glossario

The technical definition for European direct debits. A SEPA Direct Debit is a payment service offered by banks, usually associated with a current account, which can be used to automatically pay firms or individuals offering goods or services under a contract that provides for recurring payments on a predetermined due date.

This service may be offered to holders of payment accounts or credit cards. Typically, this service is used to pay utility bills (electricity, gas, telephone, etc.) or loan payments. To make payments by means of a SEPA Direct Debit, customers must authorize the company providing the utility or service by signing a mandate. The bank, upon each payment due date, carries out the payment by debiting the amount from the customer's account without asking for consent each time. In the account statement, the acronym 'SDD' used to indicate amounts that were directly debited.