SEPA - A Guide for Business Customers
SEPA Credit Transfer (SCT)
SEPA Direct Debit Core Scheme (SDD Core)
Version: 1.0
Published: December 2015
SEPA - A Guide for Business Customers V1.0 December 2015 Page 2
1 Purpose of the Document
The purpose of this document is to provide information to business customers on the following SEPA
payment schemes:
SEPA Direct Debit Core (SDD)
SEPA Credit Transfer (SCT)
The information is provided as a guide only and should be used in conjunction with the SEPA Scheme
Rulebooks and associated Implementation Guidelines published by EPC.
The complete SEPA Scheme Rulebooks and associated Implementation Guidelines for SCT’s and
SDD’s are available from the EPC Website, (www.epc-cep.eu) The Scheme Rulebooks are published
in November each year, and any amendments may require this guide to be updated year on year.
This document does not address each Bank’s process for SCT’s and SDD’s. Customers must engage
with their own bank for information on SCT and SDD set up and processing.
This document does not cover the optional SEPA B2B scheme (Business to Business scheme).
Customer must contact their own bank for further information on the scheme.
This document will be updated by Banking & Payments Federation Ireland (BPFI), as required and
the most recent version will be published on BPFI website www.bpfi.ie. It is the user’s responsibility
to ensure they are referring to the most up to date version of the guide.
The document replaces the previous published SEPA Creditors Guide.
Disclaimer
While every effort has been made to ensure the accuracy of information included in this document, BPFI can accept no responsibility for errors contained herein. The information in this publication may change from time to time – users are advised to refer to the latest available version.
Document History
Version Number Brief Description Date Published
V1.0 SEPA – A guide for Business Customers replaces the previous published SEPA Creditors Guide
December 2015
SEPA - A Guide for Business Customers V1.0 December 2015 Page 3
Contents
1 PURPOSE OF THE DOCUMENT 2
2 SEPA – EXECUTIVE SUMMARY 4
2.1 ABOUT SEPA 4
2.2 SEPA CREDIT TRANSFER SCHEME 5
2.3 SEPA DIRECT DEBIT CORE SCHEME (SDD) 6
2.4 BIC & IBAN 7
2.4.1 BIC 7
2.4.2 IBAN 7
3 PARTICIPATING IN THE SEPA DIRECT DEBIT SCHEME 8
3.1 SEPA CREDITOR IDENTIFIER NUMBER (CI) 8
3.2 CREDITOR IDENTIFIER INFORMATION 8
3.3 CREDITOR’S OBLIGATIONS UNDER THE SCHEME 8
4 ABOUT MANDATES 10
4.1 THE SEPA MANDATE 11
4.1.1 Sample SEPA Mandate 13
4.2 PAPERLESS MANDATES - PHONE & INTERNET SIGN UP 14
4.2.1 Guide to SEPA Direct Debit Phone Sign-Up 15
4.2.2 Guide to SEPA Direct Debit Internet Sign-Up 16
4.2.3 Confirmation letter 17
4.3 CANCELLATION OF A MANDATE 18
4.4 REQUESTS FOR COPY OF THE MANDATE 18
5 MANDATE AMENDMENTS 19
5.1 AMENDMENTS TO SEPA MANDATES CAN BE MADE FOR THE FOLLOWING REASONS: 19
5.2 MANDATE AMENDMENTS – NOT SUPPORTED BY SOFTWARE PROVIDER 20
6 SEPA COLLECTION/TRANSACTION TYPES 22
7 SEPA FILE FORMATS 24
8 PRE NOTIFICATION/ADVANCE NOTICE 25
9 TIMELINE FOR COLLECTION OF DIRECT DEBITS 26
10 “R” TRANSACTIONS 27
11 CONSUMER RIGHTS & SEPA REGULATION 29
12 APPENDICES 30
12.1 THE UNIQUE MANDATE REFERENCE – UMR 30
12.2 AT-10 - THE CREDITOR’S REFERENCE OF THE DIRECT DEBIT TRANSACTION 30
12.3 PROCESS STEPS IN THE COLLECTION OF DIRECT DEBITS 31
12.4 GLOSSARY OF TERMS 32
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2 SEPA – Executive Summary
2.1 About SEPA
The Single Euro Payments Area (SEPA) is a European-wide initiative to standardise the way retail
electronic payments are made and processed in euro. Using SEPA, payments throughout Europe can
be as fast, safe and efficient as when using national payment systems. SEPA enables customers to
make payments (Direct Debits, Credit Transfers) to anyone located within the SEPA zone. The
jurisdictional scope of the SEPA Schemes currently consists of the 28 EU Member States plus
Iceland, Norway, Liechtenstein, Switzerland, Monaco and San Marino.
SEPA live date was 1st February 2014, an extra transition period of six months was allowed
and the final migration date to SEPA was 1st August 2014
The EPC developed the SEPA payment schemes as defined in the SEPA Credit Transfer
(SCT) and SEPA Direct Debit (SDD) Rulebooks. The rulebooks contain sets of rules and
standards for the execution of SEPA payment transactions that have to be followed by
adhering payment service providers (PSPs).
The SEPA mandatory payment schemes are as follows – all Banks/PSP’s must participate in these
payment schemes:
SEPA Direct Debit Core (SDD) – the scheme replaced the existing domestic legacy Direct
Debit schemes throughout Europe
SEPA Creditor Transfer (SCT) – the scheme replaced the existing domestic retail Credit
Transfer schemes throughout Europe
Overview of SEPA payments:
SEPA covers transactions in euro only
IBAN & BIC’s are the account identifiers for all SEPA transactions – cross border and
domestic
XML formats is used for SEPA file formats
Returns/Rejects processing is an automated process
Overview of SEPA processing:
SEPA payments (one-off or bulk payment files) are submitted by customers to their bank
Banks submits the files to ‘Clearing & Settlement Mechanism’ (CSM) at various times during
the day
CSM processes the files and manages the settlement process. CSM issues output files to
the banks for processing to customer accounts
Banks process the output files and update their customer accounts
Further information on SEPA is available on the European Payments Council website:
http://www.europeanpaymentscouncil.eu/
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2.2 SEPA Credit Transfer Scheme
The SEPA Credit Transfer Scheme facilitates the execution of Credit Transfers in euro between
customer accounts located in SEPA. Credit Transfers can be single payments (one-off payments) or
bulk payments e.g. payroll, supplier payments. The PSPs executing the credit transfer must formally
adhere to the SCT Scheme. IPSO is the EPC appointed NASO (National Adherence Support
Organisation) for Ireland.
