Direct debit is a way of collecting funds for a payment directly from a customer’s bank account. It is a very common method of payment in many countries and is frequently used for payment of utilities (such as telephone bills) or mortgage which occur on a recurring basis.
Direct Debit: Pull Mechanism
Direct debit is a type of bank transfer based on a “pull” mechanism. Pull transactions occur when the merchant (the Zuora customer) initiates the transaction and payment is withdrawn by pulling the funds from the customer’s bank account.
Popularity of Direct Debit
Direct debit is popular with merchants because the transaction fees associated with processing direct debit can be substantially less than the fees associated with processing credit cards. Additionally, direct debits are processed faster than a check payment sent via postal mail. Direct debit is popular with customers for a variety of reasons including: not having to deal with credit card interest fees, having the security of knowing that the direct debit scheme is closely monitored by the banking industry and requires authorization before debits can be made, as well as notification to the customer regarding changes in recurring fees. Payment reversals (such as charge backs) can still occur with direct debit even with mandates. However, the reversal process for the customer is not as easy as the reversal process for credit card payments.
See Direct Debit Mandates for more information about mandates.
The Ingenico ePayments integration supports direct debit payment processing for the following countries:
|Country||Local Name||Zuora Direct Debit Type|
|United Kingdom||Direct Debit||DirectDebitUK|
The Ingenico ePayments integration does not currently support direct debit for the United States, Canada, and Australia.
Implementing Direct Debit with Ingenico ePayments
See Implementing Direct Debit with Ingenico ePayments for more information about direct debit for the Ingenico ePayments payment gateway.