SEPA direct debit: how long does it take?

How long does a SEPA direct debit take? The answer

A SEPA direct debit generally takes between 2 and 5 working days . In other words public holidays and weekends are excluded of this countdown. A direct debit launched on a Friday, for example, may take longer because the transaction will be suspended over the weekend.

There may also be discrepancies between SDD Core and SDD B2B direct debits.

A reminder of what a SEPA direct debit is and its characteristics

Here are the main features of a SEPA direct debit:

SEPA Direct Debit: definition

A SEPA direct debit is a means of payment used for regular recurring payments between professionals. In concrete terms, it's a authorization given by a debtor to his creditor to withdraw a certain sum from his account. It is therefore commonly used to pay subscriptions, taxes and other fiscal obligations.

Sampling is one of those operations known as "to the hand of the paid . Unlike a credit transfer, where the holder of the account to be debited initiates the transaction, a direct debit is initiated by the creditor. However, authorization from the payer is required. This authorization takes the form of a a direct debit mandate.

The term SEPA (Single Euro Payments Area) direct debit was coined by in November 2010. This is a single payment area created to harmonize and facilitate financial exchanges in euros within the European Union. 36 countries As a result, it is now the only levying instrument used in these countries. Even for companies that only operate in France, for example.

Authorized direct debits can no longer be contested

That's one of the main features of the sampling system. It is also its main advantage, as it offers enhanced safety for contractors Direct debits make payments secure. Once the direct debit mandate has been issued and submitted to the bank, the operation is launched.

The levy cannot be reimbursed.

On the other hand, unauthorized or erroneous withdrawals can be contested. There are cases of fraudulent direct debits. from 2 to 3 months from the date of collection. However, a refund remains uncertain.

A direct debit mandate can also be expressly revoked by notifying your creditor and your bank.

Direct debit for regular, recurring payments

Of course, it is possible to issue a one-time direct debit mandate, i.e. valid for one time only. However, this type of transaction is preferred for recurring payments, as it to automate recurring transfers. In this way, sampling offers u n time saving This saves you time-consuming and time-consuming paperwork every month. You fill in a direct debit mandate in one go, and payments are made every month without any intervention on your part.

An operation that optimizes payment and collection management

Setting up direct debits allows you to optimize your cash management. You can control your payments because funds are automatically transferred on the right date. You avoid late payments and penalties.

On the other hand, setting up direct debits for your customer payments also ensures you of to be paid on a fixed date. You limit the risk of non-payment .

What's more, you can rest assured that your payments will be secure, because once they have been set in motion, direct debits cannot be disputed.

Receiving a payment with SEPA direct debit

There are two types of sampling:

• Sampling SEPA core ;

• Sampling SEPA B2B.

To set up these two types of direct debit, you need to complete a direct debit mandate.

This document indicates :

• SEPA direct debit type (Core or B2B) ;

• Creditor and debtor contact details ;

• The unique mandate reference (RUM) ;

• Le type of mandate t (one-off for a single mandate or regular for recurring and regular transfers) ;

• A statement that the debtor authorizes the creditor to debit his account and the bank to carry out the transaction.

The document is then signed by both parties . It must be presented to the creditor's bank within 1 to 5 business days lead time before the sampling date.

If you choose this payment method to debit your customers, you must obtain an ICS or SEPA creditor identifier with your bank.

Once the operation has been set up, the creditor is notified at least 14 days before each operation is carried out.

SEPA Core Direct Debit

An adapted sampling system for all types of debtors Business and private customers. This type of direct debit is offered by all banks. It is a legal obligation.

To set up a Core direct debit, the debtor of the transaction must send the direct debit mandate to your creditor . The latter will then forward it to the bank to set up the transaction.

SEPA B2B Direct Debit

The SEPA B2B direct debit, as its name suggests, is only suitable for for transactions business-to-business. Il means of payment. for professionals only . More specifically, this is the type of direct debit suitable for any legal entity such as a company or association, or any individual acting in a professional capacity, and is also the type of direct debit used to pay taxes or VAT, for example.

Unlike SEPA Core direct debits, B2B direct debits are not not offered by all banks. A company wishing to open a business account is therefore well advised to find out more about this.

B2B direct debit has shorter lead times because it responds to the need to speed up and streamline financial and commercial exchanges.

In the case of a SEPA B2B direct debit, the mandate includes the words "Interentreprises".

Once the mandate has been completed, it must be sent by the debtor. to the creditor and its bank.

How can I reduce the direct debit lead time for a SEPA direct debit?

It's possible to optimize SEPA direct debit lead times by combining the B2B system with the Core system As we have seen, SEPA B2B direct debits have shorter lead times, especially for the first direct debit. On the other hand, when combined with the Core system, you'll be able to make the most of your time. optimize the process for subsequent sampling.

How can I reduce the time taken to process a SEPA direct debit with Hero?

You can reduce your supplier and customer payment times with Hero . This is a B2B payment solution that advance immediate payment of your invoices without waiting for payment deadlines.

You can use it for your recurring payments to obtain more attractive payment terms. In fact, as soon as invoices are sent, the platform only takes 24 hours to transfer the funds to you.

In conclusion, SEPA direct debits offer companies time savings and security, enabling them to better manage their cash flow. However, the time it takes to complete the transaction can be a major obstacle to its use. With a processing time of just 24 hours, Hero seems to be an ideal alternative to SEPA direct debits and their deadlines sometimes lengthy.

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