Glossary of terms
The Originator: Customer who initiates the Credit Transfer instruction
The Originator Bank: The Bank that receives the Credit Transfer instruction from the
Originator and processes the payment instruction
The Beneficiary Bank: The Bank that receives the Credit Transfer instruction from
the Originator Bank and credits the account of the Beneficiary
The Beneficiary: The customer identified in the Credit Transfer instruction who
receives the funds by means of a credit to its account
Provisions of the SCT scheme
The following provisions are available through the SCT scheme:
‘One-off’ payments or ‘bulk’ payments e.g. payroll files are all processed via SEPA -
payments can be made to any SEPA country
Originator (payer), Beneficiary (payee) and their banks are identified using BIC and IBAN
Beneficiary will receive funds within one business day of the payment being executed
The full amount of a payment will always be received by the Beneficiary
Transaction costs for cross border SEPA payments will be equal to the transaction costs for
corresponding national payments
Originator and Beneficiary can each only be charged by their own payment service provider
More detailed remittance information can be included with a payment as up to 140 characters
are permitted
Rejects and Returns are automatically returned to the Originator
Overview of the SCT process
Originator creates a payment file and submits it to its Bank within the agreed cut off time
usually via their Online Banking channel
The payment file can be submitted up to 14 days before the payment date but at the latest
one business day before the payment date
Originator’s Bank checks/validates the SCT file & debits the Originator’s account
Payment file is sent by Originator Bank for processing & settlement via the SEPA clearing
mechanism CSM, known as STEP2
STEP2 issues output payment files to the Beneficiary Banks for processing
Beneficiary Banks credit the Beneficiary account during the business day
For more information:
Business customers must contact their own Bank on how to become an Originator and how to submit
SCT payment files for processing.
For a definitive source of information regarding the rules and obligations of the scheme, refer to the
SCT Rulebook and the accompanying Implementation Guidelines approved by the EPC.
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2.3 SEPA Direct Debit Core Scheme (SDD)
The SEPA Direct Debit Core Scheme is a standard payment scheme across Europe for the collection
of funds between a Debtor (payer) and the Creditor (payee). The SDD Scheme allows for the
collection of Direct Debit payments in euro across all SEPA countries. The payment service providers
executing the direct debit transaction must formally participate in the SDD Scheme. IPSO is the EPC
appointed NASO (National Adherence Support Organisation) for Ireland.
Glossary of Terms
Creditor: The originator of the SEPA Direct Debit on the basis that the Debtor has signed/authorised a Direct Debit Mandate, previously known as the Originator Creditor Bank: The Bank where the SEPA Direct Debit Creditor holds his/her account and who will process the Direct Debit instruction Debtor: The person who pays the Direct Debit and has signed/authorised the SEPA
Direct Debit Mandate
Debtor Bank: The Bank where the Debtor holds his/her account
Mandate: The authorisation given by the Debtor to the Creditor to allow the
Creditor to debit the specified Debtor’s account
Overview of the SEPA DD processes
Creditor applies to their Bank to become a SEPA Creditor and applies for a SEPA Creditor
Identifier number (CI)
Creditor creates and issues a Mandate to its customer
Customer completes the Mandate and returns it to the Creditor
Creditor stores the Mandate
Creditor creates a SEPA Direct Debit file which includes mandate details (XML file format)
Creditor submits the file to its Creditor Bank for processing
Creditor Bank validates the file - submits it to STEP2, the SEPA clearing mechanism (CSM)
for clearing
STEP2 issues output files to the Banks
Banks process the output files and update their customers’ bank accounts
Provisions of the SDD scheme
SDD provides a standardised direct debit payment service that enables consumers to pay for goods
and services in any SEPA reachable country without having to open a bank account in that country.
Some key points to note regarding the SDD Scheme:
The Creditor and Debtor must each hold an account with a financial institution located in
SEPA
A BIC1 (Business Identifier Code) and IBAN (International Bank Account Number) are
required to set up a SDD
The transfer of funds between Creditor and Debtor always takes place in euro
The SDD may be used for single or recurrent direct debit collections
The Creditor is responsible for issuing, storing and maintaining the Mandate
1 (Optional for national transactions2 – mandatory for cross border EEA transactions until 31 January 2016 - Mandatory for
cross border non-EEA transactions) 2
Unless the Member State has opted for the derogation defined in Article 16(6) of the SEPA Regulation
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SDD supports two Mandate types: ‘one-off’ Mandates, used to collect single payments, and
‘recurrent’ Mandates, where the Creditor can indefinitely continue to collect payments for the
purposes described on the Mandate
Advance notice of the date and the amount of each direct debit must be provided by the
Creditor to the Debtor. The advance notice period is generally fourteen days, or in some
cases seven days or less if agreed by all parties, before the direct debit is collected
2.4 BIC & IBAN
Since 1st January 2007, BIC (Business Identifier Code) and IBAN (International Bank Account
Number), are the only beneficiary customer account identifier and bank routing designation accepted
by banks in the EU/EEA area for all intra-EU/EEA euro cross-border credit transfers.
From 1st February 2016, an ‘IBAN only’ rule will come into effect. Creditors/Originators will only be
required to provide an IBAN (not the BIC) for the purpose of making a payment (credit transfer/direct
debit) and banks will be required to derive the payer/payee’s BIC from the IBAN.
The Banking & Payments Federation Ireland website www.bpfi.ie provides a BIC & IBAN mobile app
conversion service for consumers called ‘Get My IBAN’. The service will convert a NSC and account
number to BIC & IBAN.
The ‘Get my IBAN’ service is available here.
2.4.1 BIC
The BIC or Business Identifier Code is a unique address which in payment messages identifies
precisely the Bank/Business (not the Branch) involved in financial transactions. When used in
conjunction with the IBAN it identifies the bank at which the account of the beneficiary is held.
A valid BIC can be eight or eleven characters, although most banks in Ireland use eight character
BICs. The optional three characters can be used by the Bank/Business to identify a branch. In some
cases the suffix ‘XXX’ is displayed at the end of a BIC.
2.4.2 IBAN
An IBAN (International Bank Account Number) is an internationally agreed standard created to
uniquely identify the account of a customer at a financial institution.
The IBAN consists of up to 34 alphanumeric characters; the first two letters denote the country code,
then two check digits, and finally a country-specific Basic Bank Account Number (BBAN which
includes the domestic bank account number, branch identifier, and potential routing information).
There are standard lengths and formats of alphanumeric characters for IBANs in respect of each
country – e.g. in Ireland, the standard is 22 characters.
