SEPA Direct Debit overview


SEPA Direct Debit is a European banking payment method where customers authorize automatic one-off or recurring debits directly from their bank account.

It is available in 36 countries and supports Sofort and iDEAL.

Countries SEPA region
Currencies EUR
Chargebacks Yes – See below.
Refunds Full and partial
Payment features Recurring Payments
Second Chance

Chargebacks

Customers can request a chargeback within 56 days, or for unauthorized transactions (i.e. without verifiable consent from the customer) within 13 months. This makes SEPA Direct Debit unsuitable for most retail businesses, e.g. clothing.

You cannot dispute chargebacks and there is no facilitated process like there is for credit card chargebacks.

Chargebacks can cost up to 65 EUR in bank fees.

Refund risks

There is a risk that if you refund a customer and they also request a chargeback, you pay their money back twice. Customers can even request a chargeback after successfully receiving a refund.

To reduce the chances of this happening, we strongly recomend:

  • Only processing refunds for trusted, verified customers.

  • Avoiding refunding a customer if you have any ongoing dispute with them.

  • If refunding:

    • First check if the customer has already requested a chargeback.

    • Wait until 7 working days after payment was initiated to be sure payment is now complete.

    • Communicate clearly to the customer that you are sending a refund and that the funds will take a few days to arrive in their account.

Feedback

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Other languages

For an explanation in another language, contact your account manager.