How do you move customers from bank transfer to SEPA direct debit?

To move a customer from bank transfer to SEPA direct debit, you need their signed mandate, a creditor identifier on every collection, and a pre-notification sent at least 14 calendar days before each collection unless you've agreed a shorter period. Start with customers who pay you a regular amount on a regular date, agree the notice period when they sign up, and keep bank transfer open for anyone who'd rather not switch.

In this article

The short version

• Start with customers who pay a fixed amount on a fixed cycle.
• Each customer must sign a mandate before the first collection.
• Send pre-notification 14 calendar days ahead unless a shorter period is agreed.
• Ask standing order customers to cancel so nobody pays twice.
• Check the first collection run before moving everyone else.

Which customers to move first

Bank transfer leaves the timing with your customer. They decide when to log in, which reference to type and whether your invoice gets paid this week or next. Direct debit turns that round, because once a customer has signed a mandate you collect on a date you've told them about and they don't have to do anything each month.

You don't have to move everyone at once, and some customers won't suit it. Before you write to anyone, sort your customer list into three groups.

• Customers who pay a fixed amount on a fixed cycle, such as a monthly fee, retainer, subscription or maintenance contract. They're the easiest to move, and they may be the ones you end up chasing for small sums.
• Customers who pay on a regular cycle but for amounts that vary, such as monthly bills based on hours or usage. Direct debit still works for them, as long as each invoice goes out in time for its pre-notification.
• Customers you invoice once or only now and then. A mandate adds a step for a single payment, so a payment link they can pay by card or bank transfer is usually simpler for both of you.

Some customers in the first group will prefer to keep paying by transfer. If they pay on time, there's little reason to push, and keeping both options open avoids turning a payment method into a disagreement.

The scheme rules to have in place first

SEPA direct debit runs on the European Payments Council's SEPA Direct Debit Core Rulebook. You won't need to read it, but six of its rules decide how you set things up.

• Get a signed mandate from each customer before you collect anything, and keep it somewhere you can find it.
• Put a creditor identifier on every collection. In Ireland it's issued by a bank and runs to 13 characters, such as IE97ZZZ123456, and if you collect through a payment provider, ask whether collections go out under its identifier or yours.
• Give the customer a pre-notification of each collection at least 14 calendar days ahead, or within whatever shorter period you've agreed together. It can be printed on the invoice.
• Make sure each collection reaches the customer's bank at least one inter-bank business day before the due date.
• Expect that any customer can ask their bank to refund an authorised collection within eight weeks, with no questions asked, and within 13 months if they say it wasn't authorised.
• Cancel any mandate you haven't collected under for 36 months, and get a fresh one before you collect from that customer again.

The notice period has the most effect on your cash flow. If your terms say nothing about it, every pre-notification has to go out a fortnight before you can collect. Writing a shorter period into the sign-up terms lets you invoice and collect closer together, which matters most for bills that change month to month.

Eight steps to move a customer

These steps work for one customer or a hundred. You'll find it easier to move a small group first and check their first collection before you write to everyone else.

1. Update your terms of business to cover payment by direct debit, the notice period you want, and the day of the month you'll collect.
2. Decide who will submit the collections. Your own bank can set you up as a direct debit originator, which means preparing collection files and meeting its cut-off times, or a payment provider can handle that side for you.
3. Write to each customer saying what's changing, the date of the first collection, the amount or how it's worked out, and how to reach you about a collection they don't recognise.
4. Collect the signed mandate, and check the customer's name and account details against your records.
5. Ask anyone paying you by standing order to cancel it from the date of the first collection, so they don't pay you twice that month.
6. Send the first pre-notification on time, on the invoice or as a separate message.
7. Change the customer's record so your reminders stop asking them to make a transfer.
8. Keep your bank transfer details to hand, so you can send them straight away if a first collection doesn't go through.

With Adfin, customers can pay by SEPA direct debit, card, Apple Pay, Google Pay or bank transfer, and payment links reach them by email, SMS or WhatsApp, so anyone not ready to sign a mandate still has a quick way to pay. Each successful payment costs 20c + 1%, which is also the standard card price. On SEPA direct debit and bank transfer the 1% part is capped at €2, so either of those payments, up to €2,000, costs at most €2.20, while card payments have no cap. Adfin charges no monthly or setup fee, and doesn't tie you to a contract.

What to check after the first collection

The first run tells you whether the set-up works. Go through each customer you moved and check these points before the next cycle.

• The amount collected matches the amount on the pre-notification.
• Any collection that came back rejected or returned, for a reason such as insufficient funds or a closed account, has been followed up with the customer.
• Nobody paid twice, by standing order or transfer as well as by direct debit, and any duplicate has been sent back.
• Each invoice is marked paid in your accounts. Adfin is a certified Xero app and a certified QuickBooks app that syncs both ways, so a payment taken through it shows as paid without anyone matching it by hand.
• Every mandate is stored where you can find it if a customer later questions a collection.
• Any refund request has been matched to the invoice it paid, so that invoice shows as unpaid again.

Common questions

Do customers have to agree before I collect by direct debit? Each customer has to sign a mandate authorising you to collect from their account. Without one, any collection can be claimed back as unauthorised for up to 13 months.

How much notice do I give before the first collection? The pre-notification has to go out at least 14 calendar days before the collection, unless you've both agreed a different period. Putting it on the invoice saves a separate letter.

What if a customer won't sign a mandate? Keep bank transfer open for them, or send a payment link they can pay by card or bank transfer. Direct debit only works with the customer's agreement.

Can a customer get their money back after switching to direct debit? Customers can ask their bank to refund any authorised SEPA direct debit within eight weeks, without giving a reason. A collection they say they never authorised can be claimed for up to 13 months.

Do I need my own creditor identifier? Irish creditor identifiers are issued by banks. If you use a payment provider, collections may go out under its identifier, so ask which one your customers will see.

What does it cost to collect by direct debit with Adfin? Each successful payment costs 20c + 1%, with the 1% part capped at €2 on SEPA direct debit and bank transfer, though not on cards, where 20c + 1% is the standard price. A direct debit of up to €2,000 costs at most €2.20.

Sources

• European Payments Council - 2025 SEPA Direct Debit Core Rulebook, version 1.0 (accurate as of November 2026) https://europeanpaymentscouncil.eu/sites/default/files/kb/file/2024-11/EPC016-06%202025%20SDD%20Core%20Rulebook%20version%201.0.pdf
• European Payments Council - Creditor Identifier Overview, EPC262-08 v12.0 (accurate as of November 2026) https://www.oenb.at/dam/jcr:5193cd07-f090-4378-abcd-06d97c700ab2/EPC262-08-v12-0-Creditor-Identifier-Overview.pdf
• Citizens Information - Payment Services Directive (accurate as of November 2026) https://www.citizensinformation.ie/en/money-and-tax/personal-finance/eu-payments/psd2/
• Stripe - SEPA Direct Debit payments (accurate as of November 2026) https://docs.stripe.com/payments/sepa-debit