The Single Euro Payments Area (SEPA) is the area where citizens, businesses, and other economic agents can make and receive payments in euros across Europe, both within and beyond national borders, under the same conditions and with the same rights and obligations, regardless of where they are located. – SEPA.
This regulation came into effect on February 1, 2014, unifying the way euro payments are made across the 27 member countries of the European Union (EU) as well as Iceland, Liechtenstein, Norway, Andorra, Monaco, San Marino, Switzerland, the United Kingdom, and Vatican City. What does this mean, exactly?
It makes national and cross-border payments safer, easier, and more efficient for customers and businesses.
Continue reading if you want to learn more about this solution, ideal for your company’s recurring collections.
What is SEPA Direct Debit?
SEPA Direct Debit, also known as bank direct debit, is a charge that is made directly from the debtor’s account. Since the SEPA regulation came into effect, it has become more convenient than ever. All that is needed is a bank account.
Easy Payments
It is a straightforward payment method that is processed in minutes, which is very attractive to many customers. They only need to provide their bank details (IBAN), sign the SEPA mandate or direct debit order authorizing the creditor to make the charge, and that’s it.
Build customer loyalty with this convenient payment method.
Minimal Effort
Neither you nor your customers want to waste time managing payments and collections. SEPA Direct Debit allows for automatic collection. Once the SEPA mandate is signed and payment times are defined, the collection is initiated by the creditor and directly deposited into the customer’s account. No further action is required from the consumer, and both parties can relax.
Always on Time
By signing the SEPA mandate, payment dates are defined, and the process is automated to ensure secure collection on the due date.
No need to wait for the customer to make the payment or to chase them. Additionally, you won’t have to invest time or resources in resolving these issues.
Maximum Security
Some customers might feel insecure about providing their bank details, but with direct debits, they are protected. Their private information is encrypted using a security system that keeps it safe and secure.
Moreover, if a payment is made in error or with malicious intent, customers have 8 weeks to report it and recover their money.
No Credit/Debit Card Needed
While very useful, credit or debit cards can expire or be lost. With SEPA Direct Debit, you don’t need to worry about cards—IBANs are fixed and unique.
Greater Range of Prices
Other payment methods often have limits on the maximum amount you can charge, unlike SEPA Direct Debit. This solution is useful for large payments such as school fees, university tuition, utility bills, phone bills, leasing, or renting…
These features have led to 45% of transactions in Spain being carried out via direct debit*. A statistic that speaks for itself. SEPA Direct Debit improves customer relationships and provides great utility for your business.
*Data from Banco de España, 2021.
How Wannme Enhances SEPA Direct Debit
At Wannme, we offer this solution, but we like to say we take it to the next level. By improving its utility and adaptability, we cater to all types of clients.
Typically, the SEPA mandate is signed in a physical location on paper. Wannme changes this by offering a 100% digital process. The customer specifies the account for the direct debit, clicks a simple checkbox, and authorizes the company to make the charge. Digitizing the process is very convenient for companies with a remote client base.
Previously, we mentioned the 8-week guarantee for SEPA direct debits. If a customer decides to reverse a charge, you still need to handle these returns. Wannme helps automate the entire process with its functionalities.
Activate an alert to know when a receipt has been returned, detect the error, send necessary communications via the most suitable channel for the customer (SMS, email, WhatsApp…), automated and personalized with your company’s visual identity, and retry the collection in seconds. In essence, resolve payment issues quickly.
Another advantage of integrating SEPA Direct Debit with Wannme is the ease of managing client files. Forget about sending files to the bank with client names and accounts every month; Wannme simplifies this. From Wannme’s Control Panel, you can create and edit them as needed, thanks to our online payment and collection platform, defining various automatic events for payments. Discover all the benefits of SEPA Direct Debit.
Maximum utility in a single API. We enhance the programmability of collections through SEPA direct debits, offering flexible payment plans, subscriptions, and our powerful API to manage them.
Types of SEPA Direct Debit
SEPA Direct Debit is a useful solution that can be applied in various types of businesses. Therefore, it’s important to know there are two types of this payment method and which is more suitable for your business.
They are divided into SEPA Core and SEPA B2B.
- SEPA Core:
- Intended for individual customers.
- The basic system and mandatory for any banking entity offering direct debits.
- Allows for different return times.
- No customer authorization needed to charge the payment.
- SEPA B2B:
- Intended for legal entities: businesses or freelancers.
- Banking entities may or may not offer this.
- Requires signed customer authorization and is less flexible with returns.
- The customer has 3 days to return the receipt.
For example, SEPA Direct Debit is perfect for recurring or subscription-based business models such as gyms, language schools, educational institutions, car rentals, mobility companies, software licenses, IT maintenance, utility companies, etc. It can even be used to manage internal company billing, ensuring liquidity.
Our SEPA direct debit solution provides complete flexibility, allowing the customer to choose how and when they want to pay. Want to change the amount to be paid from one month to the next? No problem; you can set whether the installment will be fixed or variable. Do they want to pay part now, another part in 3 months, and the final part in 6 months? Perfectly fine; choose the frequency, fixed or variable, that best suits the customer from our platform. And if they want to pay the last installment in cash? With Wannme, combine different payment methods (Bizum, PSD2 Transfer, etc.) to facilitate payments for your consumers and simplify collections.
Additionally, with Wannme, you not only cover your company’s recurring collections but also benefit from automatic recovery, closing your payment journey completely. Managing returns and claims has never been so easy.
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