To explain what a SEPA mandate is, we must begin by explaining what SEPA is.
SEPA is the Single Euro Payments Area, a European Union project that facilitates the management of payments and accounts receivable in euros. This initiative, which began between member states but has now been joined by neighbouring countries, containing a set of rules that determine how information on accounts receivable and payments is sent, what information is necessary and what deadlines must be met. Any bank involved in the SEPA network must comply with these rules.
These conditions apply to the various possible transactions: standing orders or direct debits, transfers and debit card transactions.
So, what is a SEPA mandate? A mandate is an authorization, signed by the debtor, which allows the creditor to charge his account. Mandate signing is mandatory in order to be able to charge the customer’s account, but this process must be done only once, and it can be signed digitally.
In this way, the mandate allows not only to collect information from the client, but also to clearly inform the client of his or her rights. If both conditions are not met, the mandate may be declared invalid.
The mandate should always contain:
- Creditor information: name, creditor identifier within the SEPA scheme.
- Debtor information: name and address, IBAN and BIC of your account, signature of the debtor.
- Mandate specific information: unique mandate reference, date of signature, scheme or type of payment (CORE or B2B).
In addition, the mandate should also include comments that indicate to the client that:
- It is a mandate to make SEPA direct debits (both in the title and in the separation of other documents).
- This is an authorization that will allow to receive accounts receivable, as well as the right of reimbursement.
When you work with a high volume of recurring receivables, you can lose a lot of time in dealing with incidents, bank mediation , etc. as well as having to deal with the usual unnecessary bureaucracy of banks.
Besepa, Docuten platform, is a technological layer that simplifies the management of companies recurring accounts receivable and the relationship with banks. Not only does it save you time thanks to the automation of accounts receivable, but it also provides you with more information than banks and in a shorter time, which allows you to improve the tedious bank mediation.
Savings in development by integration, in time by automated response, in the management of subsequent incidents, in mediation , etc. all in a single platform that will allow you to easily manage the collection of payments from your customers.
In addition, you can digitally sign your mandates through Docuten.
Do not hesitate to contact us for more information!