I attended a seminar run by Bank of Ireland which outlined the new rules for SEPA (Single European Payment Area) which will come into effect on 01st February 2014.
The one major change that stood out for me was the new regulations relating to Direct Debits.
The debtor (from whose account the money is being taken) will now have up to eight weeks to apply through their bank for a refund - no questions asked. Apparently this is already in force in some Euro zone countries and it is designed to give more protection to the consumer.
Why would any service provider or business continue to accept payment by direct debit under these new rules? In our company we have customers that pay by direct debit. We debit their accounts on the 30th of the month following date of invoice, so they are getting up to 8 weeks credit.
Under the new rules, another 8 weeks will have to pass before we are guaranteed the payment, as during this period the customer can, without giving a reason reclaim the funds from our account.
To me it seems like a regressive measure and will prolong the use of cheques and other antiquated methods of making payments.
The one major change that stood out for me was the new regulations relating to Direct Debits.
The debtor (from whose account the money is being taken) will now have up to eight weeks to apply through their bank for a refund - no questions asked. Apparently this is already in force in some Euro zone countries and it is designed to give more protection to the consumer.
Why would any service provider or business continue to accept payment by direct debit under these new rules? In our company we have customers that pay by direct debit. We debit their accounts on the 30th of the month following date of invoice, so they are getting up to 8 weeks credit.
Under the new rules, another 8 weeks will have to pass before we are guaranteed the payment, as during this period the customer can, without giving a reason reclaim the funds from our account.
To me it seems like a regressive measure and will prolong the use of cheques and other antiquated methods of making payments.