SEPA Payment System Overview
The Single Euro Payments Area (SEPA) is Europe's unified payment system designed to simplify cross-border euro payments, making them as efficient and convenient as domestic payments. SEPA mainly includes two core payment models: SEPA Direct Debit (SDD) and SEPA Credit Transfer (SCT), which have significant differences in transaction mechanisms, reversibility, and applicable scenarios.
SEPA Direct Debit (SDD) Detailed Explanation [SEPA Direct Debit]
Basic Principle SEPA Direct Debit is a payment mechanism initiated by the payee, allowing the payee to directly debit funds from the payer's account after obtaining the payer's prior authorization.
Type Classification
- Consumer Direct Debit (Core SDD): Standard model for individual consumers
- Business Direct Debit (B2B SDD): Specifically designed for business-to-business transactions
Refund Mechanism
- Consumers can apply for a refund without reason within 8 weeks after payment
- For unauthorized transactions, the refund period can be extended to 13 months
- The refund process is executed automatically without approval from the payee
SEPA Credit Transfer (SCT) Detailed Explanation [SEPA Credit Transfer]
Basic Principle SEPA Credit Transfer is a payment method actively initiated by the payer, where the payer instructs their bank to transfer funds to the payee's account.
Transaction Characteristics
- Once executed, the transaction is confirmed and basically irreversible
- Each transaction requires separate authorization from the payer
- No unilateral refund mechanism; refunds require the payee's agreement and active initiation
Refund Mechanism Comparison
| Refund Characteristics | SEPA Direct Debit (SDD) | SEPA Credit Transfer (SCT) |
|---|---|---|
| Consumer Refund Rights | Can refund without reason within 8 weeks after payment | Cannot refund unilaterally, requires payee's agreement |
| Unauthorized Transactions | Can be traced back up to 13 months | - |
| Refund Process | Automatically executed without payee approval | Requires payee to actively initiate refund transaction |
Compliance Requirements
| Integration Method | PCI DSS | Risk Control JS | 3DS Component |
|---|---|---|---|
| Embedded Cashier | Not Required | Not Required | Not Required |
| Redirect Cashier | Not Required | Not Required | Not Required |
| Server To Server | Not Required | Not Required | Not Required |
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