SEPA Mandate Guide. Contents. 1.0 The purpose of this document 2. 2.0 Why mandates are required 2. 2.1 When a new mandate is required 2

SEPA Mandate Guide Contents 1.0 The purpose of this document 2 2.0 Why mandates are required 2 2.1 When a new mandate is required 2 2.2 Cancellation of a mandate 2 2.3 When to amend a mandate 2 3.0 Mandate Information and Fields 3 3.1 Details of the mandate fields as defined by 4 the European Payments Council (EPC) 3.1.1 Unique Mandate Reference (UMR) Details 6 3.1.2 End to End ID 6 3.2 Legal text 6 3.2.1 Core Scheme Legal Text 6 3.2.2 B2B Scheme Legal Text 6 3.2.3 Translations 6 4.0 The SEPA Mandate Lifecycle 7 5.0 Appendices 8 5.1 Appendix 1: Useful Links 8 5.1.1 France 8 5.1.2 Germany 8 5.1.3 Ireland 8 5.1.4 Italy 8 5.1.5 Portugal 8 5.1.6 Spain 8 5.2 Appendix 2: Sample Core Scheme Mandate 9 5.3 Appendix 3: Sample B2B Scheme Mandate 10 Page 1 of 11

1.0 The purpose of this document The purpose of this document is to assist Barclays SEPA Direct Debit customers in the creation and management of SEPA compliant Direct Debit mandates. This document includes explanations as to why mandates are necessary, which party is responsible for storage and verification, what information is required in mandates, how mandates vary between the Core and B2B schemes, and sample mandates for each of the countries in which Barclays operates. There are also links to further information on each subject in the appendices, as this document is only intended to be a guide and therefore does not include all available information. The information in this guide is in line with the EPC guidance. The information is also accurate as at time of printing. 2.0 Why mandates are required A mandate signed by a debtor fulfils two requirements: a) It authorises a creditor to initiate collections to debit the debtor s bank account and b) It allows the debtor bank to comply with those instructions in accordance with the SEPA Scheme Rulebook. Mandate forms to be completed by debtors are usually provided by creditors themselves. All SEPA mandates must conform to the respective SEPA Direct Debit Scheme Rulebook (links to these can be found in the appendix). If any of the mandatory information is missing on a mandate form, then the collection could be disputed as an unauthorised collection for up to 13 months after the settlement date. The creditor is responsible for the storage of original mandates and the transmission of dematerialised mandate information with every collection request. It is a legal requirement that the creditor does not alter any content in the process of dematerialising the mandate into electronic form. The creditor has the option to use a third party for mandate management. Note that, at present, a paper mandate is required in most countries. However in a domestic situation in certain countries within the SEPA area, a paperless mandate may be permitted, For example, in Ireland, BPFI have issued guidance on paperless mandates see pages 37 and 38 in the Creditors Guide: http://www.bpfi.ie/customer-assist/business-customers/sepaguides-for-business/ 2.1 When a new mandate is required A new mandate must be obtained from a debtor in the following situations: a) There is no existing SEPA direct debit mandate b) More than 36 months have passed since the last SEPA Direct Debit collection c) The debtor has revoked his mandate to the creditor d) If the last direct debit collection occurred with the Final or OneOff sequence e) If the mandate has reference to a drawn contract and that contract has been fulfilled f) After a change of debtor (e.g. change of tenant). 2.2 Cancellation of a mandate If a mandate is cancelled, then the signed paper mandate should be stored by the creditor according to the applicable national legal requirements and as a minimum for a period as long as the refund period defined for an Unauthorised Transaction (currently thirteen months). 2.3 When to amend a mandate The creditor or debtor can amend a mandate at any time. When an amendment is made, the dematerialised mandate information, including the amended information and amendment marker, is sent to the creditor bank as part of the next collection. Reasons for amendments are: a) If the creditor needs to change the unique mandate reference (UMR) due to internal organisational changes b) The creditor identity has changed due to a merger, acquisition, spin-off or other organisational change c) The creditor has changed their name d) The debtor decides to use another account within the same bank or in another bank Should the reason for amendment be a change of bank account to another bank, the next collection should be sent as a first. If the identity of the creditor has changed, the new creditor must inform the debtor of the related mandate amendment by any means to avoid dispute of the collection. The creditor should inform the debtor of any changes to be made to the mandate in advance. This is especially important in the B2B scheme, because the debtor must inform the debtor bank of any B2B mandate amendments before the next collection related to that mandate. Page 2 of 11

