SEPA Direct Debit

The SEPA Direct Debit (SDD) scheme allows a creditor to collect money from the debtor, with prior approval from the debtor. The direct participants are the following:

• Creditor
• Creditor's bank
• Debtor
• Debtor's bank

The debtor and creditor must each hold an account with a payment service provider located within SEPA. The accounts may be in Euro or in any other SEPA currency. However, the transfer of funds between the debtor's bank and the creditor's bank always takes place in the Euro currency. The indirect participants are the following:

• Clearing and Settlement Mechanisms (CSMs) such as an automated clearinghouse
• Intermediary Banks that offer intermediary services to debtor banks and/or creditor banks