SEPA Direct Debit Originator

Direct debits are a fast and efficient way to collect your fixed and variable payments electronically. The SEPA Direct Debit scheme is a pan-European direct debit system that can be used for both domestic and international collections through the 32 SEPA zone countries. The customer completes an instruction authorising an originator to collect payments from their account. 

For further information on becoming a Direct Debit Originator please contact your Relationship Manager at your local branch.

Note: Under SEPA, the Originator is also known as the Creditor.

How the SEPA Direct Debit Scheme works:

• Operates on an instruction from the Debtor (person paying the funds), giving the Creditor (person collecting the funds) authority to collect payments.
• Debits can be drawn only in accordance with the terms of this mutually agreed instruction.
• The Creditor submits a SEPA Direct Debit File to AIB for processing.
• AIB then submits this file to a central European Clearing Mechanism for processing and clearing. Transactions are then passed to the debtor’s bank.  

Benefits to Creditors:

• Collection of domestic and international direct debits across 32 SEPA zone countries
• Reduced administration costs and bank charges. For more information please refer to the Business Fees and Charges brochure within the Related Information section on this page. There is no difference to the fee for a domestic, non SEPA Direct Debit and a SEPA Direct Debit
• Reduced reconciliation and comprehensive early notification (pre settlement) of unpaid direct debits.

Benefits to Payers:

• A simple, safe and convenient banking service, which enables your customers to have their accounts settled as and when they fall due.
• The ability to pay direct debits from the same funding bank account, irrespective of country of the originator i.e. if you have a villa in Spain, you can use your Irish account details to pay your Spanish Electricity or Cable via direct debit. 
• Simple means of paying bills throughout 32 SEPA zone countries
• There is no requirement to write and post cheques.
• Eliminates queuing at cash offices or banks.
• It leads to a reduction in bank charges.
• No questions asked, fast and easy refund procedure.

Note: To apply for or amend the way you use the SEPA Direct Debit scheme please refer to the relevant button above the related information section on this page.

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