Top European Court Gives SEPA Boost In Direct Debit Row

The Court of Justice of the European Union (CJEU) has sided with an Austrian consumer group claiming retailers cannot block SEPA direct debits from payers located in another member state.

Verein für Konsumenteninformation (VKI), a non-profit consumer organisation based in Vienna, brought a case on behalf of an Austrian individual who had been prevented from buying a ticket from Deutsche Bahn AG via SEPA direct debit because he was not resident in Germany.

VIK argued that this clause of Deutsche Bahn’s terms and conditions violated the rules underpinning the continent’s SEPA scheme, which was designed as a means for payments to be made seamlessly across the bloc without regard for national borders.

Request a Free Trial

As a trusted source of regulatory intelligence for the global payments industry, we enable organisations to manage the growing volume and velocity of regulatory risk with confidence, empowering more informed and effective decision making, in an efficient and cost-effective way.

Take a Trial