Last editedApr 2023
An explanation of the key terms used in SEPA Direct Debit.
|Acceptable equivalent||An electronic channel offering a security level considered sufficient by the merchant’s bank and accepted in the EPC e-Operating Model for e-Mandates.|
|Pre-notification||Notice that must be given, under the Scheme rules, to customers of each payment before it leaves their account.|
|BIC (Banking Identifying Code)||A code developed by the International Organization for Standardization (ISO) to identify banks and their branches.|
|Bureau||An organisation that submits Direct Debit requests to the bank on behalf of a 3rd party, who may or may not have their own Creditor Identifier.|
|Calendar days||A calendar day is any day of the year.|
|Refund||A payment refunded to the payer. Customers who claim a refund within the relevant time limits will be refunded immediately and in full.|
|Creditor Identifier||A unique identifier issued to every Creditor under the SEPA Direct Debit scheme.|
|e-Mandate||Process for authorising a SEPA Direct Debit mandate online, instead of with a paper form.|
|IBAN (International Bank Account Number)||International Bank Account Numbers (IBANs) are the international bank account numbers assigned to you and your customers. You can ﬁnd your IBAN on your account statement or via Internet Banking.|
|Interbank business day||An inter-bank business day is when banks are open for business between banks. The 'Trans-European Automated Real-time Gross Settlement Express Transfer System' (TARGET) calendar is used to identify inter-bank business days. To avoid frequent changes to TARGET closing days, due to national holidays for example and thus the introduction of uncertainties into financial markets, a long-term calendar for TARGET closing days has been established and applied since 2002. This calendar is published by the European Central Bank.|
|ISO 20022||ISO 20022, the International Organisation for Standardisation, use XML as the international standard format for payment messages.|
|Mandate||An authorisation from your customer to collect future payments automatically. To set up a mandate your customers must complete a standardised form.|
|Mandate form||A paper form that customers must complete to authorise a mandate to you.|
|Mandate related data||The data elements from the mandate which should be included with each collection.|
|Microenterprise||An enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.|
|Modulus Check||A procedure for applying a mathematical algorithm to an Account Number (or an account number and Sort Code combination) to check that it is valid.|
|SEPA||The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.|
|Sponsor Bank||A bank that enables you to access the Direct Debit Scheme and provides you with a Creditor Identifier.|
|Unauthorised Transaction||A SEPA direct debit is deemed to be an unauthorised transaction if:
|Unique Mandate Reference||This reference identifies for a merchant each Mandate signed by any of their customers. This number must be unique for each Mandate in combination with the identifier of the Creditor.|
|XML format||XML is a mark up language that is both human and machine readable. This means that if you look at a XML document you will be able to see information including, your payment batch information, your supplier name and IBAN information.|
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