The Netherlands is a market where account-based payments are part of daily life. One-off purchases are handled by iDEAL, which accounts for about 70% of e-commerce, but for subscription and membership-type services requiring monthly recurring billing, the automatic account debit locally known as 'incasso' is a familiar practice. With SEPA Direct Debit, once a consumer submits a mandate (debit authorization), subsequent billing happens automatically.

The top candidates for consideration are Korean businesses running recurring-charge models such as digital subscriptions, subscription boxes, and memberships. However, since consumers can request a refund with no reason given for 8 weeks from the debit date, instant-transfer methods like iDEAL are better suited to high-value, one-off sales.

When a consumer enters their IBAN and electronically submits a mandate (debit authorization), funds are subsequently pulled from the consumer's account at each billing cycle on the merchant's request. The debited funds are received by Hecto Financial in euros (EUR), converted, and settled to the Korean merchant in the contracted currency—USD, KRW, or JPY. The flow for handling failed debits (returns) due to insufficient funds or account errors must also be designed as part of the integration.

Through Hecto Financial, a Korea-based company can consider adopting SEPA Direct Debit-based recurring billing without a local contract in the Netherlands. However, because there are scheme requirements such as mandate text management and pre-notification obligations, prior discussion is needed based on your industry and billing structure.

• Country of business registration

  Confirm contract eligibility as a Korea-based business

• Sales channels

  The integration approach and priority vary depending on your online sales channel mix—owned storefront, open marketplaces, mobile apps, etc.

• Product categories handled

  You must confirm in advance whether your business falls under a restricted category under SEPA Direct Debit's merchant policies

• EU regulatory compliance

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

Euro (EUR) funds debited via SEPA Direct Debit are received by Hecto Financial, converted, and paid to the Korean merchant in the contracted currency—USD, KRW, or JPY. A critical point to note is that consumers can request a refund with no reason given for 8 weeks from the debit date. During this window, even funds already settled can be clawed back, creating receivables risk—so confirm settlement holdback and risk management terms at the contract stage and design your subscription cancellation and refund policy accordingly.

• De Nederlandsche Bank (Dutch Central Bank)Official information on the Dutch payment system and regulatory oversight. If actual regulations differ from the content on this page, the official source takes precedence.