SEPA Direct Debit is the euro area scheme that lets a merchant pull funds directly from a customer’s bank account under a signed mandate, rather than waiting for the customer to push a payment. It comes in two variants, CORE for consumers and B2B for businesses, and it settles across the Single Euro Payments Area in euros.
Why it matters
SEPA Direct Debit is attractive for recurring euro billing because it sidesteps card expiry, card decline rates and many card chargeback reason codes. The catch is the refund window. Under the CORE scheme a consumer can demand a no questions refund for eight weeks after a debit, and up to thirteen months for an unauthorized one, a dispute risk that behaves much like a chargeback for subscription merchants. Mandate management, clear pre notification before each debit and a recognizable label on the bank statement are what keep those refunds low. For high risk merchants shut out of friendly card terms, direct debit and open banking are often the most durable euro rails available.