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3 Participating in the SEPA Direct Debit Scheme
Customers need to apply to their Bank to become a Creditor so that they can collect SEPA Direct
Debits. Each Bank applies its own prudential criteria for assessing the suitability of a customer as a
Creditor for inclusion in the SEPA Direct Debit Scheme.
3.1 SEPA Creditor Identifier Number (CI)
Each Creditor is identified with a SEPA Creditor Identifier (CI). This is a unique identification
number in the SDD scheme for each Creditor. The CI is used when submitting SEPA Direct
Debit files to the Bank for processing
A CI can be used by a Creditor for collections in all SEPA countries so if a Creditor moves
Bank it can continue to use the same CI
The CI will be issued to Creditors by their Bank
A central record of CI’s is maintained by Banking & Payments Federation Ireland for all
Creditors in the Republic of Ireland
3.2 Creditor Identifier Information
The Creditor Identifier (CI) is a unique identification of Creditors, meaning that each CI only
refers to one Creditor
A single Creditor, however, is free to use more than one CI or only to use one CI for the
initiation of collections in all SEPA countries
Most communities have their own specific procedures for providing a CI to Creditors. In
Ireland the CI is issued by the Creditor Bank to the Creditor.
The following is a general structure for the CI:
Position 1-2 filled with the ISO country code
Position 3-4 filled with the check digit according to ISO 7064 Mod 97-10
Position 5-7 filled with the Creditor Business Code, if not used then filled with ZZZ.
Position 8 onwards filled with the country specific part of the identifier being a national
identifier of the Creditor
3.3 Creditor’s obligations under the Scheme
Obtain and use a Creditor Identifier when effecting SEPA Direct Debits
Use a Mandate which complies with the SEPA standards and has been approved by its Bank
if required
Comply with the terms of Mandates agreed with its Debtors
Collect and process data related to the Mandates in accordance with the rules as outlined in
the SEPA DD Scheme
Pre-notify Debtors in relation to Collections in advance of any debit on their account (at least
14 calendar days before collecting the payment or as agreed with Debtor)
Initiate Collections with the Bank in accordance with the relevant timing requirements set out
in the Scheme
Perform all operational tasks allocated to Creditors under the Scheme
Effect all Rejects, Returns and Refunds in relation to its Collections presented through the
Creditor Bank
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Provide any Creditor Bank with Mandate collection information and/or copy of Mandate,
where requested and within the timelines outlined in the Scheme
Comply with any guidance for Creditors issued from time to time in relation to risk mitigation
Resolve any disputes concerning the underlying contract and the related payments directly
with the Debtor
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4 About Mandates
In order to collect funds via a SEPA Direct Debit, the Creditor must have the Debtor’s
authorisation to debit the account in the form of a Mandate. The Mandate is the
authorisation given by the Debtor to the Creditor to allow the Creditor to initiate Collections
for debiting the specified Debtor's account
A Mandate can be a paper document which is physically signed by the Debtor
A Creditor should forward a copy of the Mandate to their Creditor Bank for approval
A Mandates can be ‘paperless’ i.e. sign up is via the phone or internet – this is available for
Irish Debtors only – see Section 4.3 for further information on Paperless Mandates – Phone
and Internet Sign Up
The Creditor dematerialises the Mandate, the process of dematerialisation consists of the
conversion of the Mandate information into electronic form. The data elements of the signed
Mandate must be dematerialised by the Creditor without altering the content of the Mandate
.
The signed Mandate must be stored by the Creditor for as long as the Mandate exists
The paper Mandate can be stored either as the original document or in any digitalised
format subject to the national legal requirements
The Mandate must not be forwarded to the Debtor’s bank
All Mandates together with any related amendments / history must be retained by the
Creditor for the life of the Mandate and after expiry, for a period of 13 months after the date
of the last collection
The Creditor must be able to present a copy of the Mandate to the Debtor’s bank upon
request. If the Creditor is not able to do so, a refund and compensation will be required if the
Debtor objects to the debit
The Debtor can cancel the Mandate at any time. If the Debtor does not cancel the Mandate,
it automatically expires 36 months after the last collected direct debit
Once the Mandate has expired/or has been cancelled, it cannot be used again for that
Debtor
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4.1 The SEPA Mandate
The Mandate is the expression of consent and authorisation given by the Debtor to the Creditor to
allow such Creditor to initiate Collections for debiting the specified Debtor's account
The design of the Mandate must include:
o A clear heading on the Mandate entitled “SEPA Direct Debit Mandate”
o The Mandate must be contained on a single page
o The reverse side of a Mandate must not set out any information that might be
misunderstood by the Debtor to be part of the Mandate
o The Mandate may be an individual document or part of an application form. If it is part
of a document, it must be clearly separated from the rest of the content
o Additional information e.g. email address, can be included in the application but not
on the Mandate
The design of the Mandate must comply with the requirements set out within the Scheme. Full
details are available in the Rulebook.
The following attributes are to be contained within the Mandate in the order shown below:
Mandate Attributes The attributes in the Mandate document must be completed, unless
otherwise stated.
The Mandate must be headed with SEPA Direct Debit Mandate
Legal text is mandatory on the Mandate and it cannot be altered in any way.
By signing this Mandate form, you authorise (A) (NAME OF CREDITOR) to send instructions to your
bank to debit your account and (B) your bank to debit your account in accordance with the
instruction from (NAME OF CREDITOR).
As part of your rights, you are entitled to a refund from your bank under the terms and conditions of
your agreement with your bank. A refund must be claimed within 8 weeks starting from the date on
which your account was debited. Your rights are explained in a statement that you can obtain from
your bank.
