SEPA Direct Debit Cross-Border Direct Debit Procedure in Euros Information for Debtors (Payers) Prerequisites To be able to use SEPA Direct Debit, you require a SEPA Direct Debit Mandate in favor of the creditor and a written agreement with Credit Suisse. In addition, the creditor’s financial institution must support this process. You can find an up-to-date list of participating financial institutions at: www.credit-suisse.com/sepa SEPA Direct Debit Mandate Upon or after purchasing goods or services, you sign a SEPA Direct Debit Mandate (collection and debit authorization) in favor of the provider (creditor); together with your details, this mandate authorizes the creditor to collect the amount owed via its financial institution. Visit www.credit-suisse.com/sepa to see a sample mandate. You can sign a mandate for a one-time or a recurrent direct debit. The mandate must be revoked directly from the creditor. In the case of recurrent direct debits, the mandate automatically expires after 36 months with no subsequent collection. EU countries with euro EU countries without euro EEA countries and Switzerland Non-SEPA countries SEPA Direct Debits – Key Points at a Glance SEPA Direct Debit offers the attractive possibility of making cross-border and national payments in euros. You can make cross-border payments in euros for goods and services in EU/ EEA countries, Switzerland and Monaco from your Credit Suisse account using SEPA direct debit payments. This direct debit procedure is based on SEPA (Single Euro Payments Area), uniform procedures and standards for European electronic and card-based payment transactions. How You Benefit  Convenient payments in EUR throughout Europe via direct debit directly to your Credit Suisse account  Account consolidation to one account in Switzerland possible  Both one-time and recurrent direct debits for variable amounts are possible  Right of objection within 8 weeks of the date of debit, without stating reasons, and within 13 months of the date of debit in the event of an unauthorized direct debit (e. g. lack of a SEPA Direct Debit Mandate)  No processing fees are charged by Credit Suisse for SEPA direct debits SEPA Direct Debit Application A written agreement must first be concluded with Credit Suisse to ensure collections are debited from one of your accounts. This agreement exists between you and Credit Suisse, and is independent of the SEPA Direct Debit mandates between you and the creditors. If you do not conclude an agreement with Credit Suisse, your accounts will not be activated for collection of direct debits based on SEPA Direct Debit Mandates. In concluding an agreement, you grant Credit Suisse general authorization to debit all future collection orders to your account(s). You may instruct Credit Suisse to inactivate one or all of your accounts for direct debits or for specific creditors. You can find the SEPA Direct Debit application form at: www.credit-suisse.com/sepa The Main Standards for SEPA Direct Debit  Bilateral mandate between the creditor and the debtor  Collection currency: EUR  IBAN (International Bank Account Number) required  BIC (Bank Identifier Code) required  Collection is notified in advance by the creditor  Right to raise an objection 1 2. Service / Mandate 3. Mandate Creditor 4. Debtor Creditor’s financial institution 7. Collection 8. Debit 1. SEPA DD application 6. Collection order 10. Credit 5. Prior information Credit Suisse 9. Flow of funds 1. Sign the SEPA Direct Debit application form. 2.Upon or after purchasing a product or service, agree on SEPA as the payment method with the creditor, and ask the creditor to give you a SEPA Direct Debit Mandate form. 3.Fill in your details on the SEPA Direct Debit Mandate form, sign it and return it to the creditor. 4. The creditor will archive the form. 5.The creditor will inform you in advance when collection is due (e. g. by sending you the bill). 6.The creditor gives his / her financial institution the direct debit mandate details for collection. 7.The creditor’s financial institution sends the collection order to Credit Suisse. 8.Provided you have already concluded a SEPA Direct Debit agreement, Credit Suisse will debit the amount to your account (otherwise, Credit Suisse is entitled to reject the order). 9.Credit Suisse transfers the amount debited from your account (or returns the direct debit) to the creditor’s financial institution. 10. The amount collected is credited to the creditor. Differences from the Swiss Direct Debit Procedure  In contrast to the Swiss direct debit (LSV) procedure, the debtor’s bank is unaware of the content of the mandate existing between the debtor and the creditor. The creditor requests collection directly, and is responsible for archiving the mandate. Credit Suisse does not know about the mandate until it receives the collection order, which it executes if an agreement has been concluded with the debtor. This corresponds to the national direct debit procedure already applied in most European countries.  Collection currency is always EUR.  Unconditional right to raise an objection to a direct debit within 56 calendar days following the date of debit, compared to 30 calendar days following the pre-advice (Swiss direct debit system).  13 months to raise an objection following collection if the direct debit was unauthorized.  The IBAN and BIC must be known.  One-time direct debits are also possible. Additional Information  If you sign a SEPA Direct Debit Mandate without having first concluded a SEPA Direct Debit agreement with Credit Suisse, Credit Suisse is entitled to reject the collection order.  If the amount owed to the creditor is in a non-EUR currency, or if the amount is deducted from an account held in a nonEUR currency, you may be subject to a currency risk, particularly if the direct debit is later contested. Your Contact Partners If you need assistance or personal advice, please contact our Electronic Banking Desk, Monday through Friday, from 7:30 a.m. to 5:30 p.m., at 0800 88 11 88 (toll-free). www.credit-suisse.com/sepa This document was produced for information purposes only and is for the exclusive use of the recipient. No guarantee is made regarding the reliability or completeness of this document, nor will any liability be accepted for losses that may arise from its use. This document may not be distributed in the United States or given to any US person. This also applies to other jurisdictions, except where compliant with the applicable laws. Copyright © 2010 Credit Suisse Group AG and /or its affiliated companies. 2 SOLS 2 12.2010 How It Works The diagram below provides an overview of how a payment is processed using SEPA Direct Debit: