SEPA direct debits
A payment made by the creditor bank to the debtor bank in relation to the costs incurred by the debtor bank in relation to a direct debit transaction.
Business Identifier Code. An 8 or 11 character ISO code assigned by SWIFT and used to identify a financial institution in financial transactions (ISO 9362).
Cash Management messages are XML messages used between banks, which are defined in ISO 20022 standard.
The FIToFI Payment Cancellation Request message is exchanged between the instructing agent and the instructed agent and is used to request the cancellation of an original payment instruction (such as FIToFICustomerDirectDebit).
A collection is the part of a direct debit transaction starting from the collection initiated by the creditor until its end through the normal debiting of the debtor’s account or until the completion by a Reject, Return or Refund.
Non-bank and non-company creditor or debtor.
The individual or organization initiating a direct debit message.
Financial institution of the creditor that receives the direct debit transaction on behalf of an account owner, or other nominated party, and credits the account.
The bank where the creditor’s account is held.
A uniform and standardized number throughout Europe that unambiguously identifies the creditor and allows him to collect a SEPA direct debit, independent of any account.
An unambiguous information assigned by the creditor relating to the payment.
A Clearing and Settlement Mechanism (CSM) allows scheme participants or their branches to clear and settle payments made between them.
This date that the debtor account is debited.
The individual or organization whose bank account is debited via a direct debit.
Financial institution of the debtor that receives the direct debit transaction from the creditor or other nominated party and processes the instructions.
The bank where the debtor’s account is held.
Due date (Requested collection date)
The date the creditor asks for the money to be collected.
The European Payments Council (EPC), a consortium of banks and bankers’ associations from throughout Europe, is the owner of the SEPA schemes and defines the rules for the SEPA Direct Debit Scheme among others.
IBAN stands for International Bank Account Number and is the international standard for the presentation of account numbers.
Party initiating the payment
Agent that instructs the next party in the payment chain to carry out the (set of) instruction(s).
Interbank settlement date
The date the funds move between banks.
A fee between creditor banks and debtor banks due to the transaction costs.
This reference identifies for a given creditor, each mandate signed by any debtor for that creditor. This number must be unique for each mandate in combination with the identifier of the creditor.
Multilateral balancing payment arrangement
A default agreement between creditor banks and debtor banks relating to the multilateral balancing payment.
An order is a group of collections with a defined set of criteria.
Payments Clearing and Settlement messages are XML messages used between banks, which are defined in ISO 20022 standard.
An XML message (PaymentInitiationStatusReport) which is sent by an instructed agent to the payment initiator. It is used to inform this party about the positive or negative status of an instruction. It is also used to report on a pending instruction.
An XML message (FIToFICustomerDirectDebit) which is sent by the creditor agent to the debtor agent, directly or through other agents and/or a payment clearing and settlement system. It is used to collect funds from a debtor's account for a creditor.
An XML message (PaymentReturn) which is sent by an agent to the previous agent in the payment chain to undo a payment previously settled.
An XML message (FIToFIPaymentReversal) which is sent by an agent to the next party in the payment chain. It is used to reverse a payment previously executed.
Payments Initiation messages are XML messages which are used between customer and banks, and are defined in ISO 20022 standard.
An XML message (CustomerPaymentStatusReport) which is sent by an instructed agent to the payment initiator. It is used to inform this party about the positive or negative status of an instruction. It is also used to report on a pending instruction.
An XML message (CustomerDirectDebitInitiation) which is sent by the initiating party to the forwarding agent or creditor agent. It is used to request single or bulk collection(s) of funds from one or various debtor's account(s) to a creditor.
Pan-European Automated Clearing House (PE-ACH)
A clearing house for processing bulk payments.
Prior to the sending of the collection to the creditor bank, the creditor notifies the debtor of the amount and due date. This notification may be sent together with or as part of other commercial documents (e.g. an invoice) or separately.
This code explains the reason for the reversal for a collection. It is defined by the creditor who initiates the reversal. It can be used by the debtor bank to inform the debtor about the reason for the credit of the account of the debtor.
Refunds are claims by the debtor for reimbursement of a direct debit. A request for a refund must be sent to the debtor bank after settlement and within the period specified (R-transaction).
The debtor bank has the right to receive compensation, from the creditor bank for the related interest loss incurred by the debtor bank by the crediting of the debtor’s account with value date = due date of the initial collection.
Refusals are claims initiated by the debtor before settlement, requesting the debtor bank not to pay a collection (R-transaction). The refusal results in the debtor bank rejecting the associated collection.
The debtor bank may reject a collection prior to settlement, either for technical reasons or because the debtor bank is unable to accept the collection for other reasons (R-transaction).
Request for cancellation
Requests for cancellation are requests by the creditor bank to recall the instruction for a collection prior to settlement.
Returns are collections that are diverted from normal execution after interbank settlement and are initiated by the debtor bank (R-transaction).
Reversals are instructions initiated by the creditor after settlement within two business days (R-transaction).
Reversal originator BIC
Information defined and supplied by the creditor to be passed to the debtor. It must be subsequently communicated by the debtor bank to the debtor when debiting the debtor’s account.
Direct debit transactions that result in exception processing are referred to as R-transactions.
Single Euro Payments Area. SEPA is the area of the EU/EEA member states plus Switzerland, where citizens, companies and other economic actors will be able to make and receive payments in euro, whether between or within national boundaries under the same basic conditions, rights and obligations, regardless of their location.
SEPA Business-to-Business Direct Debit Scheme
The SEPA Business-to-Business Direct Debit Scheme (or: SEPA B2B Direct Debit Scheme) is the payments scheme for making euro direct debits across SEPA by business customers, both the debtor and the creditor, as set out in the respective rulebook.
SEPA Core Direct Debit Scheme
The SEPA Core Direct Debit Scheme is the payments scheme for making euro direct debits across SEPA, as set out in the respective rulebook.
SEPA direct debit
A SEPA direct debit is the payment instrument governed by the rules of the SEPA Direct Debit Scheme for making direct debit payments in euro throughout SEPA from bank accounts to other bank accounts.
SEPA direct debit mandate
The mandate is the expression of consent and authorization given by the debtor to the creditor to allow such creditor to initiate collections for debiting the specified debtor's account and to allow the debtor bank to comply with such instructions in accordance with the rulebook.
SEPA Direct Debit Scheme
The SEPA Direct Debit Scheme is the payments scheme for making euro direct debits across SEPA, as set out in the respective rulebook.
XML-Message element which identifies the underlying transaction sequence as either recurring or one-off.
Pan-European automated clearing house (PE-ACH) for bulk payments in euro.
A TARGET day is a banking day on which the TARGET2 system operates. Saturdays, Sundays and the following holidays are non-TARGET days: New Year's Day, Good Friday and Easter Monday, 1 May (Labor Day), Christmas Day and 26 December.
Trans-European Automated Real-time Gross settlement Express Transfer system. Clearing and settlement system of the European Central Bank, providing EMU member countries' central banks with same day payment settlement.
Unique identification assigned by the sender application to the transaction. This identification is to be used in any communication between the parties.
Party that is the ultimate beneficiary of the payment. This party is not necessarily the credit account owner.
Party that ultimately owes an amount of money to the creditor. This party is not necessarily the debit account owner.