SEPA Direct Debit

SEPA Direct Debit is the easy way to collect euro-zone invoices issued in euro on their due date. By using SEPA Direct Debit, you know exactly when to receive your payments, thereby strengthening your cash flows.

SEPA Direct Debit is a solution for euro-denominated direct debits. It operates from shared rules and processes across the European countries, replacing the many different national direct debit solutions.

SEPA Direct Debit is an efficient means to help you streamline your cash flows and strengthen your treasury management. By pre-determining the exact payment date, you ensure settlement of payment when you need it, and you get immediate reconciliation of payments received.

SEPA Direct Debit is offered across 32 countries in the EU/EEA and Switzerland. It is the first domestic and cross-border direct debit solution available and has two schemes for corporate customers. These two schemes, SEPA Core Direct Debit and SEPA B2B Direct Debit, differ primarily with respect to debtors’ rights to refund, but also some banks do not accept BtB payments. 

Key characteristics

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

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

Reach out to your cash manager if you want to know more.


Danske Bank offers both schemes of SEPA Direct Debit in Denmark, Sweden, Norway, Finland, Ireland, Germany and the UK.

How to on-board

To implement SEPA Direct Debit, you need to arrange with your debtor. You will find a detailed description of the requirements applicable for SEPA Direct Debit mandates in this mandate guide. Please find drafts of the SEPA Core Direct Debit and the SEPA B2B Direct Debit mandates here.

Getting access

SEPA Direct Debit is a module in Danske Bank Business Online. You may read this instruction to learn more on how to send a collection via this online platform. Please contact your advisor at Danske Bank to have SEPA Direct Debit added to your current agreement.

System integration

To learn more about SEPA Direct Debit and how to integrate SEPA Direct Debit in your systems, please download this Implementation guide. 

Processing

You may either perform collections manually in Business Online or send files to Danske Bank with collections. In both instances, there are standardised formats and rules to be followed. Read more here.

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