To process SEPA Direct Debit as a business, you need to set up a mandate, a form your customer fills out to give permission for money to be pulled from their account.
The form includes the customer’s name, address, bank account number, type of payment, and other details. The bank account number is usually called the international bank account number (IBAN).
There are a few different ways to set up a mandate:
A paper mandate form: You can have customers fill out a form on paper with their information, then scan it and upload it or mail it to you.
An electronic mandate form: You can have customers fill out a form via an electronic channel.
An e-mandate form (not available at every bank): Some banks offer an e-mandate form that allows customers to complete their mandate directly using their online banking.
After your customer has completed their signed mandate, you’ll need to inform their bank so that you can collect payments. This allows you to make direct debit collection(s).
You can submit these mandates to the bank using XML files that contain the relevant information. You’ll then have an active SEPA Direct Debit and can pull payments as agreed with the customer. Each time you ask for another payment, you’ll need to resubmit the XML file, which many payment services can do on your behalf.
