The European Payments Council (EPC) has published a paper on the use of e-mandate solutions. Titled 'Clarification Paper on the Use of Electronic Mandate Solutions', the text addresses the possible risks for the creditor in the event that they are unable to prove that a legally binding electronic signature was provided. The paper reiterates that in the event of the debtor’s claim that an SDD collection was unauthorised, it is the debtor bank that has the final say in the assessment of the validity of an SDD mandate.

This is an issue that affects both creditors (biller) and debtors (payer) with regard to collections under the SEPA Direct Debit (SDD) Schemes: SDD Core and SDD Business to Business (B2B).

According to the EPC, it is widely recognised that the efficient handling and the acceptance of electronic mandates is a very important element for the further development of the SDD Core and B2B Schemes. They allow a creditor to collect funds from a debtor’s account, provided that a signed mandate has been granted by the debtor to the creditor. A mandate is signed by the debtor to authorise the creditor to collect a payment and to instruct the debtor’s bank to pay those collections. These mandates can be created through electronic channels and are often referred to as electronic mandates.

Follow this link for more information on the EPC's Clarification Paper on the Use of Electronic Mandate Solutions.