Direct Debit Refund: holding onto the money you collect
Under SEPA Consumer Rights A Debtor(customer) can…
- Request a refund for any Direct Debit within eight weeks from the date
on which the Direct Debit was debited from their account. Within the
eight week period their bank must refund on a no-questions asked
- Request a refund for any unauthorised Direct Debit after 8 weeks and
within 13 months from the date the on which the Direct Debit was
debited from their account.
However, there is an exception to the “No questions asked refund” for Business to Business customers as follows:
- Creditors will require each of their business debtors to complete a Debtor Confirmation where debtors will waive their right to the ‘no questions asked refund’ for authorised transactions and confirm that they are a business customer
- Creditors must request a new Creditor ID from their Bank for the SEPA Business Service which will be a unique range commencing with 111 (3 ones) to support identification of SEPA Business Service transactions
We supply Direct Debit software with Sage 50 , Exchequer and standalone. However, you need to talk to your bank if you wish to change how your direct debit operates.