A direct debit is a cashless payment transaction. The payee initiates the payment transaction (“pull payment”) by debiting the account of the respective debtor with a sum to be paid. The amount is determined by the payee. The equivalent of the direct debit is the so-called “push payment”, which is initiated by the debtor liable to pay (credit transfer). Three entities are involved in the direct debit payment process: The respective creditor as the payee, his bank as the first collecting agent and the debtor as the payer. The debiting of a bank account is also generally referred to as a direct debit. Direct-debit is also a very popular payment system in online commerce and can be easily integrated into your online store via Novalnet AG.
The types of direct-debit
The direct-debit payment process can be divided into three types. The so-called direct debit is one of the less common payment transactions. Here, the payer authorizes his account-holding paying agent to set up a direct debit on predefined days, thus transferring money from the payer’s account to that of the payee. Another type of direct debit is the direct debit authorization procedure. Here, the payee is authorized in writing by the payer to collect a certain amount from the payer’s current account by direct debit. The third form of direct debit or direct-debit is the SEPA direct debit. This type of direct debit will replace the classic form of direct debit in Europe from 2014 and can only be issued in writing (no longer by telephone) via the Internet or in person.
Two procedures for the SEPA direct debit
Direct debit is also a very popular payment system in e-commerce because it is particularly secure for merchants and customers. The merchant receives consent to collect an amount from the customer’s account, and the customer can have the amount reversed in the event of an unauthorized direct debit. Direct-debit is also found as a payment option in many online stores for this reason. However, every customer prefers a different means of payment when ordering from an online store. For this reason, it is advantageous for merchants to offer customers a range of payment choices. This effectively prevents purchase cancellations during the payment process. Novalnet offers you the possibility to integrate different payment systems into your store easily, cheaply and quickly. Whether direct-debit, credit card payment or online bank transfer – we offer you an individual service package for your needs. Contact us and let us advise you on your options!
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