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 consumer 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.

Transaction status Order 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 setting of the merchant).
Declined Declined rejected during uncleared period
Chargeback Chargeback payment recovered after transaction has been completed
Canceled Canceled transaction has been canceled or incorrectly entered by webshop
Completed Completed payment has been received and forwarded to the account

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 consumers

56 days after the debit took place, but 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.