Essentially a SEPA Direct Debit is much the same as a typical Direct Debit, but allows merchants to collect Euro-denominated payments from accounts in the 34 SEPA countries. With SEPA Direct Debits now being implemented in all eurozone countries, all Euro-denominated payments must be collected using the SEPA Direct Debit scheme. The scheme also runs in non-Eurozone SEPA countries (including the UK) alongside national Direct Debit schemes, thus it is possible to collect direct debit payments through both schemes in these countries.
Like UK Direct Debit, SEPA Direct Debit is pull based, so once a customer has authorised you to take the Direct Debits from their account, you’re in control of how much is collected and when.
Again, like UK Direct Debits, SEPA payments are made bank-to-bank without any input from card networks. Although SEPA does differentiate from UK Direct Debit in other significant points
SEPA Direct Debit can incorporate two greatly varying schemes, these are:
Currently, the SEPA Direct Debit Scheme only affects Euro-denominated payments, so collections in GBP in the UK will currently remain unaffected, but from 31st October 2016, UK businesses collecting Euro-denominated payments will be required to migrate to the SEPA Direct Debit Scheme.
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