SEPA mandates are available and valid in two formats:
Paper SEPA mandates require the debtor to return the completed form, which the creditor must then scan and store both digitally and physically.
This process adds complexity
Digital mandates offer several advantages over their paper counterparts:
To ensure full validity and compliance, and to avoid potential disputes or revocation requests, a SEPA mandate must include the following information:
Beyond these requirements, the layout of the mandate is flexible (creditors are free to design it according to their preferences).
To ensure compliance, SEPA Direct Debit mandates must be retained for the duration of their validity and for a minimum of 36 months following the last collection.
It is essential that all mandated information remain accessible for verification or legal purposes as required.
Merchants must keep all signed paper mandates, including any later modifications or cancellations. These can be stored as original documents or in a digitalized format.
Merchants are responsible for (securely) storing all data related to electronic mandates.
Both merchants (creditors) and customers (debtors) have the ability to request amendments to a SEPA mandate at any time. Such amendments must be agreed by both parties. Both associated banks must be informed of any changes to ensure smooth transaction processes.
SEPA Direct Debit authorizations for recurring payments typically do not have a specific end date and generally remain valid until the associated contract terminates.
However, it’s important to understand the conditions under which a mandate expires:
This rule ensures that mandates are not indefinitely valid without activity.
Both the customer and the merchant have the right to cancel a SEPA Direct Debit mandate at any time. Moreover, as written previously, any mandate that has been inactive for 36 months must be automatically cancelled by the merchant.
To cancel a mandate, the SDD scheme defines that the customer must contact the merchant. This will lead to a proper management of the cancellation.
Some banks disregard the SEPA scheme and enable customers to cancel a mandate through their bank. When this is done, the bank does not inform the merchant until the merchant tries to collect on this mandate. The effect for the customer and the bank is immediate (if conducted during banking hours) but this is not the proper way.
Once a mandate is cancelled, it cannot be reused. A new mandate must be established for any further direct debit payments.
SEPA Direct Debit Core has a strong customer protection built into the scheme rules. Any withdrawal can be cancelled within eight weeks of withdrawal without providing a reason. Any collected funds must be returned by the merchant.
To revoke a SEPA Direct Debit authorization, customers need to notify their bank in providing a reason for the cancellation. The bank will then inform the business and will cease to collect payments or will refund any disputed amounts.
Merchants are responsible for storing all cancellation documents. If there are still collections to be made after a cancellation, details of the cancellation must be included in the final collection.
Businesses should provide customers with an accessible and straightforward mechanism to cancel a SEPA Direct Debit. This includes clear communication about the cancellation process and making relevant information available (on websites, in contracts…).
Mandates can only be renewed or extended through written communication.
If a mandate is cancelled or expires, the company legally cannot continue collections. Therefore, companies must monitor the validity of mandates and renew them as soon as needed.
Digiteal provides a flexible and secure solution for processing SEPA Direct Debit payments while allowing you to retain control of your mandate management process.
You obtain, authorize, and store the SEPA mandate within your own customer journey. Once the mandate is created, you can transfer the required information to Digiteal to enable recurring collections.
When creating the mandate, you can integrate additional account verification into your flow. Our Verification of Payee API confirms if the provided customer name matches the holder of the specified IBAN. A 0,01 € micro-payment flow can also be used.
These services help strengthen your mandate creation process without replacing the mandate itself or the customer’s authorization.
Once recurring collections are initiated, Digiteal keeps your systems informed through payment status webhooks. This makes it easier to automate follow-up actions and manage the complete payment lifecycle.
COMPANY
Digiteal SA
BE 0630675588
LEI 9845000A44AB9CA60605
Rue Emile Francqui 6/9
1435 Mont-Saint-Guibert
Belgium
ABOUT DIGITEAL
Classeo: Split Payment Usecase
Scroll to top
