SEPA Direct Debit: main uses, advantages and disadvantages
Just over a decade ago, cross-border direct debit payments in Europe were rather complicated. Before the pan-European SEPA (Single Euro Payments Area) standard was introduced, differences in national banking systems meant receiving a payment from abroad was time-consuming and costly.
With the introduction of the SEPA Direct Debit scheme, the regulations have been simplified and no longer distinguish between direct debits collected in, for example, Germany and Italy or the Netherlands. More than 600 million people in 36 European countries and territories can now make use of this direct debit system to make one-off or recurring transactions.
Let’s take a closer look at what the SEPA Direct Debit scheme is, how it works, and what benefits it brings to merchants and consumers across Europe.