SEPA Direct Debit (SDD) brings quite some number of new requirements for not only the software solutions but also for customer business processes.
The SEPA Direct Debit enables you, as a creditor, to make pan-European collections in euros on a one-off or recurrent basis. Launched in 2009, SEPA Direct Debit has increased creditors’ responsibilities, requiring to restructure processes and build in additional procedures. In many countries, the impact of the migration to the SEPA Direct Debit will be greater than that of the migration to the SEPA Credit Transfer.
Under SEPA Direct Debit, the creditor has to store original mandates, digitalize them and send mandate-related information with each direct debit order. Pre-notification messages have to be send before debiting an account. In most European countries it is possible to re-use existing mandates when migrating to the Core version, even though the migration to SEPA requires changes and new information has to be added. For the B2B version new mandates are required.
There are two separate versions of the SEPA Direct Debit:
SEPA Direct Debit Core (also known as Standard)
This version is used for collections from individuals and business clients. The refund period is 8 weeks for authorized transactions.
SEPA Direct Debit Business-to-Business (B2B):
This version is used for collections from business to business. There is no refund for authorized transactions and a stricter mandate checking process.
Exact has introduced SDD functionality for Business Solutions customers in 2010 in the Exact Globe Next product update 400. This functionality was initially available for customers, which banks are in the Netherlands, Belgium, Germany or Austria. This solution is being further extended for other SEPA countries as from Exact Globe Next product update 406. The SDD solution is also improved based on direct Exact customers feedback. Implementing these improvements, Exact is actively involving customers into the development process with aim on satisfying most critical requirements in most convenient way for customers. You may learn some more details about most recent improvements in SDD functionality here.
Exact is commuted to further improvements in SEPA functionality. You are welcome to stay updated on further developments in this solution area through our regular postings on this Blog.