Hedging against SEPA Direct Debit refunds

Although it’s now been quite a while since I was involved in Corporate SEPA migration and SEPA has now bedded in for most Organizations, I still occasionally get involved in discussions about specific issues that don’t seem to be as clear cut as others, more-so now that there is another SEPA deadline looming. These deadlines focus the mind and this is when – during implementation rather than theoretical analysis – outlier issues tend to arise.

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One such ‘outlier’ is the issue of what happens when a Creditor collects a SEPA DD from a Debtor who is in a non-Eurozone country (or who has a bank account that is in another currency) and where the Debtor initiates a refund 12 months after the original Transaction. Logically, and according to the SEPA rules, it won’t matter. The Creditor simply refunds the Euro amount, regardless of what the customer’s “home” currency is.

But will that leave a happy customer…?
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