Reliable and legally compliant payment processing thanks to automated direct debit collection

A direct debit mandate is a written authorization by which a debtor (e.g. a customer) allows a creditor (e.g. a company) to collect amounts due from their bank account. At the same time, the debtor instructs their bank to authorize these direct debits.

There are two types of direct debit mandates:

• SEPA Core Direct Debit Mandate – for private and business customers,

• SEPA business-to-business direct debit mandate – only between companies.

The mandate contains important information such as name, IBAN, BIC and a mandate reference. It is a prerequisite for the SEPA direct debit procedure within Europe. The account holder has a right of return in the event of unauthorized debits - usually up to 8 weeks after the debit.

The procedure is particularly practical for recurring payments such as rent, insurance or subscriptions