What is SEPA Direct Debit


SEPA (Single Euro Payments Area) Direct Debit is a pan-European payment scheme that enables a merchantto collect funds from a customer’sbank account, providing that a Mandatehas been signed by the debtor (see “What is an e-Mandate” for more information). SEPA standardises certain payment methods throughout the Eurozone to allow customers and merchants to process transactions across Europe.

The key features of SEPA Direct Debit are as follows:

  • Pull based payment collection –When a merchant has been authorised to take Direct Debit payments by a customer, it is the merchant that collects the payment, so customers don’t have to do anything to make a payment.
  • Bank-to-bank payments – No card networks are involved within the SEPA Direct Debit scheme and all transactions are made directly from bank to bank.

SEPA Direct Debits is the best payment method available, but what does this mean for both consumers and merchants that work with Sentenial to process payment transactions?

Nuapay for Consumers

For consumers, Nuapay is an extremely useful way to manage your regular monthly bill payments as it requires minimal management. The amount specified to the merchant you wish to pay will only be taken from your account if you’ve given your bank, and the merchant, authorisation (via a signed mandate). The advanced notice of the amount/dates of collection for the product/service received will be provided by the creditor.

Once you have agreed all of this with your bank and the merchantreceiving your payment, the money will be deducted automatically from your account. As with any Direct Debit, you have the flexibility to amend the instructions as and when you like, providing that this is agreed with the merchant.

The details of this agreement, such as payment amount and date, can be variable once that the SEPA mandate has been authorised. Because of this flexibility and minimal management, SEPA Direct Debit is the most convenient and straightforward method of managing your regular bill payments.

For a consumer, Nuapay poses the following benefits:

  • Spread the cost of a particular product/service over an agreed period
  • Automatic payment from your bank to the merchant you wish to pay
  • Immediate money back guarantee from banks in the event of a payment error
  • Right to cancel the Direct Debit at any time

Nuapay for Merchants

For merchants, this is an excellent way of easily managing and keeping on top of your regular customer’s payments. Nuapay is perfect for merchants that typically process a large number of transactions each month, no matter where in Europe the funds are being sent from.

SEPA Direct Debit also offers less management than processing each transaction manually, simply because it saves time, decreases the cost of collections and debits the funds directly into their nominated bank account. However, there is still a fair amount of effort that merchants have to invest into maintaining the income of any recurring client payments.

For a merchant, Nuapay poses the following benefits:

  • It’s a much cheaper and safe alternative to cheque and cash
  • You can control the dates that your received funds are credited into your account
  • Schedule payments quickly that you can change anytime
  • Collect payments for ad-hoc work or take one-off fees from your customers
  • You can decrease time spent on reconciliation, as you can be notified of both successful and unsuccessful payments. Errors and problem payers can also be identified.



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