Unlike a transfer (initiated by the payer), SEPA Direct Debit is initiated by the creditor. The process relies on prior consent:
The debit can be one-off (single payment) or recurring (at regular intervals). A prior notification to the debtor is required before each collection (amount and date), unless a shorter notice period is agreed.
Direct Debit is the mirror image of a transfer: while a transfer "pushes" money, Direct Debit "pulls" it. This makes it ideal for automatic collections—but also requires a strict framework (mandate, notification) to protect the debtor.
SEPA Direct Debit gives the debtor dispute rights, which vary by scheme and authorisation:
| Situation | SEPA Core | SEPA B2B |
|---|---|---|
| Authorised debit disputed | Refund possible within 8 weeks | No refund |
| Unauthorised debit | Dispute up to 13 months | 13 months |
| Mandate registration by debtor’s bank | No | Yes, required |
For a creditor, the B2B scheme is more secure: a professional debtor cannot obtain a refund for an authorised debit, and their bank validates the mandate upfront. With Core, the 8-week refund window means mandates must be carefully stored and each due date properly notified.
In all cases, an unauthorised debit (missing or revoked mandate) remains contestable for 13 months, with an automatic refund: hence the importance of rigorous mandate and RUM management.
For an SME, SEPA Direct Debit is the lever that turns one-off sales into predictable recurring revenue: subscriptions, maintenance, payment schedules for a large invoice. Its main advantage is to eliminate reminders: once the mandate is signed, each instalment is collected automatically, without waiting for customer action.
The condition is proper mandate management: collecting consent online, generating the RUM, notifying each due date, handling rejections (insufficient funds, revoked mandate) and re-presenting them if necessary. Done manually, this process is time-consuming and error-prone.
Orizen connects this mechanism to its payment links: the customer authorises the direct debit online, the mandate and its RUM are stored, and subsequent instalments are collected automatically with reconciliation of received payments. An SME can thus set up a payment schedule or subscription and stop chasing each payment — direct debit becomes the engine of more regular cash flow.
Discover the Orizen answer: Orizen payment link, modular and built for French SMEs.
Essai gratuit 14 jours What the Orizen payment link module costsA SEPA Credit Transfer is initiated by the payer, who decides to transfer an amount without a mandate. SEPA Direct Debit is initiated by the creditor, based on a mandate previously signed by the customer: the creditor "pulls" the money at the agreed due dates. Credit Transfer suits one-off payments decided by the customer, while Direct Debit suits automatic recurring collections.
Yes. Under the SEPA Core scheme, an authorised direct debit can be refunded upon simple request within 8 weeks. An unauthorised direct debit (non-existent or revoked mandate) can be disputed for up to 13 months with a full refund. Under the B2B scheme, there is no refund for an authorised direct debit: the professional debtor waived this right when signing the mandate.
Yes, it is its primary use. Once the recurring mandate is signed, the creditor automatically collects at each due date without further action from the customer, making it the ideal tool for subscriptions, maintenance and payment schedules. The debtor must simply be notified before each collection, and any rejections must be managed — which automated collection software handles.