SEPA direct debit mandate

Electronic .v. Paper Mandate

Electronic Mandates
The SEPA direct debit electronic mandate is a very simple method of enabling your customer to approve payment, be that for a single one-off payment or a payment schedule. Traditionally, direct debit mandates were approved by way of signing a sheet of paper, as explained further down, but nowadays the majority of approvals are captured online or via phone recording. While we see both mandate types still in use, the majority of collections being processed on DebaPay are as result of the mandate being signed electronically.

For a customer signing a mandate electronically who may not have seen a paper version in the past, the process appears very familiar to them as it’s similar to other modern online/mobile services. When the details of the collection are setup on DebaPay (essentially the construct of the mandate) the payer receives an email outlining the payment request, on clicking the link in the email they are taken to DebaPay via their phone or PC. They enter their address and bank account details before clicking approve. Once they’ve done this the collection becomes active on DebaPay and their account will be debited on the agreed date(s).

The visual of the mobile here is an example of what the payer sees, it’s simply a matter of entering required details and clicking the approve button at the bottom of the screen. Immediately after approval they receive a thankyou-confirmation email for their records along with relevant legal text and their rights.

Paper Mandates
SEPA direct debit paper mandates are still in wide use in particular environments and are a convenient method of capturing payer approval where there is face to face interaction or where the payer has not yet fully adopted technology and prefers not to sign the mandate electronically.

The Professional Services sector is a good example of where paper mandates are common, where people meet to discuss work requirements. We see many Accountancy firms continue to use paper mandates, by the nature of their work they’re in close contact with their client and so it’s often more convenient for the client to simply sign the mandate during engagement.

The visual here is a sample mandate showing the merchant’s details (the creditor collecting payment) along with the lower section where the payer adds their details and signs the document. There is legal text in the center to outline the agreement and the rights available to the payer.