A SEPA direct debit mandate (SEPA-Lastschriftmandat) is a permission. With this permission, a company or public authority may take money from your account. This is called a direct debit (Lastschrift). You give permission with your signature or online. At the same time, you allow your bank to make the payment. This means you don't have to make a transfer yourself every month. “SEPA” is the name of the shared system for payments in euros in Europe.
Where you will see this word
You often see the word when you sign a contract. For a direct debit, you need a current account (Girokonto). Typical situations are:
- contracts for electricity, gas or internet
- a mobile phone contract
- the broadcasting fee (Rundfunkbeitrag)
- insurance, for example health insurance (Krankenversicherung) or liability insurance (Haftpflichtversicherung)
- rent, a sports club, a gym or a daycare centre (Kita)
- taxes and fees at the tax office (Finanzamt) or the city
The form usually has a section with the heading “SEPA-Lastschriftmandat”. There you enter your name, your IBAN and the date, and you sign. Whether a public authority offers payment by direct debit depends on the city and the federal state.
What you should do
- Check your details: Copy your IBAN carefully. If there is a mistake, the payment will not work.
- Keep your documents: Keep a copy. Write down the creditor identifier (Gläubiger-Identifikationsnummer) and the mandate reference (Mandatsreferenz). With these details, you can recognise the debit on your bank statement (Kontoauszug).
- Have enough money in your account: On the day of the debit, there must be enough money in your account. Otherwise, the direct debit is returned. The bank and the company can charge fees for this.
- Read the advance notice: The company must tell you beforehand when it will take money and how much. This is often stated on the invoice or in the contract.
- Check your bank statements: Check your debits regularly. With a normal SEPA direct debit, you can usually get a debit refunded by your bank within eight weeks. You don't have to give a reason. If there was no valid mandate at all, the deadline is longer. Note: You still have to pay a legitimate bill.
- Cancel the mandate: You can revoke the mandate at any time. To do this, write to the company or public authority. Important: This does not end the contract. You then have to pay another way, for example by bank transfer.
If you are unsure, ask your bank.
Example
- “Please fill in the enclosed SEPA direct debit mandate, sign it and send it back to us.”
- “Based on the SEPA direct debit mandate you have given, the amount will be debited from your account on the 15th of the month.”
- In conversation: “Would you like to pay by bank transfer or give us a SEPA direct debit mandate?”
Related terms
- Direct debit (Lastschrift): The debit itself, where the company takes the money from your account.
- Direct debit authorisation (Einzugsermächtigung): An older word that many people still use for the direct debit mandate.
- Standing order (Dauerauftrag): You yourself automatically transfer a fixed amount on a regular basis, for example the rent.
- Bank transfer (Überweisung): You send the money to the recipient yourself.
- Creditor identifier (Gläubiger-Identifikationsnummer): A number that shows which company or public authority is taking the money.
- Mandate reference (Mandatsreferenz): A number for your mandate, similar to a contract number.
- Returned direct debit (Rücklastschrift): A direct debit that did not work or that you had refunded.