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SEPA direct debit allows you to pull money via IBAN (+ BIC, depending on the countries involved in the transaction). Specifics vary from country to country. So
by pfg 11y ago
SEPA direct debit allows you to pull money via IBAN (+ BIC, depending on the countries involved in the transaction).
Specifics vary from country to country. Some require active approval from the customer (IIRC France, probably more), others "just work".
Fraud is not as common, since bank accounts that are allowed to debit money this way are generally only available to companies who have to sign paperwork ensuring that they have written permission from each debitor. Additionally, although this might be country-specific as well, chargebacks can be initiated without providing any reason for at least 8 weeks, and in case of a fraudulent transaction, up to 13 months.
- SimpleMinds 11y agoThanks, didn't know about that. Sounds like it's very specific version of account and most default accounts with IBAN doesn't have this possibility.
- kuschku 11y agoNo, anyone’s account can be debited from, but only specific accounts can be debited to. I can’t pull money from your account, even if you tell me your IBAN. But I can use your IBAN to order from amazon, and then amazon can just pull however much they want from your account. Luckily chargeback with direct debit works just as fast as with credit cards.
- SimpleMinds 11y agoThanks! That's something new that I didn't hear before. For interested parties seems [0] has some information. I need to check with my bank then to see how it works in my country. [0] https://gocardless.com/guides/sepa/introduction/ https://gocardless.com/guides/sepa/introduction/
- _Codemonkeyism 11y agoGermany just works.