SEPA Direct Debit (SDD) is a bank-account automatic withdrawal scheme common across the SEPA region, managed by the European Payments Council (EPC). It suits subscription and recurring payments for Greek consumers, but it carries risks that merchants must understand, including an unconditional refund right for 8 weeks after withdrawal, which we cover here.
In Greece, account-based electronic payment infrastructure took hold rapidly after the capital controls, and consumers are already accustomed to paying telecom, insurance, and utility bills via automatic bank withdrawal. SEPA Direct Debit is a SEPA-standard scheme that lets these consumers set up recurring payments with a single mandate (withdrawal consent), and since Greece is in the eurozone, it applies directly without any separate local scheme.
It is especially well-suited to business models with recurring small-amount charges, such as monthly-subscription SaaS or content services, regular deliveries, or membership fees. For one-off, high-value sales, on the other hand, the benefits do not clearly outweigh the risk of withdrawal failure and refund rights, so we recommend dividing roles with instantly confirmed methods such as cards or IRIS.
The consumer enters their IBAN and signs a withdrawal consent form (mandate), after which the merchant initiates (pulls) the withdrawal for each billing cycle. Since this is not a method where the consumer authenticates each time as with card payments, withdrawals can fail due to insufficient balance or account errors, and it takes several business days for the deposit to be confirmed. Confirmed funds are received by Hecto Financial in euros (EUR).
By integrating through Hecto Financial, a Korea-based entity can consider adopting SEPA Direct Debit-based recurring payments without a local contract in Greece. Operating conditions such as the method of collecting and storing mandates and the retry policy for failed withdrawals vary by industry and transaction structure, so confirmation before contracting is required.
※ This section describes the general support process and does not guarantee actual integration eligibility for any specific merchant. Please confirm the exact scope of support and fees through consultation.
Confirm contract eligibility as a Korea-based business
The integration approach and priority vary depending on your mix of online sales channels, such as your own store, open marketplaces, and mobile apps
Advance confirmation is needed as to whether your business falls under SEPA Direct Debit's restricted-industry merchant policies
Confirmation is needed on compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)
Withdrawal proceeds received by Hecto Financial in euros (EUR) are converted and settled in whichever currency—USD, KRW, or JPY—was selected at contract. One point to keep in mind is that under the SEPA Core Direct Debit scheme, a consumer can request a refund for any reason within 8 weeks of the withdrawal date, and an unauthorized withdrawal can be disputed for up to 13 months. Because this is a receivables risk that can result in a chargeback even after settlement is complete, be sure to confirm how deductions or offsets are handled upon a refund during the contracting stage.
Hecto Financial's team will work with you to review the right combination of payment methods for the Greek market.
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