SEPA Direct Debit

SEPA Direct Debit is an online paymentClosed Stands for a group of payment options that do not require the customer to submit the payment in an extra step after submitting the order. Online payments include credit, debit cards, and digital wallets. With an online payment option, the product is delivered almost immediately (as soon as the payment is processed which usually does only take a few seconds). option that allows both national and cross-border European payments to be processed as domestic transactions within the Single European Payments Area (SEPA). SEPA Direct Debit payments ensure that your software is immediately delivered to the customerClosed An individual or business purchasing your product or service by placing an order through Cleverbridge. The customer is the end user of this product, as they are not allowed to resell the purchased products or services. ​ A customer is unique per client. If a customer purchases products or services from two different clients, there are 2 separate records of said customer.​ and that the rebilling of subscription-based products occurs automatically.

SEPA Mandate

There are two types of SEPA direct debits based on the SEPA mandate given to Cleverbridge by the customer:

  • Single SEPA Direct Debit gives a mandate that only allows Cleverbridge to debit a single amount directly from the customer’s bank account.
  • Recurring SEPA Direct Debit gives a mandate that allows for regular collections. The customer can withdraw this mandate at any time for future transactions.

SEPA Direct Debit Flows

Depending upon the nature of the purchaseClosed An order made by a customer and the records associated with it. and type of the subscription, SEPA Direct Debits can be categorized into three flows.

The purchase flow for SEPA direct debits occurs as follows:

  1. The customer selects SEPA direct debit as payment optionClosed Set of payment choices displayed to the customer on the checkout page. Available payment options are based on the customer's GeoIP location and include different payment methods and types, for example: a Purchase order (PO) is a payment option we offer our B2B customers. POs are usually paid via the payment method of wire transfer. on the checkout page and enters their IBAN and personal information.
  2. Cleverbridge processes the orderClosed An agreement between a seller and a buyer to exchange goods and/or services for money. An order can: - contain multiple products and quantities; - have multiple financial transactions. A preorder authorization is considered an order. and the order status is immediately converted to Paid.
  3. The customer receives the delivery details on the confirmation pageClosed The confirmation page is displayed after a customer makes a purchase. The confirmation page contains the order confirmation and delivery information.. On average, SEPA direct debit payments take up to three business days to reach Cleverbridge after the customer's account has been debited.

To understand the initial purchase process, see the following flow chart:

The auto-renewal flow for SEPA direct debits occurs as follows:

  1. The customer provides a recurring SEPA Direct Debit mandate during the initial purchase orderClosed A B2B payment option in which software is delivered either immediately without the upfront collection of payment or after prepayment with proforma invoice.. This mandate is used to debit the agreed-upon amount every time paymentClosed Exchange of money for goods and services in an acceptable amount to the customer where the payment amount has been agreed upon in advance. The customer can only pay with an accepted payment method. Each payment has an individual payment cost. is due for the subscription.
  2. In case the payment information details has changed before the renewal of the subscription, the customer can request a Change Payment Link from Cleverbridge to update the payment information.
  3. The customer’s bank account is debited on the day of the subscription renewal and the customer immediately receives the subscription renewal details on the confirmation page.

To understand the auto-renewal process, see the following flow chart:

The manual renewal flow for SEPA direct debits occurs as follows:

  1. Cleverbridge sends a reminder email to the customer seven days prior to the subscription renewal date.
  2. The customer provides a single SEPA Direct Debit mandate when confirming the subscription renewal. This mandate is used to debit the due amount of the subscription renewal.
  3. The customer’s bank account is debited on the day of the subscription renewal and the customer immediately receives the subscription renewal details on the confirmation page.

To understand the manual-renewal process, see the following flow chart:

Return Debit

A return debit is a failed SEPA Direct Debit transaction and occurs for five possible reasons:

  • Incorrect payment information provided by the customer.
  • Insufficient funds in the customer's bank account.
  • Direct debit not authorized by the customer's credit institution. Not all credit institutions allow direct debits by default. In this case, customers must request the activation of direct debit from their credit institution.
  • Direct debit mandate canceled by the customer prior to subscription renewal.
  • Customer reclaimed completed direct debit. The Customer can dispute a SEPA mandate by requesting a return debit via their credit institution and reclaim a completed SEPA Direct Debit payment. The response to a refund request depends on whether or not the refund claim is justified. Cleverbridge will dispute unjustified return debits. However, the decision to overturn a return debit is generally taken by the cardholder’s card issuer. If the response is in favor of the customer, the debited amount is re-credited to their bank account within four business days.

Note

Customers have up to eight weeks to initiate a return debit after their bank account has been debited.

FAQs

How does Cleverbridge process payment once a return debit is executed?

A change of payment option is possible once a return debit has been issued for an order. Cleverbridge informs the customer via email that they must pay the due amount to continue using the license.

Note

The order can change status several times, as the SEPA Direct Debit may be accepted by Cleverbridge only to be rejected later by the customer’s credit institution. For example, with a SEPA Direct Debit mandate provided with the initial order, the subscription renews successfully and the order status converts to Paid. Once the customer cancels the SEPA Direct Debit mandate and a return debit is successfully processed, the order status converts to Return Debit Waiting for Payment, only to revert back to Paid once the customer executes the payment via wire transfer.

How does Cleverbridge refund a return debit order?

An order paid by SEPA Direct Debit can be refunded following one of the two scenarios:

  • Refund processed before Cleverbridge receives payment. The SEPA Direct Debit is canceled and the customer's account is not debited.
  • Refund processed after Cleverbridge receives payment. The debited amount will take up to four business days to be re-credited to the customer's account.

How does Cleverbridge cancel a return debit order?

An order with the status Return Debit Waiting for Payment can be canceled by executing a refund.