Pharmacist Hecht outraged: Direct debit dispute with Abbvie causes chaos!

Pharmacist Hecht outraged: Direct debit dispute with Abbvie causes chaos!

The decision as to whether and how payments are processed in modern payment transactions is crucial for many entrepreneurs. A current case shows how complex and potentially problematic the SEPA direct debit procedure can be in practice. Tilman Hecht, a self-employed pharmacist since 2004, is faced with difficulties that lead him to question future direct debit systems.

Hecht has always been careful to maintain control over his financial transactions. In the past, he has paid bills for accessories for his Parkinson's pump by bank transfer, making payments of between 200 and 500 euros to Abbvie eleven times. For him, using direct debit was a risk that he wanted to avoid. All the more surprising for Hecht was the email from the Abbvie accounts receivable department, which this week discussed a problem with a so-called SEPA mandate. The notice noted that a debit from his account was declined due to an “invalid mandate.” Despite the invoice being transferred on time, Abbvie is now demanding clarification of the situation.

The legal framework of the SEPA procedure

The SEPA direct debit scheme, which has existed in Germany since July 2012, is a uniform means of payment that facilitates transactions within the Eurozone. It includes 27 EU member states as well as several other European regions. There are two main types of direct debits in the SEPA process: the SEPA core direct debit and the SEPA business-to-business direct debit. While the first variant is also accessible to consumers and allows an uncomplicated return within eight weeks, the company direct debit is only intended for business transactions and does not offer any return options.

A SEPA direct debit always requires a mandate that gives the provider permission to debit funds from the corresponding account. Each mandate is provided with a unique mandate reference that can be identified on account statements. The payment recipients are obliged to communicate both the amount and the time frame of the debits at least 14 days in advance. In certain cases this period can be made shorter.

Consequences and challenges for entrepreneurs

Hecht is irritated by the incidents and questions the mandate process, which puts him in an unpleasant situation. He doesn't understand why he should contact his bank even though all his payments have been cleared. As a pharmacist in particular, he also sees himself as a business player and cannot expect his patients to always grant a SEPA mandate. This situation raises questions as to whether other pharmacists have had similar experiences and to what extent they are prepared to reject direct debit procedures.

Abbvie has announced that it will examine the matter and seek clarification and a joint solution with Hecht. The lack of clarity surrounding SEPA mandates and direct debits highlights the challenges faced by many small and medium-sized businesses operating in the digital payments world. Experts recommend checking your account statements regularly and being aware of the legal framework for paying using the SEPA process.

It remains essential for consumers and businesses to be aware of the functionalities and risks of SEPA payments in order to avoid possible misunderstandings and financial losses. In addition, everyone should know the direct debit return policy, as unauthorized direct debits can be returned within 13 months under certain conditions.

For more information on this topic, see Pharmacy Adhoc, Consumer advice center and Bundesbank.