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Setting up SEPA Credit Transfers in DEFT

Michaela Greene
  • Updated

Overview

SEPA Credit Transfers allow you to pay employees, suppliers, and submit ERR data to Irish Revenue securely through your bank. This guide walks you through configuring DEFT for SEPA payments, linking it to your Revenue Online Service (ROS) account, and making your first payment.

You’ll need to set this up before you can use DEFT to process payments or submit ERR data.

Before you begin

You’ll need: - Administrator access to DEFT - A Revenue Online Service (ROS) account - A valid ROS DigiCert certificate (for secure communication with Revenue) - Your company’s bank account details and IBAN - Access to your company’s DEFT installation and configuration files

If you don’t have a ROS account, you can register at revenue.ie.

Step 1: Verify your ROS certificate

Your ROS DigiCert certificate is what DEFT uses to communicate securely with Revenue. Before setting up SEPA in DEFT, ensure your certificate is valid and has the necessary permissions.

To check your certificate:

  1. Log in to your Revenue Online Service (ROS) account
  2. Navigate to Manage Certificates
  3. Look for your current PAYE certificate
  4. Verify:
    • The certificate has not expired
    • It has ERR submission permissions (if you plan to submit ERR data)
    • It has SEPA payment permissions
  5. If permissions are missing, request a certificate amendment from Revenue
  6. Wait for Revenue to approve (usually 2–3 working days)
  7. Download the updated certificate to your computer

Keep this certificate file safe—you’ll need it in the next step.

Step 2: Set up SEPA in DEFT

To configure SEPA Credit Transfers:

  1. Open DEFT and log in as an administrator
  2. Navigate to File > New Database (or Create New Database depending on your DEFT version)
  3. Enter your company details:
    • Company name
    • Company registration number (CRO number)
    • Tax reference number
    • Registered address
  4. Select payment method:
    • Look for Payment Method or Payment Type
    • Select SEPA Credit Transfers
  5. Configure your SEPA account:
    • Enter your business IBAN (your bank account number for payments)
    • Enter your company’s creditor identifier (provided by Revenue or your bank)
    • Specify your bank details
  6. Enable features (if applicable):
    • Check Enhanced Reporting (ERR) if you need to submit ERR data to Revenue
    • This allows DEFT to format data for Revenue submission
  7. Upload your ROS certificate:
    • When prompted, select Upload Certificate or Import Certificate
    • Browse to the certificate file you downloaded from ROS
    • Enter the certificate password (if required)
    • Click OK
  8. Create the database:
    • Review all settings
    • Click Create or Finish
    • DEFT will initialise your SEPA database

[Insert screenshot showing the New Database dialog with SEPA Credit Transfers selected and certificate upload field visible]

Step 3: Test your SEPA connection

Before making a live payment, verify that DEFT can communicate securely with Revenue and your bank.

To test the connection:

  1. In DEFT, navigate to Tools > Test Connection (or Diagnostics > ROS Connection Test)
  2. Click Test ROS Connection
  3. DEFT will attempt to connect to Revenue using your certificate
  4. You’ll see one of these results:
    • ✓ Connection successful – Your setup is correct; proceed to make payments
    • ✗ Connection failed – Check the error message (see Troubleshooting below)

If the test is successful, your SEPA setup is complete.

Step 4: Set up your payment mandate

A payment mandate authorises you to collect payments from customer and supplier accounts. You need this in place before submitting SEPA payments.

To create a SEPA mandate:

  1. In DEFT, navigate to Settings > Mandates (or Configuration > Payment Mandates)
  2. Click New Mandate
  3. Enter mandate details:
    • Your company name
    • Your company address
    • Your creditor identifier (from Step 2)
    • Your IBAN (your business bank account)
  4. Save the mandate
  5. DEFT will assign a mandate reference number
  6. Keep this reference—you’ll need it when making payments

[Insert screenshot showing the Mandate creation dialog with required fields]

Step 5: Add customer and supplier bank details

For each employee, supplier, or customer you’ll be paying, you need to record their bank account details.

To add a bank account:

  1. In DEFT, navigate to Users > Add Payment Details (or similar)
  2. Select the person/entity you want to add bank details for
  3. Enter their payment information:
    • Full name (must match their bank account)
    • Complete address
    • IBAN (their bank account number)
    • Mandate reference (if applicable)
  4. Save the details
  5. Repeat for all employees and suppliers

DEFT will validate the IBAN format. If it’s incorrect, you’ll see an error message—correct it before saving.

