# Collecting SEPA Direct Debit mandates from customers

Single Euro Payments Area (SEPA) is a payment area within the European Union (EU) that allows banks and payment providers to simplify international payments. A SEPA Direct Debit (SEPA DD) mandate is a legally binding document that allows a business to debit money from a customer’s bank account. A mandate can be used for one-off or recurring payments.
In order to debit an account, businesses must collect their customer’s name and bank account number in International Bank Account Number (IBAN) format. During the payment flow, customers must accept a mandate that gives the business an authorization to debit the account.
Stripe is able to generate this mandate for businesses to present to their customers. See [SEPA debit](https://docs.stripe.com/payments/sepa-debit) for more information.
### What are the benefits of a SEPA DD mandate?
A SEPA DD mandate is a standardized process valid throughout the European Economic Area (EEA) and available in most European countries. Businesses can offer this payment method to their customers if both parties are located in a SEPA payment area.
It simplifies the process of collecting and processing payments. Money can be transferred securely and efficiently using a SEPA DD mandate without delays or problems processing payment transactions.
Businesses can use a mandate to send out automated payment requests and immediately process customer payments. This allows businesses to check the current status of their incoming and outgoing payments at any time.
### How does a SEPA DD mandate work?
After signing and submitting a SEPA DD, the customer can automatically pay invoices and direct debits using a credit card or their bank account, or the business can submit direct debits to the customer's bank using the mandate reference and creditor identifier number. It must be sent to both the recipient and the person sending the money.
Some businesses use preset mandates for regular payment transaction processes, or provide options to improve the payment process for customers. They also need to be transparent when informing customers about collections and give them the opportunity to cancel the mandate at any time. You can find more information on how to issue a SEPA mandate here.
### Who signs a SEPA mandate?
A valid SEPA DD mandate must be signed by all parties involved in the transaction. Generally, it needs to be signed by the person acting in the name of the business, which is typically the managing director or another authorized person. If businesses have more than one shareholder, each one will need to receive authorization and provide their signature to ensure that all parties involved in the transaction are fully informed and have given their consent.
If it’s unclear who should sign, businesses should consult their legal advisor about how to proceed.
### How long is a SEPA DD mandate valid for?
Once a SEPA DD mandate has been issued, it generally stays valid for 36 months. If the mandate has expired, the business will need to ask their customer to provide consent again in order to keep collecting via SEPA Direct Debits. Mandates can only be extended or renewed in writing and via secure data transfer, like a letter or email.
It's the company’s responsibility to ensure the mandate is valid. If the mandate is canceled or expires, the business doesn't have legal means to continue collecting.
### What does a SEPA mandate cost?
Usually, there are no fees for customers or businesses unless currency conversion is involved. We recommend asking your principal bank in advance whether they charge fees.