SEPA Migration Checklist

Dear client,

Single Euro Payments Area (SEPA) standards become mandatory across 17 Euro member states on 1 February 2014. If your organisation initiates Euro ACH payment or direct debits, action needs to be taken to ensure compliance. This email series is intended to provide you with relevant information and practical guidance.

The importance of lodging SEPA Direct Debit B2B mandates with your bank

1) What is a SEPA Direct Debit B2B Mandate?

  • The SEPA Direct Debit Business-to-Business (B2B) scheme is one of two direct debit schemes in SEPA - this scheme can only be used to collect funds from businesses.
  • When the SEPA B2B scheme is being used, the debtor (payer) must lodge a mandate with their bank before payments can be made. This is unlike the SEPA Direct Debit Core scheme, where no mandate needs to be lodged with the paying bank.

2) As a payer, how do I recognize a SEPA Direct Debit B2B mandate?

  • You can recognize this type of mandate as "SEPA B2B" or "SEPA Business-to-Business" must be indicated clearly on the mandate. Your creditor will supply you with the mandate.

3) As a payer, what should I do with a SEPA Direct Debit B2B mandate?

  • You should sign and authorize the SEPA Direct Debit (DD) B2B mandate.
  • You must confirm the authorization of this mandate with your bank (Paying Bank) by following your bank's mandate lodgement process. Citi supports SEPA DD B2B mandate lodgement through our award-winning platform, CitiDirect. Please click here for more details or contact your Citi representative for more details.
  • You should return a signed mandate to your creditor (e.g. a vendor).
  • Note: If a SEPA Direct Debit B2B transaction fails validation due to incorrect setup or no mandate lodgement, then the transaction will be rejected and the payment will not be made. You may face penalties for certain missed payments (for instance - late tax payments).
  • Should you wish to amend or cancel mandates, you should advise these changes promptly to both your creditor and your paying bank.

SEPA has the ability to deliver real value to your organization. Citi is committed to delivering solutions that enable you to capitalize on the benefits that SEPA offers.

To put our expertise to work for you today, please contact your Citi representative or visit our SEPA website at www.transactionservices.citi.com/SEPA where you can also find previous SEPA topics covered in this series.

Regards,
Treasury and Trade Solutions.

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