Some figures related to the use of direct debits in France
With nearly 10.4 billion direct debit payments made in France in the first half of 20231, this cashless method represents 14.2% of the volume of transactions carried out over the period 2.
Fast and efficient, direct debits also have a low fraud rate. In 2023, only 2% of direct debits were affected by fraudulent attempts, representing a loss of €12.5 million (compared to €150.7 million for transfers and €257.5 million for cards1). This security also contributes to its adoption, particularly among 90% of large French companies, which use it for recurring transactions.
Complete glossary of payments by direct debit
Find the definitions of all terms related to payment by direct debit in the list below.
Direct debit
An automated payment method in which a creditor is authorized to debit a certain amount of money from a debtor’s bank account and transfer it to their own account. This method is used for both one-time and regular transactions such as subscriptions, recurring bills, or loan repayments.
There are different forms of direct debits:
- SEPA Direct Debit: A payment method for transferring funds in euros from one bank account to another within SEPA member countries.
- Card Direct Debit: A subscription payment method, where a sum of money is debited from a card account to be transferred to a creditor. The debtor provides their card details and undergoes strong authentication (3DS) during the initial transaction, and the debit is automatically retried at the set due date.
- Recurring Direct Debit: A debit transaction of a fixed or variable amount, carried out periodically from a debtor’s bank account to that of a creditor.
- B2B Direct Debit: Mainly used by public creditors (tax authorities, tax services), B2B Direct Debit has a strict dispute policy, in which the debtor may not, under any circumstances, contest the transaction and request a refund (taxes, fines, etc.).
- Core Direct Debit: A standard bank direct debit model allowing creditors to withdraw funds from debtors’ accounts (individuals and businesses) with their prior authorization (signature of a mandate). This model is most commonly used for recurring transactions such as bill payments and subscriptions.
SEPA zone
European Union initiative to harmonize payments in euros for all entities in the 27 member countries, the United Kingdom, Monaco, the Vatican, Andorra, San Marino, and the four EFTA member states.
SEPA Credit Transfer (SCT) is a credit transfer system that allows debtors to transfer funds online, in euros, between two accounts located within the zone.
Acquiring Bank
The merchant’s financial institution that enables the acquisition, processing, and deposit of funds received by transfer, as well as the maintenance of its accounts.
Issuing Bank
The financial institution responsible for processing and executing its customers’ credit transfer orders.
Sponsoring Bank
The financial institution that acts as an intermediary for businesses wishing to issue direct debits but that do not have a SEPA Creditor Identifier (SCI). The sponsoring bank lends its SCI to the business so that the latter can initiate direct debits on its behalf.
Beneficiary/Acceptor
The merchant, i.e., the natural or legal person who will receive the funds from a financial transaction.
Direct Debit Authorization
Consent given by a debtor to a creditor to withdraw funds from their bank account, either on a one-off or regular basis. This authorization is often formalized in the form of a direct debit mandate, in which the debtor confirms specific information regarding the amounts and frequency of authorized withdrawals.
Direct Debit Mandate
Authorization given by a debtor to a creditor, allowing the latter to withdraw funds from their account. This document contains the information necessary to carry out the withdrawal, such as the debtor’s bank details, the amount of the withdrawal, and the frequency, for example.
Electronic Mandate
Digital form of a direct debit mandate (e-mandate). Created, signed, and stored electronically, it simplifies and accelerates the authorization process while ensuring the validity and security of the agreement through electronic signatures.
Electronic signature of the mandate
Digital authentication method used to validate the signature of an online direct debit mandate, to secure and simplify the direct debit authorization process.
Unique Mandate Reference (UMR)
Unique identifier assigned to each direct debit mandate signed by a debtor. It allows each direct debit to be tracked and linked to its mandate, thus ensuring the traceability of direct debit authorizations.
Mandate Revocation
Action by which a debtor cancels the direct debit authorization previously granted to a creditor. This can be done at any time by informing their bank. Once the mandate is revoked, the creditor can no longer initiate direct debits from the debtor’s account unless a new mandate is signed.
Bank Account Details
All the information needed to identify a bank account (bank, account holder, location, etc.), such as the account number, bank code, sort code, IBAN code, and BIC (Bank Identifier Code). This information facilitates bank transfers and direct debits.
