SEPA direct debit

SEPA Direct Debit Debtor

A SEPA Direct Debit service can be used for euro-dominated payments throughout the SEPA.

The SEPA direct debit for debtor consists of two services; CORE and B2B and can be used for euro-dominated payments throughout the SEPA.

The CORE service is targeted for corporates and consumers, whereas the B2B service is targeted for corporates only. As a debtor you need to sign a service agreement with Nordea. This is done by contacting your own Nordea branch. 

Your benefits:

• An easy way to pay your recurring domestic and cross-border payments in time and with correct details.
• With one euro account you can order and pay for services from both domestic and foreign companies.
• Both the creditor and the debtor must comply with the same rules in all transactions.
• Possibility to have payments refunded.

SEPA Direct Debit Creditor

The SEPA Direct Debit Creditor service enables you to debit the debtors’ EUR accounts in the SEPA area. You can use SEPA Direct Debit Creditor service to collect funds from consumers and corporate customers who have given their prior approval to it with a mandate. The SEPA Direct Debit Creditor service has two optional services: CORE and B2B.

Your benefits

The SEPA Direct Debit Creditor service provides you a simple and cost-efficient way to collect funds from SEPA-countries.  It enables liquidity centralisation, certainty of payment completion within a predetermined time cycle, and the possibility to optimise and streamline internal processes with easy reconciliation of payments received. It also enables to start investigation immediately if transaction has been rejected or refunded.

You can use SEPA Direct Debit Creditor Services as an alternative for SEPA Credit transfers when collecting euros in the SEPA area.

How to implement the service?

When considering to start using the SEPA Direct Debit service we recommend that you go through the following steps.

• Decide on which SDD type – CORE and/or B2B should be implemented.
• Evaluate your current systems identifying i.e. file formats and channels used today and assess needed changes.
• Evaluate your current collection process  and make a plan for your new collection routine with your sales people and your stakeholders.
• Design of the mandates deciding on the layout and the text, including creation of the mandate handling process.
• Make a plan for internal training.
• Apply for Creditor Identifier.

You will need to have a EUR account with Nordea in Finland and to sign an agreement with Nordea in order to start using the SEPA Direct Debit Creditor service.

More information on how to get started can be found in our checklist  and in the service description and technical description. 

Mandate

The Mandate is designed by either you or the debtor. The content of the Mandate is standardized, but the text in the CORE and B2B mandates differ from each other. You must ensure that the Mandate contains both the mandatory legal wording and the mandatory information.

A SEPA Direct Debit collection always requires a Mandate which is your power of attorney from debtor.

With the Mandate the debtor authorizes you to collect a payment and to instruct the debtor’s (payer’s) bank to debit the collection. The mandate must to be signed by the debtor (payer) before the first collection and for the B2B service the debtor must forward a copy of the Mandate to their own bank for registration. The original mandate must be archived by you until the mandate has expired which is 36 months after the last initiated collection.

The Service Description for Mandate, including Mandate templates

Terms and conditions

Please read the terms and conditions of the service before making the agreement and starting to use the service.

Service specific terms and conditions for SEPA Direct Debit Collection Services

General terms and conditions for corporate cash management services

Service terms and conditions for payment services 

Creditor Identifier

The Creditor Identifier (CI) represents a unique identifier of Creditor, meaning that each CI refers to one Creditor only. The CI enables Debtors and Debtor Banks to identify a Creditor independently from its account relationship with any Creditor Bank. The combination of the CI with the unique mandate reference forms the unique SDD mandate key. 

Nordea can assist you in obtaining your own CI.