Payments
SEPA Direct Debit
Updated
SEPA Direct Debit lets a merchant pull euro payments from a customer's bank account in the Single Euro Payments Area, after the customer signs a mandate.
The customer gives their IBAN and agrees to a mandate allowing the merchant to debit the account. The merchant can then collect one-off or recurring payments in euros without the customer approving each one, which suits subscriptions.
Customer protection is strong. Stripe's documentation says customers can dispute a payment through their bank on a no-questions-asked basis up to eight weeks after their account is debited, and after that, up to 13 months, if the debit was unauthorised.
Debits are not instant. Stripe says it can take several business days for SEPA Direct Debit funds to become available, and a payment can still fail after it was submitted, so stores often wait before shipping high-value orders.
Frequently asked questions
- How long can a customer dispute a SEPA Direct Debit?
- Up to eight weeks after the debit with no reason needed, and up to 13 months if the debit was unauthorised.
- Is SEPA Direct Debit good for subscriptions?
- Yes. Once the customer signs a mandate, the merchant can collect recurring euro payments without the customer approving each one.
Sources
- SEPA Direct Debit payments — Stripe