How to open a bank account in Germany
A simple step-by-step guide on how to open a bank account in Germany. Open an online Germany bank account and documents required to open a German Bank account
Read MoreEnglish Information about Banking in Germany
Direct debit mandate or a Lastschriftmandat gives a company an authorization to directly debit a sum from your bank account. For example, in a mobile phone contract or an insurance payment etc, the company is allowed to debit an amount each month based on your phone usage or your monthy insurance fee. In order to allow international payments, a SEPA direct debit scheme was also introduced.
Such an authorization is usually given when making a new contract with a company. A direct debit can be thought of as a reverse transfer. While in a classical transfer the customer initiates the payment, in the direct debit the first step is initiated by the company (e.g., Vodafone). The company instructs the bank to debit the money from the account of the debtor. The entire direct debit thus runs over four parties – in the following order:
This means that the payee is aimed at the collection agency, in turn, to the Paying Agent, which eventually deducts the amount from the payer’s account. For the process to work, there is an “Agreement on the debits” between the banks and banking associations.
For direct debits are two options available. The best known is certainly the direct debit authorization also called a Lastschriftmandat. It is an integral part of many contracts. This authorization allows the customer to debit money from your account for a fixed time noted on the mandate or until further notification. Such authorization can at any time be revoked or modified, the bank should change. The second alternative: the debit order process. Here, the bank receives the order from the customer (e.g, telephone company, Insurance company) and executes a direct debit on a certain date from your account (the payee).
The SEPA Direct Debit (SEPA Single Euro Payments Area) there is only since September 2009, after a common legal framework has been developed within the EU. In principle, does the SEPA direct debit, which enables the cross-border payments, just like a regular debit. What is needed is a SEPA direct debit mandate with which the payee is adjusted to collect money – it is almost a direct debit authorization valid throughout the EU. Each of these mandates given a mandate reference to debits can be more easily controlled. Add to that the creditor identification number of the payee named on all withdrawals. Contradictions must be asserted before the SDD within eight weeks.
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A simple step-by-step guide on how to open a bank account in Germany. Open an online Germany bank account and documents required to open a German Bank account
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