. The related credit assessment is part of the Danske Bank SEPA Direct Debit application process.

B2B Scheme
The B2B scheme can only be used between large businesses/corporate customers. They must sign a SEPA Direct Debit Agreement before mandates can be created or collections made from the B2B debtor’s account. B2B customers must always pre-advise the bank of any new incoming SEPA DDs.

Time Limits
Contained in the table below are the timeframes within which you must submit your SEPA DD files to Danske Bank. Note: SEPA DDs are always received for a future payment date. They can be pre-dated up to 390 calendar days in advance.

 

Description Core Scheme B2B Scheme
First Payment 1 day 1 day
Recurring Payment 1 day 1 day
Last Payment 1 day 1 day
Once-off Payment 1 day 1 day

The requirement to use the sequence type 'FRST' in a first of a recurrent series of Collections is no longer mandatory as of the effective date of November 2016 of the SEPA Core Direct Debit Rulebook version 9.2 (i.e. a first Collection can be used in the same way as a subsequent Collection with the sequence type 'RCUR').

Refund/Return Rules
A core customer can request a no-questions-asked refund within 8 weeks of the payment.

 

Type of Refund/Return Core Scheme B2B Scheme
Authorised Payment 8 weeks none
Unauthorised Payment 13 months 13 months

The following Irish National SEPA Direct Debit is a critical guide outlining the key information you need to know to move to and operate SEPA Direct Debits.

BPFI SEPA Creditors Guide

 

SEPA Direct Debit - Creditor Solution (Payee)

SEPA Direct Debit helps you to streamline cash flows and treasury management. This is especially useful if you need to regularly collect payments from customers in the euro zone, or want automatic payment processing and easy reconciliation of payments upon receipt.

To become a SEPA creditor and use the single direct debit system, you must be sponsored by Danske Bank. The application process includes a credit assessment. From there, Danske Bank facilitates you in obtaining approval of your mandate forms and a creditor identification number via the Banking and Payments Federation Ireland (BPFI).

 

SEPA Direct Debit - Debtor Solution (Payer)

If you need to regularly make payments to any of the 33 countries within SEPA, you can do so using SEPA Direct Debit with Danske Bank.

Once you’ve completed the documentation allowing the creditor to debit your account, we will arrange for payment to be made on the due date.

The creditor identifier makes it possible to identify you as a creditor within the SEPA Direct Debit schemes without ambiguity.

Contact Danske Bank today to start the changeover now.​​​​​

More information

External information sites