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Single Euro Payments Area (SEPA)

Overview

Single Euro Payments Area (SEPA) Direct Debit is a popular payment method in the European Union used by more than 520 million citizens. SEPA will soon be available for all FastSpring users. If you are interested in early access, please contact sales@paystand.com

SEPA is currently in early adoption stages. Soon this will be enabled for all FastSpring Sellers. To learn more about SEPA, read our blog, How SEPA Direct Debit Payments Help Software Businesses Reach European Buyers.

Table of Contents

The Single Euro Payments Area is an EU initiative to streamline European payments for digital goods by creating a single market for euro-denominated payments. SEPA enables your business to collect payments from debit accounts within the supported countries.

SEPA Direct Debit is a pull-based payment, which means the merchant’s bank initiates the collection of payments. To collect the payments, the consumer must accept a Mandate that authorizes the merchant to debit the account. FastSpring automatically generates this Mandate on your behalf and presents it to your consumers at the time of payment.

To ensure a consumer has sufficient funds at the time of payment, FastSpring routes all transactions through a third-party bank verification. Please allow 48 hours for a consumer’s order to be fulfilled.

Supported Countries

FastSpring currently supports SEPA  payments for transactions between € 2 and € 200 from consumers in the following countries:

  • Austria
  • Germany

SEPA is only presented as a payment option to consumers in these countries who would like to make a purchase that does not exceed the € 200 limit, and the storefront accepts Euro-denominated transactions. 

If your storefront does not currently support Euros, you can edit the availability of currencies to enable SEPA. 

In upcoming months, FastSpring will expand SEPA support for major European markets, including: the Netherlands, France, Spain, Belgium, Italy, and Portugal.

Payment Experience

The SEPA payment method is automatically enabled in your Storefronts. If your storefront supports Euros, consumers from the countries listed above may purchase your products with SEPA. See Currencies, Conversions, and Taxes to edit the availability of currencies.

At checkout, consumers follow the same steps, regardless of whether they are on a Popup or Web Storefront:

  1. The consumer selects SEPA Direct Debit, and enters their bank name, bank code, or IBAN to log in to their bank account.
  2. The consumer agrees to the SEPA Direct Debit Mandate terms, and verifies their bank information to submit the order. 
  3. After submitting the order, the consumer is redirected to an order confirmation page, confirming that the payment is complete.
  4. Payments typically take 48 hours to process. After it is fully processed, FastSpring automatically provides the fulfillment. 
 

SEPA Mandate

The SEPA Direct Debit Mandate is a billing agreement provided by the consumer that allows you to collect future payments from their European bank account. Each SEPA transaction requires the following information:

  • Payment Amount
  • SEPA Mandate ID
  • SEPA Mandate Date
  • FastSpring Seller Name
  • FastSpring Order Amount
  • Product Name
  • Creditor Information
  • FastSpring Support Contact Information
  • SEPA Prenote

If this is a recurring payment, the subscription billing terms should also be included on the mandate. You can access the SEPA Mandate from the Order Details page and the Fulfillments page. Consumers can access it from their invoice, fulfillment email, and Account Management Portal.


Subscriptions

SEPA Direct Debit supports subscription rebills. Benefits to SEPA-driven subscription orders include:

  • Insurance that consumers will pay their rebills on time. 
  • Elimination of failed payments due to card expiry or cancellation.
  • Increased consumer loyalty by offering a convenient rebilling method. 
  • Reduced time spent by admin updating payment information. 

Declined Rebills

If a SEPA-generated subscription rebill is declined, the subscription is automatically canceled, and the consumer is notified. They may add a new payment method through their Account Management Portal to resume their subscription, however they can no longer use SEPA for that subscription.

 

Refunds and Chargebacks

With SEPA, consumers are entitled to “No-questions-asked refunds” up to eight weeks (56 days) after payment. If a refund is requested in that timeframe, the consumer’s bank will immediately credit them with a full refund. The bank will then notify FastSpring of the chargeback via our dashboard with a reason code. The amount refunded to the consumer will be automatically reclaimed from the merchant.

In the case of an unauthorized transaction, consumers can also make a claim and submit supporting evidence to their bank within 13 months of the payment date.

 

Webhooks

The order.completed webhook is triggered when there is a successful SEPA transaction. If the transaction is unsuccessful, the order.canceled webhook is triggered, canceling the transaction. If the account check fails and the order is terminated, the order.failed webhook is triggered.