Populated by
Unique Mandate Reference (UMR) the Creditor
Name of Debtor the Debtor
Address of the Debtor (optional) the Debtor
Debtor’s account number IBAN the Debtor
BIC code of the Debtor Bank (optional for national transactions –
mandatory for cross border EEA transactions until 31 January 2016 - Mandatory for cross border non-EEA transactions)
the Debtor
Creditor Identifier (CI) the Creditor
Name of the Creditor the Creditor
Address of Creditor the Creditor
**Transaction Type (‘one off’ or ‘recurrent’) the Creditor
Signature(s) - the Debtor(s)
Date of signing the Debtor
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The following attributes are optional and can be present on the Mandate
Debtor identification code the Debtor
Name of the Debtor Reference Party the Debtor
Identification code of the Debtor Reference Party the Debtor
Name of the Creditor Reference Party the Creditor
Identification code of the Creditor Reference Party the Creditor
Underlying contract identifier the Creditor
Contract description the Creditor
*Each Mandate must have associated with it a Unique Mandate Reference (UMR). (See Section
12.1 for a description of UMR). This is a reference which will be used by all parties to identify the
Mandate and must be quoted on all transactions associated with the Mandate
If the UMR be unavailable at the time the Debtor is signing the Mandate, it must be provided as
part of the advance notice to the Debtor prior to collection of the Direct Debit funds
**One-off’ is for one-off direct debit transactions after which the Mandate is expired or cancelled
and may not be used for any further presentations
‘Recurrent’ Mandates are used for presenting a series of direct debit transactions
Clear instructions to the Debtor for the return of the form must be shown on the face of the
Mandate
There must be clear instructions for the customer to return the form to the Creditor and this must
be present on the face of the Mandate
It is possible to have a section for “Creditor Use Only” on the Mandate – see Section 4.2.2
Sample SEPA Mandate – with optional elements. This section must only be completed after
receiving the signed Mandate from the customer. The data completed in this section must be for
internal purposes only and must never be sent on the file to the bank.
Any field populated on a Mandate must be stored electronically and all mandatory fields must be
sent on the XML file to the bank
It is possible to use different naming for these attributes so long as the purpose of the field is clear
and relates directly to one of the attributes above
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4.1.1 Sample SEPA Mandate
SEPA Direct Debit Mandate
Unique Mandate Reference Creditor’s name & Logo
Creditor Identifier: **
By signing this Mandate form, you authorise (A) {NAME OF CREDITOR} to send instructions to your bank to debit your
account and (B) your bank to debit your account in accordance with the instruction from {NAME OF CREDITOR}.
As part of your rights, you are entitled to a refund from your bank under the terms and conditions of your agreement with
your bank. A refund must be claimed within 8 weeks starting from the date on which your account was debited. Your
rights are explained in a statement that you can obtain from your bank.
Please complete all the fields marked*
Debtor’s Name: *
Debtors Address
IBAN (Account Number)
*
SWIFT BIC
Creditors Name
**
Creditors Address
**
Country **
Type of Payment
*Recurrent or
One-Off Payment
Date of Signing
* D D M M Y Y
Signature(s) *
For Information Purposes only
Debtor Identification code
Person on whose behalf Payment is made
Identification code of Debtor
Reference Party
Name of Creditor Reference Party - Creditor must
complete this if collecting on behalf of another party
Identification code of Creditor Reference Party
Identification number of the underlying contract
Description of the contract
Please return this Mandate to the Creditor and not to your bank
**Creditor to complete fields marked ** before supplying form to Debtor
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4.2 Paperless Mandates - Phone & Internet Sign Up
Creditors operating the SEPA Direct Debit Scheme can obtain authorisations from debtors to collect
SEPA Direct Debits via the Phone or Internet subject to the following:
Debtors must have an Irish Bank account – Debtors with European Bank accounts must
sign a paper Mandate
Creditors must contact their Bank to apply to operate paperless Mandates
Creditors must submit their phone/internet templates including the confirmation letter to their
Bank for approval to operate phone & internet sign up
Creditors must keep a copy of the phone recording as proof of Mandate together with any
related amendments/history/confirmation letter must be retained by the Creditor for the life
of the Mandate and after expiry, for a period of 13 months after the date of the last collection
Creditors must keep a record of the Internet application as proof of Mandate together with
any related amendments /history must be retained by the Creditor for the life of the Mandate
and after expiry, for a period of 13 months after the date of the last collection
Creditors must issue a confirmation letter to the Debtor within 3 working days of the
phone/internet sign up. The confirmation letter/email must include the following:
o Debtor’s – Name, Address & Bank details (BIC if provided by debtor & IBAN)
o Creditor ID
o Unique Mandate Reference
o Type of Payment: One-off or Recurrent
o Date of Signing
o Standard Legal Text (the authorisation and the Refund right)
The confirmation letter or email should be substantially in accordance with the sample in the
Guide
Creditors must keep a copy of the confirmation letter which was sent to the Debtor.
Creditors must keep record of the confirmation letter for the life of the Mandate and after
expiry, for a period of 13 months after the date of the last collection
The Creditor must be able to present a copy of the Mandate instruction & confirmation letter
to the Debtor’s bank upon request.
Creditors are responsible for ensuring their Phone/Internet sign up process and procedures
are complaint with any regulatory/security requirements
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4.2.1 Guide to SEPA Direct Debit Phone Sign-Up
Sample Script for SDD Telephone Sign-up
Confirm with customer that he/she agrees to pay by SEPA Direct Debit and that the Mandate
will be set up via the phone
Request the Customer’s Name, Bank/Building Society/Credit Union Name, Business Identifier
Code (BIC) optional for national transactions from 31 January 2016 and IBAN.
Request confirmation that :
o customer is authorised to allow direct debits to be collected from this account
o the account is suitable for /can accept a Direct Debit
o if it’s a joint account can it accept a Direct Debit
If ‘no’ - then the Direct Debit cannot be set up – Close call
o Request confirmation that:account is an Irish bank account
If ‘no’ - a paper Mandate must be sent to the Debtor for completion. Close call.
If ‘yes’ continue
Agree the payment schedule i.e. day of the month the money is to come out of account
Confirm the ‘pre-notification’ process as follows:
“This notification will be provided by notifying you of the amount(s) and date(s) of a
series of payments or (b) through a monthly / bi-monthly bill / invoice. You will receive
this notification XX days in advance of the collection date (confirm how notification will
be made via post, email or text)”
Advice the customer of the following:
o Unique Mandate Reference (UMR) – If the UMR is not available at the application
stage, it must be advised by the Creditor to the Debtor before the first initiation of a
collection
o if there is a change to the date, amount or frequency of the Direct Debit, notification
in advance of the account being debited will be provided (confirm how notification will
be made via post, email or text)
o the Direct Debit can be cancelled by writing in good time to (the Company name) and
informing their Bank/Building Society/Credit Union (by whatever means is acceptable
by their bank)
Confirm the Bank/ Building Society/Credit Union account details as follows:
o Your account name is ABC, your IBAN is xxxx xxxx xxxx xxxx xx and your
Business Identifier Code is yyyyyyyyyyy ( if provided by the debtor)
Confirm the SEPA Direct Debit Mandate has been completed and advise the customer that
he/she will be sent confirmation of this agreement in the post within 3 working days of the
phone call – see section 4.3.3 for sample confirmation letter
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4.2.2 Guide to SEPA Direct Debit Internet Sign-Up
The following are mandatory fields which must be presented online and must be completed:
Creditor details should be pre-filled
Creditor Name and Company Logo
Creditor Identifier Number (CI)
Unique Mandate Reference (UMR) – If the UMR is not available at the application stage, it
must be advised by the Creditor to the Debtor before the first initiation of a collection
Creditor Postal Address
Debtor Details – to be inputted by Debtor
Debtor(s) Name
BIC ((optional for national transactions from 31 January 2016 ) )
IBAN
Is Bank account a ROI bank account? Yes or No*
Is more than one signatory required to sign on your account? Yes**or No
Can bank account accept Direct Debit? Yes or No*
Is Direct Debit Recurrent or One-Off?
