How do I create an SDD (SEPA Direct Debit) Mandate?
The EPC have produced a guide on creating the SDD Mandate titled ‘The SDD Mandate Layout guide’. This can be downloaded for free from www.europeanpaymentscouncil.eu
Although the general layout of the content is not restricted, particular information is mandatory and must be present on the Mandate. This includes information for the Debtor to indentify the collection on their bank account, such as a Unique Mandate Reference (UMR). The UMR is supplied by the Creditor. This Debtor must be aware of the reference before a collection is made. It also appears against the SDD transaction on the Debtor’s bank statement. The UMR must be unique as the name suggests e.g. could be per service provided to the debtor. The Mandate must also include the ‘legal text’ regarding the instruction and ‘SEPA Direct Debit Refund‘. Other rules exist around the Mandates’s design and layout, all of which aid with successful collections and protect the integrity of the scheme.
SEPA Mandates vary in layout & content, depending on the type of SDD collection you wish to make:-
- One-off collection – mandate is destroyed after one and only use
- Recurring/ Ongoing collection – mandate is maintained at the Debtor bank for repeat use. Will go dormant if no collection is made for 36 months
By Debtor: Is the debtor the same as your customer or are they 3rd Party, paying on behalf of the debtor?
- From an individual – collection for an individual payer
- From a 3rd party – a party paying on behalf of the customer which includes a section to capture 3rd Party details
- Additional collection details – Includes, details of the service/ product being paid for and/ or details of the collection/s
Both the required debtor and frequency details must be present on the Mandate, buy varying combinations of the two are permitted.