SEPA Direct Debit Scheme

Sending and Collecting Euro (EUR) Money Transfers from other EU Countries

The Single Euro Payments Area (SEPA) is an initiative by the European Union aimed at creating a single market for electronic payments across Europe. One of the key components of SEPA is the SEPA Direct Debit scheme, which allows businesses to collect payments from their customers across the SEPA region.

SEPA Direct Debit is a convenient and efficient way for businesses to collect payments from customers in the SEPA region. It allows businesses to collect payments in euro from their customers’ bank accounts, without the need for a physical signature or paper mandate. This makes it an ideal solution for businesses that collect recurring payments, such as subscriptions or regular payments for services.

Initiating Payment Requests

SEPA Direct Debit works by allowing businesses to initiate a payment request to their customer’s bank, known as the ‘creditor bank’. The creditor bank then sends the request to the customer’s bank, known as the ‘debtor bank’. The debtor bank then debits the customer’s account and sends the payment to the creditor bank. The payment is then credited to the business’s account.

SEPA Direct Debit is a cost-effective way for businesses to collect payments, as it eliminates the need for the manual processing of paper mandates. It also reduces the risk of fraud, as there is no need for a physical signature. SEPA Direct Debit is available to businesses of all sizes, including small and medium-sized enterprises (SMEs), and can be used for both domestic and cross-border payments.

SEPA Direct Debit Agreements

To use SEPA Direct Debit, businesses need to have a SEPA Direct Debit agreement with their bank. They also need to obtain a Unique Creditor Identifier (UCI), which is a unique identifier assigned to each creditor by their bank. The UCI is used to identify the creditor in the payment request.

SEPA Direct Debit is a secure payment method, as it is covered by the SEPA Direct Debit Guarantee. This guarantee ensures that customers have the right to a refund in the event of an unauthorised payment or an error in the payment process.

In conclusion, SEPA Direct Debit is a convenient and efficient way for businesses to collect payments from customers across the SEPA region. It offers a cost-effective and secure payment solution for businesses of all sizes, and is available for both domestic and cross-border payments. Businesses interested in using SEPA Direct Debit should speak to their bank to obtain a SEPA Direct Debit agreement and a Unique Creditor Identifier.

Business Payments with your Own Currency Expert – TorFX

With TorFX, sending regular business payments overseas to pay for employees, products, services, overheads or other business costs is cheaper, quicker and easier than using a high street bank service. TorFX offers a low-cost and faster alternative to international bank transfers.

For businesses who send regular amounts overseas to make payments in the UK Pound (GBP), Euro (EUR) and many other popular global currencies, using a specialist FX transfer provider like TorFX is a money saving decision if your transfers exceed £500 per month. Business money transfer payments are very competitive with TorFX, example GBP vs EUR exchange rates:

TorFX Business Account Services

Opening a business account with TorFX is quick, easy and free, and comes with no obligation to trade. You can register online and once your account is open you can start arranging transfers straight away.

Every TorFX client is assigned their own personal point of call, an approachable currency expert who’s on hand to offer guidance, specialist insight and regular updates whether it’s your first transfer or your hundredth.

TorFX is authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services – TorFX is licensed as a money transmitter by HM Revenue and Customs – MLR number 12191606.

Tor Currency Exchange Ltd is authorised by the Financial Conduct Authority as an Electronic Money Institution under the Electronic Money Regulations 2011 and their FCA Firm Reference Number is 900706. TorFX are a member of the UK Money Transmitter’s Association.