SEPA Direct Debit enables you to collect money from debtors within Europe. Based on a set of standardised rules SEPA Direct Debit serves as a local direct debit instrument for transactions in euro. It is the first standardized solution for international collections and provides you with a number of long term benefits, such as:
- Immediate reconciliation of payments received
- Optimizing cash flow forecasting
- No need for reminder procedures
- Predictable payment dates
- Reduced fee costs
- One set of legal rules
- No difference between domestic and cross border collections
- One format — ISO 20022 XML
- Early bad debt warning
- No float (same day value)
Danske Bank is a front runner on SEPA Direct Debit offering profound and experienced advisory, and comprehensive solutions for collecting funds from consumers and Corporates. Currently there are two schemes available, SEPA Core Direct Debit and SEPA Business to Business Direct Debit, and Danske Bank fully supports both.
Key elements for SEPA Core Direct Debit
- Consumers and Corporate customers
- 8 weeks refund right for payer when a valid mandate is in place
- 13 month refund right for payer when a valid mandate is not in place
- Mandatory for payer banks in euro countries with exception of specific countries
Key elements for SEPA Business to Business Direct Debit
- Only Corporate customers
- No refund rights for payer when a valid mandate is in place
- 13 months refund right for payer when a valid mandate is not in place
- Optional for banks
- Payer must register a mandate at his bank before initiating the first collection
If you want to know more about our SEPA Direct Debit services in the various countries, please contact one of our Cash Managers by selecting a country to the right.