3.0 Mandate Information and Fields All mandates must be in at least one and up to three languages of the country of residence of the debtor. English should be included if the creditor is not able to determine with reasonable certainty the language of the debtor in advance of the mandate being created. List of Mandate Fields Line Data Element Mandatory Optional Completed by Creditor Completed by Debtor Header SEPA Direct Debit Mandate X X Title Unique Mandate Reference (UMR) X X 1 Name of the Debtor X X X 2 Address of the Debtor X X X 3 Postal code/city of the Debtor X X X 4 Debtor s country of residence X X X 5 Debtor s account number IBAN X X 6 The BIC code of the Debtor Bank X* X 7 Creditor company name X X 8 Creditor s identifier X X 9 Creditor s address street and number X X 10 Creditor s postal code and city X X 11 Country of the Creditor X X 12 Type of payment X X 13 Signature place and time X X Under line 13 Signatures X X 14 Debtor identification code X X 15 Name of the Debtor Reference Party X X 16 Identification code of the Debtor X X Reference Party 17 Name of the Creditor Reference Party X X 18 Identification code of the Creditor X X Reference Party 19 Underlying contract identifier X X X 20 Contract description X X X * The BIC code is optional (i.e. the BIC cannot be required and a payment cannot be rejected if this is not provided) in most euro countries for domestic collections. From 1 February 2016 it will become optional for all euro countries both domestically and cross-border. From 31st October 2016 it will also be optional in non euro countries. The Unique Mandate Reference is not always available at the time of signature of the mandate. If this is the case, the UMR must be communicated to the Debtor by the Creditor as soon as it is available and must be a part of the dematerialised mandate in all cases. The legal text must be shown below the header and title, and followed by fields 1-13 and the signature. Although there is no set order for lines 1-13 we recommend, that should the creditor choose to include the optional fields of 14-20, that these optional fields be below the signature line as they are not part of the legal agreement. Page 3 of 11

3.1 Details of the mandate fields as defined by the European Payments Council (EPC): Mandatory/Optional Field Description Mandatory fields Header For Core SEPA Direct Debit Mandate For B2B SEPA Business to Business Direct Debit Mandate Legal Text For Core After the Header: By signing this mandate form, you authorise (A) {NAME OF CREDITOR} to send instructions to your bank to debit your account and (B) your bank to debit your account in accordance with the instructions from {NAME OF CREDITOR}. As part of your rights, you are entitled to a refund from your bank under the terms and conditions of your agreement with your bank. A refund must be claimed within 8 weeks starting from the date on which your account was debited. Please complete all the fields marked *. Contained within the mandate: Note: Your rights regarding the above mandate are explained in a statement that you can obtain from your bank. For B2B After the Header: By signing this mandate form, you authorise (A) {NAME OF CREDITOR} to send instructions to your bank to debit your account and (B) your bank to debit your account in accordance with the instructions from {NAME OF CREDITOR}. This mandate is only intended for business-to-business transactions. You are not entitled to a refund from your bank after your account has been debited, but you are entitled to request your bank not to debit your account up until the day on which the payment is due. Please complete all the fields marked *. Optional fields Mandatory fields Unique Mandate Reference (UMR) Name of the Debtor Address of the Debtor Postal code/city of the Debtor Debtor s country of residence Debtor s account number IBAN The BIC code of the Debtor Bank Creditor company name Identifies for a given Creditor each Mandate signed by any Debtor for that Creditor. Field length: 35 characters The name of the Debtor. Field length: 70 characters The address of the Debtor. Field length: 70 characters The postal code and city of the Debtor The country of residence of the Debtor. Field length: 2 characters The account number (IBAN) of the account of the Debtor Field length: Maximum 34 characters The 8 or 11 character ISO code assigned by SWIFT and used to identify the Debtor Bank The name of the Creditor. Field length: 70 characters Page 4 of 11

