The Single Euro Payments Area (SEPA) is an initiative of the EU governments, the European Commission and the European Central Bank (ECB), to create an integrated payments market across Europe for any organization or individual making or receiving payments in euro. By replacing today's fragmented national payment systems with a single set of SEPA standards, organizations and individuals will be able to make payments to anyone within the area through their existing bank account using standardized payment instruments.
The SEPA Direct Debit (SDD) Schemes allow a creditor (biller) to collect funds from a debtor's (payer's) account, provided that a signed mandate has been granted by the payer to the biller. A mandate is signed by the debtor to authorize the creditor to collect a payment and to instruct the debtor's bank to pay those collections. Mandate forms to be completed by debtors (customers purchasing goods or services) are usually provided by creditors (retailers or service providers) themselves.