A Single Euro Payments Area Creditor Identifier or SEPA Creditor Id is a standardized and unchanging identification number that serves to unequivocally identify a creditor across Europe. SEPA Creditor identifier is used to collect SEPA direct debit and allows both debtors and its banks to turn to creditors in case of claims for reimbursement or complaints.
A SEPA Creditor Identifier is a requirement to enter into a SEPA Direct Debit agreement. It is important to keep in mind that while each creditor can use more than one SEPA Creditor Identifier, each of them is unique and can be used for the initiation of collections throughout the SEPA financial institutions.
For a creditor to collect a SEPA direct debit, it must make use of its Creditor Identifier, which along with the SEPA direct debit mandate reference is forwarded to the debtor. Such a process allows the debtor to be able to check the actual existence of the mandate or at least that its bank be capable of optionally providing him with that service.