SEPA Guide: schemes and payment types

Understand the differences between Core and B2B, recurrent and one-off, and choose the right option for your business.

Schemes: Core vs B2B

SEPA defines two direct debit schemes with different rules. The choice depends on whether your debtor is an individual or a business.

Core (SDD Core)

The standard scheme for collecting from individuals and consumers. It is the most widely used and provides debtor protection through refund rights.

When to use it
  • Gym, academy or club membership fees
  • Service subscriptions (streaming, SaaS)
  • Rent collection from individuals
  • Utility bills (electricity, gas, water)
Key features
  • Debtor can request a refund within 8 weeks, no questions asked
  • For unauthorised debits, the refund period is 13 months
  • No prior agreement between banks required
  • The debtor's bank does not need to verify the mandate

B2B (SDD B2B)

Designed for business-to-business collections. No refund right, giving the creditor greater security, but requiring the debtor to confirm the mandate with their bank.

When to use it
  • Collections from suppliers or distributors
  • Inter-company invoices
  • Professional services between companies
  • Intercompany payments
Key features
  • No refund right for the debtor
  • Debtor must confirm the mandate with their bank before the first collection
  • Greater security for the creditor: collections cannot be reversed
  • Only available for business accounts

Quick comparison

Core B2B
Debtor type Individuals and businesses Businesses only
Refund right 8 weeks (authorised) / 13 months (unauthorised) No refund right
Bank confirmation Not required Debtor must confirm with their bank
Reversal risk Medium-high Very low
Most common usage ~95% of SEPA direct debits ~5% of SEPA direct debits

Payment types: recurrent vs one-off

In addition to the scheme, each mandate defines whether it will be used for one or multiple collections.

Recurrent

A single mandate that authorises multiple collections over time. This is the most common type. The mandate remains active until revoked or expired due to inactivity (36 months without use).

Examples
  • Monthly gym membership
  • Monthly SaaS subscription
  • Monthly rent
  • Periodic utility bills

One-off

Authorises a single collection. Once executed, the mandate cannot be reused. Useful when you only need to collect once.

Examples
  • Course enrolment fee
  • Payment of a specific invoice
  • Deposit or security bond
  • One-time product purchase

The collection cycle: SEPA remittances

Once you have active mandates, the next step is to collect. Remittances group debits into an XML file that you send to your bank.

1
Create the remittance

Choose a name, collection date and scheme (Core or B2B).

2
Add mandates

Select active mandates, set amounts and descriptions.

3
Generate the XML

A pain.008.001.02 file is generated with all debits.

4
Send to the bank

Download the XML and upload it to your online banking.

5
Reconcile

Upload the bank response (pain.002) and review each debit status.

What should you choose?

Collecting from individuals (fees, subscriptions, bills)

Use Core + Recurrent. This is the most common combination. The individual signs once and you can collect monthly automatically.

Collecting from businesses with no reversal risk

Use B2B + Recurrent. The debtor must confirm the mandate with their bank, but once done, collections cannot be reversed.

I only need to collect once

Use Core + One-off (or B2B + One-off for business-to-business). The mandate expires after the first collection.

I'm not sure

When in doubt, choose Core + Recurrent. It's the standard, works with individuals and businesses, and you can always collect just once even with a recurrent mandate.

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