In this article you will learn how to activate SEPA as a payment method for Finion Pay and how to create direct debit runs with it.
What to expect here:
- Do I need Finion Pay to collect SEPA direct debits?
- How to activate SEPA direct debits via Finion Pay
- Payout of membership fees
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 the German and Austrian area, the integration with Finion Capital and MemberCash offers an attractive and simple solution to quickly and reliably receive the membership fees of your members. You don't have to worry about chargebacks, because Finion Capital takes the risk to collect the membership fees. You can find more information on this page.
Another possibility is the automatic bank connection in the Magicline. Once activated your Magicline is able to exchange SEPA payment runs, chargebacks and member transfers with your house bank and thus automate your banking. Click here for more information.
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 Magicline Payments, payment runs will be automatically transferred and collected dues will be deposited into your bank account specified during Finion Pay registration. Return debits are automatically reflected in Magicline and the incurred bank fees are posted to the corresponding member account, so you can claim the outstanding amount and fees via dunning process.
How to activate SEPA direct debits via Finion Pay
Once Finion Pay is activated in your studio, you can also use this service for SEPA direct debit run. In this article you will learn how to activate Finion Pay. The costs for SEPA direct debits via Finion Pay can be found on our price list.
The following steps are necessary to activate SEPA with Finion Pay:
- go to the settings of the payment methods
Under Settings / Finion Pay / Payment methods you will find an overview of the payment methods available with Finion Pay. In this overview, click on the Recurring Payments tab. Then click on the 3-dot menu and on Activate payment method. - activate SEPA with Finion Pay
Please read the text carefully and then activate SEPA via Finion Pay:
The activation of SEPA via Finion Pay is immediate and can be used directly in the next payment run.
Since you can only use one SEPA service at a time, activating SEPA Direct Debit via Finion Pay will replace the current service SEPA as provider for payment runs. Activation is immediate and can be used directly in the next payment run. -
perform your first SEPA payment run with Finion Pay
Create a payment run at the appropriate time under Finances / Finance / Payment run, create a payment run and select the payment type SEPA (Finion Pay). You can find more information about the payment run in Magicline in this article.
Payout of membership fees
SEPA Direct Debit is considered a high-risk payment method due to the extensive possibilities for chargeback and revocation by members. As SEPA direct debits are collected by Adyen via Finion Pay, Adyen bears the risk of payment default. To prevent this risk, payments with SEPA direct debits via Magicline Payments are paid out as follows:
Monitoring phase
When you start processing your SEPA payments via Finion Pay, you start in the monitoring phase. In this phase, your membership fees that you collect via SEPA will be made available for payment after 5 working days. This period makes it possible to monitor the rate of returned direct debits and, if necessary, take measures to reduce the risk of default.
Stability phase
You leave the monitoring phase as soon as you have processed a total of more than €35,000 via SEPA Direct Debit via Finion Pay and have used SEPA Direct Debit via Finion Pay for at least 30 days. After leaving the monitoring phase, your membership fees collected via SEPA Direct Debit will be ready for payment after 2 working days.
Adyen and Magicline reserve the right to increase future payout delays if the chargeback rate rises above 10%. To counteract this, it is strongly recommended that you set up your dunning system accordingly and carry out regular dunning runs. You can find more information on this in the following articles:
Configuration of dunning rules
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 to offer your members secure and easy payment options to settle their open items:
Receivables Management with Finion Pay Payment Links