Stripe payments is now offering direct debit payment processing. This is especially useful for subscriptions, utility billing and Corporate Billing environments.
Up till now Direct Debit integration onto a website was a large piece of technical work as no-one was offering the flows on the processor end. Websites had to develop these flows.
Now Stripe will allow you to simply offer it as another payment option at the check out.
Some differences on Direct Debits compared to Credit Cards.
- It can take 14 days after the payment request to know if it has been successful
- Customers can dispute a payment through their bank on a “no questions asked” basis up to eight weeks after their account is debited. Any disputes within this period are automatically honored.
- The payee’s bank can reclaim the charge if the payees account does not release the charge and you have already been credited the amount. IE the bank trigger a refund automatically.
- Customers can dispute a payment with their bank even after it has been refunded, resulting in two credits for the same payment.
- Refunds can take up to 5 working days to reach the customers account
- works on single signatory bank accounts only
- For recurring / subscription payments you must notify the subscriber 14 days before the renewal about the pending charge. The notification has to include the amount – the service – and the last 4 digits of the account you are intending to debit.
As you can see its kindof a step back compared to credit cards and other newer payment methods – but alot of b2b and utility companies will still have a demographic that needs to be served this way.
read more here
Speak to our ecommerce consultants on ecommerce payment options for your website.