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.

Clearing

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.

E-mandate

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.

Product rules

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)