Ratepay Direct debit is a white-label pay-later and installment payment service provided by Berlin-based Ratepay GmbH, distinguished by the fact that consumers see it as the merchant's own payment option rather than a third-party brand. This guide covers how to capture pay-later demand in Austria using SEPA account debits.
In Austria and the wider German-speaking market, where pay-later is a daily habit, white-label solutions offer an option for merchants who don't want an external BNPL brand front and center at checkout. Ratepay provides pay-later, installment, and account debit payments under the merchant's own name, handling underwriting and risk management behind the scenes — a model already proven in large German e-commerce that now extends to Austria as well. The Direct Debit method works by having the consumer provide a debit authorization (mandate), after which funds are withdrawn from their SEPA account.
This is especially well-suited to mid-to-large shopping sites that manage their own checkout data, and to D2C brands that want to keep the entire purchase journey under their own brand. The trade-off is that, without an external brand shown, building trust in the pay-later option falls on the merchant.
The consumer selects the account debit (pay-later/installment) option at checkout and submits their IBAN along with a SEPA debit authorization (mandate); Ratepay then underwrites and approves the transaction in real time, and funds are withdrawn from the consumer's account at the agreed time. Hecto Financial receives the merchant's euro (EUR) sales proceeds locally, converts them, and pays them out to Korea in the currency designated under contract — USD, KRW, or JPY.
Because it's white-label, checkout UI and terms-of-service disclosure requirements are more detailed than for a branded solution. When integrating through Hecto Financial, confirm the scope of service available for Austria, required disclosure language, and underwriting data requirements before signing a contract.
※ This section describes the general support process and does not guarantee that integration will be available for a specific merchant. Please confirm the exact scope of support and fees through consultation.
Confirm contract eligibility for merchants based in Korea
Integration method and priority vary depending on your mix of online sales channels — owned storefront, marketplaces, mobile apps, etc.
Check in advance whether your category falls under Ratepay Direct debit's restricted merchant categories
Confirm compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)
Settlement follows the common structure of receiving in EUR, converting, and paying out in the selected currency — USD, KRW, or JPY — but its SEPA debit basis matters for risk management. SEPA direct debits are subject to scheme rules that allow consumers to request a refund for up to 8 weeks from the debit date, so you should confirm how non-payment risk is allocated in your contract; this can also overlap with the EU-wide 14-day withdrawal right for returns, so your return and debit-reversal processes need to be carefully designed.
Hecto Financial's team will work with you to review the right combination of payment methods for the Austrian market.
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