SEPA Core Direct Debit Payment Terms
Terms and conditions for payments by Direct Debit under the SEPA core direct debit scheme
For the purposes of the SEPA Core Direct Debit Payments described below, you agree to be bound by SumUp's General Terms and Conditions these SEPA Core Direct Debit Payment Terms and any other terms and policies applicable to specific services you may use. These SEPA Direct Debit Payment Terms are additional terms and, together with the General Terms and Conditions, form part of the legal agreement between you and SumUp Limited (the "Bank", "SumUp", "we", "us").
The following terms and conditions apply to payments made by the SumUp Merchant (hereinafter "Customer") to Payees by means of SEPA Direct Debit via its account with SumUp Limited (hereinafter "Bank"):
A direct debit is a payment transaction initiated by the payee to the debit of the customer's account, where the amount of the respective payment is specified by the payee.
For the use of the SEPA Core Direct Debit Scheme, the Customer agrees to pay in a timely manner the fees and any applicable taxes listed on our Website and/or in the Customer's account settings, or otherwise agreed in writing and due in accordance with the General Terms and Conditions and the Terms and Conditions for Payments by Direct Debit in the SEPA Core Direct Debit Scheme.
2 SEPA core direct debit
2.1.1 Main characteristics of the SEPA core direct debit scheme
The SEPA core direct debit scheme enables the customer to make payments in euros to the payee through the Bank within the Single Euro Payments Area (SEPA). SEPA comprises the countries and territories listed in the Annex.
For the execution of payments by SEPA core direct debits, the following conditions must be met:
the payee and the payee’s payment service provider must use the SEPA core direct debit scheme, and
the customer must give the SEPA direct debit mandate to the payee before the payment transaction.
The payee initiates the respective payment transaction by presenting the direct debits to the Bank through his/her payment service provider.
If a payment which has been made on the basis of a SEPA core direct debit is authorised, the customer shall be entitled to claim a reimbursement of the amount debited from the Bank within a period of eight weeks from the date on which the customer’s account was debited.
2.1.2 Unique identifiers
For the procedure, the customer must use the IBAN provided to him/her¹ and, in the case of cross-border payments outside the European Economic Area², additionally the Bank's BIC³ as his/her customer identifier vis-à-vis the payee, since the Bank is entitled to execute the payment by SEPA core direct debit solely on the basis of the unique identifier provided to it. The Bank and the intermediary institutions involved will execute the payment to the payee using the IBAN specified in the direct debit data record by the payee as his customer’s unique identifier and, in the case of cross-border payments outside the EEA, additionally specified BIC.
2.1.3 Transmission of direct debit data
When SEPA core direct debits are used, the direct debit data may also be forwarded to the Bank by the payee’s payment service provider through the message transmission system of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which is based in Belgium and has operating centres in the European Union, Switzerland and the USA.
2.2 SEPA Direct Debit Mandate
2.2.1 Giving the SEPA Direct Debit Mandate
The customer shall give a SEPA direct debit mandate to the payee. With it, the customer authorises the Bank to pay the SEPA core direct debits by the payee. The mandate must be given in writing or in the manner agreed with the Bank. This authorisation shall at the same time contain the customer’s explicit consent to the payment service providers and any intermediary institutions involved in the collection of the direct debit to retrieve, process, transmit and store the personal data required for the execution of the direct debit.
The SEPA core direct debit mandate must contain the following statements by the customer:
An authorisation of the payee to collect payments from the customer's account by means of a SEPA core direct debit, and
An instruction to the Bank to pay the SEPA core direct debits drawn by the payee on his account.
The SEPA direct debit mandate must contain the following authorisation data:
Identification of the payee,
a creditor identification number,
Indication whether the mandate is for a single or recurring payment,
Name of the customer (if available),
Name of the customer's bank and
Customer’s unique identifier (see section 2.1.2).
In addition to the authorisation data, the direct debit mandate may contain additional information.
2.2.2 Collection authorisation as a SEPA direct debit mandate
If the customer has given authorisation to the payee, authorising the payee to collect payments from his/her account by direct debit, the customer thereby instructs the Bank at the same time to pay the direct debits drawn on his/her account by the payee. With the collection authorisation, the customer authorises his bank to pay direct debits drawn by the payee. This collection authorisation shall be deemed to be a SEPA direct debit mandate. Sentences 1 to 3 shall also apply to collection authorisation given by the customer prior to the entry into force of these terms and conditions.
The collection authorization must contain the following authorization data:
Name and address of the payee,
Name of the customer,
Customer’s unique identifier referred to section 2.1.2, or
Account number and bank code of the customer.
In addition to the authorization data, the collection authorization may contain additional information.
2.2.3 Revocation of the SEPA Direct Debit Mandate
The SEPA direct debit mandate may be revoked by the customer by declaration to the payee or his bank - if possible in writing - with the result that subsequent payment transactions are no longer authorised. If notice of revocation is given to the bank, it shall take effect from the banking business day following the day on which it is received. In addition, this should also be declared to the payee so that the latter does not collect any further direct debits.
