The SEPA Direct Debit flow is composed of 3 main steps:
- Mandate capture and management: a SEPA Direct Debit Mandate has a "life". Once the debtor has signed the mandate, several "events" may occur (IBAN change, address change, consultation by a third party, proof management, revocation...). A comprehensive dynamic database and flow management must be implemented.
- Order management: Before collecting payment from the Debtor bank account, several steps must be completed:
- Debtor pre-notification: there is a 14 days notification period (that can be reduced upon Debtor agreement). The pre-notification must include the following information: the payment due date, the payment amount, the Unique Mandate Reference and the merchant Creditor Identifier. There is no requirement regarding the method for communicating the notification, meaning that this can be done through agreement of the General Terms and Conditions, it can be solely written on an invoice, it can be displayed in an online customer account, ...
- SEPA payment request to bank: this has to be done via a specific .xml file, which must be compliant with the ISO 2022 format and follow the correct SEPA Direct Debit sequencing (see SEPA Direct Debit Timeline).
3. Transactions execution: This is the e ective part of the collecting, which consists of orders remittance, payment on segregated account, and also management of Reject and Return transactions (unsuccessful charges