SEPA Direct Debit Core Creditor

The SEPA Direct Debit (SDD) is the Pan European Direct Debit Generate mandates and Unique Mandate References.
scheme that has replaced domestic Euro Direct Debits (DD) Obtain BIC/IBAN from your Debtors.
throughout the SEPA zone. It enables individuals and businesses
to pay or collect Euro DDs across the Single Euro Payments Plan for a testing phase in your implementation.
Area (SEPA), potentially from one bank account. It is based on
an agreement between the company collecting funds (Creditor) Contact HSBC
and the consumer paying the direct debit (Debtor). This agreement HSBC understands the opportunities and challenges that your
(SEPA mandate) is a standardised document and valid direct debit business is facing with the advance of SEPA. This factsheet has
mandates obtained by the Creditor before migration to the SDD been prepared for general guidance to business customers on our
Core scheme will remain in force for SDD Core collections. SEPA proposition. As ever, we would be very happy to answer any
questions you may have or discuss any aspect in greater depth.
About SEPA
Please contact your HSBC Representative or visit our website:
SEPA represents a major step towards a true single European
www.hsbcnet.com/sepa for more information.
market. An initiative of the European Commission (EC), SEPA
has replaced all domestic (legacy) Euro schemes throughout
34 SEPA COUNTRIES:
Europe. For businesses, SEPA creates a borderless system
of payments that adds clarity, consistency and efficiency Eurozone members of EU
as transactions are subject to a uniform set of standards, Austria Belgium Cyprus
rules and conditions and can circulate as easily, quickly,
securely and efficiently as in national markets. Estonia Finland France
Germany Greece Ireland
The SEPA End Date Regulation set a mandatory deadline Italy Latvia Luxembourg
of 1 February 2014 (SEPA End Date) for all legacy Euro
transactions within the Eurozone to migrate to harmonised Malta Netherlands Portugal
SEPA schemes for both Credit Transfers and Direct Debits. Slovakia Slovenia Spain
However, the European Commission, Parliament and Council
endorsed an additional transition period which permitted the Non-Eurozone members of EU
processing of non-SEPA compliant payments (legacy payments)
alongside SEPA Credit Transfers and SEPA Direct Debit Bulgaria Croatia Czech Republic
transactions for a period of up to six months after the SEPA Denmark Hungary Lithuania
End Date*.
Poland Romania Sweden
Important Information on SDD: UK
SDD requires ISO 20022 XML format in the Eurozone.
(Please note that Member States may have waived this EEA members
requirement until 1 February 2016.**)
Iceland Liechtenstein Norway
XML format is to be implemented in non-Eurozone countries
by 31 October 2016. Additional SEPA members
SDD requires the Creditor to provide IBAN details, but
Monaco Switzerland San Marino
depending on country-specific derogation, BIC details
may be required for up to 1 February 2016 for domestic
transactions. For cross-border transactions, BIC details *For more information on the expected impact of the proposed transition
are required until 1 February 2016. period, please refer to the SMART (SEPA Migration Action Round Table)
website: http://www.abe-eba.eu/smart---sepa-migration-action-round-table-
n=smart-l=en.aspx
Steps towards SEPA implementation
** For more information on the latest country derogation updates, please
Check that your back office or ERP (Enterprise Resource refer to the country factsheets on ECBs website: www.ecb.int/paym/sepa/
Planning) system can manage SEPA DD data. about/countries/html/index.en.html
Please note that HSBC is not responsible for third party websites.
Obtain a Creditor Identifier.
Features of SDD for Creditors

Features SEPA Direct Debit (SDD Core)

At present, bank reachability is mandatory in the 18 Eurozone countries for banks that are members of
Geographic zone
Euro clearing and in addition many banks in the non-Eurozone countries are also currently reachable
Currency Euro
Bank details required BIC/IBAN*
Amount No limit
Agreement between creditor and debtor SEPA Mandate
Mandate Reference Unique Mandate Reference (UMR)
Format required ISO 20022 XML standard messaging
Debtor may request certain restrictions, e.g. blocking SDDs on an account or from one or more creditors or limit-
Debtor bank validation
ing the amount and periodicity of SDD collections
Mandates currently in paper form
Mandate dematerialisation
(the scheme contemplates the use of e-mandates for the future)
Mandate management and storage By the Creditor
Creditor Identifier (CI)
Creditor ID One CI can be used for several accounts in the same country but individual CIs may be needed for
different countries
Bank Contract A new contract is required with HSBC to collect SDDs
Submission timing D-5 : One-off (not part of a series) or First of a series
(D=Value Date) D-2 : Recurrent in a series or Last of a series*
Advance Notification (by the Creditor
14 calendar days before the Value date (unless otherwise agreed by both parties)
to the Debtor)
Remittance Information Up to 140 characters (not truncated)
Returns 5 days after the Due Date (e.g. lack of funds, blocked account)
Request for Refund Following a disputed authorised transaction (no reason required) : 8 weeks
(initiated by the debtor) Following an unauthorised transaction (invalid or no mandate) : 13 months
Except for returns and refunds, no deduction of interchange fees :
Charges for cross border transactions
for domestic transactions from 1 February 2017**

*D-1 for all sequence types of SDD COR1 variant available in Germany and Spain (for domestic collections only).
** from 1 September 2013 for domestic transactions in France.

Our Services Consolidate redundant low volume Euro bank accounts

A full XML offering which does not only cover the
SEPA zone Our XML offering covers 60 countries
including SEPA and our SEPA experts can advise you on
technical aspects of the End Date Regulation, including
value added services on format conversion and data
enrichment solutions.
BIC/IBAN conversion We can advise you on options
regarding the conversion of Basic Bank Account Number
(BBAN) to Bank Identifier Code (BIC) and International
Bank Account Number (IBAN), BIC/IBAN validation and
BIC derivation from the IBAN.
A range of SEPA reports We provide you with improved
reporting information in XML and non-XML formats to make
reconciliation easier.
SDD Added Value Services We offer a referral service
for clients requiring SDD Mandate management services
and file format conversion with data enrichment.
SEPA Opportunities
Enter new markets SDD allows you to collect funds in
Euros from customers anywhere in the SEPA zone.
Benefit from standardisation and error reduction: a single
format for the entire SEPA zone based on the ISO 20022 XML
and a simplified scheme with a unique mandate and common
rules for rejects and returns.
Simplify reconciliation processes with up to 140 characters
of narrative.
from several countries into fewer locations.
Centralise your internal operations and transactions into one point,
for example to a Payment Factory or Shared Service Centre.
Optimise your transaction flows.
Ensure receivables completion within a pre-determined time
cycle and the ability to determine the exact collection date for
intra-Europe collections(e.g. replacing cheques and cash).
Why choose HSBC to help you implement
SEPADirect Debits?
HSBCs presence in Europe gives us a real advantage in
providing a coordinated delivery of SEPA. We can offer you
the right solution and expertise:
A network of offices across Europe, with extensive
payments capabilities We can help you manage and
centralise payments from many locations across Europe.
Thought Leadership and Expertise We can keep you
informed on the latest SEPA market news and talk to
you about what this means for your business.
State of The Art Technical Capabilities We have invested
heavily in SEPA compliant payment systems and can deliver
payments through a wide range of our award winning
electronic channels.
To find out more about SEPA speak to your Bank Representative
or go to www.hsbcnet.com/sepa

www.hsbc.com/sepa
Features, services and functionality may vary by country. Please confirm availability with your local HSBC Representative. HSBC Bank plc endeavours to ensure that the
information in this document is correct and does not accept any liability for error or omission. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Bank plc.

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