The Uniconta Direct Debit solutions, SEPA and Nets (the Danish ’Leverandørservice’ and ’Betalingsservice’) are methods of payment collection whereby the recipient of the payment draws the payment from their Customer’s bank account. These methods are typically used for routine payments whereby the bank transfer instructions are provided by the recipient of the payment.
There are many advantages of using Direct Debit:
– Receiving payments on time is the most obvious reason to use Direct Debit.
– It is an automated process in Uniconta, whereby the invoices are both automatically settled and posted to the accounts once the payments are received.
– It reduces manual customer bookkeeping work.
SEPA Direct Debit
SEPA (Single Euro Payments Area) as an EU based solution used by companies to collect funds from their customers in the whole of the SEPA-area. Collections are always made in Euros and can be both one-time collections as well as recurring collections.
Uniconta Direct Debit offers two collection types: Core and B2B. Core is primarily used for private collections but can also be used for business collections. B2B is for business collections only.
There is, however, a significant difference between the two types when it comes to rejections and reversals.
The main features of Direct Debit
We recommend that users review their banks’ individual procedures as the following may vary:
- Direct Debit collections always require a Mandate, which is a legally binding document between the Company (Vendor) and the Customer.
- The Vendor must have a unique ID which is usually issued by the bank.
- SEPA Direct Debit only handles payments in EUR.
- The payment date is the bank day upon which the amount is posted to the Vendor and the Customer’s account.
- Customers must be notified before the collection is made.
- The Customer’s bank must register and check the B2B mandate before permission is granted for the collection.
- The Customer has the right to cancel the collection 8 weeks after the payment date for CORE.
- The Customer has the right to cancel unauthorised collections 13 months after the payment date.
The following must be set up before the Direct Debit solution can be used:
Read more here:
Configure application functionality
File formats for methods of payment (SEPA)
Payment overview (SEPA)