SEPA Direct Debit is a payment method that is offered by Mollie.com.
SEPA Direct Debit is a Europe-wide Direct Debit system that allows merchants to collect Euro-denominated payments from accounts in the 34 SEPA countries and associated territories.
Key features of SEPA Direct Debit
- SEPA Direct Debit is pull based. Once given a mandate by their customer it is the merchant who initiates payments.
- SEPA Direct Debit payments are bank-to-bank. There are no card networks involved in the SEPA Direct Debit scheme. All communications happen directly between the banks.
- All SEPA Direct Debit transactions happen in Euros (even if the relevant accounts aren't in Euros). Any currency exchange required is up to the payer's and merchant's banks.
- Payers can get a refund from their bank for unauthorised SEPA payments for up to 13 months. Under the UK Direct Debit Guarantee, the indemnity claim period is unlimited.
- To collect SEPA payments, you need a customer's BIC and IBAN rather than their account number and sort code.