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SEPA Direct Debit

Introduction​

The Single Euro Payments Area Direct Debit is a bank-to-bank payment method that allows merchants to collect euro-denominated payments from customer accounts across the SEPA region. It supports one-time and recurring payments, making it ideal for subscription models and periodic billing needs. SEPA simplifies cross-border euro transactions by ensuring uniform standards and processes among participating countries.

SEPA Direct Debit is a pull-based payment method, meaning the merchant initiates the transaction by pulling funds from the customer's account after obtaining a signed mandate. This is in contrast to push-based methods, where the customer actively sends funds to the merchant. It is also asynchronous, meaning the transaction is not instant but processed over a period, with settlement occurring after the bank has processed the debit.

Workflows and Transaction Types​

Integration Flow for Merchants​

Merchants can integrate SEPA Direct Debit using KontoCloud's APIs and SDKs. The integration involves:

CIT and MIT Use Cases​

SEPA Direct Debit supports customer-initiated transactions (CIT), where customers actively provide their bank account details and authorize the mandate during the checkout process. It also supports merchant-initiated transactions (MIT), where merchants debit funds periodically from the customer's account without requiring repeated authorization. This is particularly useful for recurring billing and subscription models. For detailed workflows, visit the SEPA Authorization Guide.

Storable Payment Option (SPO)​

SEPA mandates can be securely stored as a payment option for future transactions. Stored mandates are tokenized to comply with PCI DSS standards, ensuring that sensitive information is safeguarded. For information on storing SEPA mandates, refer to the Store New Payment Option Guide.

Lifecycle and Status of SPO​

SEPA transactions follow a structured lifecycle:

  • Mandate Authorization: The customer reviews and accepts the SEPA mandate, which is then securely stored. Visit the Mandate Management Guide.
  • Authorization: The merchant submits an authorization request for the payment. Details are available in the Authorization Guide.
  • Capture: The authorized amount is captured and settled into the merchant's account. Detailed steps are available in the Capture Guide.
  • Refunds and Cancellations: Merchants can issue refunds or cancel transactions based on customer requests or specific scenarios. SEPA rules ensure standardized processes across the region. For more information, visit the Refund and Cancellation Guide.

Specific Workflows​

SEPA supports workflows for one-time payments, recurring billing, refunds, and mandate cancellations. For recurring payments, merchants can set up automatic debits using stored mandates. For more information on workflows, visit the SEPA Mandate and Capture Guides.

Transaction Status Flow​

SEPA transactions progress through stages such as "Pending Mandate Authorization," "Mandate Authorized," "Captured," "Refunded," and "Canceled." Merchants can monitor and update transaction statuses via KontoCloud's APIs. Detailed response codes for SEPA-related transactions are available in the API Response Codes Guide.

Ancillary Services​

KontoCloud offers ancillary services that enhance its core payment functionalities, providing merchants with tools to streamline transaction management and optimize payment processes. These value-added services are designed to address specific business needs, improving operational efficiency and user experience.

IBAN Validation​

IBAN validation services ensure the accuracy of customer bank account details before processing payments. This service reduces errors and enhances the reliability of SEPA transactions. Learn more in the IBAN Validation Guide.

Mandate Management​

SEPA mandate management tools allow merchants to store, update, and retrieve customer mandates efficiently, ensuring compliance with SEPA guidelines. For detailed instructions, see the Mandate Management Guide.

API Response Codes​

KontoCloud provides detailed response codes for SEPA-related APIs, helping merchants troubleshoot and monitor transaction statuses. Visit the Response Codes Documentation for more details.

Communication with the Customer​

Merchants are required to communicate SEPA mandate details to customers clearly. Customers must receive notifications during the payment process, including mandate approval confirmations, successful captures, and issued refunds. For recurring payments, customers are notified before each debit, as mandated by EU regulations. For more guidance, see the Mandate Management and Communication Guides.

SEPA Test Data​

SEPA Bank Accounts

IBANSWIFT / BICCountryResult
DE89370400440532013000COBADEFFXXXGermanySuccess
DE72710900000147433891GENODEF1BGLGermanySuccess
DE75512108001245126199SOGEDEFFXXXGermanySuccess
MT84MALT011000012345MTLCAST001SMALTMTMTMaltaSuccess
FR1420041010050500013M02606PSSTFRPPLILFranceSuccess
PL61109010140000071219812874WBKPPLPPXXXPolandSuccess
IT60X0542811101000000123456BLOPIT22ItalySuccess
ES9121000418450200051332CAIXESBBXXXSpainSuccess
AT483200000012345864RLNWATWWXXXAustriaSuccess
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