SEPA Direct Debit is a great way to make safe, reliable payments throughout Europe. So, we’re excited to announce that you can now use SEPA Direct Debit on luxhosting.com. All you have to do is select it as a payment option at checkout, or you can update your payment methods in the client area. (Check out this guide to learn how to manage and update your payment options!)
We love giving you tons of web hosting options, and now you have lots of payment options, too! If you’re still on the fence about SEPA Direct Debit or if you’re not quite sure how it works, we’ve got you. In this guide, we’ll tell you everything you need to know about SEPA Direct Debit.
First, what is SEPA?
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What is SEPA?
SEPA (the Single Euro Payments Area) is a payment option designed to streamline payments made across the Eurozone. To do this, the European Payments Council (EPC) made three SEPA payments schemes; one of these schemes is SEPA Direct Debit.
What is SEPA Direct Debit?
SEPA Direct Debit is a Direct Debit system that allows people living in Europe to make Euro-based payments from accounts in all the SEPA territories.
SEPA has now been established in all eurozone countries and in non-eurozone countries that are SEPA territories.
This is a huge step towards harmonizing payments made across Europe, because it makes cross-border transfers as easy as domestic transfers. Ever since it was introduced on February 1, 2014, SEPA has replaced all domestic euro schemes in Europe.
SEPA Direct Debit is a pre-authorized, automatic payment method that you can use to pay for any fixed expense including monthly bills, rent, web hosting fees, or any other kind of expense that you pay periodically. When you use SEPA Direct Debit, you never miss a deadline again. This means you’ll avoid late fees – all without having to keep track of when your bills need to be paid.
How SEPA Direct Debit works
Basically, here’s how you use SEPA Direct Debit:
Whoever you’re paying (e.g., the web hosting company or your landlord) will send you a mandate. This is a document containing all the details required for the direct debit payment. When you get the mandate, you’ll sign it. This instantly authorizes the company you’re paying to automatically collect the amount from your account on the date you’ve entered as the payment date.
If you’re still not sure whether you should use SEPA Direct Debit, here’s some more info to help you decide.
Everything you need to know about SEPA Direct Debit
1. It is a set-it-and-forget-it payment method
Once you give a company your mandate, you’ll never have to worry about doing anything else to make sure the payment goes through. The merchant is the one who will initiate payments.
2. You don’t need to talk to the bank
All communications are made between your bank and the merchant’s bank. You won’t need to worry about card networks nor communicating with your bank.
3. All SEPA Direct Debit transactions are in Euros
Even if your account isn’t in Euros, all your transactions will be made in Euros. Any currency exchange is up to your bank and the bank of the company you’re paying.
4. You’ll need to know a few bank details
To give a company the right to collect payments from your account, you’ll need to list your BIC and IBAN, instead of your account number and sort code.
5. You can get refunds for unauthorized payments!
If the merchant takes an unauthorized payment from your account, you can get a refund from your bank for up to 13 months. (Under the UK Direct Debit Guarantee, this indemnity period is unlimited.)
6. SEPA fast
Typically, SEPA transfers will take 1-2 business days to land in the beneficiary’s bank account. In fact, most of the time, the money arrives on the next business day.
More advantages of SEPA Direct Debit
1. No more deadlines or late fees
Because SEPA automates the payment process, you don’t need to remember payment deadlines for your monthly fees.
2. No more fiddling with cards
If you don’t like the idea of using credit cards, paying through SEPA using your bank account will make things a lot easier.
3. It’s easy and safe
You don’t have to worry about giving different banking information to companies that are based in different European countries. So, not only is SEPA Direct Debit a trusted payment method, but it’s also super easy to use.
SEPA Direct Debit is a safe, convenient way to make automatic payments to any European-based company, so we’re delighted to offer you this additional payment option! And remember: You can select it at checkout, or you can make it a preferred payment method in the client area.