A key requirement from corporate user groups was the creation of a direct debit instrument more geared towards the needs of business users. As outlined below, the core SEPA direct debit places a lot of emphasis on consumer protection and therefore has long refund timelines. Business users have expressed a need for different rules for direct debits where both debit and credit parties are corporates. For this purpose, the EPC has created an optional SEPA direct debit scheme: the B2B SEPA Direct Debit.
Consequently, it contains a few differences compared to the core SEPA Direct Debit. For example:
- Returns by the debtor are not possible, i.e. B2B direct debits will not be refundable (whereas in the core scheme the debtor can request refund of a direct debit up to eight weeks after the debit date)
- Therefore, the bank of the debtor must conduct a mandatory mandate check to verify that the direct debit is indeed valid
- Also, there is a shorter collection cycle of D-1 (D being the due date) for first and subsequent collections
- All returns by banks will be settled on D+2 at the latest
The Business-to-Business SEPA Direct Debit was launched at the same time as the SEPA Core Direct Debit (November 2009).