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Identification problem in SDD scheme?

By the SEPA Direct Debit (SDD) scheme, which is currently under implementation is Single Euro Payment Area (SEPA) client authorize the service provider to collect. Under this mandate the service provider authorize its bank to collect the cost of service usage. SDD also allows up to single point of collection. The aim by the regulator to implement SEPA was

  • End to end automated message processing
  • Unified handle within the monetary union


The identification problem is caused by that latter target. Indeed the delegating client’s bank has to identify the initiator of collection. Among other things, because the name of collector may not be equal to the name by which the services are provided. And it makes avoidable the confusion for customers. This is can happen the following two ways

  • Make reachable the identification has made by the collector bank
  • Central database established


The latter solution can make impossible the single point of collection, even though it can be an alternative of the more expensive card transaction. For the first solution the infrastructure have to be implemented by both parties accept.

It is enough that every countries national bank holds a database by the collectors of the country. In that database to handle some discrete identifier (VAT number, registration number) of collector is enough. In case of request the needed data is delivered to the identification requesting financial institution under controlled circumstances. There is no declaration about those circumstances currently.


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Vilmos Levente Kovacs

Vilmos Levente Kovacs

Managing Director

Simplexion Informatikai Kft.

Member since

13 Mar 2011



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Payments strategies 2015-2020-2030

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