SEPA Direct Debit


What is it?

A SEPA Direct Debit is a financial transaction in which one entity withdraws funds from another’s bank account by means of an automatic authorisation. Through SEPA Direct Debit, only payments from (IBAN) private banking can be processed, as a one-off or as a recurrent withdrawal. SOFORT Banking and iDEAL are supported as SEPA Direct Debit payment methods.

This payment method gives you the possibility to collect funds from your customer bank account on a recurring basis. SEPA Direct Debit is a standard across Europe to collect funds from your customers by means of previous authorization. Currently 36 countries fall under the SEPA scheme.

Customers can withdraw this payment for 56 days, without giving a reason or you having a possibility to appeal.

How does it work?

As the merchant files the SEPA Direct Debit request, an order with status initialized will be created (after MultiSafepay has conducted a background check on the provided customer data).

Every night, all SEPA Direct Debits will be sent to our bank and the status will change to uncleared. From this moment on, it is no longer possible to cancel the transaction.

The next business day, we will receive the first feedback from our bank in case of a wrong IBAN or BIC. When the money is received on our end, the order status changes to completed, but the transaction status remains uncleared. The number of days that a SEPA Direct Debit has a transaction status uncleared depends on the transaction amount.

Clearing

For amounts smaller than 500 euro, clearing will take 7 business days.

Fpr amounts larger than 500 euro, clearing will take 20 business days.

Transaction flow

The transaction flow shows the different ways a transaction can be processed. This differs per payment method.

  • Order status
    The order status indicates the status of the order, such as completed, pending or rejected. The order status is independent of the incoming or outgoing payment of the transaction.

  • Transaction status
    The transaction status indicates the payment status of the transaction, such as completed, pending or rejected. Once the transaction status is completed, the amount of the transaction is added to your MultiSafepay balance.

Order Status Transaction Status Description
Initialized Initialized Created but not yet processed by the bank.
Uncleared Uncleared Processed by the bank waiting for clearing period (depending on amount and settings of the merchant).
Completed Completed Payment has been received and the funds will be added to your MultiSafepay Control balance.
Declined Declined Rejected during uncleared period.
Cancelled Cancelled Transaction has been cancelled or incorrectly entered by webshop

Refund flow

Order Status Transaction Status Description
Reserved Reserved A refund has been requested.
Completed Completed Refund has been successfully processed.
Chargeback Completed Forced reversal of funds initiated by customer’s bank (issuer). The chargeback cannot be challenged.

The full API reference for SEPA Direct Debit can be found here

E-mandate

MultiSafepay creates an e-mandate automatically, based on IBAN and SiteID. A SEPA Direct Debit can be First or Recurrent. Two different batches are made for this. The First orders are processed after 5 days by the bank, while the Recurrent orders after 2 days.

Chargebacks by customer

A SEPA Direct Debit payment is not fully guaranteed. The customer has 56 days to retrieve the payment that took place. However, when it is an unauthorized transaction (i.e. without verifiable debtor consent) it can even be 13 months. As this process involves staff intervention in both the Debtor Bank and the Creditor Bank the costs can be as high as 65 EUR.

Product rules

Some rules may apply to certain payment methods. For SEPA Direct Debit, the following rules apply:

  • Refunding more than the stated amount of the original transaction is not possible with SEPA Direct Debit. More information is available on our refund more than original amount page

  • Successful SEPA Direct Debit transactions have no expiring date regarding refunding, as long as the receiving bank is able to process the refund

  • As a collection payment method, SEPA Direct Debit has a different payment flow and the setting of days or seconds active will have no influence.

Full documentation can be found on our lifetime of a payment link FAQ page.

  • Payments done through SEPA Direct Debit are processed in Euros (EUR)

Activate

As SEPA Direct Debit poses certain risks, you will need to first apply before you can process transactions. Our Risk team will conduct a screening to determine whether you are eligible.

Please contact your account manager to submit your request to use SEPA Direct Debit.

Please note, SEPA Direct Debit is not suitable for normal retail (e.g. clothing) because the payment can take up to 10 days for completion. Besides, a SEPA Direct Debit payment can be cancelled by the customer within 8 weeks without reason. There is no right to appeal.

Request refund

Please follow these steps to refund a SEPA Direct Debit transaction:

  1. Login into your MultiSafepay Control
  2. Select Transactions -> Transaction overview
  3. Find the transaction through search
  4. Open the transaction
  5. Select refund
  6. Fill in the amount that you are going to refund to the customer
  7. Confirm the refund.

The transaction status is now initialized. As long as the transaction status is marked as initialized, the refund can be cancelled. When the transaction status is marked as completed, the refund is processed correctly. The customer will receive the refund to the bank account number in which the transaction was originally paid to, within the next business day

A refund will only be processed if your balance on your MultiSafepay Control is sufficient.

Cancellation codes

Code Reason
AC01 Incorrect account number
AC04 Closed account number
AC06 Blocked account
AC13 Debtor account type is missing or invalid
AG01 Transaction forbidden
AG01 Transaction forbidden
AG02 Invalid bank operation code
AM04 Insufficient funds
AM05 Duplication
BE01 Inconsistent with endcustomer
BE04 Creditor address missing or incorrect
BE05 Unrecognised initiating party
CNOR Creditor bank is not registered
DNOR Debtor bank is not registered
FF01 Invalid file format
FF05 Direct debit type incorrect
FOCR Return following a cancellation request
MD01 No Mandate
MD02 Missing mandatory infomation in mandate
MD06 Return of funds requested by end customer
MD07 End customer deceased
MS02 Not specified reason customer generated
MS03 Not specified reason agent generated
RC01 Bank identifier incorrect
RR01 Missing debtor account or identification
RR02 Missing debtor name or address
RR03 Missing creditor name or address
RR04 Regulatory reason
SL01 Due to specific service offered by debtor agent
TM01 File received after Cut-off Time

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Other languages

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