Authorization
Officially, automatic direct debit always requires authorization from your customer. This authorization states the amount to be collected and the date of the collection. Once the authorization is in order, you can begin using this payment method.
Different forms of direct debit
When you think of direct debit, you probably think of one-off or periodic payments for which you need either written or verbal authorization. That's correct! That's how this payment option works in general, but there is more to it than that. There are several different forms of direct debit.
- General standing authorization: e.g. for subscriptions and contributions
- One-off authorization: single payment, such as for promotions
- Standing authorization for businesses: for business transactions, e.g. rent
- Standing authorization for games of chance: specifically designed for online games
PAY. is happy to discuss the options with you and help you choose the right form of direct debit for your online shop or website.
The risks of direct debit
Like most other payment methods, there are downsides to direct debit as well. Every consumer has the right to withdraw a direct debit transaction via their bank by:
- A reversal (or chargeback). This is possible up until 56 days after the transaction. The consumer can reverse a transaction at any time, with or without a written signature.
- A so-called Report Unjustified Direct Debit. This is possible until 13 months after the transaction. Such a report is only deemed valid if no written signature from the customer (/account holder) is available.
The costs of a direct debit reversal and a Report Unjustified Direct Debit are listed on the packages and rates page.
If you want to use the direct debit payment method on your website, we ask that you describe your services first. This will allow us to assess the risks involved beforehand.