Step 6: Make your first test payment

It’s a good idea to make a small test payment first to ensure everything is working.

To submit a test payment:

  1. In DEFT, navigate to Payments > New Payment
  2. Enter payment details:
    • Recipient (select from your saved contacts)
    • Payment amount (suggest a small amount like €1.00 for testing)
    • Payment date (should be a future working day)
    • Payment method: SEPA Credit Transfer
  3. Review the payment:
    • Confirm recipient name and IBAN
    • Verify the amount
    • Check the payment date
  4. Submit the payment:
    • Click Submit or Send to Bank
    • DEFT will encrypt and send the payment instruction to your bank
  5. Check confirmation:
    • DEFT will display a confirmation message with a reference number
    • Save this reference for your records
  6. Verify receipt:
    • Contact the recipient and ask them to confirm receipt within 1–2 working days
    • Log in to your online banking to confirm the payment has been processed

Once the test payment succeeds, you’re ready to make regular payments.

Result

Your DEFT system is now configured for SEPA Credit Transfers. You can: - Submit payments to employees, suppliers, and customers - Track payment status in DEFT - Submit ERR data to Revenue (if enabled) - Manage payment mandates and customer bank details - Generate payment reports and audit trails

Troubleshooting

Error: “Certificate not found” or “Invalid certificate”

Possible cause: The ROS certificate wasn’t uploaded correctly or has expired.

Resolution: 1. Download a fresh certificate from your ROS account 2. In DEFT, go to Settings > Certificates 3. Delete the existing certificate 4. Upload the new certificate 5. Test the connection again

Error: “Connection to ROS failed”

Possible cause: Your internet connection is unstable, ROS is offline, or your firewall is blocking the connection.

Resolution: 1. Check your internet connection 2. Try accessing ROS directly at ros.ie to confirm it’s online 3. Contact your IT department to check firewall settings 4. Wait a few minutes and try again

IBAN validation error when adding customer details

Possible cause: The IBAN format is incorrect or the account doesn’t exist.

Resolution: 1. Ask the customer/supplier to confirm their IBAN 2. Verify the format (Irish IBANs are 22 characters: IE + 2 digits + 4 letters + 14 numbers) 3. Check there are no spaces in the IBAN 4. Correct and try saving again

“Invalid mandate” error when submitting a payment

Possible cause: The mandate hasn’t been created or is inactive.

Resolution: 1. Ensure you’ve completed Step 4 (Set up payment mandate) 2. In Settings > Mandates, verify the mandate is marked as active 3. If not, activate it 4. Try the payment again

Best practices

  • Test first – Always make a small test payment before making large payments
  • Keep certificates current – Renew your ROS certificate before it expires to avoid payment delays
  • Verify bank details – Double-check IBANs before saving—errors will cause payment rejections
  • Plan ahead – SEPA payments take 1–2 working days. Submit well before you need the money to reach the recipient
  • Review reports – Check DEFT’s payment reports regularly to monitor transaction history

 

Frequently asked questions

Q: How long does a SEPA payment take? A: SEPA Credit Transfers typically take 1 working day to reach the recipient’s bank. Some banks may take up to 2 days.

Q: What if I need to cancel a payment? A: If the payment hasn’t been processed yet, you can cancel it in DEFT. Once submitted to the bank, contact your bank directly to stop the payment. There may be a fee for stopping a payment.

Q: Can I schedule payments in advance? A: Yes. When you submit a payment, you can set the payment date in the future. DEFT will submit it to your bank on the scheduled date.

Q: What if a payment is rejected? A: DEFT will receive a rejection code from the bank explaining why. See the related article on understanding payment rejections for solutions.

Q: Do I need a separate mandate for each customer? A: No. One mandate authorises all SEPA payments from your account. Individual customers may have their own mandates, but your company-level mandate covers all transactions.

Q: Can I export payment data from DEFT? A: Yes. DEFT allows you to generate reports and export payment history for reconciliation with your bank.

Q: What if my business details change? A: Update them in DEFT: Settings > Company Details. If your company name or creditor ID changes significantly, notify Revenue and update your ROS account.

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