The following optional fields can be used by the Creditor:
Originator Contact phone number / email address
Debtor contact number / email address
Debtor completes and submits the form to the Creditor.
The Creditor must provide confirmation by letter or email to the Debtor within three working days of
sign-up – see section 4.3.3 for sample confirmation letter.
The confirmation letter/email must include the following:
Debtor’s – Name, Address & Bank details (BIC (if provided by the debtor & IBAN)
Creditor Identifier Number
Unique Mandate Reference
Type of Payment: One-off or Recurrent
Date of Signing
Standard Legal Text
The confirmation letter or email should be substantially in accordance with the sample in the Guide.
* if No - the Internet application process should cease and a suitable error message presented to the
customer
** if Yes - the Internet application process should cease and a suitable error message presented to
the customer
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4.2.3 Confirmation letter
Sample Confirmation Letter
Creditor Name and Address
Debtor Name:
Address:
City:
Country:
Dear XXX XXXXXXXXX
IMPORTANT: Confirmation of the set-up of your SEPA Direct Debit Mandate
Please check that the details (*) below are correct
# From Feb 2016 this may or may not be provided by the Debtor
(*) Account Holder name (s)
(*) Account Number (IBAN)
# (*)Business Identifier Code (BIC) if
provided by the debtor
Unique Mandate Reference (UMR)
Creditor Identifier
Type of Payment (One-off/Recurrent)
Date of sign up
If any of the above details are incorrect please call us as soon as possible on (Insert Creditors
Contact Number/email address).
If your details are correct no action is required and your SEPA Direct Debit will be processed as
normal.
You have the right to cancel your SEPA Direct Debit at any time by writing to Name of Creditor and
informing your bank /Building Society/Credit Union in good time.
For information:
Please note that as you have signed up online or by telephone and have not signed a paper
Mandate, you authorise (A) {Name of Creditor} to send instructions to your bank to debit your
account and (B) your bank to debit your account in accordance with the instruction from {Name of
Creditor}.
As part of your rights, you are entitled to a refund from your bank under the terms and conditions of
your agreement with your bank. A refund must be claimed within 8 weeks starting from the date on
which your account was debited. Your rights are explained in a statement that you can receive from
your bank.
Please retain this confirmation letter for your records.
Yours sincerely,
Creditor’s Name
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4.3 Cancellation of a Mandate
The cancellation of a Direct Debit mandate is the responsibility of the Debtor and the Creditor.
A Debtor can instruct its Bank to cancel a Mandate. Under Payment Regulation banks must
cancel the Mandate if requested to do so by the Debtor, and the Creditor must not represent
on such cancelled Mandates.
Notwithstanding the Debtor’s obligation to inform the Creditor directly, Irish banks will offer
the Debtor the service to cancel a direct debit on their account.
The Debtor can cancel a mandate directly with the Creditor - procedures for the cancellation
of Mandates is the responsibility of the Creditor e.g. written cancellation request is required.
Storing and archiving of cancellation documentation (e.g. letter of cancellation to the Debtor
confirming cancellation) is the responsibility of the Creditor.
Mandates that have been inactive for 36 months must be automatically cancelled by the
Creditor.
Once a Mandate is cancelled it cannot be used again.
4.4 Requests for copy of the Mandate
A copy of a Mandate (paper/scanned) must be made available when requested by your
bank. The copy Mandate or supporting information where the Mandate is paperless must
be sent to the Creditor Bank within 3 working days.
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5 Mandate Amendments
Amendments can be made on an existing SEPA Mandate; SEPA caters for this by using the
amendment indicator field within a SEPA Direct Debit XML file.
The amendment of the Mandate is handled between the Creditor and the Debtor.
The Creditor is responsible for communicating the Creditor-related changes to the Debtor and
for retaining a copy of the correspondence with the Mandate.
The Debtor is responsible for communicating Debtor-related changes to their Creditor.
The Creditor must retain a copy of the amendment notification from the Debtor or the resulting
updated Mandate confirmation letter to the Debtor with the original Mandate for the lifetime of
the Mandate plus 13 months.
Mandate amendment requests cannot be taken by the banks.
Mandate Amending transaction types must be received by your Debtor’s bank two days (D-2)
at the very latest, prior to the due date of the transaction.
The exception to this rule is where your Debtor has moved banks, in which situation, the
transaction must be sent as a First transaction type. The first transaction must be received by
your Debtor’s bank five days (D-5) at the very latest, prior to the due date of the transaction.
Transactions received any later than this will be rejected.
5.1 Amendments to SEPA Mandates can be made for the following
reasons:
1. The Creditor defines a new Unique Mandate Reference (UMR)
2. The Creditor changes the Creditor Identifier information (CI)
3. The Name of the Creditor has changed
4. The Debtor changes the account to be debited in the same bank
5. The Debtor changes the account to be debited in another bank
The new amendment data must be electronically stored by the Creditor and sent as part of the next
collection to the Creditor Bank. The following actions are required in relation to these amendments:
1. New Unique Mandate Reference (UMR)
The Creditor must advise the Debtor of the new UMR in advance of the next payment
The Creditor must amend the file sent to their bank as follows:
amendment indicator is set to ‘true’
the original UMR is present in AT-19
the new UMR is present at AT-01
2. The Creditor has changed the Creditor Identifier information (CI)
The Creditor must notify the Debtor of the change, in advance of the next payment
The Creditor must amend the file sent to the bank as follows:
amendment indicator is set to ‘true’
original Creditor Identifier is present at AT-18
the new Creditor Identifier is present at AT-02
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3. The Creditor changes its name
The Creditor must notify the Debtor of the change, in advance of the next payment
The Creditor must amend the file sent to the bank as follows:
amendment indicator is set to ‘true’
original Creditor name is populated in the field “Original AT-03 Name of the Creditor”
the new Creditor Name must be present in AT-03
4. The Debtor changes the account to be debited in the same bank
The Debtor must advise the Creditor of the change in account details
The Creditor must amend the file sent to the bank as follows:
amendment indicator is set to ‘true’
original Debtor Account is present at Original Debtor IBAN Field
the Debtor’s new Account must be present in AT-07 (Debtor IBAN Field)
the next Direct Debit goes out as Recurrent
Mandate Signed Date field does not change
5. The Debtor changes the account to be debited in another bank
The Debtor must advise the Creditor of the change in account details
The Creditor must amend the file sent to the bank as follows:
amendment indicator is set to ‘true’
the Debtors new IBAN (AT-07) & BIC (AT-13) must be present in the file
the sequence type must be ‘first’ - ‘first’ transactions must be submitted 6 days prior to
payment day
the Original Debtor Agent field to be populated with ‘SMNDA’ only
the original Debtor’s IBAN must not be provided
Mandate Signed Date field does not change
Note: Creditors should refer to their software provider for instructions on how to complete Mandate
amendments within software packages. If the software does not support Mandate amendments
please see relevant section below.
