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SEPA Direct Debits with Finion Pay

Updated

In this article you will learn how to activate SEPA as a payment method for Finion Pay and how to create and process direct debit runs with it. 

Contents

Fast lane

  • Decide whether you want to use SEPA via MemberCash/automated banking or via Finion Pay.
  • If needed, activate Finion Pay and SEPA as a payment method in the payment method settings.
  • Under Settings / Finion Pay / Payment methods, activate SEPA for recurring payments.
  • Create your SEPA payment run under Finances / Finance / Payment run and select SEPA (Finion Pay).
  • Monitor payouts and chargebacks and use dunning rules to manage outstanding amounts.

Do I need Finion Pay to collect SEPA direct debits?

No, Finion Pay is not required to create and submit SEPA direct debit runs. In Germany and Austria, the integration with Finion Capital and MemberCash offers a convenient way to receive membership fees quickly and reliably. You do not have to worry about chargebacks, because Finion Capital assumes the collection risk for the membership fees. 

You can use Finion Pay to process your payment runs if MemberCash and automated banking are not an option for you. If you enable SEPA through Finion Pay, payment runs are automatically transferred and collected amounts are paid out to the bank account you specified during Finion Pay registration. Return debits are automatically reflected in your software, and the incurred bank fees are posted to the corresponding member account. This allows you to claim the outstanding amount and fees via your dunning process.

How to activate SEPA direct debits via Finion Pay

Once Finion Pay is activated in your system, you can also use this service for SEPA direct debit runs. In this article you will learn how to activate Finion Pay. The costs for SEPA direct debits via Finion Pay can be found in the price list.

The following steps are necessary to activate SEPA with Finion Pay:

  1. Open the payment method settings
    Under Settings / Finion Pay / Payment methods you will find an overview of all payment methods available with Finion Pay. Switch to the Recurring payments tab, open the three-dot menu and select Activate payment method for SEPA. 
  2. Activate SEPA with Finion Pay
    Read the information carefully and then confirm the activation of SEPA via Finion Pay:
    The activation of SEPA via Finion Pay is immediate and can be used directly in the next payment run. 
    Since only one SEPA service can be used at a time, activating SEPA Direct Debit via Finion Pay replaces your current SEPA provider for payment runs. The activation takes effect immediately and can be used in the next payment run. 
     

  3. Perform your first SEPA payment run with Finion Pay
    Create a payment run at the appropriate time under Finances / Finance / Payment run. Start a new payment run and select the payment type SEPA (Finion Pay). Further details on creating payment runs can be found in this article. 
     

Payout of membership fees

SEPA Direct Debit is considered a high-risk payment method because members have broad options for chargebacks and revocations. As SEPA direct debits are collected by Adyen via Finion Pay, Adyen bears the risk of payment default. To manage this risk, payouts for SEPA direct debits via this payment service are handled as follows:

Monitoring phase

When you start processing SEPA payments via Finion Pay, you begin in a monitoring phase. During this phase, membership fees collected via SEPA are made available for payout after 5 working days. This period is used to monitor the rate of returned debits and, if necessary, take measures to reduce the risk of default.

Stability phase

You leave the monitoring phase once you have processed more than €35,000 via SEPA Direct Debit through Finion Pay and have used SEPA Direct Debit with Finion Pay for at least 30 days. After leaving the monitoring phase, membership fees collected via SEPA Direct Debit are ready for payout after 2 working days.

Adyen and the payment service provider reserve the right to increase future payout delays if the chargeback rate rises above 10%. To avoid this, it is strongly recommended that you configure your dunning system accordingly and regularly perform dunning runs. You can find more information in the following articles:

Configuration of dunning rules

Perform dunning run

Exclude members from dunning runs

General information on payouts with Finion Pay can be found in this article:

Payouts of sales made with Finion Pay to my bank account and deposits

In the following article you will learn how to use Finion Pay to include payment links in your dunning communication, so you can offer your members secure and simple payment options to settle their open items:

Receivables Management with Finion Pay Payment Links

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