In concrete terms, the SEPA Direct Debit enables a creditor to withdraw an amount from the account of its debtor, located in a SEPA country, in particular for recurring payments.

SEPA Creditor Identifier

Features of the SDD B2B

The SEPA business-to-business direct debit, also known as SEPA B2B or SDD B2B, is intended for professionals. It enables a single or regular euro invoice to be paid in euros, with no upper limit on the amount, to a creditor within the SEPA zone, and to set up a payment schedule if necessary. Each direct debit, i.e. each contract, must be accompanied by a mandate, either paper or dematerialised, which the creditor has the debtor sign. This document replaces the old direct debit authorisation application. To do this, the Creditor must have a SEPA Creditor Identifier and clearly indicate on each mandate the RUM number (unique mandate reference) allocated. The Creditor must keep all original signed mandates in a safe place so that they can be returned to the Debtor, upon request, within 30 days.

Time limit for executing and contesting the SDD B2B

The B2B SEPA Direct Debit is reserved for business-to-business payments. It must be submitted no later than one working day before the due date. If the debtor contests a direct debit, he may do so for 13 months, but only if the transaction was unauthorised or erroneous.

How to set up a B2B SDD?

The implementation of an inter-company levy requires the respect of several steps. Firstly, ensuring that both banks can process B2B SDD direct debits. Second, the creditor must have the debtor sign a SEPA B2B direct debit mandate. It is important to ask the debtor to send a copy of the mandate to his bank, in order to avoid any direct debit rejection. Finally, the creditor must keep or have a third party keep all the mandates that have been put in place, in order to ensure their proper management over time.

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