3.1 Details of the mandate fields as defined by the European Payments Council (EPC): Mandatory/Optional Field Description Mandatory fields Creditor s identifier Unique Creditor Identifier usually provided to the creditor by the creditor bank. The Creditor Identifier has a different format in each country. See the link below for a further description of the Creditor Identifier formats. http://www.europeanpaymentscouncil.eu/index.cfm/ knowledge-bank/epc-documents/creditor-identifier-overview/ Field length: 35 characters Creditor s address street and number Creditor s postal code and city Country of the Creditor Type of payment Signature place and date Signature(s) The address of the Creditor. Field length: 70 characters The postal code and city of the Creditor The country of residence of the Creditor. Field length: 2 characters one-off and recurrent are the only two available values. Field length: 35 characters City and date when the mandate is signed by the Debtor. Date in ISO Date format Signature of the Debtor(s) authorising the collection of money by the Creditor according to the information in the mandate Optional attributes Debtor identification code A code determined by the Debtor in agreement with the for information only Creditor to facilitate the identification of the Debtor Name of the Debtor Reference Party Identification code of the Debtor Reference Party Name of the Creditor Reference Party Identification code of the Creditor Reference Party Underlying contract identifier Contract description Text relating to a Debtor Reference Party. This is included only for the purpose of assisting the Debtor and/or Creditor in managing their payments A code supplied by the Debtor and delivered to the Creditor as part of the completed Mandate. Information relating to a Debtor Reference Party is included only for the purpose of assisting the Debtor and/or Creditor in managing their payments Text relating to a Creditor Reference Party. This is included only for the purpose of assisting the Debtor and/or Creditor in managing their payments A code supplied by the Creditor and delivered unaltered to the Debtor. Information relating to a Creditor Reference Party is included only for the purpose of assisting the Debtor and/or Creditor in managing their payments The identifier is defined in terms of layout and content by the Creditor. It may contain elements for self-control such as check-digits Free text relevant to describe the underlying contract associated with the mandate The requirements above reflect stand-alone mandates. Mandates can be stand-alone or part of a contract (combined) between the creditor and the debtor. All the mandatory fields in the above table must be present in stand-alone mandates. When the mandate is part of a contract; some of the fields (such as the creditor and/or debtor details) may be part of the associated contract and do not need to be repeated in the mandate. To see more information on how to format a mandate combined with a contract, please see the EPC s document Guidance for the Appearance of Mandates (link in Appendix 1). Page 5 of 11

The following must be taken into account: 1. The Unique Mandate Reference (UMR) can be populated in the mandate by the creditor before or after the mandate is received and signed by the debtor. If the UMR is not available at the time of signing of the mandate, the creditor must make the UMR available to the debtor before the first collection. In any case the UMR will be present in the collection as part of the Mandate Related Information. The collection will be rejected if the UMR has been changed and not flagged as an amendment on a recurrent collection. 2. The debtor must ensure that all the mandatory information is present in the mandate before signing and sending it back to the creditor 3. The BIC code of the debtor bank is not mandatory for domestic collections within a Eurozone country (unless the country has opted for a waiver until February 2016) and will not be mandatory in other SEPA countries (e.g. the UK) after October 2016. The BIC will become optional for cross-border collections in February 2016. 4. The reverse side of the Mandate document may contain the same wording as the front side in a second language when this is appropriate. 5. The mandate must be clearly separated from any other text. No additional material can appear within the boundary of the mandate. 6. Clear instructions to the Debtor for the return of the form must be shown on the face of the mandate. 3.1.1 Unique Mandate Reference (UMR) Details The UMR identifies for a given creditor each mandate signed by a debtor for that creditor. The UMR must be unique for each Mandate in combination with the Creditor Identifier. This alphanumeric reference can be up to 35 characters long and is case sensitive. It can be beneficial to have some form of identifier embedded in the UMR which is recognisable to the creditor. It is recommended that this should not include the Debtor s bank account details. In certain countries, including France, it is forbidden to include debtor account details within the UMR. In order to increase the possibility that the complete UMR will be shown on a debtor bank statement it would be advisable to keep the total length to less than 16 characters. The UMR should be unique for one mandate and should only be used in one SEPA Direct Debit Scheme, e.g. Core or B2B. The risk of using the same UMR for both schemes is that if a debtor wishes to block one direct debit collection using the UMR, they may in turn block all other direct debits that have the same mandate reference. 3.1.2 End to End ID Direct debit originators should ensure that they apply a unique End to End ID to each SEPA Direct Debit. If an originator generates multiple transactions with the same End to End ID then this may result in transactions being rejected by some debtor banks. For customers who take advantage of the Barclays SEPA Direct conversion service and submit in non XML formats, then Barclays SEPA Direct will generate a unique End to End ID and hence this situation will not arise. However, where customers are generating SEPA Direct Debit files in the XML ISO 20022 format, they should ensure that they comply with this requirement. It would be advisable to ensure uniqueness over a period of at least 13 months to cover the unauthorised refund timeline. 3.2 Legal text Both Core and B2B Schemes have specific legal text that must be included in each mandate. In addition to the following requirements, it would be advisable to check country-specific documents for any additional local requirements. For instance, in France consumer data protection laws require the addition of the following mandatory text: Les informations contenues dans le présent mandat, qui doit être complété, sont destinées à n être utilisées par le créancier que pour la gestion de sa relation avec son client. Elles pourront donner lieu à l exercice, par ce dernier, de ses droits d oppositions, d accès et de rectification tels que prévus aux articles 38 et suivants de la loi no 78-17 du 6 janvier 1978 relative à l informatique, aux fichiers et aux libertés. 3.2.1 Core Scheme Legal Text By signing this mandate form, you authorise (A) {NAME OF CREDITOR} to send instructions to your bank to debit your account and (B) your bank to debit your account in accordance with the instructions from {NAME OF CREDITOR}. As part of your rights, you are entitled to a refund from your bank under the terms and conditions of your agreement with your bank. A refund must be claimed within 8 weeks starting from the date on which your account was debited. If optional fields are included in the mandate, then mark mandatory fields with an asterisk and include the statement Please complete all the fields marked *. A SEPA Core mandate must also contain the following legal wording: Your rights are explained in a statement that you can obtain from your bank. Page 6 of 11

