What do I need to do to set up SEPA Direct Debit Payment?

Q: What do I need to do to set up SEPA Direct Debit Payment?

If you pay via SEPA Direct Debit, funds are debited from your account by an authorized third party (the creditor or merchant). You authorize the debit by signing a SEPA Direct Debit mandate , which allows the merchant to initiate withdrawals under agreed terms (e.g., subscriptions, invoices, or utility payments). The merchant submits the collection to their bank - > you are notified in the APP prior to the expected collection -> the amount is debited from your business account -> funds are credited to the merchant account. Example : A gym collects your monthly membership fee via SEPA Direct Debit. You signed a mandate when joining. On the collection date, the gym’s bank sends the debit instruction, and your bank automatically transfers the funds from your account.

Question

Accepted Answer

If you pay via SEPA Direct Debit, funds are debited from your account by an authorized third party (the creditor or merchant). You authorize the debit by signing a SEPA Direct Debit mandate, which allows the merchant to initiate withdrawals under agreed terms (e.g., subscriptions, invoices, or utility payments). The merchant submits the collection to their bank - > you are notified in the APP prior to the expected collection -> the amount is debited from your business account -> funds are credited to the merchant account.

Example:

A gym collects your monthly membership fee via SEPA Direct Debit. You signed a mandate when joining. On the collection date, the gym’s bank sends the debit instruction, and your bank automatically transfers the funds from your account.