Komerční banka becomes the first bank in Czech Republic to offer SEPA Direct Debit

PRAGUE, 30-4-2015 — /EuropaWire/ — Komerční banka is the first bank in the Czech Republic to offer its clients SEPA Direct Debit to the full extent from 27 April 2015.

• Komerční banka is the first bank in the Czech Republic to offer a fully-fledged SEPA Direct Debit (SDD) service.
• Komerční banka offers the Business to Business (B2B) payment scheme and the Business to Customer (CORE) payment scheme for both sides, the payer and the payee.
• On the payee side, the Komerční banka’s client will pay CZK 145 for incoming SDD, while on the payer side the client will pay CZK 195 for outgoing SDD regardless of the payment amount.
• SDD within Komerční banka and to/from its branch in Slovakia is, in addition, less expensive.

Komerční banka is the first bank in the Czech Republic to offer its clients SEPA Direct Debit to the full extent from 27 April 2015. So far, it has not been possible to arrange revocable consumer direct debit for payees (the CORE payment scheme) as well as irrevocable direct debit for businesses (B2B payment scheme) with a single bank. Komerční banka now makes it possible for the clients to send and receive payments through SDD from/to a single euro account across Europe to/from countries supporting SDD.

SDD has to be viewed from both sides, when each side determines the client’s position. On the payer side is the client from whose account the payment is debited to credit the payee account on the basis of SDD orders received. On the other side, the payee sends SDD orders and the payment is credited to the payee on the set date and in the set amount. SDD is always preceded by a payee/payer agreement, referred to as mandate, which sets out the direct debit terms and conditions. Komerční banka offers to handle SDD orders in the CORE payment scheme for corporate and top corporate clients. The B2B payment scheme is, in addition, also intended for sole proprietorships and SMEs.

On the payer side SDD can be used, for example, to pay instalments on mortgage loans, for services to telecom operators, school fees for your children to other countries, and for goods to suppliers abroad. On the payee side SDD helps to receive money for real estate lease in Slovakia, collect instalments on an operating loan for a machine tool delivered to England, or receive payments for delivered goods and services from customers and consumers.

“The advantage of SDD on the payee side is the opportunity for the payee to manage its cash flow as follows: on the basis of the SDD order sent to the bank, the payee receives the payment in the set amount and on the due date set by the payee. Additional advantages are provided by the standardisation of the SDD input format (the XML format, which becomes a single tool for end-to-end communication between the client and the bank), and the output in the form of XML statements, which Komerční banka also supports. Newly transmitted SDD data elements will ensure an automated identification of transactions, including other than normal execution (R-transactions [refunds, returns, rejects, refusals and reversals]). Cross-border transactions are as easily executable and efficient for our clients as those in the Czech Republic,” said Jana Švábenská, Executive Director for Transaction and Payment Services at Komerční banka.

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