3.2.2 B2B Scheme Legal Text The information and fields required for a B2B Scheme mandate are the same as those required for a Core Scheme Mandate with the addition of the following legal text in the header of the mandate: By signing this mandate form, you authorise (A) {NAME OF CREDITOR} to send instructions to your bank to debit your account and (B) your bank to debit your account in accordance with the instructions from {NAME OF CREDITOR}. This mandate is only intended for business-to-business transactions. You are not entitled to a refund from your bank after your account has been debited, but you are entitled to request your bank not to debit your account in accordance with the instructions up until the day on which the payment is due. If optional fields are included in the mandate, then mark mandatory fields with an asterisk and include the statement Please complete all the fields marked *. 3.2.3 Translations A link to mandate text translations in the SEPA languages is available in the appendices. 3.2.4 Mandates must be unconditional Mandates must not include any conditions to the collection of payments from the Debtor. Page 7 of 11

4.0 The SEPA Mandate Lifecycle The following images describe the steps in the creation of and completion of a mandate. Creditor 1. Mandate 4. Creditor 5. Archive 3. Completed & Signed Mandate 2. Debtor 6. Creditor Bank 7. Debtor Bank B2B check 1. The creditor issues the mandate to the debtor. This can be a personalised mandate with some of the information pre-filled by the creditor or a non-personalised generic mandate as part of a commercial publication. 2. The debtor (either an individual or a corporate) receives the mandate, completes his information (or confirms that the information pre-filled by the creditor is correct) and signs the mandate. 3. The debtor sends the completed and signed mandate back to the creditor. 4. The creditor reviews the mandate and accepts/rejects it. 5. The creditor is responsible for storing the original mandate, together with any information regarding amendments relating to the mandate or its cancellation. 6. The creditor dematerialises the mandate and sends the information to the creditor bank with the first collection and every collection thereafter. 7. The debtor bank is obliged to check the accuracy of the mandate on the first collection and check for changes to the mandate on every collection thereafter in the B2B Scheme but does not have to check it in the Core Scheme unless the debtor claims an unauthorised transaction has occured. 8. When debtor banks validate a collection of a recurrent direct debit, the mandate will be validated against the following four attributes; Creditor Identifier, UMR, Customer BIC & IBAN. For a recurrent direct debit, banks will validate that the customer BIC and IBAN and the Creditor Identifier are valid and will then match the UMR against the one already stored. If the two UMRs do not match, the collection will be rejected. 9. The mandate expires after 36 months from the last presented direct debit transaction. Even if that collection was rejected, returned, or refunded, the creditor must cancel the mandate 36 months after the last presented collection. Any further collections will require a new mandate. Page 8 of 11

