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Introduction #
The SEPA Direct Debit Mandates module allows you to manage the direct debit authorizations provided by your customers. A SEPA Direct Debit Mandate is a document through which a payer (your customer) authorizes a payee (your company) to debit funds from their bank account. It is accessible via Finance > SEPA Mandates.
A mandate is a mandatory requirement for processing SEPA-compliant direct debits.
1. Create a SEPA Direct Debit mandate #
Click on Add a mandate from the module list.
Information to provide:
- Debtor: the customer who authorizes the direct debit (required)
- Bank account: the debtor's third-party bank account from which the payments will be debited
- IBAN and BIC: bank details (pre-filled from the third-party bank account)
- Unique Mandate Reference (UMR): the unique identifier for the mandate, required by the SEPA standard
- Date: the date the mandate was signed
Options:
- Recurring payment: indicates whether the authorization allows for recurring payments or a one-time payment
- B2B – Business-to-business direct debit: Select this option for direct debits between businesses (SEPA B2B scheme), which offers shorter dispute resolution periods compared to the CORE scheme (for individuals)
Important: The Unique Mandate Reference (UMR) is required and must be unique. It identifies the mandate to banks and must appear on every direct debit form.
2. Use in samples #
SEPA mandates are used when setting up direct debits. The system verifies that each customer from whom funds are debited has a valid mandate with a bank account on file.
3. Frequently Asked Questions #
Can a customer have multiple authorizations?
Yes, a customer can have multiple active authorizations, for example, for different bank accounts. When a payment is processed, the authorization associated with the default bank account will be used.
What is the difference between a CORE direct debit and a B2B direct debit?
The CORE direct debit applies to debits from individual accounts and includes an 8-week dispute period (or 13 months in the case of an unauthorized debit). The B2B direct debit applies to transactions between businesses and does not allow for disputes after the transaction has been processed, providing greater security for the creditor.
Does the mandate have an expiration date?
According to SEPA regulations, a mandate expires if it is not used for 36 consecutive months. We recommend that you monitor the activity of your mandates.