SEPA Direct Debit is a eurozone-wide automatic withdrawal scheme governed by the European Payments Council, able to withdraw from any Irish bank account (IBAN) using the same method. It is a pull-based mechanism specialized for subscriptions, memberships, and recurring billing rather than one-off purchases, and Ireland — home to a concentration of global tech companies — has a consumer base already accustomed to subscription-based spending such as SaaS and streaming.

Card-based recurring payments fail whenever a card expires or is reissued, but account-based SDD keeps charging as long as the account remains active. For subscription SaaS focused on managing churn, membership-fee services, or education and content businesses with recurring billing, this is worth considering as a way to improve payment continuity among Irish customers.

The consumer submits their IBAN and signs a mandate authorizing withdrawal, after which funds are withdrawn from their account each billing cycle at the merchant's instruction. Unlike cards, this is not instantly authorized — a withdrawal can still be reversed for insufficient funds, or the consumer can request a refund afterward — so revenue recognition should be set conservatively. The euros (EUR) withdrawn are received by Hecto Financial, converted, and settled to the Korean merchant in the contracted currency.

Because this is premised on a recurring billing model, integration must be designed to include mandate collection and storage, making prior technical discussion with Hecto Financial especially important. Review can proceed on the basis of a Korean entity, with terms varying by industry and billing structure.

• Country of business registration

  Confirm whether a contract is available for businesses registered in Korea

• Sales channels

  Integration method and priority differ depending on your mix of online channels, such as your own storefront, marketplaces, and mobile apps

• Product categories

  Check in advance whether your category falls under restricted industries under the SEPA Direct Debit operator's merchant policy

• EU regulatory compliance

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

The settlement structure should be understood in two stages. First, the euros (EUR) withdrawn are received and converted by Hecto Financial, then paid to the Korean merchant in whichever of USD, KRW, or JPY was set in the contract (cycle per contract terms). Second, a SEPA Direct Debit consumer can claim a no-questions-asked refund from their own bank within 8 weeks of the withdrawal date. Even funds already settled can become subject to clawback if such a refund request comes in, so it is essential to finalize a reserve or settlement policy at the contract stage that accounts for this non-collection risk.

• Central Bank of IrelandOfficial information on Ireland's payment systems and related regulations. If this page's content differs from actual regulations, the official source takes precedence.