Direct debit refund right
The EU payer's right to a refund of an authorised direct debit within a set period, under set conditions.
Under PSD2, a payer can obtain a refund of an authorised payment initiated by or through the payee, such as a direct debit, within a set period, where the authorisation did not specify the exact amount and the amount exceeded what the payer could reasonably have expected, with SEPA direct debits carrying an unconditional refund right within that period. The rule reflects the risk of standing authority: the payer did not approve each amount. Agent mandates that allow variable amounts raise the same question of what the principal could reasonably have expected.
Agent Minute explains this term on 16 February 2027.
Related terms
Direct debitA payment collected by the payee from the payer's account on the basis of the payer's prior consent.Variable recurring paymentA series of payments made under one standing consent, within limits such as a maximum per payment and per period.MandateA checkable statement of what an agent may do for a principal: which action, how much, with whom and until when.Spend limitA cap on how much an agent may pay, enforced by the system that executes the payment, not by the agent.