How do I activate SEPA Direct Debit on my invoices? (EUR)

SEPA Direct Debit, also known as bank transfer or Single Euro Payments Area (SEPA), is available through FreshBooks Payments and Stripe Standard and allows businesses to receive online payments from clients through bank-to-bank transfers in EUR currency.

 

SEPA Direct Debit is available to businesses that have selected any EU Country in Basic Information settings or existing FreshBooks Payments and Stripe Standard users that invoice in Euros.

 

 

Details

  • Availability - For businesses based in Canada, Europe, or the United States that already have FreshBooks Payments and Stripe Standard set up
  • Transaction Fee - 1% + €0.25 per transaction, with caps of €10 for Lite and Plus, €5 for Premium and Select, subject to international and exchange fees
  • Processing / Payout Schedule - Direct debit payments take up to 6 business days to process; initial direct debit Mandate payments take anywhere from 1-7 business days to process at first, subsequent payments can be processed quicker
  • Chargebacks - Review FreshBooks Payments' dispute fee, or Stripe Standard’s disputes and fraud process

 

Activate SEPA Direct Debit on Invoices

Direct debit can be activated on any invoice where the currency is in EUR (€) with the below steps:

  1. If you have not yet set up Stripe Standard, complete the steps to accept online payments with Stripe Standard first
  2. When creating an invoice, under Settings, select Accept Online Payments
    Accept online payments under settings on invoice.
  3. Under FreshBooks Payments or Stripe, check off any box(es) to allow your clients to pay by any of the below methods:
    1. Card Payments
    2. Accept Direct Debit (EUR) - Available on EUR invoices only
  4. If you want your clients to be able to pay the invoice partially with credit cards, bank transfers, and/or payment schedules activated, check off Allow Clients to make partial online payments for this invoice
  5. Select Done to finish applying the payment settings and continue editing the rest of your invoice.

To view what the experience looks like for your clients when paying by direct debit, review As a client, how do I pay with Direct Debit?.

 

SEPA Direct Debit Mandates

Direct debit mandates allow you, as a business owner, to easily save the client’s direct debit information for future use on a single invoice, or through recurring payments on recurring templates without having to request authorisation each time. This requires you to send a direct debit set up form (also known as a direct debit instruction) to safely collect the client’s payment details first before using it to pay invoices.

Send a SEPA Direct Debit Set Up Form

To send a direct debit set up form, use the below steps:

  1. Select the Clients section
  2. Then select a client you’d like to send a direct debit mandate to
  3. In the client profile, under Payment Options, select the + button and then select Set Up Direct Debit
    Set up direct debit button in client profile.
  4. In the direct debit setup form email preview, if needed, add additional emails in the To field or modify the Subject line
  5. Select the Enter a Personal Message field if you’d like to add details
  6. Then select Send Setup Form
  7. In the client profile, under Payment Options, this will display as Request Pending… until your client has completed the Set Up form
    Request pending under payment method in client profile.
  8. Once the Set Up Form has been completed, you’ll find Account ending in xxxx under Direct Debit in the client’s profile. You can now use this saved information to pay invoices or for recurring payments on recurring templates.
    Saved payment method displayed in client profile.

 

To view what the experience looks like for your clients when receiving and completing a direct debit Setup Form, review As a client, how do I pay with Direct Debit?.

 

Pay with SEPA Direct Debit Mandates

To pay an invoice or recurring template with direct debit on the client's behalf, a direct debit setup form must be filled out by the client first which creates a saved direct debit mandate on client's profile. Once saved, you can use this mandate to pay invoices, and set up recurring payments on recurring templates. Use the following steps:


For an Invoice

To use a direct debit mandate to pay an invoice, use the following steps:

  1. Select the Invoices section
  2. Then select the EUR invoice you want to pay with a direct debit mandate on
  3. Next, select the Direct Debit button
    Direct debit button above invoice.
  4. Choose the saved direct debit mandate and select the Pay ‎€‎xx.xx‎ button
  5. Select Done to confirm
  6. Your client will receive an email indicating a direct debit payment is processing within the next 7 business days, along with a link to the invoice.

 

For a Recurring Template

To use a direct debit mandate to opt into recurring payments on a recurring template, use the following steps: 

  1. Select the Invoices section, then select the Recurring Templates sub-tab
  2. Create a new recurring template or select an existing recurring template
  3. Ensure the client is selected and the currency is set to Euros (EUR)
  4. Next, under Settings, select Accept Online Payments
  5. Ensure the checkbox next to SEPA Bank Transfer (EUR) is checked off, and select Done
  6. Then select the Add Payment Method button at the top of the recurring template
  7. The saved direct debit mandate will automatically be selected, select the Save button
  8. Continue editing the recurring template, or send it when you're ready. When the recurring template generates an invoice, your client will receive an email indicating a direct debit payment is processing within the next 7 business days, along with a link to the invoice.
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