Recurring payments

Throughout the Single Euro Payments Area (SEPA), direct debits in euro follow the same principle – for people and businesses, and for domestic and cross-border transactions.

Good to know: SEPA payments only work in euro. Separate conditions, processing periods and charges apply to credit transfers in other European currencies.

All individuals and businesses within the SEPA region can use standardised SEPA Direct Debits (SDD) to make payments. To do so, you must first issue a written authorisation, the SEPA direct debit mandate. From then on, the respective payments will be made by direct debit automatically. This means the amounts due will be debited automatically from the payer’s account and credited to the payee’s account. This is particularly useful for regular expenses (electricity bills, streaming services) where amounts can vary. However, SDD also works for one-off payments.

How SEPA Core Direct Debit works

SEPA Core Direct Debit (SDD Core) can be compared to the type of preauthorised transfers formerly in use in Austria. Compared to that, consumers’ rights with regard to direct debits have been strengthened in SEPA. You can now, for example, set a limit on direct debits from your bank account or specify which payees are authorised to receive direct debits from your account. An authorised SEPA Core Direct Debit may be reversed within 56 days after the payment was debited from an account. If the direct debit mandate is missing or invalid, the direct debit may be reversed within 13 months.

How SEPA Direct Debit Business-to-Business works

SEPA Direct Debit Business-to-Business (SDD B2B) is intended for businesses only. An SDD B2B payment is debited more quickly than a standard direct debit (often just one banking day after the payment order is submitted) but cannot normally be reversed. Before the payment is made, the paying company’s bank must verify the direct debit mandate and details. If a direct debit mandate is missing or invalid, the direct debit can be revoked within 13 months.

What is a standing order?

With a standing order, you can automatically transfer money from one account to another at regular intervals – for example, to pay rent or insurance premiums or to make deposits into a savings account.

A standing order is particularly suitable for payments that are always for the same amount. If the amount to be paid changes, you will need to update the standing order. This is the main difference to SEPA direct debits, where the amount due is always debited – if the rent goes up, the SEPA direct debit amount will change accordingly. If you use a standing order, you will need to update it yourself, for instance if your rent goes up.

Benefits of SEPA

For people and businesses, SEPA makes cashless payments simple, transparent and easy to compare. Euro credit transfers and direct debits are processed quickly and smoothly and according to standardised rules. Both credit transfers and direct debits can be made from one and the same account.