Please Note: Debtor Banks which have changed their BIC and /or the IBAN of the Debtor but which
remain the same entity should not reject a collection due to sequence type ‘first’.
5.2 Mandate amendments – not supported by software provider
If any of the above fields have to be amended on an existing SEPA Mandate and the facility is not
available from the software provider the following is an alternative available:
For Creditor related amendments - i.e.:
New Unique Mandate Reference (UMR)
Creditor changes the Creditor Identifier information (CI)
Name of the Creditor has changed
Action required
1. Generate a new SEPA UMR for all of the above amendments
2. Inform the customer of the change – e.g. new Creditor ID/ Creditor name and the new UMR
before the first debit
3. Retain a copy of the notification to the Debtor with the original Mandate for the lifetime of the
Mandate plus 13 months
4. Raise a new FRST collection to your bank using the new UMR and the new Creditor
ID/Creditor name
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For Debtor related amendments – i.e.:
The Debtor changes the account to be debited in the same bank
The Debtor changes the account to be debited in another bank
Action required
1. Generate a new SEPA UMR for the above amendments
2. Inform the customer of the new UMR before the first debit
3. Retain a copy of the notification to the Debtor with the original Mandate for the lifetime of the
Mandate plus 13 months
4. Raise a new FRST collection to your bank using the new UMR and the amended Debtor
details
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6 SEPA Collection/Transaction Types
Important change: As of the effective date of November 2016 of the SEPA Core Direct Debit Rulebook version 9.0, all Collections presented for the first time, on a recurrent basis or as a one-off Collection can be presented up to D-1 Inter-Bank Business Day ( D-1).
Furthermore, the current requirement to use the sequence type ‘FRST’ in a first of a recurrent series
of Collections is no longer mandatory as of the effective date of November 2016 of the SEPA Core
Direct Debit Rulebook version 9.0 (i.e. a first Collection can be used in the same way as a subsequent
Collection with the sequence type ‘RCUR”).
There are four SEPA Direct Debit transaction / collection types that determine the submission or
notice period of a transaction as follows:
First Collection
FRST
Used for the first collection of recurrent direct debit Mandate. It must be:
processed before a recurrent or final transaction can be used
received at the Debtor bank at the latest D-5.
It will be rejected if details (BIC, IBAN and UMR) have been presented previously using an OOFF, FRST, RCUR, or FNAL transaction type.
Recurrent Collection
RCUR
Used for recurrent direct debits. It must be :
sent after a First Collection type
received by the Debtor bank at the latest, D-2
It will be rejected if details (BIC, IBAN and UMR) have been presented previously using an OOFF, or FNAL transaction type.
One off
OOFF
Used for One-Off Mandate and cannot be reused.
It must be:
sent only once after which the Mandate has expired and is
redundant
received at the Debtor bank at the latest 5 interbank days before
the due date (D-5).
It constitutes a collection for an amount that can be collected only once.
It will be rejected if details (BIC, IBAN and UMR) have been presented
previously using an OOFF, FRST, RCUR, or FNAL transaction type.
The Final Collection
FNAL
Used for final direct debit in a series of direct debits.
It must be:
received by the Debtor bank at the latest, D-2
Once processed on the account, it will result in the termination of the
Mandate.
It will be rejected if details (BIC, IBAN and UMR) have been presented
previously using a OOFF, or FNAL transaction type.
There is no requirement to use the FNAL transaction type.
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The following attributes apply in practice:
A Mandate is deemed to be created when the FRST transaction/collection on that Mandate
has reached settlement.
If the FRST collection on the Mandate is rejected by either the Creditor bank, CSM or the
Debtor bank then the Creditor must submit the FRST transaction again - correcting
information if necessary.
If the Debtor Bank was then to Return or request a Refund on the FRST collection on the
Mandate the next time the Creditor is submitting a transaction it must be a RECUR type on
the transaction.
If the OOFF Mandate is rejected pre-settlement it would be represented as a OOFF
transaction again. However, if the OOFF transaction is returned/reversed or refunded post
settlement, it would not be valid to submit the OOFF transaction/mandate again.
A FNAL transaction type is used to signal the Mandate has completed or is cancelled. It is not
possible to submit another RCUR after submitting a FNAL on a Mandate. Once a FNAL has
been accepted on a Mandate it is not possible to use the same Mandate ID for another FRST
for another customer. The Mandate ID that was used and is now completed must remain
unique for the Creditor.
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7 SEPA File formats
SEPA payment files must be transmitted in XML format.
The legal standard for processing transactions is in XML format (ISO 20022).
Customers must contact their Bank for details on submitting SEPA payment files.
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8 Pre Notification/Advance Notice
The direct debit processes respect the following pre-notification requirements:
Pre-notification is the notification provided by the Creditor to the Debtor of: o the amount o Due date of the collection o Creditor Identifier Number
o UMR
The notice can be provided as a separate piece of information, or via inclusion in a regular statement, bill, or invoice
The Pre-notification must be sent by the Creditor at the latest 14 Calendar Days before the Due Date unless another time-line is agreed between the Debtor and the Creditor
The pre-notification can take the form of a schedule of payments over an agreed period of
time or an individual advice for each collection (i.e. utility bill)
In the case of a schedule of payments, a new pre- notification is only necessary if the amount
or frequency changes
Delivery methods for the advanced notice is not specified, possible delivery methods include
letter, text, email
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9 Timeline for collection of Direct Debits
The principal stages in the lifecycle of a SEPA debit are outlined in the table below:
Description
Timeline
1 A Direct Debit file can be submitted by the Creditor Bank to the
SEPA scheme up to 14 calendar days (unless otherwise agreed
between the Creditor and Creditor Bank) prior to the Due Date
of the debit.
