White Paper E-Mandates for SEPA Direct Debit

Opportunities for Banks, Creditors and Service Providers

With the SEPA migration end date set for February 2014, banks and creditors need to adapt their systems to support the management of SEPA Direct Debit (SDD) mandates.

This white paper is targeted at banks, creditors, and service providers seeking a solution that streamlines their processes and complies with the new SEPA requirements and recommendations. It presents possible alternatives and discusses their respective advantages and limitations.

These solutions are assessed based on arguments taking into account the mandate validity, the efficiency for all involved actors (debtor, debtor bank, creditor and creditor bank), and the reachability of potential debtors and creditors.

The investigated alternatives are:

  • (Scanned) paper mandates and two-corner model mandate solutions
  • Three-corner model-based mandates that make use of a digital signature
  • Four-corner model solutions for e-mandates which directly involve the debtor bank and the creditor bank

Authors: Thomas Renner, Maximilien Kintz, Falko Kötter, Jan Finzen
Publication date: 2013