What is a Direct Debit payment?

A Direct Debit payment is an automatic bank payment where a merchant – or in this case, Riverty – is authorised to collect funds directly from a consumer’s bank account. The consumer provides their IBAN once at checkout, and payments are collected automatically on the due date. It’s one of the most trusted and widely used payment methods across DACH and the Netherlands, particularly for consumers who prefer not to use credit cards or who want a familiar, straightforward checkout experience.

How does SEPA Direct Debit work?

SEPA Direct Debit is the standardised bank debit payment system used across Europe. When a consumer selects Direct Debit at checkout and enters their IBAN, Riverty auto-generates a SEPA mandate authorising the collection. The consumer receives a pre-notification of the charge 3 to 5 days before it’s taken. Riverty manages the full process from there – collection, chargeback handling, dunning, and recovery – the merchant receives payment without getting involved in any of it.

How can merchants offer Direct Debit payments?

Direct Debit payment for merchants is available via Riverty’s integration. Once set up, it appears at checkout alongside other Riverty payment methods. Riverty auto-generates SEPA mandates, validates and tokenises IBAN details, and manages the full post-payment process. Merchants have visibility on performance and settlement through the Riverty Merchant Portal. For merchants running subscription or recurring billing models, customers only ever need to enter their IBAN once – it’s stored securely and reused for every future transaction.

Is Direct Debit secure for online payments?

Yes. Riverty’s Direct Debit payment solution includes IBAN validation and tokenisation, meaning sensitive bank details are never stored in a raw format. SEPA mandates are auto-generated and consumer-authorised. Riverty also takes ownership of chargeback claims, removing the financial and operational risk from the merchant entirely. For consumers, the pre-notification system ensures they’re always informed before a charge is taken – no surprises.

What are the benefits of Direct Debit for ecommerce?

Direct Debit is deeply embedded in consumer behaviour across DACH and the Netherlands, making it a high-converting payment method for merchants operating in those markets. Beyond conversion, the ecommerce Direct Debit payments model with Riverty shifts the operational burden entirely; chargeback ownership, dunning, and recovery are all handled by Riverty, leaving merchants with predictable cash flow and none of the collection complexity. For subscription and recurring models, it’s particularly effective: once a customer’s IBAN is validated, it’s stored securely and never needs to be entered again.

How are failed Direct Debit payments handled?

If a Direct Debit payment fails, Riverty applies a chargeback fee and communicates directly with the consumer. If no payment is received, dunning begins eight days after the chargeback communication, handled entirely by Riverty, including any dunning fees. If no payment is received within 24 days after the dunning letter is sent, the invoice moves to debt collection, and the merchant is not involved at any stage of this process.

What is a mandate in Direct Debit?

A mandate is the authorisation a consumer gives to allow funds to be collected directly from their bank account. With Riverty’s SEPA Direct Debit solution, mandates are auto-generated at checkout; no manual process, no paperwork. The consumer authorises the collection when they enter their IBAN, and Riverty handles everything from there. For merchants running recurring payments Direct Debit models – subscriptions, memberships, utility-style billing – the validated mandate functions as a recurring billing solution: reused securely across future transactions, with no repeat entry needed from the consumer.

In which markets is Direct Debit available?

Riverty’s Direct Debit payment solution is currently available in Germany, the Netherlands, Belgium and Austria. It’s particularly well-suited to merchants targeting consumers in DACH markets, where bank-based payments are a deeply embedded part of everyday shopping behaviour. For merchants operating across multiple markets, Riverty’s broader payment suite includes Pay in 3, fixed instalments, and 14- and 30-day invoice, each suited to local consumer preferences.

A convenient, secure payment option customers trust

Direct Debit enables you to accept payments directly from your customers' bank accounts through a simple, familiar checkout experience. Riverty collects payments on your behalf, handles payment processing, risk management, and collection, and settles the funds to you—helping reduce complexity while ensuring reliable, guaranteed payment.

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Phone displaying purchase payment reminder

SEPA Direct Debit payment built for customers

Once a mandate is granted, due amounts are automatically collected—ideal for subscriptions, memberships, and other recurring payments.

Guaranteed payout for approved transactions helps create predictable cash flow. If a chargeback occurs, Riverty applies the fee and handles all follow-up.

The SEPA Direct Debit is subject to clear legal requirements. This provides customers with peace of mind, as they can revoke or dispute unauthorized payments.

Riverty keeps customers informed with invoices, payment updates, reminders, and notifications throughout the payment journey.

Riverty handles payment communication and follow-up activities, so merchants don't have to.

What it means for your business

Riverty carries the risk

Riverty takes ownership of chargeback claims and manages the full dunning and recovery process, so cash flow stays predictable throughout. You’ll always get paid.

High checkout completion

A simple IBAN entry flow – no new accounts, no redirects. Customers complete checkout the way they’re used to, and the conversion numbers follow.

A payment method people trust

Deeply embedded in consumer behaviour across DACH and the Netherlands, with higher approval rates and broader payment coverage as a result.

How Direct Debit works

Steps:

Step 1: Select Direct Debit at checkout

Customers choose Riverty and select Direct Debit as their payment method. Quick, familiar, no new accounts needed.

Step 2: Enter your IBAN

Customers add their bank details to complete the payment. Secure, one-time entry – Riverty handles the rest.

Step 3: Invoice sent by Riverty

Once their order ships, Riverty sends the invoice with the payment details and charge timeline.

Step 4: Payment collected automatically

On the due date, the amount is deducted from their account. Nothing to remember, nothing to miss.

Direct Debit payment – what’s included

Riverty helps merchants reduce payment friction at checkout while automating payment collection and reducing operational overhead.

Direct debit payment – what’s included

Available in

Feature	Traditional Direct Debit	Secured Direct Debit
Risk	Merchant carries the risk	Riverty takes ownership of chargeback claims and payout settlement
Dunning	Merchant manages reminders and recovery	Riverty handles the full dunning and recovery process
IBAN storage	Merchant stores sensitive IBAN data	IBAN validation and tokenised, no raw data stored
Built for recurring models	-	Works for one-off purchases, subscriptions, memberships, and utility-style billing – with IBAN details stored securely for repeat use.

Available in	Germany, the Netherlands, Belgium, Austria

Trusted by Europe’s top retailers

We knew that payments play a crucial role in customer experience, and Riverty provided exactly what we needed: a seamless, flexible, and reliable solution. Our customers love the ability to choose how and when they pay, and we’ve seen a real impact on our sales during peak periods.