SEPA Direct Debit Business to Business Scheme
The imminent arrival of SEPA based direct debits into the Irish landscape has highlighted 2 distinct business risks for B2B suppliers. At present Irish B2B customers are afforded the same rights as B2C customers. This is due to the fact that no Irish banks have currently registered for the SEPA Direct Debit Business to Business Scheme leaving the SEPA Core Scheme as business’ only option. This means that a B2B customer currently paying by direct debit can now recall an authorised payment anytime up to 8 weeks after the payment date without having to give a reason for the recall. This has the potential to cause havoc with supplier cash flows and seriously jeopardise the viability of some suppliers.