SEPA transfers and direct debits: Essential tools for your transactions

A SEPA transfer is a fund transfer operation where you instruct your bank to send money from your account to a beneficiary’s account.

SEPA transfers allow euro transactions not only within the European Economic Area, but also in Monaco, San Marino, Andorra, the Vatican City State, Switzerland and the United Kingdom.

You can make a SEPA transfer quickly and easily :

• Online, via your bank’s website or mobile app, which is often the most convenient option and usually free of charge.
• At a bank branch : this option is available but may incur additional fees.

Security and best practices for bank transfers

Adopt the following best practices to secure your transfers and avoid mistakes :

• Always double-check the beneficiary’s details : Make sure the IBAN and BIC are correct before confirming the transaction. A single mistake can result in funds being sent to the wrong account, which may be irreversible.
• Be cautious with urgent or unusual requests : If you receive an unexpected transfer request, especially one that seems urgent, take the time to verify its authenticity. Fraudsters often use pressure tactics to create a false sense of urgency.
• Never share your banking information by phone or email : Your bank account details and online banking credentials are personal. Do not disclose them, even if the request appears to come from a trusted source.
• Never enter your login or banking details after clicking on a link in an unsolicited email or SMS.
• Keep a record of your transfers : Save a receipt or screenshot of each transaction to track your payments and have proof in case of a dispute.
• Activate your bank’s alert services : If available, set up notifications to be informed in real time about any transaction on your account. This will enable you to react quickly in the event of any suspicious activity.
• Monitor your account statements regularly : Frequently check your bank statements to detect any anomalies and act immediately if you notice anything unusual.

In general, if you have any doubts, don’t proceed with the transfer !

Best practices to prevent transfer fraud

What to do in case of a suspicious transfer ?

If you notice an unauthorised transfer, contact your bank immediately. You have up to 13 months after the debit date to report an unauthorised transaction.
Change the password for your online banking account immediately and check the list of saved beneficiaries and any scheduled transactions in your online banking space.

Your bank is required to refund the amount of the fraudulent transfer promptly. It must also restore your account to its original state, including reimbursing any fees resulting from the fraud. This protection is guaranteed by law, even if you haven’t taken out specific fraud insurance.

If the transfer was sent to a fraudulent account, ask your bank to initiate a fund recovery request, although this is not guaranteed. Please note that the bank is not liable if the issue stems from incorrect information that you provided, such as an incorrect IBAN.

If you have been the victim of fraud, don’t forget to file a police report as soon as possible The success of the legal proceedings that follow often determines whether misappropriated funds can be recovered.

Check out our tips on how to respond to scams

A SEPA direct debit authorises a creditor to withdraw money directly from your bank account. To do so, they must first obtain your signed authorisation in the form of a direct debit mandate. SEPA direct debits are a convenient way to manage recurring payments, such as bills or subscriptions, whether the amounts are fixed or variable.

Managing SEPA direct debits effectively

• Ensure that there are sufficient funds available :Make sure that your account has sufficient funds when the direct debit is due. Otherwise, your bank may reject the payment, which could result in additional charges at your expense.
• Direct debit mandates have a validity period : A mandate is valid for a single debit if you have given one-time authorisation, or until you revoke it for recurring debits. You can request cancellation of a mandate from your creditor at any time to stop future debits.
  Please note that a SEPA direct debit mandate becomes invalid if it is not used for 36 months. If the creditor wishes to use it again, a new mandate must be signed.
• Disputing a direct debit : You can dispute an authorised SEPA direct debit within 8 weeks of the debit date. For an unauthorised debit (i.e. without a signed mandate), you have 13 months (or 70 days if the beneficiary’s bank is located outside the European Economic Area) to contest it. If the debit is authorised, your bank must refund the amount within 10 business days of your request. For unauthorised debits, the refund must be made by the next business day. The bank must also restore your account to its original state, including any interest or fees you may have incurred.
• Disputes with creditors : Even if your bank refunds a disputed debit transaction, this does not cancel any debt you may owe. If you still owe money to a creditor, you must settle the amount using an alternative payment method.

Security and best practices for direct debits

• Monitor your bank statements : Review your statements regularly to ensure that direct debits match the authorisations you have given. This will help you to quickly detect any irregularities and take prompt action.
• Only share your bank account details with trusted parties. Your bank account information should be shared only with reliable and verified recipients.
• If you notice any suspicious debits : If you have any doubts about a transaction, contact your bank immediately to block it.

Best practices to prevent direct debit fraud

Check out our tips on how to respond to scams.