For SEPA Direct Debit collections, a Creditor PSP must oblige each of its Creditors to obtain and use a Creditor Identifier, to use a Mandate that complies with the Rulebook, and to pre-notify its Debtors in relation to Collections it proposes to initiate (1). Set up the scheme in five steps, then build the timing of each billing cycle around its deadlines. Core and B2B refund rights differ, so the refund exposure of each collection depends on the scheme you use.
How do I set up recurring SEPA Core collections for my B2B subscription customers?
Start by obtaining a Creditor Identifier, because your Creditor PSP must oblige you to obtain and use one when you effect SEPA Direct Debits (1). Each business customer then gives a mandate containing the necessary legal text and the names of the parties signing it. The mandate must be signed by the account holder or by a person holding authorisation such as a power of attorney, either on paper or electronically with a legally binding signature.
The signed Mandate must be stored by the Creditor for as long as the Mandate exists, together with any related amendments or information concerning its cancellation or lapse (1). Before the first collection, collect the customer's IBAN; the Regulation required the payer's BIC only until 1 February 2016 for cross-border transactions, and only where necessary (2).
The data elements include the type of direct debit (recurrent, one-off, first, last or reversal), the IBAN of the payee's payment account to be credited, the IBAN of the payer's payment account to be debited, the unique mandate reference, the date on which the mandate was signed where it was given after 31 March 2012, the amount of the collection and the payee's identifier (2).
Setup for a recurring Core collection therefore depends on information you must keep and pass on with every debit, not only on the initial sign-up (2).
Setup steps for recurring SEPA Core collections, the rule behind each and how to check it
Setup step | Rule it rests on | How to verify |
|---|---|---|
Obtain a Creditor Identifier | A Creditor PSP must oblige each of its Creditors to obtain and use a Creditor Identifier when effecting SEPA Direct Debits | Every collection carries your payee identifier |
Use a rulebook-compliant mandate | The mandate must contain the necessary legal text and the names of the parties signing it | It is signed by the account holder or by a person with authorisation such as a power of attorney |
Store the signed mandate and its amendments | The creditor stores the mandate intact, with amendments and cancellation or lapse information, for as long as it exists | You can give your Creditor PSP a copy of any mandate without delay when requested |
Capture the customer's IBAN before the first collection | Before the first direct debit the payer communicates its payment account identifier, and the BIC was required only until 1 February 2016 for cross-border transactions and only where necessary | Each collection shows the payer's IBAN and the unique mandate reference |
Send mandate data with every collection | The payee sends the mandate-related information to its PSP with the first and each subsequent transaction, and the payee's PSP passes it to the payer's PSP | Each collection shows the direct debit type, the mandate signature date where the mandate was given after 31 March 2012, and the amount |
How do refund rights and reversal windows differ between Core and B2B collections?
Under the Core scheme, your customer may ask its bank for a refund of an authorised collection within eight weeks of being debited, and of an unauthorised collection within thirteen months (1). Under the B2B scheme, the debtor is not entitled to a refund of an authorised collection, and may claim a refund of an unauthorised collection within thirteen months only when it considers the collection is not covered by a B2B Mandate.
In Core, the debtor's bank may recover a paid refund from the creditor's bank, and the creditor's bank may recover it from the creditor (1). In B2B, the debtor's bank is not allowed to recover the refund from the creditor's bank.
Both schemes apply the same timing for when the debtor's bank must receive a collection (1). The annex is an overview, does not reflect every detailed difference, and does not override either rulebook.
What timing do I build into each recurring collection cycle?
The Pre-notification must be sent by the Creditor at the latest 14 Calendar Days before the Due Date unless another timeline is agreed between the Debtor and the Creditor (1). The pre-notification states the amount and due date, may travel with an invoice, and may set out a schedule of repeated debits for an agreed period.
You may send the collection to your Creditor PSP after the pre-notification, but not earlier than 14 calendar days before the Due Date, unless you agree otherwise with your Creditor PSP (1). The debtor's bank must receive the collection at the latest one Inter-PSP Business Day before the Due Date. Timing of one recurring Core collection shows the order and deadlines of one cycle.
Reversals may only be processed from Settlement date and within the five Inter-PSP Business Days following the Due Date requested in the original Collection (1). Until the Due Date, the debtor can also instruct its bank to refuse a future collection.
Timing of one recurring Core collection
- Send the pre-notification — The creditor sends it at the latest 14 calendar days before Due Date unless another timeline is agreed with the debtor.
- Send the collection to your Creditor PSP — Allowed after the pre-notification is sent and not earlier than 14 calendar days before Due Date, unless otherwise agreed with the Creditor PSP.
- Debtor PSP receives the collection — At the latest one Inter-PSP Business Day (D-1) before Due Date and not earlier than 14 calendar days before Due Date.
- Returns settle — The latest date for Settlement of Returns is five Inter-PSP Business Days after the Settlement Date of the collection.
- Reversals — Reversals may only be processed from Settlement date and within the five Inter-PSP Business Days following the Due Date.
Sources
- SEPA Direct Debit Core Scheme Rulebook 2025 Version 1.2, European Payments Council, 30 September 2026
- REGULATION (EU) No 260/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009, Official Journal of the European Union, 14 March 2012