The Vorkasse (prepayment transfer) option is still commonly seen at German online stores today. It is the result of a combination of privacy-conscious consumers who prefer not to leave card details behind and trust in the banking system, and because it is based on SEPA Credit Transfer (SCT), it works the same way anywhere in the eurozone.

It suits sales models where it is fine to proceed only after confirming receipt of funds, such as high-value or custom-made goods, or B2B-style transactions. Conversely, for low-priced, high-volume sales where immediate shipping matters, the time lag in confirming receipt can be a drop-off factor.

Once an order is placed, the consumer is given a receiving account (IBAN) and a payment reference number, and the consumer carries out the transfer themselves through their own online banking. Because the order only proceeds once the payment is confirmed, a reference-matching (reconciliation) system is essential — this is the biggest difference from open banking-based payments or Pay by Bank, which confirm instantly within checkout.

Because standard transfers do not require separate consumer authentication integration, operational design around payment reconciliation and handling unpaid orders is the key focus. Please confirm the receiving structure available on the basis of a Korean corporation through a Hecto Financial consultation.

• Business registration country

  Confirm whether a contract is available under a Korean business registration

• Sales channels

  The integration method and priorities differ depending on your online sales channel mix, such as an owned storefront, open marketplaces, or a mobile app

• Product categories

  Check in advance whether your products fall under a restricted category under the bank transfer operator's merchant policies

• EU regulatory compliance

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

Euros (EUR) received through consumer transfers are confirmed and aggregated in Hecto Financial's receiving account, then converted and settled with the Korean merchant in whichever of USD, KRW, or JPY was designated in the contract.

It is advisable to define in advance both the cancellation rules for unpaid or underpaid orders and the refund (reverse transfer) process arising from EU consumers' 14-day right of withdrawal.

• Deutsche Bundesbank and Federal Financial Supervisory Authority (BaFin)Official information on Germany's payment system operations and financial supervision. If this page's content differs from actual regulations, the official source takes precedence.