Defining the steps of the SEPA direct debit
The interaction between the different parties involved into SEPA Direct Debit can be illustrated as follows:
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.