Businessmen and consumers have been enjoying cross-border direct debits across 33 European countries since the end of 2008. It can be used if both the sender’s bank and the beneficiary’s bank have acceded to the SEPA direct debit. It is a direct debit payment in euros initiated electronically by the beneficiary by way of the beneficiary’s bank based on a prior agreement with the sender (the so-called Mandate). The prerequisites including the type of SEPA direct debit used form a part of the agreement between the sender and the beneficiary. Direct debits are mostly used for repeated payments of fixed or variable amounts, but they can also be made on a one-time basis.
SEPA Direct Debit for Consumers (CORE) is for individuals as well as businesses. The direct debit is revocable, which means that you may reclaim the funds without giving a reason during a specific period. A client may arrange additional services with the bank, e.g. remittance of payment may be conditional upon successful check against the SEPA direct debit authorisation.
UniCredit Bank in the Czech Republic has only been operating the passive part of the SEPA Direct Debit CORE, i.e. processing of the incoming request for SEPA direct debit and remittance of the direct debit payment or rejection of the request.
SEPA Direct Debit Business to Business Scheme (B2B)is only for businesses. The payment based on a request for SDD B2B may only be remitted after approval of the SEPA direct debit. This SEPA direct debit is irrevocable, which means that the sender may not apply for the return of the SEPA direct debit effected.
UniCredit Bank in the Czech Republic supports the SDD B2B scheme fully, i.e. sending the request for direct debit, processing of the incoming request for SDD, and remittance of the payment or rejection of the request.
A mandate is a written agreement authorising the beneficiary (direct debit collection company) to collect the funds from the payer’s account.