Direct Debit, What is it?
A Direct Debit is a financial transaction in which one person withdraws funds from another person’s bank account. The Direct Debit can only collect payments from (IBAN) private banking accounts.
Direct Debit therefor supports the payment methods SOFORT Banking and iDEAL.
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.
Customers can withdraw this payment for 56 days, without giving a reason or you having a possibility to appeal.
Direct Debit, How does it work?
As the merchant files the direct debit request, the order will be created with status Initialized (after MultiSafepay has conducted a background check on the provided customer data).
Every night all 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 financial status remains uncleared. The number of days that a Direct Debit has a financial status uncleared depends on the transaction amount.
Smaller than 500 euro = 7 business days.
Bigger than 500 euro = 20 business days.
Direct Debit transaction flow
|Order Status||Financial 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.|
|Canceled||Canceled||Transaction has been canceled or incorrectly entered by webshop|
Direct Debit, refund status flow
|Order Status||Financial 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.|
Full API reference on the payment method Direct Debit.
MultiSafepay creates an e-mandate automatically, based on IBAN and SiteID. A 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, the recurrent after 2 days.
Chargebacks by customer
A 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.
Some rules may apply to certain payment methods. These rules apply to the payment method Direct Debit
The days and seconds active does not apply to the payment method Direct Debit. This is because the payment method is a collection payment method. As a result, it has a different payment flow and the setting of a days or seconds active will have no influence.
Full documentation on the lifetime of a payment link can be found on our FAQ page, Lifetime of a payment link
Direct Debit processes the currency Euros (EUR)
How to activate Direct Debit
As Direct Debit contains a certain risk, you need to apply for this payment method. Contact your account manager to submit your request to use Direct Debits.
Please note, Direct Debit is not suitable for normal retail, like clothing, because the payment can take up to 10 days for completion. Besides, a Direct Debit payment can be canceled by the customer within 8 weeks without reason. There is no right to appeal.
How to refund a Direct Debit order
The refund of a transaction with the payment method Direct Debit can be processed from the MultiSafepay Control.
Please follow the following steps:
- Select Transactions -> Transaction overview
- Find the transaction through search
- Open the transaction
- Select refund
- Fill in the amount that you are going to refund to the customer
MultiSafepay does not allow for you to refund more than the stated amount of the original transaction
The order status is initialized, as long as the order status is marked as initialized, the refund can be canceled. When the order 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.
- Outgoing payments will not be processed when your MultiSafepay balance is insufficient.