5.0 Appendices 5.1 Appendix 1: Useful Links SEPA Direct Debit Core Rulebook http://www.europeanpaymentscouncil.eu/index.cfm/sepa-directdebit/sepa-direct-debit-core-scheme-sdd-core/ SEPA Direct Debit Business to Business Rulebook http://www.europeanpaymentscouncil.eu/index.cfm/sepa-directdebit/sepa-direct-debit-business-to-business-scheme-sdd-b2b/ EPC s Guidance for the Appearance of Mandates http://www.europeanpaymentscouncil.eu/index.cfm/knowledgebank/epc-documents/guidelines-for-the-appearance-ofmandates-in-the-sepa-direct-debit-core-scheme/ EPC SEPA Core Direct Debit Rulebook Mandate Illustration http://www.europeanpaymentscouncil.eu/index.cfm/knowledgebank/other-sepa-information/the-sepa-core-direct-debit-rulebookmandate-illustration-epc111-11/ EPC SEPA Business to Business Direct Debit Rulebook Mandate Illustration http://www.europeanpaymentscouncil.eu/index.cfm/knowledgebank/other-documents/the-sepa-business-to-business-directdebit-rulebook-mandate-illustration-epc112-11/ Core Mandate Text Translations http://www.europeanpaymentscouncil.eu/index.cfm/other/coresdd-mandate-translations/ B2B Mandate Text Translations http://www.europeanpaymentscouncil.eu/index.cfm/other/sepab2b-dd-mandate-translations/ 5.1.1 France A sample French CORE mandate is available in Item 6 of the following link http://cfonb.inie.makoa.fr/default.aspx?lid=1&rid=122&rvid=143 A sample French B2B mandate is available on page 45 of the following document http://cfonb.inie.makoa.fr/fichiers/20150415144430_2_5_ Brochure_Prelevement_SEPA_Interentreprises_Fev_2015_Final_ Version_publiee.pdf 5.1.2 Germany Sample German Core Mandate http://www.die-deutsche-kreditwirtschaft.de/uploads/ media/120720_dk_beispiele_muster_sepa_lastschriftmandat- SDD_Basis-Core_09072012.pdf Sample German B2B Mandate http://www.die-deutsche-kreditwirtschaft.de/uploads/ media/120720_dk_beispiele_muster_sepa-firmenlastschrift- Mandat-SDD_Firmen-B2B_09072012.pdf 5.1.3 Ireland SEPA Creditors Guide published by the Irish Payment Service Organisation Limited. Sample mandates available on pages 25 and 26. http://www.bpfi.ie/customer-assist/business-customers/sepaguides-for-business/ 5.1.4 Italy Italian SEDA compliant mandate templates can be found on pages 40 to 43 of the Interbank Agreement prepared by the Italian Banking Association. This document will be updated from to time and is available at the link: http://www.sepaitalia.eu/uploads/seda%20 -%20interbank%20agreement_rel%203%200a.pdf Note that Barclays Italy offers the SEDA service. 5.1.5 Portugal Portuguese Core Mandate http://www.bportugal.pt/pt-pt/pagamentos/sepa/ RegrasdeFuncionamento/Documents/Autorização%20de %20Débito%20Directo%20SEPA%20-%20CORE.pdf Portuguese B2B Mandate http://www.bportugal.pt/pt-pt/pagamentos/sepa/ RegrasdeFuncionamento/Documents/Autorização%20de %20Débito%20Directo%20SEPA%20-%20B2B.pdf 5.1.6 Spain Spanish SEPA Core and B2B Mandate Guidelines http://www.aebanca.es/cs/groups/public/documents/folletos/ folleto-201302916.pdf Please refer to page 6 section Legal Text which refers to additional specific text required on French mandates. Page 9 of 11

5.2 Appendix 2: Sample Core Scheme Mandate SEPA Core Direct Debit Mandate Company Logo Company X 77 Stair Road London, SE3 8DF United Kingdom Creditor ID: GB14ZZZSDDBARC12345698706540 By signing this mandate form, you authorise (A) <Company X> to send instructions to your bank to debit your account and (B) your bank to debit your account in accordance with the instructions from <Company X>. As part of your rights, you are entitled to a refund from your bank under the terms and conditions of your agreement with your bank. A refund must be claimed within 8 weeks starting from the date on which your account was debited. Your rights regarding this mandate are explained in a statement that you can obtain from your bank. All fields are mandatory. Mandate Reference (Maximum 35 characters) In respect of the contract Type of Payment Recurrent (Mandate can be used more than once) One-off (Mandate can only be used once) Address Your name Your address Postcode City Postcode Country Your bank BIC Your account number (IBAN) Date of Signature Signature D D M M Y Y City/town in which you are signing Page 10 of 11

5.3 Appendix 3: Sample B2B Scheme Mandate SEPA Business to Business Direct Debit Mandate Company Logo Company X 77 Stair Road London, SE3 8DF United Kingdom Creditor ID: GB14ZZZSDDBARC12345698706540 By signing this mandate form, you authorise (A) <Company X> to send instructions to your bank to debit your account and (B) your bank to debit your account in accordance with the instructions from <Company X> This mandate is only intended for business-to-business transactions. You are not entitled to a refund from your bank after your account has been debited, but you are entitled to request your bank not to debit your account in accordance with the instructions up until the day on which the payment is due. Please contact your bank for detailed procedures in such a case. All fields are mandatory. Mandate Reference (Maximum 35 characters) In respect of the contract Type of Payment Recurrent (Mandate can be used more than once) One-off (Mandate can only be used once) Address Your name Your address Postcode City Postcode Country Your bank BIC Your account number (IBAN) Date of Signature Signature D D M M Y Y City/town in which you are signing Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP. Item Ref: 9914191. October 2015. Page 11 of 11