SEPA direct debit as a payer

Do you need to pay a mobile phone or electricity bill or an insurance premium as a business entity? From now on, you can do it in a simple and carefree way using the SEPA direct debit service.

SEPA represents an initiative of the European Union with the aim of establishing a single payment system in which legal entities, having the same rights and obligations, can make and receive payments under equal terms.

What is SEPA direct debit?

Payment service used for recurring payments (e.g. monthly bills for telecommunication services, monthly electricity bills...),
National or cross-border payment service for debiting the account of the payer (a natural person or a business entity) where the payment transaction is initiated by the payee (a legal entity) based on the mandate i.e. consent given by the payer to the payee,
SEPA direct debits in the Republic of Croatia are carried out according to the SEPA rules for the SDD Core Scheme,
in order for the SEPA direct debit service to be implemented, the natural person or the legal entity (in the SDD Core Scheme) must give mandate to the payee

Advantages:

Possibility of revocation (prior to execution)
Regular and secure settlement of obligations
Transparency – an overview of all payments available at any time
Having control - choose the maximum limit and/or payment method and allow your transaction account to be debited by one or more payees.

Where does one give mandate for the service?

The payer (a natural person or a legal entity) gives mandate directly to the payee (a legal entity)

Where does one revoke mandate for the service?

The payer (a natural person or a legal entity) cancels the mandate given to the payee (a legal entity)

Obligation of making a refund to the payer upon their request:

The SEPA rules stipulate the right of the payer (a legal entity or a natural person) to an unconditional refund of any amount paid, within 8 (eight) weeks of the date of debiting the account, and the right to a refund of an unauthorised payment transaction within 13 months.

Arranging specific conditions (prohibition, black and white lists):

A natural person or a legal entity can arrange, with their bank, prohibition of the service or they can set a black/white list of payees or other specific execution terms