2.2.4 Limitation and disallowance of SEPA core direct debits
The customer may separately instruct the Bank to limit or disallow payments under SEPA core direct debits. The Bank must receive this instruction by the end of the banking business day before the due date indicated in the direct debit data set. If possible, these instructions should be given in writing and, if possible, to the bank's account-keeping branch. In addition, it should also be declared to the payee.
2.3 Collection of the SEPA core direct debit by the payee under the SEPA direct debit mandate
(1) The SEPA direct debit mandate given by the customer shall remain with the payee. The payee shall take over the authorization data and enters any additional information in the data set for the collection of SEPA core direct debits. The respective direct debit amount shall be specified by the payee.
(2) The payee shall electronically send the data set for the collection of the SEPA core direct debit to the Bank through its payment service provider. This data set shall also represent the customer's instruction to the Bank in the SEPA direct debit mandate to pay the respective SEPA core direct debit (see section 2.2.1 sentences 2 and 4 and section 2.2.2 sentence 2). For the receipt of this instruction, the Bank shall waive the form agreed for the issue of the SEPA direct debit mandate (see section 2.2.1, sentence 3).
2.4 Payment transaction based on the SEPA core direct debit
2.4.1 Debiting the direct debit amount to the customer's account
(1) On the receipt of SEPA core direct debits drawn by the payee, the amount specified by the payee shall be debited to the customer's account on the due date specified in the data set. If the due date is not a banking business day, the account shall be debited on the next banking business day.
(2) The customer’s account shall not be debited or a debit entry shall be cancelled no later than the second banking day⁴ after it has been made (see Section 2.4.2) if
the Bank has received notice of revocation of the SEPA direct debit mandate in accordance with section 2.2.3,
the customer does not have sufficient credit on his/her account to honour the direct debit or does not have sufficient credit for payment of the direct debit (insufficient funds in the account); the Bank shall not make partial amounts,
the payer’s IBAN indicated in the direct debit data set cannot be assigned to any account held by the customer with the bank, or
the direct debit cannot be processed by the bank, since in the direct debit data set
a creditor identification number is missing or is evidently wrong to the bank,
a mandate reference is missing,
an issue date of the mandate is missing or
no due date is indicated.
(3) In addition, the customer’s account shall not be debited or a debit entry shall be cancelled no later than the second banking day after it was made (see Section 2.4.2) if this SEPA core direct debit is opposed by a separate instruction from the customer pursuant to Section 2.2.4.
2.4.2 Payment of SEPA core direct debits
SEPA core direct debits are paid if the debit entry in the customer's account has not been cancelled at the latest on the second bank working day after it was made.
2.4.3 Notification of non-execution or cancellation of the debit entry or refusal of payment
The Bank shall inform the customer without delay, and no later than the time agreed in Section 2.4.4, of non-execution or cancellation of the debit entry (see Section 2.4.1, paragraph 2) or refusal to pay a SEPA core direct debit (see Section 2.4.2). This may also be done through the agreed account information channel. The Bank shall, if possible, state the reasons and indicate ways in which errors that led to the nonexecution, cancellation or refusal can be rectified.
2.4.4 Execution of the payment
(1) The Bank shall be obliged to ensure that the direct debit amount debited by it to the customer's account on the basis of the payee's SEPA core direct debit is received by the payee's payment service provider within the specified execution period at the latest.
(2) The execution period shall begin on the due date specified in the direct debit set. If that day is not a banking business day, the execution period shall start on the following banking business day.
(3) The Bank shall inform the customer of the execution of the payment through the agreed account information channel and at the agreed frequency.
2.5 Customer's entitlement to a refund for an authorised payment
(1) If a payment which has been made on the basis of a SEPA core direct debit is authorised, the customer shall be entitled to claim a no questions-asked refund of the amount debited from the Bank. Such a claim must be made within eight weeks starting from the date on which the customer’s account was debited. The Bank shall restore the balance of the customer’s account to what it would have been without debiting for the payment. Any claims by the payee against the customer shall not be affected by this.
(2) The entitlement to a refund under paragraph 1 shall be precluded as soon as the amount of the direct debit entry has been expressly authorised by the customer directly to the Bank.
(3) The customer’s entitlement to a refund for a non-executed or incorrectly executed authorised payment shall be determined by Section 2.6.2.
2.6 Customer's entitlement to a refund, correction and compensation
2.6.1 Refund for an unauthorised payment
If a payment is not authorised by the customer, the Bank shall have no claim against the customer for reimbursement of its expenses. It shall be obligated to refund the amount debited to the customer’s account to the customer without delay and to restore the balance of this account to what it would have been without debiting for the unauthorised payment. This obligation must be fulfilled at the latest by the end of the business day following the day on which the Bank was notified that the payment was unauthorised or otherwise became aware of it. If the bank has notified a competent authority in writing of legitimate reasons for suspecting fraudulent conduct on the part of the customer, the bank shall immediately be required to examine and fulfil its obligation under sentence 2 without delay if its suspicion of fraud is not confirmed.
