Direct Debit
SEPA Direct Debit Mandate
The SEPA Direct Debit Mandate must include the following mandatory information:
Name or designation of the payee (creditor)
Creditor Identifier
Name of the payer (debtor)
Name of the payer’s bank
IBAN of the payer (for direct debits from EU countries, the BIC is also required)
Handwritten signature of the debtor (only for mandates in paper form)
The SEPA Direct Debit Mandate: Once issued, a direct debit mandate is valid for an unlimited period as long as it is not revoked by the debtor. Revocation is possible at any time. There is only one exception: If the payee does not collect a direct debit for more than 36 months, the mandate expires. It must then be reissued by the debtor.
Basic Direct Debit or B2B Direct Debit?
In principle, the two procedures for cashless payment transactions are similar. However, there are also significant differences.
SEPA Basic Direct Debit Mandate
- Transactions with private customers
- The only thing checked is the existence of a mandate. The data itself is not checked for accuracy
- Return of an unauthorized direct debit without giving reasons within a period of 8 days possible
- No specific formal requirements
SEPA B2B Direct Debit Mandate
- Transactions with business customers
- Companies deposit copies of their B2B Direct Debits with their own bank
- Verification of SEPA B2B Direct Debit Mandate data by the debtor’s bank prior to execution.
- Return of the direct debit is usually not possible
- In addition to the content requirements, the SEPA B2B Direct Debit Mandate must also meet certain formal requirements
SEPA Basic Direct Debit
The basic direct debit procedure is generally used for transactions with consumers. However, it can also be used in principle for the collection of direct debits for corporate customers. The debtor has 8 weeks to object to an incorrect direct debit if the mandate is available and valid. The mandate does not have to meet any formal requirements
SEPA B2B Direct Debit
The situation is different with the B2B direct debit procedure. Since this can be used primarily in B2B business, the debtor not only issues a mandate to the creditor to collect direct debits, but must also have deposited this mandate with his own bank before executing the first direct debit. Since the bank checks this data before executing the direct debit, it is generally not possible to return direct debits. This is a major advantage of the B2B direct debit procedure for you as an entrepreneur.
START NOW
Right now it is possible for you as an easybill user to collect direct debits directly from your easybill account via an interface to your bank (the provider finAPI)will be used here).
Possibility of Revoking Direct Debits
If there is a valid mandate but the direct debit was wrongly collected, the debtor has 8 weeks to complain to his bank and object to the direct debit
Fees/Return Direct Debit Charges
If a direct debit is disputed by the customer or cannot be honored for lack of funds, charges will be incurred between the payer’s bank and the payee’s bank. These shall be borne by the payee. The payee’s bank may also charge him additional fees for this.
Therefore, the bank carefully checks the creditworthiness and sets the direct debit commitment as the maximum amount for a contingent credit. This check is intended to ensure that any returned direct debits do not lead to major financial problems for the company.
Practical Example
Example 1
Example 2
Advance notice and lead times
According to the SEPA Direct Debit Regulation, the debtor must be informed in advance of the collection. This is called “pre-notification”. If no other deadline has been agreed (e.g. via GTC), this notification must be made 14 days before the direct debit collection is due. This pre-notification is intended to give the debtor the opportunity to ensure that the account is sufficiently covered.
SEPA XML file
In easybill you can create so-called SEPA XML records for your invoices. For your recurring invoices, this can even be done automatically. The data records can then be downloaded collectively in an XML file and submitted to your bank (e.g. via online banking): Collection from customer via SEPA direct debit
Direct Debiting made easy with easybill
Different tariffs for VAT, correct statements on the invoice and then also a temporary VAT tariff that is lower than the normal one – there is a lot to consider.– ganz schön viele Dinge, die es da zu beachten gibt.
We can help you with that! Our invoicing software is up to date. Changes that are passed by the legislature are immediately incorporated and taken into account by us.
We can help you with that! Our invoicing software is up to date. Changes that are passed by the legislature are immediately incorporated and taken into account by us.
All invoices that you issue with easybill also include a correct display of value added tax as well as gross and net amounts.
