SEPA Direct Debit is a euro-denominated account pull scheme overseen by the European Payments Council, under which a merchant collects funds based on the consumer's mandate (debit authorization). With Bulgaria's adoption of the euro in January 2026, even general consumer accounts were converted to a euro basis, making it possible to design recurring billing through euro-denominated SDD without the exchange-rate variable that existed in the former lev (BGN) era.

This method suits business models built on repeat billing, such as monthly subscription content, SaaS, or membership dues, and its advantage for subscription retention is that there are no payment failures caused by card expiration. On the other hand, since it is not an instant-approval method, it is not suited to one-off sales or immediately shipped goods, and merchants must plan for the risk of unpaid receivables arising from insufficient balances or the exercise of refund rights.

When a consumer enters their IBAN account details and agrees to the mandate (debit authorization), the amount is debited from their bank account in euros (EUR) at the merchant's request. Unlike card payments, this is not instant approval but goes through an inter-bank processing cycle, so it can take several business days for the debit to be confirmed. Hecto Financial receives the debited amount in EUR, converts it, and settles it to the merchant in Korea in the currency chosen at contract—USD, KRW, or JPY.

Through Hecto Financial, a Korea-registered entity can consider adopting SEPA Direct Debit for Bulgarian customers. Support terms can vary depending on whether it's a recurring payment model, and the settlement cycle, fees, and currency options should be confirmed before signing a contract.

• Country of business registration

  Confirm contract eligibility for businesses registered in Korea

• Sales channels

  Integration method and priority vary depending on your online sales channel mix—own store, open marketplace, mobile app, etc.

• Product categories

  Check in advance whether your industry or billing type is restricted from direct debit under SEPA scheme and processing bank policy

• Mandate and SEPA compliance

  Confirm your procedures for obtaining and storing debit mandates and your system for handling SEPA scheme rules such as the 8-week refund right (see official sources below)

Euro (EUR) funds debited via SEPA Direct Debit are received and converted by Hecto Financial, then settled to the merchant in Korea in the currency chosen at contract—USD, KRW, or JPY—with the settlement cycle following contract terms. A crucial point to note is that SDD consumers can demand a refund for any reason within 8 weeks of the debit date. Because this creates a merchant receivables risk in which even already-settled funds can be clawed back retroactively, you need a funds and risk management plan that accounts for the 8-week refund right separately from the EU consumer's 14-day withdrawal right.

• Bulgarian National Bank (Българска народна банка, BNB)Official information on Bulgaria's payment system and regulations related to the 2026 euro conversion. If this page's content differs from actual regulations, the official source takes precedence.