2.6.2 Entitlement in the case of non-executing, incorrect or delayed execution of authorised payments
(1) If an authorised payment is not executed or not executed correctly, the customer may request the Bank to refund the direct debit amount in full without delay insofar as the payment was not executed or executed incorrectly. The Bank shall then restore the balance of the customer’s account to what it would have been without debiting for the incorrectly executed payment transaction.
(2) In addition to the entitlement under paragraph 1, the customer may request reimbursement from the Bank of any charges and interest which the Bank has invoiced to the customer in connection with the non-execution or incorrect execution of the payment or which the Bank has debited from the customer's account.
(3) If the amount of the direct debit does not reach the payee’s payment service provider until after expiry of the execution period referred to in Section 2.4.4 (2) (delay), the payee may request the payment service provider to credit the amount of the direct debit to the payee’s account as if the payment had been duly executed.
(4) If a payment transaction was not executed or was executed incorrectly, the Bank shall, at the customer's request, reconstruct the payment transaction and inform the customer of the result.
2.6.3 Compensation for breach of duty
(1) In the case of non-execution, incorrect or delayed execution of an authorised payment or in the event of an unauthorised payment, the customer may request the Bank to provide compensation for any loss or damage not already covered by Sections 2.6.1 and 2.6.2. This shall not apply if the Bank is not responsible for the breach of duty. The Bank shall be liable in this connection for any fault on the part of an intermediary institution to the same extent as for any fault on its own part. If the customer has contributed to the occurrence of any loss or damage through culpable conduct, the principles of contributory negligence shall determine the extent to which the Bank and the customer must bear the loss or damage.
(2) The liability pursuant to paragraph 1 shall be limited to 12,500 euros. This limit of liability in terms of amount shall not apply to
cases of deliberate intent or gross negligence by the Bank,
risks which the Bank has exceptionally assumed and
If the customer is a consumer, loss of interest incurred by the customer.
2.6.4 Entitlement of customers who are not consumers
Notwithstanding the entitlement in Sections 2.6.2 and 2.6.3, customers who are not consumers shall, in the event of a non-executed, incorrectly executed or delayed authorised payment or in the event of an unauthorised payment, in addition to any claims for restitution, only have claims for damages in accordance with the following provisions:
The Bank shall be liable for its own fault. If the customer has contributed to the occurrence of any loss or damage through culpable conduct, the principles of contributory negligence shall determine the extent to which the Bank and the customer must bear the loss or damage.
The Bank shall not be liable for any fault on the part of intermediary institutions chosen by it. In such cases, the Bank's liability shall be limited to the careful selection and instruction of the first intermediary.
A claim for damages by the customer shall be limited in amount to the direct debit amount plus the fees and interest charged by the bank. Insofar as this involves the assertion of consequential damages, the claim shall be limited to a maximum of EUR 12,500 per payment. These limitations of liability shall not apply to intent or gross negligence by the Bank or to risks which the Bank has exceptionally assumed or to unauthorised payments.
2.6.5 Exclusion of liability and objections
(1) Liability of the Bank pursuant to Sections 2.6.2. to 2.6.4. shall be excluded in the following cases:
The Bank shall prove to the customer that the payment amount was received by the payee's payment service provider on time and in full.
The payment was executed in accordance with the payee's incorrect unique identifier provided by the payee. In such a case, however, the customer may require the Bank to use its best endeavours to recover the payment amount. If it is not possible to recover the payment amount in accordance with sentence 2 of this sub-paragraph, the Bank shall be obliged to provide the Client, upon written request, all available information to enable the Client to make a claim for refund of the payment amount.
(2) Any claims by the customer under Sections 2.6.1 to 2.6.4 and any objections by the customer against the Bank as a result of non-execution or incorrect execution of payments or as a result of unauthorised payments shall be precluded if the customer has not notified the Bank thereof within a period of 13 months at the latest after the date on which an unauthorised or incorrectly executed payment was debited. This period shall start to run only once the Bank has notified the customer of the debit entry of the payment through the agreed account information channel no later one month after the debit entry was made; otherwise the date on which the customer is informed shall determine when the period starts. The customer may assert claims for compensation under section 2.6.3 even after the expiry of the period in sentence 1 if he/she was prevented, through no fault of his/her own, from adhering to this period.
(3) Any claims of the customer shall be excluded if the circumstances substantiating a claim
are based on an unusual and unforeseeable event over which the Bank has no control, and
whose the consequences could not have been avoided even by the exercise of due diligence, or
were brought about by the Bank as a result of a statutory obligation.
3 Annex: List of SEPA member countries and territories
3.1 Countries belonging to the European Economic Area (EEA)
Member States of the European Union: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France (including French Guiana, Guadeloupe, Martinique, Mayotte, Réunion), Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. Other states: Iceland, Liechtenstein, Norway.
3.2 Other countries and territories
Guernsey, Jersey, Isle of Man, Monaco, San Marino, Switzerland, St. Pierre and Miquelon, United Kingdom of Great Britain and Northern Ireland.
¹ International Bank Account Number.
² For the Member States, see the Annex.
³ Bank Identifier Code.
⁴ 4 Banking days are all working days except: Saturdays, 24 and 31 December.
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