The SEPA direct debit (SDD) scheme is an interbank payment scheme for pre-authorised direct debits, similar to the RID (the Italian direct debit instrument). It will be adopted at the latest by the European banking industries by 1 November 2009, after the inclusion of the European PSD (Payment Services Directive) in the SEPA countries' legislations. However, banking groups or consortia may adopt the scheme to launch new products based on the SDD scheme earlier.

Its key characteristics are:

payment mechanism hinged on the mandate signed by the creditor and debtor for recurring and one-off payments management of amendments and cancellations agreed by the creditor and debtor dematerialisation of the mandate by the creditor and transfer of the data via the creditor's bank to the debtor's bank for payment The debtor's bank is not obliged to control the mandate data. However, it may offer value added services for controls and payment authorisation comprehensive set of rules for different types of rejected and returned payments Possible use of digital signatures to authenticate mandates Disputes between debtor and creditor not covered by the SEPA schemes Debit rejection terms longer than local standards.