The starting point for considering SEPA Direct Debit is that the Czech Republic participates in SEPA (the Single Euro Payments Area) but its national currency is not the euro but the koruna (CZK). Since this method is a pull scheme that operates on euro-denominated accounts, it doesn't apply to the large majority of general Czech consumers, for whom cards and CZK bank transfers are the two main payment pillars — it's only effective for the smaller group of customers who use euro accounts, or for business-to-business transactions.

It's therefore worth considering only for business models where recurring billing is designed around the euro, such as SaaS and subscription services that bill in euros, or cross-border B2B transactions — rather than for a general shop targeting Czech consumers. The advantage of a single mandate enabling automatic withdrawal on every billing cycle helps manage subscription churn, but the 8-week refund-right risk described below must be factored in alongside it.

Once a consumer enters their IBAN and signs the debit authorization (mandate), funds are automatically withdrawn from their euro-denominated account on each subsequent billing cycle at the merchant's request. It's a pull-based method that doesn't repeat per-transaction authentication the way a card does, and there is a processing cycle of several days before the withdrawal result is confirmed. Hecto Financial receives the funds, converts them, and settles to the Korean merchant in whichever currency — USD, KRW, or JPY — was selected under the contract.

Even for the Czech Republic, SEPA Direct Debit is a scheme based on euro-denominated accounts, so when consulting with Hecto Financial you should first confirm the billing-currency design and the range of customers it can apply to. Contract eligibility on the basis of your Korean corporation and its terms also vary by industry and transaction structure.

• Business registration country

  Confirm contract eligibility based on domestic business registration

• Sales channel

  The integration method and priority vary depending on your online sales channel mix — owned mall, open marketplace, mobile app, and so on

• Product category

  Check in advance whether your products fall under categories restricted by SEPA Direct Debit's merchant policy

• EU regulatory compliance

  Confirm compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)

Settlement follows a structure where Hecto Financial receives the funds in euros, converts them, and pays out in the contracted currency — USD, KRW, or JPY — with the cycle following the contract terms. The most important risk is that a SEPA Direct Debit consumer can request a refund for any reason within 8 weeks of the withdrawal date, meaning funds you've already been settled can later be deducted, which makes managing non-payment risk essential. Layer an EU consumer's 14-day right of withdrawal on top of this and refund channels become dual-tracked, so design your subscription terms and refund policy to align with the direct-debit scheme's rules.

• Czech National Bank (Česká národní banka, ČNB)Official information on the Czech payment system and supervision of payment services. If this page's content differs from the actual regulations, the official source takes precedence.