RIB (Bank Identity Statement)
Document provided by a bank containing the information needed to identify a bank account and facilitate transfer or direct debit transactions. The RIB includes the bank’s account number, bank code, sort code, IBAN (International Bank Account Number), and BIC (Bank Identifier Code).
IBAN (International Bank Account Number)
A standardized international number used to identify bank accounts and facilitate direct debits. The IBAN contains information such as the country code, bank code, and account number. In France, the IBAN begins with “FR” followed by 25 alphanumeric characters.
BIC (Bank Identifier Code)
A unique code that identifies a financial institution or bank, both nationally and internationally. Also known as a SWIFT code, the BIC code is used in conjunction with the IBAN to ensure the proper routing of funds transferred by direct debit.
SEPA Creditor Identifier (CIS) or National Issuer Number (NNE)
Unique reference number assigned to each creditor using the SEPA (Single Euro Payments Area) system. In France, it consists of 13 alphanumeric characters, the first two of which represent the ISO country code (FR for France). Once assigned, the creditor retains their CIS even if they change banks or have multiple accounts.
Direct Debit Order
Instruction given by the creditor to their bank to debit a sum of money from a debtor’s account. This order is based on the direct debit mandate.
General Payment Order (GPO)
A standing authorization given by a debtor to their bank to execute recurring or regular payments to a specific creditor. This order generally covers payments of varying amounts (utility bills, subscriptions, loan repayments, etc.) in order to simplify and automate the direct debit process.
Due Date
Means the date on which a direct debit is scheduled to be executed. This date is formalized in the direct debit mandate, whether it is one-off or regular.
Direct Debit Notice
Notification or document sent by the acquiring bank to its customer (beneficiary) to inform them that the funds for a direct debit have been received in their bank account. The direct debit notice generally contains information such as the date, amount, reference, etc.
Direct Debit Notification
Information sent to a debtor to inform them that a direct debit will be made from their bank account on a specified date. This notification (SMS or email) is generally sent before the scheduled debit date and contains important information such as the amount, execution date, transaction reference, and the creditor’s contact details.
Direct Debit Non-Authorization
Situation in which a debtor declares that they did not consent to the direct debit being made from their bank account.
Direct Debit Dispute
Procedure initiated by a debtor to refuse a direct debit made from their bank account. This dispute can occur for various reasons, such as:
- Amount error: The amount charged does not match the expected or authorized amount.
- Unauthorized Direct Debit: The debtor did not consent to the debit or the authorization has expired.
- Double Debit: The same amount was wrongly debited multiple times.
- Service Not Rendered: The debit concerns a service that was not provided or that did not comply with the agreement.
- Fraud: The debit is fraudulent or comes from an unauthorized source.
The debtor has 13 months from the debit date to dispute a debit.
Insufficient Funds
Situation that occurs when the balance of a bank account is less than the amount of a debit or payment expected. The transaction, which cannot be completed, is generally rejected by the issuing bank and may result in fees and penalties for the debtor.
Direct Debit Refund Request
Request initiated by a debtor with their bank to obtain a refund of a disputed debit.
Debit Failure
An event that occurs when the debit process fails to complete successfully. This can be due to several reasons, such as:
- Insufficient Balance
- Debit Chargeback
- Technical Issues
- Incorrect Data
- Other Administrative Reasons
Debit Attempts
A new debit transaction is initiated in the event of a previous failure. This attempt may succeed or fail depending on various factors, such as the availability of funds, the accuracy of the information provided, and parameters defined by the debtor’s bank.
Direct Debit Fees
Fees charged by a bank or financial institution to process and execute a direct debit. These fees vary depending on the amount, the currency used, and the banks involved. Additional fees may be charged, for example, if the direct debit mandate is changed.
Direct Debit Rejection Fees
Fees charged by the acquirer (bank or PSP), passed on to the creditor, if the debtor disputes a direct debit made from their bank account. This amount varies.
1 Banque Central Européenne – Statistiques des paiement : premier semestre 2023 (2024)
2 Banque de France – Chiffres clés de l’Observatoire (2024)
