Go-ahead for the SEPA direct debit

31 March 2009 - "The European direct debit is coming. From November, consumers and businesses throughout Europe will have at their disposal the same convenient means of payment as those we know in Germany", Hans-Joachim Massenberg, Deputy Chief Executive of the Association of German Banks, said in Berlin. Following the launch of the uniform credit transfer last year, today's agreement by the banking industry on the common direct debit was a further major step forward, making the Single Euro Payments Area (or 'SEPA' for short) a reality for consumers and businesses.

Consumers could then use the SEPA direct debit to, for example, pay bills from insurance companies or power suppliers abroad without any problem. "The benefits of the European single market are now becoming immediately tangible also for consumers and businesses in the payments sector, and both will profit in the long-term", Mr Massenberg added.

However, the crucial impetus towards widespread use of the SEPA payment schemes had to come from legislators now. "Those who call for integration in Brussels should support it in their own country as well", Mr Massenberg stressed. This was the only way to ensure a smooth changeover from the German to the European direct debit.

The German banking industry, together with Bundesbank, had presented a proposal in this connection that allowed existing direct debit mandates to be switched easily to SEPA. "This provides the required legal certainty and helps avoid high conversion costs."