In European Direct Debit, an account holder grants a payee a (single or standing) authorisation to automatically debit amounts from his current account. Efficient and simple, the European Direct Debit is suitable for payments from both private and business parties.
It comes in two variants: the Standard European Direct Debit and the B2B European Direct Debit. The standard variant is intended for both private and business account holders and includes a reversal period of eight weeks. The B2B variant is intended solely for business account holders and does not offer a right of reversal. What’s more, the issued authorisation must be registered with the bank.
European Direct Debit is simple and efficient, with low processing costs. You (in consultation with the customer) determine the time of collection, after which no further action is required. Moreover, the administered settlement is simple and standardised.
The advantages of European Direct Debit are