SEPA Migration Checklist
What should I consider when choosing between SEPA Direct Debit Core and SEPA Direct Debit B2B schemes?
With SEPA Direct Debits there are two schemes that organizations can look to adopt – SEPA Direct Debit Core (Core) and SEPA Direct Debit B2B (B2B). When deciding on which scheme to adopt, the following are some of the criteria that should be considered in order to select the scheme that best suits your needs:
- Scheme Purpose: The Core scheme is designed to be adopted for both consumer flows (C2B) and business flows (B2B). The B2B scheme is however expected to handle high value DD collections and is only permitted to collect DD’s from business accounts, as per national definitions.
- Reachability: For banks within the Euro zone that currently offer domestic Euro DD services, the Core scheme is mandatory. However the B2B scheme is an optional scheme, meaning that not all banks must participate in the scheme. We recommend that creditor organizations check reachability for each counterparty that your debtors are banking with.
- Revocability / Claims: Importantly, the Core scheme permits debtors to claim a refund within 8 weeks of the collection date, whereas within the B2B scheme the debtor explicitly waives this right to refund, subject to a valid mandate being in place. For both schemes debtors have up to 13 months to request a refund if the DD transaction was unauthorized, i.e. done without a valid mandate.
- Mandates: For the SEPA Direct Debit Core scheme, existing local direct debit mandates obtained before 1st Feb 2014 are valid to be used, albeit they might be missing mandatory information before they can be used in SEPA DD transactions, such as unique mandate reference numbers, BIC and IBAN. However the B2B scheme requires that new mandates be obtained while also requiring that a mandate be lodged with the debtor bank.
- Value dating: For recurring direct debits, the standard Core scheme has an execution cycle of D-2. The corresponding execution cycle for the B2B scheme is D-1.
SEPA has the ability to deliver real value to your organization. Citi is committed to delivering solutions that enable you to capitalise 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
We have upcoming SEPA webinars in February and March – to register your attendance visit: https://www.citibank.com/transactionservices/home/about/online_academy/form.jsp
- Your Migration to SEPA for Direct Debit Clients
20th Feb 2013 at 3pm GMT
- Countdown to SEPA — 1 year to go – this webinar is focused on Asia based clients
26th Feb 2013 at 2.30pm Hong Kong time
- SEPA – Practical Steps to Meet the Deadline
14th March 2013 at 3pm GMT
Citi Transaction Services
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