In the SEPA Direct Debit Overview, i have highlighted in brief what the SEPA direct debit scheme is all about. From that we understand there are two SEPA Direct Debit schemes: Core and B2B. Here i will highlight some, not all, of the key differences that you need to be aware of. Before we get into the details, i think its common knowledge that the Core scheme is the ‘easiest’ scheme to migrate across to, and the B2B scheme presents some additional challenges – the below table should highlight this.
Differences between SEPA Core and B2B Schemes:
|
Core SDD |
B2B SDD |
| Bank Participation |
|
- Your customer must ensure their bank is aware that you will debited the customer under the B2B scheme. Not all banks are ‘enrolled’, and if your customer fails to notify their bank, your B2B SDD will be rejected
|
| Usage |
- With Consumers and Companies
|
- With Companies only
- Some countries have excluded the use of the B2B scheme for small companies – Microenterprises
|
| Refund Right |
- 13 months after debit (in case of missing mandate)
|
- No refund right after debit
|
| Mandate Check by Debtor Bank |
|
|
| Process |
- Creditor Sends Mandate to Debtor
- Debtor sends signed Mandate to Creditor
- Creditor captures Mandate data
- Creditor stores Mandate
|
- Creditor sends 2 Mandate copies to Debtor
- Debtor:
- Sends signed Mandate to Creditor
- Sends signed Mandate to his/her bank to authorise account for B2B collections
- Creditor captures Mandate data
- Creditor stores Mandate
|
| Submission Deadlines |
- D–14 CD: Customer pre-notification of amount and due date (unless other timeframe is agreed)
- D–5 BD : Submission of first and one-off SDD
- D–2 BD: Submission of subsequent SDD
|
- D–14 CD: Customer pre-notification of amount and due date (unless other timeframe is agreed)
- D–1 BD: Submission of first, one-off and subsequent SDD
|
There is quite alot of information here. I understand there are other differences – the intention here though is to capture those that are critical when you are planning your implementation. Let me know if i missed anything…
