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

No Data

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