Singular Euro Payments Aera (SEPA) Direct Debit is a prevalent payment method within the European Union that enables you to collect online payments in your shop from European patrons using a single bank account. It’s widely embraced in Denmark, Germany, Norway, the UK, Poland, and in other nations that are part of the European Free Commerce Association.
Integrating the SEPA payment method into your shop is one of the primary considerations when trading in Europe. Diversifying payment methods is crucial because purchasers tend to abandon their checkout if they cannot find their preferred payment mode. Given that many EU customers utilize SEPA for transactions, they might anticipate encountering the SEPA payment alternative in your shop.
To integrate the SEPA payment choice into your shop's checkout, you can either configure SEPA through the Stripe payment portal or install the SEPA: Online Payment Method application from the application marketplace.
SEPA operates solely with Euro currency. You can modify your shop's currency from the shop administration panel, located in Settings → General → Regional Settings → Currency.
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Configuring SEPA via Stripe
Stripe is a rapid and reliable payment portal enabling receipt of various payment modes from across the globe, including credit and debit cards, mobile wallets, and myriad other options favored by your clientele.
To commence accepting SEPA payments via Stripe in your shop:
- Access the Payment section from your shop administration panel.
- Scroll down and Choose Payment Method → SEPA Direct Debit (via Stripe).
- Click Connect SEPA. You’ll be directed to a page where you can sign into your existing Stripe account or establish a new one.
- Upon logging into your Stripe account, it will automatically synchronize with your shop. Ensure that SEPA is enabled in your Stripe account.
- Post connection of SEPA via Stripe, you’ll be redirected to your shop. Within the Payment method name at checkout field, you may input the designation under which patrons will perceive this payment method at checkout or retain it as SEPA.
- Confirm that the Enable this payment method at checkout setting is activated to showcase SEPA during checkout.
- Within the Payment instructions for customers field, you may append a description of the SEPA payment method for your patrons, visible during checkout.
Once all configurations are finalized, you can receive payments via SEPA in your shop.
Configuring SEPA with the application
You can receive payments via SEPA by utilizing the third-party application SEPA: Online Payment Method from the application marketplace. It entails direct integration with SEPA, eliminating the necessity for an intermediary payment platform such as Stripe or PayPal for setup.
To accept SEPA payments with the application:
- Access Apps → Application Marketplace from your shop administration panel.
- Locate the SEPA: Online Payment Method application, access it, and Install.
- The application will be promptly installed into your shop administration panel, directing you to the Payment page within your shop administration panel to input your company details. Hover over the question mark icon to avail hints pertaining to each field within the settings.
- Upon completion of all details, click Update settings.
That concludes the setup process. Your patrons from nations within the Singular Euro Transactions Region can now conduct transactions via SEPA at your shop's checkout.
Accepting SEPA transactions
The process of conducting transactions via SEPA may vary for your patrons based on the setup.
If you configure SEPA via Stripe, patrons will be prompted during checkout to furnish their IBAN and billing address and click Pay. Upon order placement, it assumes the Awaiting Payment status. Typically, SEPA transfers require 1-2 business days. In most scenarios, funds are transferred the subsequent business day. Once funds are transferred to your account by the bank, the order status within your shop administration panel automatically transitions to Paid.
If you configure SEPA with the SEPA application, patrons will experience the following sequence. Upon selecting SEPA as their payment method during checkout and entering their bank account information, an automated direct debit mandate is generated for their order. A mandate serves as evidence of the patron’s authorization to debit their bank account, containing terms and conditions alongside the account details submitted by the patron (with sensitive data obscured). Patrons can review the mandate content and indicate their consent to the direct debit, subsequently proceeding with order placement. Upon order placement, it assumes the Awaiting Payment status. You can monitor the status within your shop administration panel → My Sales → Orders. Following receipt of payment, you can manually update the order status to Paid.