14 Calendar days
2 A First or One-Off direct debit must be received by the Debtor
Bank 5 business days before the due date.
5 Business Days (D-5)
3 A Recurrent or Final direct debit must be received by the Debtor
Bank 2 business days before the due date.
2 Business Days (D-2)
4 Due Date (Date on which the Debtor is debited and Creditor is
Credited).
0
5 The latest date on which a Reversal can be exchanged between
the Sending & Receiving Bank.
5 Business Days (D+5)
6 The latest date on which a Return can be exchanged between
the Sending & Receiving Bank.
5 Business Days (D+5)
7 The latest date on which a Refund (authorised transaction) can
be exchanged between the Sending & Receiving Bank.
8 weeks
8 The latest date on which a Refund (unauthorised transaction)
can be exchanged between the Sending & Receiving Bank.
13 Months
Important change: As of the effective date of November 2016 of the SEPA Core Direct Debit Rulebook version 9.0, all Collections presented for the first time, on a recurrent basis or as a one-off Collection can be presented up to D-1 Inter-Bank Business Day ( D-1). Furthermore, the current requirement to use the sequence type ‘FRST’ in a first of a recurrent series of Collections is no longer mandatory as of the effective date of November 2016 of the SEPA Core Direct Debit Rulebook version 9.0 (i.e. a first Collection can be used in the same way as a subsequent Collection with the sequence type ‘RCUR”).
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10 “R” Transactions
Under the SEPA Direct Debit scheme transactions that cannot be processed in the normal way or are
being returned unpaid are known as ‘R-transactions’. There are various types of ‘R-transactions,
rejects, refusals and refunds, and they can occur, pre- settlement (prior to or on D) or post settlement
(after D).
R Transactions Description Timeline
Refunds
(Authorised
transactions – within
eight weeks)
Claims by the Debtor for reimbursement of a direct debit.
Debtors are entitled to request a ‘no questions asked’ refund
for any SEPA Direct Debit within eight weeks from the date on
which the amount was debited.
Post Settlement
Refunds
(Unauthorised
Transactions)
If the request for a refund concerns an unauthorised
transaction a Debtor must make the claim at the latest 13
months after the disputed debit date. A direct debit is deemed
to be unauthorised for any of the following:
No Mandate exists
The Mandate was invalid
The Mandate has expired (no transactions for 36 months) or is cancelled
There will be an investigation phase before the Debtor can be
refunded.
Post Settlement
Refusals Claims initiated by the Debtor, requesting the Debtor Bank not
to pay a collection, for any reason. Can be requested, up to the
close of business the day before the payment is due.
Pre Settlement
Rejects Direct Debits which are rejected, prior to Settlement for the
following reasons:
Technical reasons: invalid format, wrong IBAN check digit, missing mandatory fields.
Debtor Bank is unable to process the Collection e.g. account does not accept direct debits, no Mandate, Mandate cancelled.
The Debtor Bank is unable to process the Collection where it is bound by legal obligations covered by National or Community legislation.
The Debtor Bank is unable to process the Collection for such reasons as are set out in section 4.2 of the Rulebook (e.g. account closed, customer deceased, account does not accept direct debits).
The Debtor made a Refusal request to the Debtor Bank. The Debtor Bank will generate a Reject of the Collection being refused.
Pre Settlement
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R Transactions Description Timeline
Returns Returns are initiated by Debtor Bank after Settlement (e.g.
insufficient funds).
The latest date for Settlement of a Return is up to five working
days (D+5) after the Settlement Date of the Collection.
Irish Banks will maintain the previous IRECC timeline for
returns and will continue to return on D+1.
Post Settlement
Reversals
This is a Creditor initiated request, to re-credit the Debtor who
has been debited in error. Reversals must be submitted within
5 days of the original debit date.
Reversals can only be processed after Settlement and within 5
working days following the Due Date requested in the original
Collection. You must confirm with your Creditor bank that they
offer this service.
Post Settlement
See SEPA Direct Debit Reason Codes for further information.
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11 Consumer Rights & SEPA Regulation
The SEPA Direct Debit Core Scheme Rules and the SEPA Regulation 260-2012 make provision for
the following consumer rights:
Debtors can:
Use an account to pay a SEPA Direct Debit in any SEPA country.
Instruct their bank to refuse a Direct Debit.
Prohibit the application of any Direct Debits to their bank accounts.
Specify Creditors who may collect Direct Debits from their bank accounts.
Specify Creditors who may not collect Direct Debits from their bank accounts.
Limit a Direct Debit collection to a certain amount and/or periodicity.
Request a refund for any Direct Debit within eight weeks from the date on which the Direct
Debit was debited from their account. Within the eight week period their bank must refund on
a ‘no-questions asked’ basis.
Request a refund for any unauthorised Direct Debit after 8 weeks and within 13 months from
the date on which the Direct Debit was debited from their account.
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12 Appendices
12.1 The Unique Mandate Reference – UMR
Description:
This reference identifies for a given Creditor, each Mandate signed by any Debtor for that
Creditor.
This number must be unique for each Mandate in combination with the identifier of the
Creditor.
This UMR must be submitted with the first collection and each subsequent collection.
The collection will be rejected if the UMR has been changed and not flagged as an
amendment on a recurrent collection.
The UMR is a free text field of up to 35 characters in length and is case in-sensitive. Please
contact your Sponsoring Bank for the suggested content of the UMR.
For a recurrent direct debit, Debtor Banks will validate that the customer BIC and IBAN and
the Creditor Identifier are valid and will then match the UMR against that held on file. If the
UMR does not match the collection will be rejected.
Each Creditor will need to decide on how to populate the UMR (attribute 01) in conjunction
with the Creditor’s Reference of the Direct Debit Transaction (attribute 10 - see details
below).
If the UMR is not available at the point in time of signing of the Mandate, the UMR must be
made available by the Creditor to the Debtor before the first initiation of a Collection.
12.2 AT-10 - The Creditor’s Reference of the Direct Debit Transaction
Description:
This number identifies for a given Creditor, each Collection transaction presented to the
Creditor’s bank, in a unique way.
This number will be transmitted throughout the collection process.
It must be returned in any exception handling process-step by any party involved.
The Creditor must define the content of this attribute and it need only be expected to be
meaningful to the Creditor.
