What is the SEPA mandate?

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Using the SEPA mandate to manage payments between financial institutions in different countries is now more common than it seems, thanks to international agreements in Europe. If you want to know how to execute the mandate, how to receive it or how to fill out the form, you are in the right place! We have all the information about the type of payment, the SEPA direct debit order and everything you need to carry out your transactions safely and quickly.

Content


Types of SEPA mandate
How do I fill out a SEPA mandate?
Common mistakes when generating a SEPA Mandate
What are the benefits of the SEPA Mandate?
Requirements for issuing a SEPA mandate
How to manage and cancel a SEPA mandate
Differences between the SEPA mandate and other types of mandates
SEPA mandate in the business sector
Conclusion
Frequently Asked Questions
What is the SEPA mandate?
The SEPA (Single Euro Payments Area) mandate is an authorization that allows a creditor , such as a supplier or vendor, to debit funds directly from the debtor's bank account within the European Union and other participating countries. The direct debit mandate is a document issued by the debtor containing the required mandatory data and authorizing the creditor to make periodic collections in an automated manner.

The main objective of the SEPA mandate is to unify and facilitate cross-border payments within the SEPA area, ensuring the security and efficiency of transactions between member countries. This system includes the 27 countries of the European Union, plus Andorra, Vatican City, Monaco, the United Kingdom, San Marino, Switzerland, Iceland, Liechtenstein and Norway.

The difference between the SEPA mandate and the SEPA list of austria cell phone number document lies in their function: the SEPA mandate is the order that allows the collection to be made, while the SEPA document is simply the form that is completed to formalize said authorization. This form varies according to the type of debit, but in all cases, the signed mandates must comply with the established requirements to be valid and have legal backing in case of disputes.

Types of SEPA mandate
There are two ways to implement the Single Euro Payments Area mandate: SEPA Core Mandate and SEPA B2B Mandate. Let's take a look at them.

Sepa Core Mandate
The SEPA Core mandate is designed for transactions between consumers and businesses . It allows creditors to collect recurring payments such as bill payments, rent or subscriptions, by direct debiting the debtor's account. The vast majority of merchants that accept direct debits accept the SEPA Direct Debit method.

For the order to be executed correctly, the debtor must sign the direct debit order, either electronically or physically, and submit all the required data to his bank. The creditor, for his part, must keep the signed mandate in order to reflect any future modifications or cancellations.

It is important to take this into account whether it is an electronic or traditional signature. This scheme uses the specific ISO 20022 XML format , and is classified according to the type of debt: