SEPA Direct Debit Processing and Timings

SEPA Direct Debit Transactions

These transactions lare required when a Creditor submits their file of Mandates or Collections. These must be within the file of mandates and/or collections submitted to the Creditor Bank and correct use of each to is required under the scheme to avoid rejection of the transaction.

 

FRST First or First of recurring / re-presented collection
RCUR Recurring collection (after FRST)
OOFF One-off collection, future attempts rejected
FNAL Final collection (Mandate destroyed)

 

  1. The First Collection (FRST)

    The First Collection (FRST) is the first collection in a series of direct debit collections. This code must also be used for recurrent mandates i.e. the must be a FRST (First) transaction, before their can be a RCUR or FNAL (Recurrent or Final) transaction. This transaction type must also be received at the debtor bank no later than 5 working days prior to the Due Date.

  2. The Recurrent Collection (RCUR)

    The Recurrent Collection (RCUR) is a subsequent collection in a series of direct debit collections and can only be sent after a First Collection type. A recurrent Collection must be received by the debtor bank at the latest, 2 Business Banking Days* before the Due Date. This transaction type cannot be presented after a FNAL (Final) transaction.

  3. The One off (OOFF)

    The One off (OOFF) is a once off mandate that cannot be reused and must be received at the debtor bank at the latest 5 Business Banking Days* before the due date. An example of a one-off a one-off collection could be to collect debt without disturbing the regular payment or if wanting to take an additional payment, after this the mandate has expired and is redundant. Any subsequent direct debits attempts using the mandate details will be rejected.

  4. The Final Collection (FNAL)

    The Final Collection (FNAL) is the final direct debit in a series of direct debit collections and must be received by the debtor bank no later that 2 Business Banking Days* prior to the Due Date. Once processed on the Debtor’s bank account, the mandate is destroyed. Any subsequent collection attempts using this mandate will be rejected.

SEPA Direct Debit (SDD) Submission & Collection

When ready to make a collection, the Creditor will need to create a ‘file’ of transactions and submit this through their online banking platform.   A File may contain a single transaction, or several as well as batches of transactions. Unlike the UK Direct Debit scheme, there is no seperate process for setting up the mandate. The mandate is automatically set up by the bank alongside the first collection.

SEPA Direct Debit Settlement Process

How long does the collection take after submission of the file?

Transaction Type No. of BBD* SDD Scheme
First 5 Core
Recurrent 2 Core
First & Recurrent 2 B2B

Re-presenting failed collections

The SEPA Direct Debit scheme rules allow you to try again following a failed collection. Under the SEPA Direct Debit Scheme, a re-presentation of collection(s) is no different from a normal collection. Re-representing however, does have varying conditions  for the Creditor at a country and bank level. For example, it is Irish banking law that only one additional collection attempt is permitted.  Creditors can check the rules for them, and the countries they wish to collect from, via their Creditor bank.

 

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