The Creditor cannot request for any other referencing information to be returned to him, in
order to identify a Collection.
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12.3 Process Steps in the Collection of Direct Debits
This process covers both correct transactions and R-transactions from the processing of a
Collection
Step Process
1. The Creditor generates the data for the Collection of the transactions.
2. The Creditor pre-notifies the Debtor of the amount and date on which the collection will be presented to the Debtor Bank for debit.
3. The Debtor may instruct the Debtor Bank to Refuse the Collection at any time up to close of business, the day before the payment’s due date.
4. The Creditor sends the Collections, including the Mandate-related information to the Creditor Bank.
5. The Creditor Bank may Reject some Collections received from Creditors.
6. The Creditor Bank sends the Collections to the CSM (Clearing & Settlement Mechanism).
7. The CSM may Reject some Collections received from the Creditor Bank.
8. The CSM sends the Collections to the Debtor Bank in accordance with the Settlement Cycle.
9. The Debtor Bank may Reject some Collections before Settlement.
10. The Debtor Bank debits the Debtor’s account & Creditor account is credited with the amount of the transaction by the Creditor bank.
11. The Debtor Banks sends the Returned Collection back to the CSM after Settlement.
12. The CSM sends the Returned Collection back to the Creditor Bank.
13. The Creditor Bank debits the Creditor with the amount of the Returned Collection.
14. The Creditor must handle the disputed Collection with the Debtor, without the involvement of the banks.
15. If the transaction is disputed, the Debtor must instruct his bank to reimburse the debited amount for a Refund
16. The Debtor Bank credits the Debtor’s account and sends the Refund messages to the CSM.
17. The CSM sends the Collection Refund to the Creditor Bank.
18. The Creditor Bank debits the Creditor with the amount of the Refunded Collection.
19. The Creditor must handle the disputed Collection with the Debtor, without the involvement of the banks.
20. The Debtor initiates a request for a Refund (after 8 weeks) for an Unauthorised Transaction
21. The Debtor Banks accepts or rejects the Request for Refund - request Copy of Mandate from Creditor Bank.
22. The Creditor Bank forwards the request for Refund to the Creditor.
23. The Creditor investigates the request for Refund and provides a response.
24. The Debtor Bank decides on the claim, sends the Refund of an Unauthorised Transaction to the CSM and credits the Debtor for the refund amount.
25. The CSM sends the Refund of an Unauthorised Transaction to the Creditor Bank.
26. The Creditor Bank debits the Creditor with the amount of the refunded Unauthorised Transaction.
27. The Creditor handles the dispute of a Refund for an Unauthorised Transaction.
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12.4 Glossary of Terms
Term
Definition
Attribute Specific information required in the dataset on the input file.
Beneficiary The holder of the account who receives the funds.
BIC Business Identifier Code - An 8 or 11 character ISO code assigned by SWIFT and
used to identify financial and non-financial institutions in financial transactions.
Banking Business
Day
A Banking Business Day means, in relation to a Participant, a day on which that
Participant is open for business, as required for the execution of a SEPA Direct
Debit.
Calendar Day A Calendar Day is any day of the year.
Collection
A Collection is the part of a Direct Debit Transaction starting from the Collection
initiated by the Creditor until its end through the normal debiting of the Debtor’s
account or until the completion by a Reject, Return or Refund.
Creditor The Creditor receives and stores the Mandate from the Debtor to initiate
Collections. On the basis of this Mandate, the Creditor collects the direct debits.
Creditor ID Unique Identifier for a Creditor for use in the SEPA DD scheme.
Creditor Bank
The Creditor Bank is the bank where the Creditor's account is held and which has
concluded an agreement with the Creditor about the rules and conditions of a
product based on the Scheme. On the basis of this agreement it receives and
executes instructions from the Creditor to initiate the Direct Debit Transaction by
forwarding the Collection instructions to the Debtor Bank in accordance with the
Rulebook.
Debit Date The date the Debtors account is debited
Debtor The holder of the account to be debited
Debtor Bank The bank where the Debtor ‘s account to be debited is held
Dematerialised
Mandate
A list of all the mandatory fields/attributes (taken from the paper Mandate) that must
be contained in an electronic file, which is sent by the Creditor to the Creditor Bank
as part of each transaction.
Direct Debit An instruction that a Debtor gives to the Creditor to collect money direct from their
account. It is initiated by the Creditor.
Due Date The Due Date (day ‘D’) of the Collection is the day when the payment of the Debtor
is due to the Creditor.
EPC European Payments Council.
IBAN
International Bank Account Number
The account number quoted in the international format. It is made up of the
international country code, pair of check digits, first four characters of the BIC, bank
branch code (NSC) and account number of the customer.
Inter Bank
(working) Business
Day
An Inter-Bank Business Day is a day on which banks generally are open for inter-
bank business. The TARGET Days Calendar is used to identify Inter-Bank Business
Days. It is published by the European Central Bank.
IPSO Irish Payment Services Organisation Ltd
ISO20022 This is an International message standard for financial messaging
Originator See Creditor
Payment Service
Provider (PSP) A Financial Institution
Payment Services This regulation established the legal framework for SEPA.
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Term
Definition
Regulation
R Messages
/transactions The name given to claims that are diverted from the normal course of execution.
Pre Notification
The notification provided by the Creditor to the Debtor of the amount and time
schedule prior to the date on which the debits are to be collected. The notice can be
provided as a separate piece of information, or via inclusion in a regular statement,
bill, or invoice.
Refund
These are claims by the Debtor for reimbursement of a direct debit.
Authorised Refund - within 8 weeks of debit date, no questions asked, Creditor
bank must accept this type of refund.
Unauthorised Refund - between 8 weeks and 13 months of debit date, Debtor must
prove that the direct debit should not have been paid.
Refusal Where Debtor requests their bank not to pay the claim pre-settlement.
Reject A claim that is diverted from normal execution, pre or post settlement, by Creditor
bank, Debtor bank or CSM.
Return A claim that is diverted from normal execution, post settlement by the Debtor bank.
Reversal Creditor initiated request, to re-credit the Debtor who they have debited in error.
Must be completed within 5 days of original debit date.
Revocation AOS that your bank may offer, to recall claims before they are passed to the CSM.
SEPA Single Euro Payments Area
Settlement Date The date settlement takes place
UMR (Unique
Mandate Reference
This is a unique reference which identifies each Mandate signed by the Debtor for
any given Creditor
Banking & Payments Federation Ireland Nassau House
Nassau Street
Dublin 2
Ireland
+353 (1) 6715311
www.bpfi.ie