{"id":20027,"date":"2021-11-10T17:08:17","date_gmt":"2021-11-10T16:08:17","guid":{"rendered":"https:\/\/test.centralpay.eu\/diversification-of-b-to-b-payment-methods-sdd-direct-debits\/"},"modified":"2025-10-21T17:03:30","modified_gmt":"2025-10-21T15:03:30","slug":"why-use-sepa-core-direct-debit","status":"publish","type":"post","link":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/blog\/why-use-sepa-core-direct-debit\/","title":{"rendered":"Recurring Payments: what&#8217;s the role of core direct debit?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-left\"><strong>What is Core Direct Debit?<\/strong><\/h2>\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<p>Core Direct Debit (or SDD) is a payment method that allows funds to be automatically withdrawn from a debtor&#8217;s bank account. This requires the drafting and signing of a contract between the merchant and the payer, called a <strong>SEPA mandate<\/strong>, which specifies the authorized direct debit conditions and includes mandatory information (Unique Mandate Reference (&#8220;UMR&#8221;), creditor contact details, SEPA Creditor Identifier (SCI), a signature date, etc.). <\/p>\n\n<p>Used to collect funds from both individuals and professionals, Core direct debits have several advantages: <\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Seller-initiated: Once the mandate has been created, it requires only authorization from the customer to execute direct debits.<\/strong><\/li>\n\n\n\n<li><strong>Low cost: It is much cheaper than direct debit cards, particularly business cards.<\/strong><\/li>\n\n\n\n<li><strong>No limit: It is not subject to the same limits and expiry dates as other cards.<\/strong><\/li>\n\n\n\n<li><strong>Optimized processes: It improves and accelerates customer relationship management and debt collection.<\/strong><\/li>\n<\/ul>\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link has-text-color has-link-color wp-element-button\" href=\"https:\/\/centralpay.dev.innovest.fr\/en\/blog\/payment-by-direct-debit-a-complete-guide-to-better-understand\/\" style=\"border-radius:5px;color:#212121\">Also read: A complete guide to direct debit payments \u279c<\/a><\/div>\n<\/div>\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h3 class=\"wp-block-heading has-text-align-left\">Core Direct Debit VS B2B Direct Debit<\/h3>\n\n<p>Within the SEPA zone, there are two types of direct debit: B2B and Core. Primarily used by public creditors (tax authorities, tax services), B2B direct debits differ from Core by their strict dispute policy. Indeed, following a B2B direct debit, <strong>the debtor will not be able to dispute the transaction or request a refund under any circumstances<\/strong>. This type of SDD therefore offers additional security to the creditor against the risk of non-payment and ensures timely payment. In return, the debtor&#8217;s banks are required to verify the existence and compliance of the B2B mandate before executing the direct debit, greatly limiting the risk of fraudulent or erroneous transactions.    <\/p>\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h2 class=\"wp-block-heading has-text-align-left\"><strong>Why implement Core Direct Debit?<\/strong><\/h2>\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<p>Here are 5 reasons to integrate Core Direct Debit into your payment process: <\/p>\n\n<div style=\"height:1px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h3 class=\"wp-block-heading has-text-align-left\">Reason #1 \u2013 Ensure regular and stable income<\/h3>\n\n<p>Integrating a direct debit method helps limit the risk of late payments and\/or non-payment. This automated payment method debits a set amount from the debtor&#8217;s bank account on a set due date. It&#8217;s then easy to receive recurring payments for all types of goods or services: subscriptions (magazines, streaming services, water, gas, electricity), insurance or mutual fund contributions, or school fees.  <\/p>\n\n<p>By digitizing the entire Core Direct Debit payment process, from signing the mandate to updating payment statuses, merchants improve their customer payment experience while optimizing their cash flow.<\/p>\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h3 class=\"wp-block-heading has-text-align-left\">Reason #2 \u2013 Increase online sales<\/h3>\n\n<p>Online, the time a customer spends filling out their banking information is perceived as wasted time and can therefore lead to shopping cart abandonment. In long-term business relationships where trust and convenience are paramount, Core Direct Debit offers a frictionless alternative, particularly suited to established and loyal customers. <\/p>\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h3 class=\"wp-block-heading has-text-align-left\">Reason #3 \u2013 Offer customers more payment flexibility<\/h3>\n\n<p>Implementing a direct debit payment plan is a real asset when it comes to multi-payment installments. It&#8217;s particularly useful when a merchant wants to split and automate payments for relatively expensive goods or services, without having to rely on an external BNPL provider. Ultimately, fee-free split payments improve customer satisfaction and tend to build customer loyalty.  <\/p>\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h3 class=\"wp-block-heading has-text-align-left\">Reason #4 \u2013 Conquer new markets in Europe<\/h3>\n\n<p>For businesses offering their services in several SEPA countries, Core Direct Debit facilitates cross-border transactions in euros. Payments are as simple and secure as domestic transactions in the eyes of European consumers. <\/p>\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<h3 class=\"wp-block-heading has-text-align-left\">Reason #5 \u2013 Reduce payment management costs<\/h3>\n\n<p>Automating the collection of recurring payments replaces all manual operations related to payment management. Core Direct Debit thus greatly minimizes the administrative effort and costs associated with invoicing and collecting payments. Furthermore, SEPA Direct Debit transaction fees are significantly lower than the various card scheme fees for bank card direct debits.  <\/p>\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link has-text-color has-link-color wp-element-button\" href=\"https:\/\/centralpay.dev.innovest.fr\/en\/solutions\/collection-solution\/payment-methods\/direct-debit-payment\/\" style=\"border-radius:5px;color:#212121\">Discover how CentralPay processes Direct Debit payments \u279c<\/a><\/div>\n<\/div>\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Also known as SDD (SEPA Direct Debit), Core Direct Debit is a payment method intended for subscription payments (telephone, insurance, online services, rent, etc.) or recurring payments (split, down payment\/balance, or repeated single payments with the same loyal customer).<\/p>\n<p>Deployed in 36 European countries, Core Direct Debit is a standard established within the European Union to facilitate and secure regular payments. So, what are its specific features? How does it differ from a B2B direct debit? The answers are below.   <\/p>\n","protected":false},"author":4,"featured_media":21455,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[204],"tags":[],"class_list":["post-20027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payment-methods"],"acf":[],"_links":{"self":[{"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/posts\/20027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/comments?post=20027"}],"version-history":[{"count":0,"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/posts\/20027\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/media\/21455"}],"wp:attachment":[{"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/media?parent=20027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/categories?post=20027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/centralpay.dev.innovest.fr\/fr\/en\/wp-json\/wp\/v2\/tags?post=20027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}