What is a SEPA direct debit mandate, and why do we need it for you to use the PRISMA API?
The Single Euro Payments Area (SEPA) is a payment integration initiative of the European Union for the simplification of bank transfers in EURO. SEPA will enable customers to make cashless EURO payments to anyone located anywhere in the area, using a single bank account and a single set of payment tools.
We are required to have a signed mandate form on file for shippers wishing to use the PRISMA API.
Please download our SEPA mandate form, fill-in the relevant data, and send it to us so that we may set up the SEPA mandate.
What are the relevant elements of SEPA Direct Debit?
SEPA Direct Debit is similar to Direct Debit schemes that are used within different European countries.
- Pull based – Once given a mandate by our customers, we are the ones who initiate payments.
- Bank-to-bank payments – In SEPA Direct Debit payments, no credit card networks are involved. Communications take place directly between the banks.
- Only Euro Currency – The SEPA Direct Debit transactions happen in Euro (even if the relevant accounts aren't in Euros). Any currency exchange required is up to the payer's and merchant's banks.
- Chargebacks are possible – Payers can get a refund from their bank for unauthorised SEPA payments for up to 13 months.
- Bank details needed – To collect SEPA payments, we require user's BIC and IBAN code.
Why we use the SEPA B2B Direct Debit
SEPA Direct Debit in general refers to two schemes: SEPA Core Direct Debit and SEPA B2B Direct Debit. We only use the SEPA B2B Direct Debit scheme:
- B2B Customers – The SEPA B2B Direct Debit scheme can only be used by businesses - not private individuals or microenterprises.
- Indemnity claim protection – SEPA B2B Direct Debit customers are not entitled to refunds on authorised transactions. Refunds for unauthorised transactions are only possible if the payer proves that he did not agree to a B2B mandate (up to 13 months after the debit date).
- Timing – SEPA B2B Direct Debit offers a shorter timeline for payment submission (1 day before the collection) and a faster response time from the banks in case of technical failure or inability to collect (2 days after collection).