EPC said that the SDD Schemes are fully aligned with consumer rights as defined in the EU Payment Services Directive (PSD). The Sepa Core Direct Debit Scheme grants consumers a “no-questions-asked” refund right during the eight weeks following the debiting of a consumer’s account.
To help in meeting the preferences of consumers living in countries currently using an alternative direct debit model, the Sepa Direct Debit includes the option to create mandates through the use of electronic channels – called e-mandates. With a mandate the consumer authorises a biller to collect payment by direct debit.
In addition, the mandate authorises the consumer’s bank to debit the consumer’s account when a direct debit collection is presented. If the consumer issues an e-mandate, the mandate information stays directly with the consumer’s bank. In this case, the consumer’s bank has the option to verify whether the consumer authorised a direct debit collection.
The Sepa Schemes evolve based on a transparent and inclusive change management process defined in the Sepa Scheme Management Internal Rules which stipulate that literally anybody. The EPC is required to evaluate the feasibility of such suggestions based on a fixed catalogue of objective criteria also set out in the internal rules. Any proposed changes to the schemes are subject to a three-month public consultation.
Proposed changes to the schemes that find broad acceptance in the entire user community are taken forward. Change requests that lack such broad support are not – regardless whether such a change is proposed by a payment service provider or a customer representative. As a result of this change management process, the Sepa Schemes now incorporate numerous features introduced by end users.
In response to concerns voiced by the Bureau Européen des Unions de Consommateurs (BEUC), Gerard Hartsink, chairman of EPC, said: “The SDD Schemes are built on the same business assumptions and basic trust between the parties involved as the established pre-Sepa, national direct debit model used for decades in the majority of EU Member States. Millions of consumers, firms and institutions are making direct debit payments based on this long-standing, proven and trusted relationship model in countries such as, for example, Germany (6,9 billion direct debits in 2007), the UK (3 billion), France (2,9 billion), Spain (2,2 billion) and the Netherlands (1,2 billion).
“The EPC greatly appreciates the dialogue taking place in the EPC Customer Stakeholder Forum (CSF) established in 2007. The CSF provides organisations representing customer interests on a European level, including the BEUC, with the opportunity to bring their ideas to the table. Obviously, there are differentiated – and occasionally mutually exclusive – views on Sepa requirements among and within individual customer segments. It therefore needs to be recognised that the benefits resulting from the Sepa harmonisation exercise are at risk if all market participants insist on cementing their own legacy payment habits via the Sepa Schemes. Some adjustments are required by all parties.”
