Defining the steps of the SEPA direct debit

The interaction between the different parties involved into SEPA Direct Debit can be illustrated as follows:

Figure 1. Overview of the data exchange process for SEPA direct debit

Stages 1, 2 and 3 – exchange of documents

The SDD is based on a SEPA mandate. Your debtor must sign this mandate in order to prove that he or she consents to the creditor debiting the debtor’s account. Each mandate is identified by a Unique Mandate Reference that allows to identify the contract to which the SEPA direct debits are attributable.

The creditor must pre-notify the debtor of the upcoming direct debit at least 14 calendar days before the due date.

Stages 4 and 5 – exchange of messages

The creditor must inform his or her bank about the direct debit order. The creditor’s bank will then contact the debtor’s bank to proceed with the direct debit.

Stages 6,7 and 8 – transferring funds

Funds from the debtor’s bank account will be debited and transferred to the creditor’s bank account.