Refunds are claims by the Debtor which must be made with their Debtor Bank before in the form of a ‘refund request’. Whether authorised or unauthorised. The service is only provided under the SEPA Core Direct Debit scheme.
What are ‘Guaranteed’ Refunds under the SEPA Core Direct Debit Scheme?
The Debtor is guaranteed a refund (the return of a collection) of an authorised Direct Debit if their request is made to their Debtor bank within 8 weeks of the disputed collection.
About Refund Compensation
Refund Compensation occurs between the banks. The amount is dependant on interest and exchange rates, along with their subsequent charges at the time of the transaction. This is typically part of underlying business agreements between participants and as such not covered by the SEPA Direct Debit scheme.