Glossary
What do the technical terms mean
Search by Alphabet
Search here for your desired search term
Payment does not have to be complicated. However, there are technical terms that are often not common.
Can we help you
In the upper search bar you can choose between two search options. The search by category and the search by alphabet. Just click on the navigation button above the selection. If you need further information, please contact us. We look forward to hearing from you.
You have not found an entry
Then do not hesitate and contact us. We make every effort to answer all questions as quickly as possible and to keep our glossary up to date in order to provide you with the greatest possible amount of information.
Direct debit
Unlike the classic bank transfer, where the buyer actively transfers the outstanding amount to the seller, the direct debit authorizes the seller to process the payment himself and collect the money from the buyer's bank account.
Direct debit is still one of the most common payment methods in Germany, processed via payment providers.
Advantages with direct debit
For the buyer, the direct debit procedure has the advantage that he can easily hand over the payment process to the merchant with the direct debit authorization and thus does not have to actively transfer the amount himself as, for example, with the purchase on account. This prevents an open invoice from being overlooked or forgotten.
From the customer's point of view, another advantage of the direct debit procedure is that payments debited in error can be revoked within 8 weeks. This provides additional security when making a purchase.
For the retailer, it is an advantage to offer this payment method because direct debit is still popular in many countries. In this way, bounces in the ordering process due to the lack of the preferred payment method can be avoided.
Since direct debit authorizations must be in writing and presented to the banking institution involved upon request, the customer issues the mandate electronically when completing the payment process.
Changes to direct debit due to SEPA
Since November 1, 2010, all banks in the euro payment area have supported payment transactions by SEPA direct debit. This serves the purpose of standardization Transitional arrangements for the EL procedure (electronic direct debit) applied until February 1, 2016, taking into account the German accompanying law. After the expiry of these transitional periods, the national direct debit procedures ceased to apply.
A major change with the SEPA Direct Debit is that the IBAN and (for payments across national borders) the BIC are now required to identify the account to be debited.
Companies and merchants need a Creditor Identifier, which is listed on each direct debit mandate. The customer also receives a mandate reference for their own tracking of the transaction.
payment by direct debit
payment by direct debit