SEPA Direct Debit is a pull-based method: once a customer provides a mandate (debit authorization), the merchant periodically withdraws funds from the customer's euro account. Monaco uses the euro under a monetary agreement and follows France's SEPA payment infrastructure, so — unlike Liechtenstein — this method works with no currency constraints. It is particularly well suited to a consumer base accustomed to French-style direct debit culture.

Monaco has many high-value industries with recurring billing, such as luxury memberships, private services, and subscription-based content, so automatic debits that don't require card authentication at every payment are advantageous for capturing revenue without churn. However, as explained below, there is an 8-week unconditional refund right, so managing receivables and chargebacks must be built into the design.

Once the customer registers their IBAN and a mandate (debit authorization), the merchant withdraws (pulls) funds from the euro account on the designated date. Unlike a card payment, this is not approved instantly but follows the bank settlement cycle, and because Monaco is within the euro/SEPA area, no separate currency conversion is needed on that side. Funds received in euros (EUR) are converted by Hecto Financial, then settled with the Korean merchant in whichever of USD, KRW, or JPY was selected in the contract.

Through Hecto Financial, a Korean corporation can consider accepting SEPA automatic debits without a separate contract in Monaco. Since Monaco is within the euro/SEPA area and follows French regulation (ACPR), no separate local license is required, but the actual scope of coverage, settlement terms, and fees vary by industry and transaction volume. Details should be confirmed before signing the contract.

• 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 SEPA Direct Debit's merchant policies

• SEPA / regulatory framework check

  Monaco is within the euro/SEPA area and follows France's (ACPR) framework; you must comply with mandate retention requirements and the 8-week refund rule (see official sources below)

SEPA automatic debits from Monaco customers are withdrawn from a euro account and received in euros (EUR); Hecto Financial converts these funds and settles with the Korean merchant in whichever of USD, KRW, or JPY was designated in the contract. The settlement cycle and fee rate follow the contract terms. As the key risk of SEPA automatic debits, consumers can demand a refund (revocation) for any reason within 8 weeks of the debit date, and unauthorized debits can be disputed for up to 13 months. This 8-week refund right, together with the 14-day right-of-withdrawal under French-based consumer protection, must be factored into your settlement and receivables design.

• French Prudential Supervision and Resolution Authority (ACPR) / Bank of France (Banque de France)The SEPA automatic debit scheme is governed by the European Payments Council, and payment and supervision in Monaco follow the framework of France's ACPR/Banque de France. If this page's content differs from actual regulations, the official source takes precedence.