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SEPA direct debit - super easy to pay, super easy to explain
Katharina Rösner
For your sale or marketing, you should cashless payments offer. To pay on site, for example, buy a card reader for checking and credit cards. For your Online store Can you of course very different Payment options offer. For example PayPal, transfer Or just Direct debit.
In this article, we will limit ourselves to SEPA direct debit. We'll briefly discuss the benefits of cashless payments and then explain what a SEPA direct debit mandate is, how to set it up and how it works.
How does payment with Girocard actually work and what are the advantages?
The amount to be paid is entered manually or automatically in the case of stationary devices. The customer inserts the card into the reader and confirm payment with PIN. During the payment process, the reader connects to the bank. Within a few seconds, this confirms the transaction. After entry, the PIN is transmitted in encrypted form to the bank's data center and compared there.
The benefits of cashless payment Are they saving time, increased surety and more turnover. Although Germany is a cash country, more and more people prefer to pay without cash.
The corona pandemic has certainly also driven change. Because paying with map In particular, goes a lot swifter than in a bar. That's a big benefit because shopping is rather annoying. And the sooner you can leave the store, the better. In addition, the checkout queue won't be that long.
Paying by card is also more hygienic. There are fewer germs on it than on notes or coins. When making contactless payments, you even avoid entering the PIN and making contact with the buttons on the EC card terminal.
In addition, it is safer, just carry your card instead of cash. In case of theft, all you have to do is have the cards blocked. In addition, cashless payments are always traceable, just not cash payments.
Surveys show that consumers tend to spend more money when they pay with a Girocard than when they only use cash. It is also available for consumers on simplestto make cashless payments. Do you want spontaneously somewhere shop, at best, you don't have to worry about whether you still have enough cash or where the nearest ATM is. Cashless payments give businesses a clear advantage. If they don't offer this, it definitely makes sense to point it out on the website or on Google so that customers can at least adjust to it.
One disadvantage for retailers is the fees for every transaction. You pay rent for the device and a percentage for each payment process, as well as a fixed fee.
In online banking, direct debit in 2023 is the third most popular means of payment. PayPal comes first, followed by the invoice. Therefore, it is definitely worthwhile to use the SEPA direct debit to be offered as a retailer.
SEPA stands for Single Euro Payments Area. All EU member states as well as Switzerland, Norway, Monaco, Great Britain, Iceland, Liechtenstein and Andorra are part of the SEPA area. Direct debits have been possible since 2010 and are managed by the European Payments Committee, the EPC (European Payment Council), controlled. The reason for introducing the SEPA area is unitary legal regulation for payments.
The SEPA direct debit scheme is also available as Direct debit known. The direct debit is for recurring payments, the SEPA transfer is intended for one-time payments. In the event of a transfer, the payer initiates the transaction. In the case of a direct debit, the payee triggers the debit. However, as a creditor, he needs the empowerment by the payer. For this purpose, he sets up as debtors one SEPA direct debit mandate one.
The creditor triggers the payment by demanding a sum of money from his bank. The mandate is the authorization for the payee and the instruction to the payer's bank to redeem the direct debit, i.e. to withdraw the money. Following the claim, the bank writes a preliminary credit to the creditor's account and forwards the direct debit to the payer's bank. Through the direct debit mandate, the person gives their consent and the bank now debits their account. The mandate only entitles you to collect payments that are also due.
Each mandate contains the name of the payee, a Creditor identification number (CI), the name of the customer, i.e. the payer, the name of the payer's bank and his IBAN And the Mandate reference. It must be defined individually for each customer so that the transactions are comprehensible. This is also important if the customer cancels the transaction.
The advantage for the creditor is that he has the Set daywhere he collects the money. The debtor must ensure that his account is adequately funded on that day. Otherwise, the money cannot be collected and there may be fees for the debtor. That is the disadvantage for the debtor.
The person responsible for payment can cancel the debit within 8 weeks. However, they also incur fees for this. After 13 months after the debit, there is no longer any right to cancel it. If you cancel a contract, you should also revoke the letter mandate.
Although the direct debit is a Book money transfer, but not for a transfer, because the money is collected from the payee following the payee's consent.
In the case of transfers, the transaction of the book money is overrun credit institutions. With online payment services such as PayPal, the merchant receives the money directly to his account.
In order to be able to set up a SEPA direct debit procedure for customers, the entrepreneur must have a creditor identification number (CI). This must be online at the Deutsche Bundesbank filed become. There is a electronic form. It manages the CI together with the German banking industry. SEPA forms can be found on the bank's website. For example at Sparkasse here.
With FrachtPilot, even the necessary form is used when ordering for the first time with the SEPA payment method selected in online shop made available digitally to the customer.
If both are now available, the payment method is set up via SEPA direct debit. The seller must then also set up the payment method in his customer management program and set the payment method accordingly for every customer who allows him a SEPA direct debit mandate.
With FrachtPilot For example, do you have to go under the tab”Invoices” SEPA direct debit as Payment method Set up and then fill out the fields on the form to set up your account: your IBAN, BIC, creditor identification number, account holder, bank name and lead time. The lead period refers to the period in days in which the bank must be notified of the direct debit collection or in which it must receive the claim in order to meet the transaction target. This is at least 1 to 6 days.
To now define the direct debit procedure for an individual customer, go to the corresponding customer profile And then into the customer preferences, usually marked with a cogwheel, on invoices. In the “Payment method” field, enter SEPA direct debit. You also fill out all other fields. The mandate reference is always the customer number and is automatically defined. It is best to check the box next to”Set as default payment method“and”Update open orders”. The direct debit is then used as a payment method for all open orders and for all that the customer will still make.
To start withdrawing through the bank, you must the SEPA XML file in the bank's online banking uploads. You will receive this if you go to the “Manage Invoices” tabGenerate SEPA direct debit“and specify the period in which the move-in should take place. Before you start a direct debit for the same period of time, you must cancel all bookings that have already been made. Otherwise, they will be collected twice.
You must then upload the SEPA XML file to the bank as a direct debit collector file. This works in your business account under Templates > Collectors > Import Collectors.
For more information, see our help.
Cashless payments are becoming increasingly popular. Customers are more flexible and businesses have a competitive advantage when they offer card payments. Of the online payment methods, SEPA direct debit is one of the most popular because direct debit is convenient. Stores and shops that offer both have a competitive advantage.
As described above, therefore FrachtPilot Of course, SEPA direct debit is also on board. You can enable or block the payment method for every customer. But where would we be if there wasn't more. A lot more!
FrachtPilot supports you with all (ERP) tasksthat arise when you market food. Not only when managing the possible payment methods, but also there ;-). From online store with ordering app (Apple/Android), via billing and inventory management, Route planning or Parcel delivery up to accounting.
Just get in touch with us! We would be happy to advise you on how FrachtPilot can support you in your business Of course she is guidance free of charge and without obligation.
In addition, in an equally free and non-binding Test period Put the FreichtPilot through its paces for 30 days!
